Broadway Gold Aims To Develop Project In Historic Montana Mining Region
(Kitco News) - The new kid on the block is working on a mining project in an old, historic neighborhood.
And so far, officials are encouraged by some of the early exploration results, said Duane Parnham, president, chief executive officer and one of the directors of Broadway Gold Mining Ltd. (TSXV: BRD; OTCQB: BDWYF; Frankfurt: BGH), in an interview with Kitco News.
Broadway, which was a newly listed company in October 2016, is working to develop its 100%-owned Madison copper-gold project in the legendary Butte-Anaconda mining region of Montana, from which hundreds of millions of dollars worth of metals have been unearthed. Some mining still continues in the general vicinity, including Barrick Gold Corp.’s Golden Sunlight Mine, from which Barrick anticipates 35,000 to 50,000 gold ounces this year.
Madison itself dates back to the late 1880s, and some 140,000 ounces of gold were mined, Parnham reported. Broadway says it has identified copper-gold porphyry targets, with two drilling phases in 2017 returning high-grade gold and copper intersects from shallower skarn zones. The company conducted a seven-hole underground test program.
Broadway has done two phases of surface drilling and one underground drilling program since acquiring Madison.
“We’ve returned some pretty exciting results,” Parnham said. In fact, Broadway said in a fact sheet, the results include “some of the highest grades intercepted in the western United States in recent memory.”
Underground drill results listed by Parnham include an intercept of 110 feet at 1.6 grams of gold per tonne and 1% copper, 99 feet of 24.5 g/t gold and 0.4% copper, and 36 feet with 41 g/t gold and 0.4% copper. Surface results included 162 feet with 1.7% copper, 100 feet with 1% copper, and 78 feet with 1.8 g/t gold and 1.2% copper.
As a young company, Broadway has been raising capital, coming up with $5 million to date. The company initially worked to verify some of the historical work done on Madison, while trying to identify the copper in the upper skarn zone. The previous operators had been focused only on gold, Parnham said. Broadway is now embarking upon a third-phase surface-drilling program to test multiple high-priority targets, with one of the goals to identify copper porphyry potential.
“We could potentially put together a small resource together right now, but the upside exploration is very attractive,” Parnham said. “That’s what the company is going to continue doing -- exploring.”
Down the road, the company may explore options such as some form of merger or acquisition, joint venture or bringing in a senior mining company as mine operator. Parnham described some of the senior producers as “starving for feed” right now, commenting that Broadway already has received some letters of interest.
“The current management team is geared more toward building a business and pursuing a development opportunity,” Parnham explained.
The CEO said he considers the current environment – including prices -- to be generally favorable for such a project. The business tends to be cyclical and has gone through a “prolonged downturn,” he said. However, he is now generally upbeat on the markets despite some price weakness early in the week.
“Overall, I believe that we have entered and are in the very early stages of a commodity super cycle,” Parnham said.
The Trump administration wants to develop infrastructure, plus enact deregulation that makes it easier to start projects, Parnham pointed out. As an industrial metal, copper may benefit from infrastructure spending, while gold could be sought as a hedge against inflation, he continued.
“Having a project that is both copper and gold…in the United States is an ideal project,” Parnham said.
Still, he cautioned, mining projects are never a cakewalk.
“Even though Trump says we’re going to deregulate and make things easy, I don’t believe that is going to be a paved highway to getting a project easily to that stage,” Parnham said. “Mining inherently has its issues with the environment and these things. But the region [Montana] is not insurmountable because of its historical mining past.”