Standing Room Only At Proactiveinvestors’ New York Event Which Showcased Galway, Andover, U.S. Silver And Millrock Resources

by EunJin Um

Proactiveinvestors’ One2One Event at the Millennium Broadway Hotel in New York on Sept 23rd generated a robust turn out of investors keen to hear from four presenting companies that ranged from a pure exploration plays to active miners. The event provided investors exposure to junior resource companies focused on copper, silver, gold and other metals.

In an industry where there is high risk of failure and investment of significant financial resources to fund their mining projects, Galway, Andover, U.S. Silver, and Millrock demonstrated each of their distinctive approach to mitigating financial risk and assuring multiple shots of reaching success for their shareholders.

Galway Resources: (TSX-V:GWY) is an exploration company focused on exploring and developing natural resources in Columbia. Among the company`s interests at the moment are 1,900 hectares of ground in the California-Vetas-Surata gold region and the Reina de Oro gold property - which has been host to an active mine for more than 400 years. The wild card opportunity for Galway is a Joint Venture with Prodeco on the GALCA coal project. Prodeco is funding and managing drilling and feasibility studies at GALCA. Previous petroleum drilling and seismic data has indicated significant coal seams at depth, which Prodeco want to exploit. The agreement will see Prodeco pay US$0.8- per ton up to a maximum of US$70 million for any coal found. The company has a strong cash balance of CAD$8.3 million at the end of June 30th.

Andover Ventures (TSX-V:AOX) also presented in New York following their presentation at Proactive’s One2One Forum in Toronto on Sept 21st. Again, Andover also has strategic approach to their precious and base metals exploration located in both the historic Tintic Mining District of Utah and the Polymetallic rich Ambler Mining District of Alaska. The company has just raised CAD$3.8 million to strengthen their balance sheet and saw management increase their ownership to 35%. As part of their core strategic philosophy of mitigating any risk to Andover shareholders, the Company has inked a JV with Kennecott Exploration, a subsidiary of mining giant Rio Tinto (LSE:RIO, NYSE:RTP). Andover has a 45% interest in JV, which covers the Big Hill project, located in Utah.

U.S. Silver Corporation (TSX-V:USA) is more mature silver mining company that owns the Galena Mine in northern Idaho’s historic Silver Valley. There is about 21 million ounce of silver proven and probable reserves. The company also owns two additional mines, Coeur and Caladay, and rather uniquely, the three properties are connected by tunnels. In addition to the current silver production, there are large bodies of ore that could potentially provide current and future growth production. The Company’s target for this year is to produce 2.7 million ounces of Silver. The Company expects cash costs to come down due to increased production with future spending focused on developing and improving infrastructure.

Millrock Resources (TSX-V:MRO) is purely an exploration company. The goal of the Company is to find significant ore bodies of gold and sell them on to larger companies looking for advanced exploration plays with development potential. Millrock currently has 12 active projects in Arizona and Alaska. Millrock reduces their risk in mineral exploration through Joint Venture agreements. By securing partner to fund the expensive and high risk drilling, this strategy has enabled Millrock to be well financed through income they earned from option payments and management fees. The company`s core strategy is ‘Operation Diversification’ to mitigate potential risk and to expand into multiple mining projects with Joint Ventures to offset investing in a single project and securing financial staying power.