Few junior exploration companies are flexible enough to work across a range of commodities, geological regions and deposit types, but this adaptable business model is paying off for dynamic, technology-driven newcomer, High Power Exploration (HPX).
HPX was incorporated back in 2010 and has since grown to a full time staff of 12 people, generating in excess of $70 million dollars in value using what CEO, Mark Gibson, calls the HPX approach.
“HPX is different because it does not have a particular geological focus. We look for opportunities where we can leverage our technology,” explains Mark.
“Most exploration companies have a geological concept and they follow that concept. We don’t follow a particular type of geology, we look more for where we can find attractive targets that other people can’t,” says Mark.
“The HPX technology cluster includes the hardware to acquire IP and EM data, and advanced software for modelling and inversions, survey design and data acquisition system, processing and interpretation,” says Mark.
Furthermore, HPX has built a world-class team, with decades of successful global experience.
“This team is one of the best in exploration today, combining deep technological understanding and experience, with on the ground execution experience with a variety of deposit styles, in many parts of the world,” says Mark.
Dynamic and ready to deal
HPX is a young and dynamic company ready to change and evolve depending on the situation. A series of rewarding deals in the last few years have placed them in the enviable position of being able to do deals as privately-owned HPX or through stock-market-listed subsidiary, Kaizen Discovery.
“Our principal focus is the quality of the opportunity. Our target is to secure good ground, cheaply,” says Mark.
So far they are succeeding at this target, with the latest deal, involving Australian company Apollo Minerals, announced in February 2014.
“The recently-announced Apollo deal involves HPX putting $1 million into Apollo itself, then spending $1.7 million on Apollo’s 100%-owned licences in South Australia, in the Gawler Craton,” explains Mark.
“The Apollo licences are some of the best licences we’ve seen in that part of the world. They have the geophysical signatures we look for, including strong magnetic and gravity anomalies, similar in scale to anomalies like Olympic Dam and Carapateena, both world-class IOCG deposits.”
HPX have also been working with another Australian company since early 2013 when they joined forces with Clancy Exploration to explore the Fairholme licence block for copper and gold in central New South Wales, near the Cowal gold mine.
HPX spent $1 million on exploration at Fairholme, including deploying the Typhoon high powered transmitter in Australia for the first time.
“Halfway through that work program, we announced the Kaizen deal,” explains Mark.
The Kaizen deal involved using some HPX projects, technology licences and cash to buy 85% of Vancouver-based company Concordia. HPX has since restructured Concordia, and since that deal was announced and closed, the share price is up nearly 30%.
“It started off trading at 60 cents and has been as high as CDN$1, so we’ve seen a good uplift from that,” says Mark.
High risk, high reward
HPX is facing squarely up to the fact that explorers need to search deeper and push into areas buried under cover.
“In areas like Australia, Chile, Peru and parts of Canada there is a lot of attractive geology under surficial cover. Those are the areas that we like because other people are ignoring them or can’t explore them effectively under cover because they don’t have that technology access,” says Mark.
“We realise that it is a higher risk strategy but we’ve got the technology, we’ve got the backing to be able to pursue that strategy.”
“We’re sharing the benefits of the latest technology with existing mining companies to find the large-scale deposits we’ll be mining in the future,” says Mark.
“We’re looking to partner with exploration companies who will benefit from our approach.”