READ TIME: 10 MINUTES
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Norsemont Mining is advancing the past-producing Choquelimpie gold project in northern Chile, a high-sulfidation epithermal system, where the company also expects copper porphyry potential at depth. In this conversation, I asked CEO Marc Levy about the company’s financial structure, insider ownership, historical project context, business strategy, drilling and metallurgy plans, marketing approach, permitting hurdles, community relations, and more. Levy provided detailed commentary on his own financial exposure, plans for future funding, and ambitions to either grow and exit the project or potentially fast-track limited production from surface dumps.
TL;DR
- 1. Norsemont Mining is advancing a past-producing gold project in Chile with an existing resource and potential porphyry upside.
- 2. CEO Marc Levy says he’s personally invested $9 million into the company and remains the largest shareholder.
- 3. The company aims to grow its resource base from 2.7 million to potentially 7-9 million ounces through a new drill campaign, although that work is not fully-funded.
- 4. Plans are underway to monetize surface dumps through a pre-feasibility study and potentially fund future work via gold streams, silver royalties, or other non-dilutive mechanisms.
- 5. Permitting, community support, and access to infrastructure appear in place, but long-term project viability hinges on securing near-term financing and managing jurisdictional risks such as glacial regulations.
Is Marc Levy the Right Person to Lead Norsemont Mining?
Marc Levy, CEO of Norsemont Mining, brings a background in resource development and capital markets, with two major South American copper project exits in 2011. Both transactions were structured during a more favorable commodity cycle and involved assets in Peru. Levy told me that these were “big exits,” and claims shareholder returns were strong across price points.
He characterizes himself as a “copper guy originally,” though Norsemont’s current focus is on gold. He also references involvement in non-mining sectors including tech, agriculture, and cannabis.
Have Shareholders Made Money with Him Before?
According to Levy, shareholders in past ventures have made significant returns, with anecdotal examples of retail participants turning tens of thousands into millions. Institutional participation reportedly came later in those deals, with groups like Australia’s Sentient Group entering only after significant project de-risking.
Is Norsemont His Sole Focus?
Levy states that Norsemont is his primary focus and the largest personal and family investment he has made. He estimates approximately $9 million invested across personal and family accounts, claiming this is all “hard dollars,” not option-based or paper positions. According to Levy, his family members, including his wife, mother, sisters, and son, also hold equity.
Will He Keep Buying Shares?
Following a blackout period around the resource estimate, Levy has resumed purchasing shares on the open market. He reports that his family trust and close associates have been averaging down their cost basis over the past three years. Other board members have reportedly expressed intent to purchase stock, though no formal insider buying plan has been disclosed.
Are There Any Insider Royalties?
Levy states that neither he nor any other insiders hold royalties or similar back-end economic interests in the project.
How Is Executive Compensation Structured?
Norsemont has not paid executive salaries to Levy or his CFO for the past two years. Salaries have been limited to in-country technical and administrative staff. Levy indicates that compensation is tied to equity performance, but there is no formal KPI or performance-linked structure disclosed. Outstanding debt from management has been partially converted to equity; remaining balances are expected to be settled in shares.
What Is the Situation with Convertible Debt?
As of the latest update, Norsemont has reportedly eliminated over 80% of its debt. Approximately $750,000 of $950,000 in convertible notes from September 2024 was held by Levy and close affiliates. This was converted into equity. Additional debt to insiders remains on the books and may be converted at higher valuations during future financings.
Who Is the Strategic Investor?
Levy describes a “strategic investor” who led a recent financing as a known European resource fund manager with large positions in multiple junior and mid-tier mining companies. The investor reportedly sees Norsemont as a multi-dollar stock. No name was provided, and no filings confirming the investor’s identity or stake have been referenced.
How Much Cash Does Norsemont Have Now?
Norsemont holds under $1 million in cash. From the $4 million raised in October 2024, a substantial portion was used to pay down legacy debts and vendor obligations. Only $2 million of the $3 million intended from convertible debt was secured due to oversubscription by new investors.
Does the Technical Team Have Relevant Experience?
According to Levy, the technical team includes Mijael Thiele, with past roles in building and turning around mines in Chile, including Esperanza. David Laing, an advisor, was involved in the original development of the site under Shell in the 1980s. Long-time Chilean geologists and engineers reportedly remain involved, but no NI 43-101 Qualified Person was named in this section.
Does Anyone from Management Live in Chile?
Thiele and the Chilean CFO are based in Santiago. Other board members and senior management reside outside the country. On-the-ground oversight is reportedly managed by local engineers, security, and field staff.
Why Did Previous Owners Walk Away?
A company originally operated Choquelimpie as a gold oxide heap leach operation. When gold prices dropped to $300/oz in the 1990s, the operation became uneconomic. Rio Tinto optioned the project in 2007 but failed to confirm a porphyry system. COPEC retained ownership until selling to Norsemont in 2019. According to Levy, COPEC considered the asset non-core and was shifting its focus to copper.
Was It a Competitive Acquisition?
Levy says there were two to three other bidders. Norsemont offered a mix of cash and equity and had relationships with legal and financial advisors connected to the seller. He also suggests his team’s perceived operating experience in South America played a role in winning the bid.
What’s the Business Strategy: Develop or Sell?
According to Levy, Norsemont intends to grow the resource base and eventually sell the project to a mid-tier or major producer. He states that the company has received acquisition interest but declined due to low valuations and timing. No formal sales process is currently underway.
What’s the Main Deposit Model?
The resource is characterized as a high-sulfidation epithermal gold system with potential for a deeper copper porphyry. Levy says the company encountered 0.75-1% copper in the bottom of a recent gold-focused hole. Porphyry potential remains untested beyond this initial indication.
What Are the Drilling Plans?
A $2.5 million USD drill program is proposed, targeting oxide expansion, high-grade sulfide zones, and porphyry potential. Levy suggests using RC drilling to reduce costs. Some drill locations are based on historic high-grade intercepts from shallow holes.
How Much More Drilling and Money Will It Take?
Internal estimates suggest an additional 30,000 to 40,000 meters could materially grow the inferred resource, at a cost of approximately $10 million. Levy disputes suggestions that an additional 140,000 meters (to triple the resource) would be required. No formal drilling cost model was disclosed.
How Will They Finance the Work?
Levy outlines potential funding strategies including:
- – Prepaid gold sales at a discount
- – Silver streaming
- – Royalties tied to performance thresholds
These would supplement or replace traditional equity issuance. The company also hopes to leverage a resource in surface dumps to secure debt or hybrid financing.
What’s the Timeline on the Dumps?
A prefeasibility study on 210,000 ounces in surface dumps is targeted for completion in late 2025. Cost: ~$250,000. If results are positive, Levy hopes to monetize via streaming or forward sales.
Do They Have Definitive Drill Targets?
Marc talked about some of the intercepts from past drilling, including 32 and 35 g/t gold over 24-35 meters near surface. These zones will be tested at depth. Other targets include a potential porphyry source and known oxide gold zones.
Is There a Nugget Effect Risk?
Levy denies the presence of significant nugget effect, asserting that mineralization is continuous and predictable across zones. No statistical validation or QP statement is provided to support this claim.
When Will the PEA Be Released?
No fixed timeline.
Levy suggests 2025 is focused on drilling and metallurgical testing. A PEA might be pursued in 2026 if sufficient data supports an economic case.
What’s the Status of Metallurgy?
Initial testing indicates 80-90% gold recovery in oxides. Historical flotation results suggest 78-87% for gold and silver. Column tests are pending. No recent third-party validation has been disclosed.
How Will They Handle the Transition Zone?
Work is underway to compile historic and recent metallurgical data. Levy mentions the possibility of testing Chilean leaching technologies, including one used by Antofagasta, but no specific plan or timeline is in place.
Are There Comparables?
Levy mentions Rio2 as a potential comparable, noting its lower grade but similar location. No formal benchmark or peer analysis has been published. Toro Gold is mentioned as another point of reference, though that’s not seen as a perfect example.
What Are the Operating Cost Assumptions?
Heap leach costs are estimated at $400/oz based on historic studies. Sulfide operation costs are assumed to be closer to $1,500/oz, though this is speculative. Norsemont has grid power, roads, and a historic 3,000 tpd plant onsite, though that will require further investment to get into operation.
How Much to Rebuild Infrastructure?
No definitive estimate. Initial guesses range from $1 million for refurbishment to $300 million for a full new build. The company is working on an engineering review. Chilean tax credits (30%) could offset capex.
Are There Environmental Constraints?
The project lies near the Lauca National Park.
However, a presidential decree permits exploration and exploitation in the area, though no mining may occur inside the park boundaries.
No recent assessment of glacier or periglacial features has been conducted.
Are They Dealing with Wildlife or NGOs?
According to Levy, the company has not faced meaningful opposition. Community relationships with the local Amara group are described as positive. An NGO request for support was declined. Government representatives have reportedly visited and expressed support.
What Permitting Is Required?
Exploration is fully-permitted, according to Marc.
Dump reprocessing will require a formal environmental impact assessment and community consultation. No timeline for EIA submission has been given, but Levy estimates a two-year permitting process.
What’s the Marketing Strategy?
A $250,000 marketing budget is planned for 2025, including roadshows, European events, and digital outreach. A $120,000 marketing contract signed in 2024 was never executed. Levy indicates openness to paid newsletter coverage if it delivers visibility, even though he is not reportedly a fan of the approach.
What Keeps Marc Up at Night?
“Access to capital” is Levy’s top concern.
He cites tighter markets and declining retail participation as material headwinds. He expresses confidence in the project’s technical fundamentals but acknowledges vulnerability to broader commodity cycles.
Norsemont Mining Interview with CEO, Marc Levy
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