Ethos Gold (TSX-V: ECC)(OTC: ETHOF) CEO Alex Heath on Drilling at Perk-Rocky Copper-Gold Project in BC & Newfoundland
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Ethos Gold, Mr. Alex Heath. Alex, it's been a bit. You have been extremely busy, both behind the scenes and publicly. How are things?
Alex Heath: Very good. I think, like you said, in the last few months since we last spoke, a lot has transpired in that time. And we're getting even more confident about our chances in 2021 for a discovery.
Gerardo Del Real: I mentioned you are now president and CEO of Ethos Gold, congratulations.
Alex Heath: Thanks. Yeah, no, it's been very exciting though, since I joined in November of last year. Lots has happened, and yeah, we're feeling pretty confident. Craig, as you know, he's CEO of Newfound Gold, they've got a ton of success. And what he decided was that he would go to the chairman position and hand the keys over, and I've been sort of learning all the projects, getting in front of all the people. We've got a very big technical team. So I mean, I think we're all pretty confident in our abilities and our focus. So, yeah. Going to be exciting.
Gerardo Del Real: You mentioned Craig, you mentioned Newfound Gold. Obviously they've had a lot of success, congrats to them, and congrats to the team there. You are now looking to duplicate that. You've commenced drilling at the Perk-Rocky Copper Gold Porphyry Project. It's copper, it's gold, it's a porphyry, and it's one of these projects where, look, this is the company's first drilling program. And we had talked about, I think for the past nine months, you've been collecting district scale gold and copper gold projects, right? I think you're up to, what is it? 10 now?
Alex Heath: Yeah, it's actually nine now. But yeah. We couldn't have written a better story here. The timing is impeccable. You've got copper and gold doing what they're doing, copper is hitting new highs, gold starting to go back up again over $1,900. And it takes months and months of planning to get a drill on site and to do all the work necessary to begin drilling. And I think we're just, it's a little bit lucky of us, but we did have this big plan of going after large scale, district scale opportunities. And that's exactly what we have with Perk-Rocky. It's a porphyry, so these are enormous systems, five by eight kilometers, we see three porphyry centers. This is how these kinds of deposits form, is in clusters. And you see that in deposits like Oyu Tolgoi in Mongolia, one of the biggest porphyries in the world. We have the same signature, the difference between us and Oyu Tolgoi is we haven't drilled it, so we don't know where we are in the system, what the grade is. But now we're drilling. We're going to get first sense of what we're into here.
Gerardo Del Real: Well, and let's be clear, a discovery here is going to lead to a rapid rerating of shares, right? This is a hundred percent earn-in if you're successful. You mentioned it's 2,000 meters initially, I would suspect that with any success, given the cash position and the treasury position, you would like to be expanding that program, is that accurate?
Alex Heath: Absolutely. Yeah. Our fortunes have changed quite a bit. Even in the last six months, we had about three and a half million dollars in cash and we went to raise a million dollars just to pay for the program this year, and got $3 million of interest. So we knew there was a lot of interest in what we were doing, so we were already cashed up. And then we've since done a transaction where we got shares of another company. So our working capital position is $10 million today, and just a couple of weeks ago our largest institutional shareholder Crescat came knocking and said, "We really like what you're doing. You got a fantastic team, you guys are aggressive, exactly what we want to invest in." And they put up another $1.3 million. So, we're sitting very pretty in terms of our cash position, out working capital. And so if we have any sort of sense of success here on Perk, we will definitely increase that drill program.
Gerardo Del Real: Excellent. Far from a one trick pony, we talked about the nine district scale gold projects, lots of work programs for the second half of this year. Can you give us a brief overview of those?
Alex Heath: Absolutely. So I'd say number two on our list is our Toogood project in Newfoundland. We've got a very large land package, it's over 115 square kilometers. We have almost the entirety of New World Island in Newfoundland, which is about a hundred kilometers north of where Newfound Gold's drilling. And with high-grade gold on surface, hasn't been drilled, so we're going to try and do our field work this season, starting very shortly in the next two, three weeks here, and looking to do a drill program in the fall. So a 7 hole program, now that we've got all the capital, it's not a question of do we have the money to do it? It's kind of a question of, what are those targets going to be for us? So that's Newfoundland, we've also got a district scale opportunity in Quebec called Schefferville. This is multi kilometers, we're talking almost 80 kilometers of strike and an iron formation. There's high grade gold on surface.
We just need to figure out whether the whole length of it is even realized. And obviously we can't drill the whole thing, but again, it's similar to what we're doing at Toogood. We do our fieldwork, come up with drill targets, and drill it later in the year. And finally, in Ontario, we have five projects there. We're going to get in there this summer and just do some field work. And that will probably be drilled next year, just cause it's a little bit further behind in terms of the sequencing. But yeah, we're talking about quite a bit of activity, lots of news flow on the horizon. Very exciting. We're again, looking for district scale, home run hits here. We're not looking for small deposits.
Gerardo Del Real: You're cashed up, you have working capital, you have the technical expertise, and the drills turning, so exciting times. Alex, anything else to add to that? I suspect we'll be chatting here in the next week or two, as you start pulling some of that core out of the ground, right?
Alex Heath: Absolutely. I'd say stay tuned. Yeah, like you said, we're not a one trick pony. Perk-Rocky is very exciting, it's a very big target, but that's just one of many like that. So in the coming weeks, you're going to see more press releases, not just on Perk, but on the other projects as well.
Gerardo Del Real: Fantastic. Fantastic. Thank you so much for that update, Alex.
Alex Heath: Great. Thank you.
Gerardo Del Real: All right. Chat soon.