Transcription of Finance News Network Interview with DGR Global Limited (ASX:DGR) CEO, Nick Mather.
Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me today from DGR Global Limited (ASX:DGR) is CEO, Nick Mather. Nick welcome.
Nick Mather: Thank you.
Lelde Smits: Firstly, could you introduce us to DGR Global?
Nick Mather: The Company listed as D’Aguilar Gold Limited in 2003 and we changed the name of it to DGR Global very recently to reflect our global approach to resource exploration in a number of different commodities in a number of countries.
Lelde Smits: And what is it that DGR Global does?
Nick Mather: DGR Global is a diversified resource project generation company. As Ford motor company produces cars, we produce resource companies that go out and find world class resource projects in a variety of different commodities. Principally gas and gold, we are associated with at the moment.
Lelde Smits: Let’s look at the investment side of the business. How do you identify projects to invest into?
Nick Mather: We have a long look at what the long term global commodity trends are likely to be, as a result of global economic growth trends around the world. And we are particularly interested at the moment in energy and iron ore.
Lelde Smits: And how does DGR Global deliver value through these investments?
Nick Mather: We start off by pegging very large areas at a grassroots level. All it costs us is the application fees for the exploration licenses and these are generally over areas that have been overlooked by major companies. The geology has been poorly understood previously and for all of those reasons, we can get in very cheaply, discover a mineralised system or a petroleum system and have the value of it rerated very significantly, in a listed capital market.
Lelde Smits: Turning to your subsidiaries, five of which are listed on the ASX. What is your stake in each and could you detail their focus?
Nick Mather: We have a 25 per cent interest in Armour Energy Limited (ASX:AJQ). Armour Energy is looking for world class conventional and shale gas and oil projects in the Northern Territory, and in the onshore Gippsland Basin in Victoria. We have a 30 per cent interest in Mount Isa Metals Limited (ASX:MET) which has an enormous and very promising gold exploration project on five key targets, in Burkina Faso in equatorial West Africa. We have a 27 per cent interest in Navaho Gold Limited (ASX:NVG) which is looking for Carlin-style gold projects in Nevada in the United States of America.
We have a 57 per cent interest in AusNiCo Limited (ASX:ANW) which was looking for low grade nickel ores in southeast Queensland, it is currently reassessing its project focus. In an unlisted sense, we have a 60 per cent interest in IronRidge Exploration which is looking for iron ore projects in Africa. A number of very promising iron ore projects that we’re working on. We also have a 12 per cent interest in AIM, United Kingdom listed Solomon Gold (AIM:SOLG) which is looking for gold in the Solomon Islands and in Queensland, and recently with the appointment of its new executive in Ecuador in Central America.
Lelde Smits: Recently listed Armour Energy has just reported drilling results. What has been uncovered?
Nick Mather: Armour Energy in the first two wells that it’s drilled since it was listed has made a tight gas and condensate, that’s light liquids, in a well Moreys-1 in the Western Otway Basin in western Victoria. And in the Northern Territory our first well in the McArthur Basin, Cow Lagoon-1, has intersected a gas show in the Reward Dolomite at the top of the prospective section in the Batten Trough of the McArthur Basin.
Lelde Smits: And why are these results significant?
Nick Mather: In the Moreys-1 well in the Otway Basin, we discovered tight gas and condensate, that’s a light liquid or light oil, in the Eumerella formation. This has potential alumina implications and the application of lateral drilling and fracking, or cracking techniques means that we should now be able to get this gas and oil out of these tight, previously unproductive rocks.
Lelde Smits: And how about the significance for the Northern Territory’s project?
Nick Mather: In the Batten Trough, our first well Cow Lagoon-1 has encountered a gas show, which we were able to flare in the Reward Dolomite at the top of the prospective section in the McArthur Basin. This is some 90 kilometres north of the previous gas and condensate flow, which was encountered in 1979. And it has some huge implications from the point of view of just how extensive this very exciting new gas and oil province might be.
Lelde Smits: Finally Nick, what are DGR Global’s main priorities as we step into the second half of 2012?
Nick Mather: Second half of 2012, DGR is going to be providing ongoing support for Malcolm Norris and his team of explorationists in Sol Gold, which has been renamed from Solomon Gold. And they’re going to be focusing on a new project with some very interesting, high tonnage potential in Ecuador. We’re also going to be working on the revitalization of Navaho Gold and its projects in Nevada in the USA looking for Carlin-style gold, and revitalization of AusNiCo.
Both Navaho and AusNiCo are currently listed and we’ll be providing support as we do, to make sure that those companies become listed successes. We will also be providing ongoing support to Peter Williams as the executive of IronRidge Resources. And he’s working on getting that company funded and listed, and its tenements in Africa for iron ore exploration granted.
Lelde Smits: Nick, thanks for introducing us to DGR Global.
Nick Mather: Thank you.