E79 Resources (CSE: ESNR)(OTC: ESVNF) CEO Rory Quinn on Visible Gold at Myrtleford & New Drill Targets at Beaufort — Victorian Goldfields, Australia
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of E79 Resources, the very lucky, apparently — Mr. Rory Quinn. Rory, how are you this morning?
Rory Quinn: Gerardo, very good. Good to hear from you.
Gerardo Del Real: It's great to have you back on. Lots to chat about but we have to start with the news from yesterday. The headline reads:
Visible gold discovered in consecutive drill holes at-depth at E79's Happy Valley Gold Prospect.
This has some pretty significant implications for the geologic model that you've developed, right? And we'll talk about that in just a bit. But man, better lucky than good… and lucky AND good is a great combination! Good work.
Rory Quinn: Well, thanks Gerardo! Yeah, I mean we could have very reasonably been accused of being lucky on our first drill intercept, right? I mean, the whole idea is to get underneath the water table. All of the previous mining here at Happy Valley was about an ounce per tonne but above the water table. Small syndicates working there
under-capitalized did not have the money to dewater and stop the workings getting wet.
We've drilled underneath this water table into visible gold on the first hole. But then, to do that back-to-back — consecutive holes — intersect visible gold again… more spectacular this time and 80 meters apart from the first intersection… I think, is huge! And that's quite a bit more powerful, I think, to have these 80 meters apart.
So we've got, obviously, an interesting structure. We'll put a third deep hole down. The first one went down about 400 meters; second one went down 350 meters. We'll put out another hole of about 300 meters or so… get three points of data, of reference, at-depth. And then, we'll work to really understand that.
We've got assays pending on the first hole, and we'll get all of this logged, cut, sawed… get that off to Western Australia and work to understand that. So very exciting times at Myrtleford.
Gerardo Del Real: I mentioned the implications for the geologic model, right? And you said it well in the release… it not only speaks to the potential at the Happy Valley target but also the large number of historic gold mines, right?
You have 7 kilometers along strike at Happy Valley, and there's other targets on the property. Can you provide people that may be newer to the story just a bit of context as to the property package and the multiple targets that you're now starting to put together here?
Rory Quinn: Well, Myrtleford is a big property. We've got two properties, and Myrtleford is the largest of the two. The smaller one, we really have our arms around that and kind of have quite a well established thesis there about what we want to do. And that's at Beaufort.
Myrtleford, due to its size, we're just going to be flying LiDAR now. That we’ll do the whole property and really work to understand the structure at-surface across the whole property.
We've got these, really, five areas of real interests where we see trends of historic gold mines and workings in very clear identifiable trends. We're in one of these now, which is one area that we have quite a bit of understanding about; quite a bit of historical records.
The Myrtleford area is responsible for over 5 million ounces of historical gold production in the goldfields around there and never been looked at on a holistic basis. So, really, this is a consolidation of the entire historic gold mining camp. We've probably tied up about 80% of that historic camp. We're looking at it on a completely holistic basis.
We're looking, right now, at the southeast area where there was gold mining that produced at about an ounce per tonne but right at-surface. This is interesting too… on that whole property, this is the extent to which this is underexplored: 3 drill holes on the whole property! And the records in Australia are very good as far as, if you're running a program in Australia, you're obliged to let them know what you're doing; what drill holes you're putting in.
We've got 3 drill holes in the entire 420 sq km property going back to the 1950s. And on Happy Valley, where we are in particular, two drill holes, historically, just on that property: one went through the workings and it was a blown hole; the other was in gold at 7 grams per tonne.
We've put two holes into it; both in gold beneath the water table and quite gaudy, spectacular looking visible gold. We know that gold, that quartz, we know that will assay. We'll see to what extent it will assay.
I certainly wouldn't be surprised to see the kind of ounce per tonne material that we have seen historically in that region in the quartz. What will be interesting is all of that transition material; all of the sulfides on either side of that quartz. How does that assay? How does that grade? That will be interesting. What could our potential mining widths look like?
Gerardo Del Real: Excellent, excellent timing to be granted your DTC eligibility, right, which, of course, makes the company’s stock a whole lot more accessible to US investors. Can you speak to that a bit for those that haven't been able to really take advantage of that up until now?
Rory Quinn: Yeah, that is huge because, until very recently, this has really been a local Canadian story. We just really started this company and acquired the assets in November; did a C$6 million raise at C$0.45; no warrants, so no overhang there.
We could have raised more but thought that C$6 million was the right amount. We've got about C$5 million of that left. To the extent now that we can broaden this out and make it a North American story… give access to people in the US now that they can trade it online… they can have access to the story.
The ticker is ESVNF. And like you said, DTC-eligible now. We just put out a news release this morning about a partnership with Red Cloud who have a lot of relationships North America wide as far as institutions, retail brokers, investment advisors — you name it.
This is just a burgeoning story; C$15 million market cap; we've got C$5 million in the bank; enterprise value of about C$10 million. It represents a huge value proposition and upside in that region where we see companies regularly trading with market caps of C$50 million, C$100 million, up to C$200 million.
I think it's all upward mobility from here and a lot of blue sky.
Gerardo Del Real: Well said. I'm looking forward to the targets at Beaufort. Obviously, looking forward to assays and looking forward to having you back. Thank you so much, Rory.
Rory Quinn: Thanks so much, Gerardo. Yes, this will be a rich period of news; wrapping up, doing this third hole at Myrtleford and then moving over to Beaufort. We've got 5 really nice targets there, and we'll explore those methodically in the context of a larger 5,000 meter program.
We've got great drilling costs; sub-C$200 per meter all-in. So we've got a lot of drilling ahead of us. Thanks, Gerardo.
Gerardo Del Real: Excellent! Thank you… take care.
Rory Quinn: All the best. Bye-bye.
Gerardo Del Real: Bye now.