Mogotes Metals (TSXV:MOG) - Three Porphyry Bets Target Year-Round Copper-Gold Catalysts

Allen Sabet (0:00)

My name is Allen Sabet. I'm the CEO of Mogotes Metals. We're a Copper Gold exploration company with three projects globally that are high potential exploration projects.

Crux Investor (0:09)

And I could see you. In fact, great to see you, because we're in live and in person for a change, right?

We were here last year, and we were obviously up in Beaver Creek. There's a lot of companies coming through, a lot of investors coming through, and we're catching you early before we get exhausted by it.

Allen Sabet (0:25)

Wacked in the face by 80 meetings.

Crux Investor (0:27)

That's good, that's good.

Look, we only spoke a week ago or so, and I think I said to you then, look, what I'd really like to do is understand a little bit more detail on the kind of Kazakhstan, the Montana projects, because we talked at length about Filo Sur and the potential that you're seeing there. Before we do that, can we just talk about how you go about finding additional assets? You've got three quite decent assets in the portfolio now. How do you go about finding them? What's the vetting process?

Allen Sabet (0:57)

Well, we had specific criteria in mind. That helps, because otherwise we'd be looking at everything. But to step back and say high level, what are we looking for?

In our case, we were looking for advanced projects that have high exploration potential. And jurisdiction is a second filter.

Crux Investor (1:15)

Can I ask, what do you mean about that? Those two things, advanced but exploration potential.

Allen Sabet (1:21)

It means that we see a lot of exploration potential in greenfield projects with surface sampling, but no drilling. And those are interesting projects, don't get me wrong. In the case of Mogotes, however, what we were looking for was projects that have had exploration drill holes that have hit significant mineralization, already drilled. So there may be a sniff or a significant number of them, but that was one of the starting criteria. So you know that you're in a mineralized system that has been drilled, and you can expand upon that.

And that is how we ended up with these two projects. They, in fact, hit another criteria, which is 100 plus meters of significant 1% plus Copper equivalent mineralization.

And in the case of Montana, we have over a thousand meters of significant mineralization, not at 1%, but at .8, 75%, over a thousand meters. And in Kazakhstan, we almost hit the same a thousand meters, roughly, 950, of .9, 85% Copper equivalent. So these are huge numbers. These are numbers that if they were press released, they would be making waves. And so you can look at those and you can say, look, this in today's market, if it was listed on a standalone basis, it would be worth 100 million, 200 million, and strike a deal for a fraction of that, then you have a good project.

Crux Investor (2:37)

But this is the bit I don't get. Most CEOs I speak to are trotting around the world, continually looking for good projects. They look at 50, 100 projects.

I've looked at 200 projects now, rejected them all. How have you found the kind of profile that meets your vetting criteria so quickly?

Allen Sabet (2:56)

I'll let you in on, I don't want to be too judgmental, but the way that some may assess projects is different from others.

I have seen, at least in my life, sharing the company's vision with investors, there's a number of investors that would operate based on consensus. They'll make a couple of phone calls and ask a couple of trusted friends, what do you think about this company? They'll share their thoughts, the investor will make their decision based on those thoughts and move on. The project evaluation space is not that different. A vast majority would look at it, seek some opinions, and that would be it. It's very few, I would say, in the evaluation that kind of dive deeper and look for the potential. If you're just looking at what's exposed, there's always something wrong, right? There's something wrong with the project. It's the metallurgy, it's this, it's the size, it's scale, it's Kazakhstan. So you end up with red flags lists that rule out everything and then leave nothing on the table. You have to be able to look beneath that and try to understand where the opportunity is. That's what entrepreneurs do. You find an opportunity that no one else has really seen, which means you got to think different. If you're thinking different, you're already putting yourself aside from the other 90% of people. So now you're competing against 10%.