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In an in-depth interview with Paul Gow and Thomas Schmidt of Tribeca Resources, we cover the company’s leadership, management ownership, financing strategy, project portfolio, exploration goals, and overall business approach. We examined their flagship La Higuera IOCG project, the ongoing drill program at Chiricuto, and their rationale for a portfolio approach to exploration in Chile. The discussion also addressed challenges in financing, marketing strategy, permitting, and the impact of increased landholding costs. The executives outlined their strategy of advancing projects to attract mid-tier copper producers while balancing capital efficiency, exploration risk, and shareholder dilution.
TL;DR
- 1. IOCG Exploration in Chile – The company’s primary assets, La Higuera and Chiricuto, are IOCG targets in established mining districts, with exploration aimed at defining resources attractive to mid-tier copper producers.
- 2. Management Ownership – Paul Gow and Thomas Schmidt each own 16% of the company, and while they have personally invested capital, future exploration is dependent on external financing.
- 3. Portfolio Approach – Instead of relying on a single asset, Tribeca is taking a multi-project approach to maximize capital efficiency, allowing flexibility in capital allocation and risk management.
- 4. Exploration Strategy – The company follows a “drill-to-kill” strategy, meaning if results do not indicate strong economic potential, they are prepared to walk away rather than spend unnecessary capital.
- 5. Chile – While permitting remains efficient, a fourfold increase in landholding fees is reshaping the landscape, potentially leading to more available projects as companies drop claims due to higher costs.
Who is Paul Gow, and is he the right man for the job?
Tribeca Resources operates under a dual leadership structure, with Paul Gow officially serving as CEO while Thomas Schmidt handles corporate and investor relations. According to Gow, they function as a “co-CEO” team, bringing complementary skills to the company.
Gow’s background is primarily technical, with a career spent largely in copper exploration, particularly in IOCG (Iron Oxide Copper Gold) deposits. He has worked across major mining jurisdictions, including Australia, Brazil, Papua New Guinea, and the Philippines. He also has academic experience, having worked with universities and government research organizations in short stints throughout his career.
His exploration track record includes involvement in the discovery of the Esparanza IOCG deposit in Brazil, which was vended into Avanco Resources and later acquired by Oz Minerals and eventually BHP. He was also part of the team that expanded the Frieda River porphyry deposit in Papua New Guinea under Xstrata and Glencore from a 1-billion-ton resource to 2 billion tons. However, despite this technical background, this is Gow’s first leadership position in a publicly listed junior mining company.
How much skin in the game does management have?
Management ownership sits at approximately 32%, with Paul Gow and Thomas Schmidt each owning roughly 16%. According to the company, this equity was accumulated through years of unpaid work and an initial capital contribution of around $500,000 USD from the two founders.
Schmidt describes his investment in Tribeca as “significantly more than half” of his net worth. “It’s the first thing I think about in the morning, but not so big that it stops me from sleeping at night,” he says.
Despite their ownership, Tribeca’s share price has declined approximately 25% from last summer’s highs. Schmidt has purchased additional shares in the open market when permitted, but due to the current drill program, both he and Gow are in a closed trading period.
Does management hold royalties on the projects?
Tribeca Resources confirms that no members of management, the board, or related parties hold any royalties on their projects. However, pre-existing royalties (1% NSRs) are in place, held by previous property owners.
What is the history of their flagship project, La Higuera?
Tribeca Resources acquired its flagship La Higuera project in 2017-2018 after reviewing between 150 and 180 potential IOCG targets in Chile. The property had undergone exploration in the early 2000s, with drilling confirming a mineralized copper system. However, work ceased for over a decade.
According to Gow, the previous operators focused on outcropping mineralization and did not recognize the system’s potential under gravel cover. “When we analyzed the historical data, we saw indications that this system extended north under cover, but that hadn’t been appreciated at the time,” he says.
To date, Tribeca has completed two drill programs at La Higuera, defining a mineralized system over 1.4 km in strike length.
Will Tribeca remain a single-country, single-focus company?
Schmidt argues for a portfolio approach, stating that a multi-project strategy provides better capital efficiency. “Our cost of being public is about $800,000 per year. Spreading that fixed cost over multiple projects makes more sense.”
Tribeca currently holds two properties: La Higuera and Chiricuto, both located in Chile. While management remains focused on IOCG systems, they are open to evaluating other opportunities if they align with their exploration model.
What is the ultimate goal: build or sell?
According to Schmidt, Tribeca aims to define mineral resources that will attract large and mid-tier producers. “We’re not looking to find the next Escondida for BHP. We’re targeting the next Candelaria or Mantoverde for a Lundin, Hudbay, Capstone, or First Quantum,” he says.
Schmidt believes that larger producers, constrained by years of limited exploration spending, will eventually need to acquire new assets. Tribeca intends to position itself as a seller at the right stage of project advancement.
“Our plan is to advance projects to the inferred or indicated resource stage—perhaps as far as a PEA—but not beyond that.”
How much work—and money—will it take?
Drilling costs at La Higuera range between $260 and $310 per meter.
Previous drill programs cost $700,000 and $1 million, respectively. Future work will depend on securing additional funding and exploration results.
“For La Higuera, another 5,000 meters of drilling will be required to refine the high-grade zones,” says Gow. “After that, we’d need another 5,000 meters to define a meaningful resource.”
However, the company has not publicly committed to a definitive budget or timeline to complete this work, as it remains dependent on financing and market conditions.
What happens if the current drill program at Chiricuto fails?
“If we don’t see the right indications, we walk away,” says Schmidt. “We like the district—it’s in the middle of Capstone Copper’s major projects—but we won’t waste capital if it’s not there.”
The company is drilling two separate targets at Chiricuto: a large magnetic anomaly and an electrical geophysical anomaly. Results are expected by mid-May, but management has provided no assurances on what the program will yield.
What’s the financing strategy for 2025?
Tribeca has primarily raised capital through private placements, avoiding large-scale brokered financings. Three London-based money managers collectively own 22% of the company and have participated in multiple rounds.
Schmidt is open to bringing in a strategic partner or joint venture partner at the project level but emphasizes that terms must be favorable. “Majors will always want the best deal for themselves. We need to ensure our shareholders get fair value.”
Will insiders continue participating in financings?
“Neither of us has the capacity to participate in every financing round,” Schmidt admits. However, both plan to continue purchasing shares in the open market when permitted.
How much does Tribeca spend on marketing?
Tribeca has taken a low-budget approach to marketing, relying on direct investor outreach and social media. “We avoid high-cost digital marketing,” Schmidt says. The company’s total G&A budget remains around $800,000 annually, with a small portion allocated to marketing.
What is the exploration environment in Chile?
Tribeca reports no major permitting issues, stating that approvals at Chuto were obtained within three weeks. However, recent government policy changes have significantly increased landholding costs. License fees have quadrupled to $28 per hectare, pushing many landowners to drop claims.
“This is creating new acquisition opportunities,” says Gow. However, the long-term impact on Chile’s junior exploration sector remains uncertain.
Tribeca Resources CEO Interview With Paul Gow & Thomas Schmidt
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