Salazar Resources (TSX-V: SRL) - Because You Made Me Think About the Times..., by @CruxInvestor

Interview with Merlin Marr-Johnson, Director of Salazar Resources (TSX-V: SRL).

We're back with another interview with Salazar Resources, an Ecuadorian/Colombian exploration and project development company that offers investors exposure to gold, copper and silver resources, and copper-zinc VMS deposits. This years Exploration is fully financed, courtesy of a JV with Adventus Mining Corp.

Salazar Resources started the year with a share price of CAD$0.11 but has risen to CAD$0.21 today. The company has a market cap of CAD$26.56M.

A common theme amongst smaller junior mining companies is the lack of a coherent business plan; it usually goes: we're going to acquire a licence, we're going to drill it, we're going to see if it's worth drilling further, then we're going to drill again. Salazar Resources has a refreshing approach. It has a clear Business Plan, has structured a financing plan via a farm-out, consultancy fees and leasing of 3 fully owned drill rigs. They currently have c.$5M in the bank. With an additional recurring income and an extremely low G&A. Marr-Johnson says that their exploration program for this year is consequently fully funded.

The partnership with a larger mining company, Adventus Mining Corp., looks promising on paper and means Salazar Resources expects no dilution in 2020 for shareholders.

Salazar Resources has just farmed out its first gold-copper asset, the El Domo Curipamba VMS (Volcanogenic Massive Sulfide) ore deposit discovery. It now looks to employ a cookie-cutter approach to continue the development of its portfolio of Ecuadorian and Colombian mining assets. The cash burn is minimal and the numbers look attractive.

Marr-Johnson himself has an impressive resume, with recent experience at Uranium producer and zinc revenue generator Global Atomic Corp. Ex-Newmont country team leader and Salazar Resources CEO, Fredy Salazar, is a vastly experienced Ecuadorian geologist. He is the go-to geologist for the many majors in Ecuador.

Marr-Johnson is keen to state the respect Salazar Resources' name holds in Ecuador, both locally and nationally. By ensuring they work with local communities to implement sustainable mining practices, and maintaining a good relationship with government officials, Salazar is a respected name in the up-and-coming mining jurisdiction of Ecuador. Investors are taking them much more seriously than most juniors; should we too?

Investors can also see growth from the seemingly reliable development of existing copper/gold/silver/zinc assets, but what about the future? Marr-Johnson states Salazar Resources always has its eyes open for potential acquisitions that could add value for shareholders.

This appears to be junior mining done right: something of a rarity in a market of big promises and disappointing delivery. However, they need to keep their feet on the ground. While the evidence appears to be positive, let's see how Salazar delivers over the coming months.

What did you make of Merlin Marr-Johnson? Has Salazar Resources impressed you with its gold/silver/copper/zinc discoveries? What about the business plan? How do you rate Ecuador and Colombia as mining constituencies?

Interview highlights: