Arnold “Arnie” Armstrong is a man whose reputation precedes him. He has been a market-mover in the resource sector since the 1960s. He orchestrated the rise of Pyramid Mines, which discovered the massive lead-zinc deposit at Pine Point in the Northwest Territories of Canada in 1965. Pyramid was so widely held that the discovery set off a major flood of investment into the entire resource sector and started a claim-rush that had every piece of land from Pine Point down to the U.S. border staked.
XL: Am I correct in saying you’ve been practicing law for over 55 years now?
Yes, I was called to the bar in 1950, so 56 years.
XL: And how did you first become involved in the resource sector?
Well, in the 1960s, I invested in a company. I put twelve thousand into it, and lost that. (chuckles) That’s when I decided I’d better get on the other side of the table. So I set up a company called Christina Lake Mines Ltd, and I went from there. Subsequently I became involved with Pyramid Mines Ltd.
IEC declared last month that they received a positive pre-feasibility study on their Contact Copper project in Nevada. The report says that with current resources, Contact can produce 21.9 million pounds copper per year over a seven-year period at a cash cost of $0.97/lb. The initial capital cost is estimated at $83 million. If developed, the project will have an after-tax net present value at 10% discount rate of $9.7 million, an internal rate of return of 13.2%, and a payback period of 4.6 years at a copper price of $2.25/lb.