President's Message, September 14, 2012
The past year has been a very productive one for the Company. Each quarter saw continued improvement and growth both corporately and on our projects. The multi-million ounce Borden Gold discovery continued to impress, culminating with an Updated Resource Estimate in April 2012, which saw a significant increase to 5.8 million ounces of gold globally and improved confidence in these ounces and the deposit. The work also resulted in a better delineation of the higher-grade core, which has the potential to dramatically enhance project economics. Our program at Borden continues to add value with further expansion of the gold zone as well as more extensive exploration programs in the surrounding areas.
As the Borden Gold project advances, we have also begun to grow corporately in order to meet the coming challenges associated with a potential development scenario. In June 2012 the Company was pleased to welcome Gordon McCreary as a new Board member, significantly adding to our Capital Markets and corporate development experience. The year also saw Probe build a substantial treasury, raising over $40 million, which will see the Company through the current turbulent markets and allow us to advance the project when many others are forced to slow down. Probe is now in the enviable position of being able to position itself as a growth company in anticipation of more stable markets and strong gold prices.
From a technical standpoint, Probe is moving ahead on a number of its assets. The most notable is the Company's flagship Borden Gold project. We are currently progressing on the Preliminary Economic Assessment ("PEA") which will be a pivotal milestone in the project's development, allowing for a better comparison of Borden to its peers and providing a better understanding of its future scope. As part of the project's advancement, more extensive metallurgical work is underway as well as environmental baseline studies and property acquisition programs. Although we have advanced the Borden Gold project from a grass-roots discovery to a significant resource in a remarkably short time, there is still considerable untapped potential that remains to be assessed, and we will maintain our aggressive pace in evaluating this potential in 2013.
In addition to Borden, the Company has also had good news on its other projects and assets. In July 2012, Agnico-Eagle Mines announced the potential resumption of operations at its Goldex Mine in Quebec, on which Probe maintains a 5% Net Smelter Royalty ("NSR") on a portion of the property. Mining will target the Goldex M-Zone, which provides Probe with most of its value in the royalty. It is expected that mining will begin in 2014, and could potentially provide significant, non-dilutive, revenue to the Company. The Ring of Fire area, host to Probe's Black Creek chromite discovery, is also still active, with Cliffs Natural Resources advancing the adjacent Black Thor chromite deposit through to feasibility and contemplating development. This could add substantially to the value of Black Creek and benefit all Shareholders.
Despite current market conditions, the Company is doing exceptionally well as it continues to add value on the Borden Gold project as well as many of its other assets. During the 2013 fiscal year, our goal is to continue the aggressive pace we have set on the exploration and potential development fronts at Borden, evaluate ways to realize value on Probe's other assets and accelerate our corporate growth and corporate strategy to maximize Shareholder value. The Company currently has three significant assets, all of which we believe are significantly undervalued, and we will be focused on realizing this neglected value and increasing market awareness.
On behalf of myself and the Board of Directors, we would like to thank investors for their past and continued support as we prepare to take the Company into its next phase of growth.
President & CEO