Tectonic Metals - CEO Year End Review 2020
December 30, 2020
Dear Tectonic Shareholders,
It would be an understatement to say that 2020 has been a challenging year for humanity. Not only have we collectively confronted the greatest pandemic in over one hundred years, but we have also endured the uncertainty of a contentious election in the US against a backdrop of social upheaval, fraught global trade relations and the economic uncertainty that comes along with these events.
The COVID - 19 pandemic itself has touched and challenged all of us in one way or another. We have all had to make personal and professional sacrifices over these long hard months, but with the advent of new vaccines and a better awareness of how to “flatten the curve”, we approach 2021 in a more hopeful frame of mind. For many, however, the pandemic’s impact has been felt in the most painful way imaginable, through the loss or suffering of a loved one or living through the uneasy separation that lockdowns and social distancing have required of us. Economic loss is just the tip of the iceberg for many. To all of you, I would like to express my sincere sympathies on behalf of everyone at Tectonic.
The human cost of the pandemic has also reinforced the fact that at Tectonic everything begins with our people. At the board level, we are fortunate to have attracted industry-leading talent from a variety of professional backgrounds to join us. As CEO, I have been the beneficiary of their insights, experience and guidance. Operationally, as a lean organization that is focused on delivering results, everyone is working towards the end goal of finding a mine that brings benefits to all of our shareholders and stakeholders. Our ability to operate successfully and safely across an international border that was closed for most of the exploration season is a testament to our commitment to our shareholders, and I am extremely appreciative of the efforts and contributions of all our employees, partners and contractors. Without your hard work, Tectonic would not be possible. Thank you.
The Year in Review
Despite the myriad challenges it presented, 2020 was a milestone year of growth for Tectonic as we continued to advance our properties in Alaska while finding gold and producing compelling new results from our Tibbs and Seventymile gold projects. In addition, we deepened our partnership with our now largest shareholder, Doyon, Limited (“Doyon”), one of Alaska’s largest Native Regional Corporations and the largest private landholder in the State of Alaska and continue to relentlessly pursue the “Shift in the Game” that makes our business model and approach to exploration unique. All the while, we have remained focused on execution and enhancing the policies, processes and systems that enable us to operate efficiently and effectively while delivering results in the field.
Tibbs and Seventymile Gold Projects
Our focus in 2020 was on executing reconnaissance drilling programs on our gold properties at Tibbs and Seventymile (the first drill program in over 20 years) both of which came in under budget with no health or safety issues. At Tibbs, we succeeded in drilling high-grade gold while hitting gold mineralization in every hole at the property’s Michigan Zone and identified new, kilometre-long Pogo-like soil anomalies for follow-up. In the process, we transformed Tibbs into a district-scale opportunity through the acquisition of native-owned land at Carrie Creek that adjoins Tibbs to the north and south. We also discovered gold at our Seventymile project validating the shear zone gold model and expanding on historical results. The Seventymile Gold Project is a 40km long, 157,000-acre greenstone belt. Some of the most prolific gold deposits globally, such as the Abitibi gold belt, are situated within greenstone belts, and it is extremely rare to control and explore such an extensive and promising property.
In 2020, we continued to grow our portfolio in the Goodpaster Mining District, host to the high-grade Pogo Gold Mine, through the acquisition of the Mt. Harper and Carrie Creek properties as well as the staking of the Maple Leaf property. In aggregate, this adds an additional ~77,000 acres to our portfolio bringing our total exploration opportunity to ~433,000 acres. In addition, Tectonic acquired a comprehensive Goodpaster Mining District dataset – a strategic geological asset in a state that does not publish a publicly available mineral database. We have already begun to work on these newly acquired properties and have in total completed five surface exploration programs across five of our projects. By building out our presence in the Goodpaster and growing our understanding of the region’s geology Tectonic is positioning itself for future success.
Tectonic was also active in the capital markets over the course of 2020, raising $7 million under very challenging pandemic circumstances. We are most proud of the fact that that Doyon decided last April to take a direct position in Tectonic through a $2 million strategic investment in the company. In doing so they have elevated an already strong partnership to another level by becoming our largest single shareholder. We also shared the Tectonic story extensively over the course of 2020, participating not only in investor-focused conferences, but also show-casing our properties at technical events such as the Alaska Miners Association conference in October. Finally, we are now traded on the OTCQB under the symbol TETOF and our achievement of DTC eligibility is further evidence of our commitment to playing big and reaching a larger North American audience.
Sharing the Tectonic story
Communication is more important than ever in a time when personal interaction, more often than not, occurs virtually. During 2020, we increased our social media presence, hosted numerous webinars and made greater use of our email distribution list to share news and developments. When you opt in to receive updates from Tectonic, we respond with an email headlined “Welcome to the Tectonic Family!”. Under the current conditions, that sense of belonging is more important than ever, and we want all of our shareholders and stakeholders to know that we remain laser-focused on our mission to become the world’s leading junior mineral exploration company while never losing sight of our core values of integrity, honesty, transparency and fairness.
Understanding “The Shift”
I am often asked what makes Tectonic different and what “A Shift in the Game” - or “The Shift” as we call it - means. The Shift is both a mindset that asks how we can do things differently while challenging ourselves to be better as well as a way of operating; it is about achieving operational excellence, living our values and building a robust corporate structure. Whether negotiating innovative exploration-to-production agreements across all our projects or bringing new approaches and models to our exploration process, Tectonic is always looking for creative and unique ways to add value.
Our people are at the heart of The Shift and I have often described Tectonic as “a company built around a team”. By putting people before projects Tectonic has prioritised building a company for the long term focused on managing the risk/reward equation and executing rather than adopt the “One and done” approach of many junior gold exploration players. Tectonic was built from the ground up with thought, intent, and design for the long term. We are centered on people and partnerships and that philosophy is embodied by The Shift.
While we have been pleased with our performance in the field, we are obviously aware that this has not been reflected in our share price. We continue to engage with investors and make ourselves available to shareholders, and I encourage you to reach out to me via our website and/or our investor relations contact, Bill Stormont. If you have not done so already, please sign up to receive exciting Tectonic information, such as press releases, and follow us on social media. We endeavour to be as transparent and open as possible and these channels provide a means of staying up to date with developments at Tectonic.
On behalf of the board, management team and everyone at Tectonic I would like to thank you for your ongoing support. Despite its challenges, 2020 was a year of growth and achievement for Tectonic and we have emerged stronger and more confident then ever in our ability to succeed in the face of adversity. We look forward to another year of partnership and progress in 2021.
President and Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements and Historical Information
Certain information in this news release constitutes forward-looking information and statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions and include, but are not limited to, statements with respect to the potential for mineralization at Tectonic’s projects and any future exploration activities. The Company makes no representation or warranty regarding the accuracy or completeness of any historical data from prior exploration undertaken by others other than the company and has not taken any steps to verify, the adequacy, accuracy or completeness of the information provided herein and, under no circumstances, will be liable for any inaccuracies or omissions in any such information or data, any delays or errors in the transmission thereof, or any loss or direct, indirect, incidental, special or consequential damages caused by reliance on this information or the risks arising from the stock market.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental and other approvals and financing on time, obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Tectonic, and there is no assurance they will prove to be correct.
Although Tectonic considers these beliefs and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements necessarily involve known and unknown risks, including, without limitation: the Company’s ability to implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditions; adverse industry events; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks.
Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Although Tectonic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Tectonic does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
[Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.]