Far Northern Resources' golden potential

Far Northern Resources’ golden potential

Paul Sanger: I'm Paul Sanger for the Finance News Network and today I am talking to Far Northern Resources. Far Northern Resources, trading under the ASX code FNR, with a market capitalization of around 6 million is an advanced Brisbane-based gold exploration and base metals company. They have three exciting projects across Northern Queensland and the Northern Territory. The two tier one projects, Empire and Bridge Creek, are significantly advanced and so the mining leases are drill ready and both hold JORC-compliant resources. Joining me today is Far Northern Resources Chairman, Rod Corps. Welcome Rod.

Rod Corps: Thanks very much Paul. Thanks for having us.

Paul Sanger: Good to have you here, Rod. Rod, let's just start by talking about the exciting rock chip results from the Empire project that the company released on Monday. Maybe you could start by talking us through the assays and the gold and copper results that you received.

Rod Corps: Sure. Obviously upon receiving the assays we had to collate them, of course, and they were going through the IPO process. So to receive results in these areas that were so high in value in terms of with copper especially, and gold, it was very exciting for us to see these results.

That wouldn't be the center of where we think the main ore body will be. So now, obviously, going forward we are very quickly, now that we are obviously funded, moving forward to, obviously, explore these results and obviously looking to do straight up 3DIP very quickly. Obviously there's a wet season that we have going on up there, but in terms of the 3DIP, that's done on the back of a light vehicle, so to speak, and four-wheel motorbike. So any sort of wet that we still have there, even at the moment, we feel isn't going to be a hindrance to us getting that IP done, which will get us a better understanding of… the geology there, obviously, which we'll talk about going forward as well.
As I say, they're exciting results but I think there's much more to come here. They were rock chip samples. But it certainly has extended the known mineralization, as we mentioned, and we are looking forward now, to in-depth and getting down to depth there and getting a lot closer to what we feel is certainly there.

Paul Sanger: Got you. And am I right in saying that the results have also extended the strike of the known mineralization and how big could this strike deposit be?

Rod Corps: And again, we could talk about that going forward as well, but as we mentioned, it's 750 meters now, but obviously we've still got, going forward in terms of with the geology, we've got an east-west fault line that's running right through the ML there and we've got a northwest shear zone, as well. In the announcement, as we mentioned, those two very big breccia targets as well. So obviously the IP will cover this, of course, going forward and then we'll obviously work out the drill program. We could be talking about something that, still at the moment, has all the potential in the world. So I don't want to… I don't like to use cliches here like, how long's a piece of string? but we've certainly got something here that can look very significant and promising.

Paul Sanger: Yeah, I got you. And look, as you mentioned, obviously the IPO happened last Friday. You've now got the necessary funding to take the next steps. So let's just talk about what are the drilling plans for Empire going forward and what is the timing and when can we expect the first set of results?

Rod Corps: Yeah, exactly. And we did touch on this a little bit on our release slightly, but as we say, and we've always been maintaining when we're going to list, which obviously gives us access to our funds. And we have confirmed now, we have availability of rig and we know that we can actually have a rig on the ground there, in circa, three to four weeks. It's a little different over here in Perth, where I'm based at the moment and the companies here, it can take some time. But there's good rig availability still out of Northern Queensland and obviously out of the Northern Territory.

So we believe that running the IP, obviously collating that information as well, which can be done fairly quickly, we've obviously got a geologist team, so we're hopeful that we can be drilling in this quarter.
And again, in terms of ALS analysis and things like that, there seems to be… The timeframes between what, potentially say, we're used to in WA, whereas opposed to Queensland, they seem to be quite a bit faster and slightly cheaper, as well, which is always good.

Paul Sanger: That's what we like to hear. And Empire looks like it also has a breccia pipe. This could be a significant amount of copper. How do you see this evolving and what drilling plans do you have for the breccia?

Rod Corps: Yeah. Well what we're going to do is, and I think if the investors and people want to look at the release we made, there's obviously two breccias there that form part of that ML that we've got. So what we would start off doing then, which is a similar program that companies or deposits like anywhere from your Cloncurry up to Mount Isa, where they've obviously had these same structures, they've started out by drilling around the edges of the breccia there. Because it seems that the breccias have what is a very rich rim of copper-gold there that's obviously formed over the billion-and-a-half years in these rocks. So that would be, obviously, following on from the IP, that would be where we'd be starting on those breccias, as well. To have a look at that because that's where, as I say, where there could be a very big platform for a sizable ore body coming forward.

But all in time but we certainly, we've got the money there. As a company, it's very exciting and there's no point in, and I don't want to sound hasty here, but we've raised the money to go and drill something and try and find a significant ore body here. So that's the aim for us.

Paul Sanger: And I'd have to say the timing of obviously IPO-ing last week on the ASX, a lot of focal news on the copper price and the gold price. Big brokers upgrading both their short and medium and long-term targets so the stars are aligned. Your assay results have come through, from a timing perspective, it couldn't look better for you.

Rod Corps: Yeah, exactly. I think so. And look, I think with Far North it's about getting out now and talking to investment public and everyone else, so that they know what's going on there. And nothing will do that more, I think, with successful drill campaigns. And I always say in these things that people who want to invest in something, they want to know that there's news flow and I think that, certainly over the next three to six months, that Far North will be delivering some pretty healthy news flow.

Paul Sanger: How does Empire now compare to some of the other nearby projects to you?

Rod Corps: Well obviously the whole region there, Mangana obviously has been there, and partly the reason, and Cameron who's been obviously very involved with this company and put together a lot of these assets over the last seven years. And going forward, it covers a lot of our needs and requirements in terms of where we are in the region and, obviously, Northern Queensland in terms of that copper-gold. And those big quartz projects from, as I say, your Cloncurries all the way up to Mount Isa sits in there, which has been a big find. Mount Leyshon , they're the similar type of ore bodies we are looking for. And obviously historically it's been a very, very positive, proven, reliable sort of deliverance of ore in these type of structures. So I think we're, in terms of looking at a neurology subject, if that's the question, I think we're certainly in the right area.

I mean there's a super-highway that runs very much straight past Empire. We've got power everywhere, there's township, there's facilities, there's obviously a plant, previously which Kagara had, which is relatively underused, and it's been on care-and-maintenance. That's just come out of administration now and is owned by a company that is clearly looking for as much ore as they possibly can, to process through this project. And that is for us, as I say, the plant that's there, is 20 kilometers away. You couldn't get a better situation to be honest. Everything is very much there. Accommodations are there. It's very good.

Paul Sanger: Rod, many thanks for your time today and we look forward to getting back soon to hear about your progress over the coming weeks and months.

Rod Corps: Absolutely, absolutely. Looking forward to it as well. And to say yes, can't wait to be delivering to the market hopefully what's going to be some pretty exciting results.

Paul Sanger: Rod, absolute pleasure. You have a great day.

Rod Corps: Appreciate it. Thanks, Paul, you too.