Resource World Magazine

56 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 7 MINING Glen Eagle Resources — gold and industrial minerals an attractive asset mix by David Duval GLEN EAGLE RESOURCES [GER-TSXV] is one of only a few junior mining companies with interests in two asset classes namely gold and phosphate – an arguably unconventional asset mix for a TSX-listed company. On the gold side, the company has largely segregated itself from the pack of junior explorers on the TSX by acquiring custom mill- ing capacity with strong upside potential in the Central American country of Honduras where a decade-old free trade agreement with the US is helping foster foreign direct investment. The acquisition of its gold plant in Choluteca involved the purchase of a 100% interest in Cobra Oro de Honduras S.A. whose processing facility provides custom milling services to several small producers in the region including two registered small scale mining cooperatives. In May 2017, Glen Eagle announced the acquisition of the La Cobra concession near the Pan-American Highway approximately 45 minutes from its milling facility. La Cobra was the largest oper- ational underground mine in Honduras for the greater part of the last century. Preliminary sampling has returned high-grade gold values from the mine and a NI 43-101 compliant geological report is being prepared. Cobra Oro has been producing gold on a commercial basis since April 2017 following a significant plant expansion that will likely not be the last. According to Glen Eagle, the project was com- pleted while covering its on-site capital expenses from existing cash flows. The program included the relocation of both the entire crushing system and electrical power grid infrastructure. The peak in construction was reached with the installation of a cone crusher as an add-on component to the actual crushing circuit. A new ball mill is set to arrive on site in July which will complete the last and third expansion phase as no further devel- opment work is planned for remainder of 2017. The ball mill is set to process 120 tonnes per day. During April-May, Cobra Oro sold approximately $300,000 in gold doré bars despite the intense on-going work in the gold pro- cessing plant. "Mid-June 2017 will be remembered as a turning point for Glen Eagle," said CEO Jean Labrecque. "This turning point will be marked by two fundamental changes: the acquisi- tion of La Cobra (one of the most sought after mining concessions in Honduras) and a profitable operation propelled by our latest plant expansion." Cobra Oro's gold processing plant is located in an area known for its work force and safe environment. The plant operates in a free zone adjacent to the Chamber of Commerce building, Pepsi's bottling plant and the Pan American Highway. Mining is hardly new to Honduras which is best known for its El Mochito Mine where production began in 1948 and has con- tinued for almost 70 years. Toronto-listed Ascendant Resources is currently optimizing production at the El Mochito zinc-lead- silver mine. Glen Eagle notes that no mining concessions have ever been confiscated in the country's entire history and a new mining law brought into force in 2016 has further advanced protection for mining investments in the country. In terms of market recognition, phosphate remains somewhat of an outlier in the commodities space even though the global phosphate market was valued at approximately $67.3 billion in 2015 and is projected to reach $75.2 billion by 2021. Interestingly, that lack of market recognition might work in the company's favour given the dearth of investment opportunities in this par- ticular market sector – not to mention fewer competitors. In February 2015, the company announced the results of a very successful drilling program on its Moose Lake phosphate project located near Highway 172 approximately 100 km north of Chicoutimi, Québec. A total of 3,300 metres was drilled under a program designed to deepen 11 holes drilled previously in 2012 that did not cross at depth the entire phosphate-bearing unit. The latest drill program successfully increased the phosphate intercepts at depth in every hole, confirming the main phos- phate-bearing deposit with a greater degree of certainty. With its Honduran gold project now a priority, Glen Eagle at last report, was planning to make a modest expenditure of $50,000 in 2017 on its Moose Lake property. On July 10, 2016, Glen Eagle signed a binding agreement for the sale of its Authier Lithium project near Val d'Or, Québec for a consideration of $3,925,000, thereby recording a profit on the sale of $1,694,583. The funds were allocated to increasing gold production at Cobra Oro which the company proposes to do on an incremental basis. n The Glen Eagle gold processing plant in Choluteca, Honduras. Photo courtesy Glen Eagle Resources Inc.

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