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Revival Gold (TSX-V: RVG) CEO Hugh Agro on Metallurgical Test Results from the Beartrack Gold Project in Idaho

October 15, 2018

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Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President and CEO of one of the better speculations in the entire junior resource space, Revival Gold (TSX-V: RVG)(OTC: RVLGF), Mr. Hugh Agro. Hugh, how are you this morning?

Hugh Agro: I'm very well. Thanks, Gerardo. Thank you for that introduction.

Gerardo Del Real: Well, you and I were talking off air and I mentioned that you have the consensus here lately in the past several months, as far as M&A in the gold space, tends to be about $65 per gold ounce. Right? I look at companies like Revival, you're off to a 2 million ounce head start across all categories. You have drills turning, the rocks look good.

You had some excellent results and you had some news this morning that's very important. You had some metallurgical test results that I know you want to talk about. The rocks can be pretty and you can have a lot of gold, but if you can't recover it, it is worthless. Let's touch on this morning’s news release and talk about what you're seeing thus far.

Hugh Agro: So this is the normal blocking and tackling that one has to undertake on the path towards a PEA and a feasibility and ultimately operation. It's something that we can do alongside of our drilling and our exploration work. And as you point out it's key to unlocking value. And what we've set out to do, with this initial program of metallurgical test work on sulphide rock at Beartrack, was to first of all characterize the material. Second of all, to update ourselves with respect to the historic flotation results. And then thirdly, to look at the path forward and narrow in on our focus for the metallurgical work to follow.

I could summarize the results, but that was generally the strategy and approach with this initial test work.

Gerardo Del Real: Hugh, before you summarize the results – and I'd love for you to do that – can you explain why it was important? You mentioned the approach, but why it's important to do the test work on the sulphide in transitional material because there's different types of mineralization that are both important to the Revival story. Can you provide a bit of context there?

Hugh Agro: We have a total resource, maiden resource at Beartrack of 50 million tonnes of material, of which about 14 million tonnes of that material is considered leachable. So that would follow the same sort of track of past production at Beartrack. The remaining 36 million tonnes are considered mill tonnes. And we have some historic test work on that sulphide material and transitional material that comprises that 36 million tonnes.

Of course as we move forward in today's day and age, with the regulatory requirements and with the path we're intended to go here, which is to take this into the production, ultimately we need to de-risk, narrow down the focus with respect to the flowsheet for those mill tonnes. Hence, the work on the sulphide materials.

Gerardo Del Real: Fantastic. Let's talk about the results, let's start with the float recoveries. How'd those come in?

Hugh Agro: Float recoveries came in quite well, relative to historic work and certainly relative to what we would expect and hope to see here with recoveries across the 6 composite samples, ranging between 83% and 99% when you include also the leach of the flotation tails, which is industry standard approach. From there what we need to do is get the gold out of the concentrates or sell the concentrates. We'll explore both of those alternatives in due course.

But as we look to the next step in the chain of the flowsheet, what we're looking at is some sort of a pre-oxidizing stage. We had also looked at the possibility of an ultra-fine grind of the concentrates and then a leaching of those concentrates to liberate the gold. What we found with that testing is that the recoveries overall range from about 49% to 77% for the 6 composites.

So that's suggestive to us that we are indeed better off going with a pre-oxidization stage. It's what we assumed in the maiden resource that we put out in May. But we wanted to validate that, make sure we were getting the kind of full recoveries that made sense and to make sure we were on the right path with pre-oxidation. So

The next step of work for us will be around test work around pressure ox and also on the Albion process which came out in the mid-‘90's and the Dundee process which is a later stage process. Both of which have been commercialized and we'll do test works with the labs on material from across the deposit rock units and different grade ranges.

Again, the whole objective here is to de-risk the metallurgical aspect, make sure we've got a nice tight flowsheet and we have the associated cost information which we can reflect in an updated resource estimate and ultimately PEA and going forward from there.

Gerardo Del Real: Who's doing the work, Hugh?

Hugh Agro: So this work was done by SGS Labs in Vancouver.

Gerardo Del Real: Excellent.

Hugh Agro: I think that the lab work that we do going forward, there's lots of different choices for us. Some of them specialize in the different processes more particularly, so we may use a couple of different labs. We've been really happy with the work from SGS. Historically the work was done by Hazen and by McLaren, two very good labs in the U.S. Over the course of the next few months, we'll figure out what makes most sense for the project and start gathering together the sample material and go from there.

Gerardo Del Real: Well in the meantime, drilling continues at Beartrack and Arnett. I have to believe that you're hoping the drill bit’s adding both leachable and mill ounces. Can we talk about how drillings progressing?

Hugh Agro: Yeah it's going very well. We've have a really a super team in Salmon and the guys are doing a fantastic job. We've got three drill rigs turning, as you know. Two at Beartrack and the third at Arnett. We'll have an additional batch of results out from Beartrack in early November. We're into the third hole at Arnett now and we'll have results out of Arnett in due course. As you recall, there's 7 holes at Arnett we're targeting for this year across about 300 meters of strike. This is an exciting time. So we'll see how the results come through, but as I said the team’s delivering beautifully, safely, responsibly, and all according to budget and plan. So stay tuned.

Gerardo Del Real: Fantastic. I will be at the New Orleans Investment Conference here in a couple of weeks. I believe it's November 1st through the 4th. I understand Revival Gold will be there as well.

Hugh Agro: We sure will.

Gerardo Del Real: Fantastic. Well, Hugh, I'm looking forward to catching up. Thank you for the update today and of course I'm looking forward to having you back on as we start getting those assays from the lab.

Hugh Agro: Thanks, Gerardo.

Gerardo Del Real: Appreciate it, Hugh.

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