Scottie Resources (TSX-V: SCOT)(OTC: SCTSF) CEO Brad Rourke on Consolidating an Entire Precious Metals District
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Scottie Resources, Mr. Brad Rourke. Brad, how are you this morning?
Brad Rourke: You know, I'm doing great, Gerardo. Sun's shining here on Vancouver Island and nothing to complain about, just moving forward.
Gerardo Del Real: Well, congratulations are in order. You just consolidated a land package that you and I spoke a bit off air that you've had your eye on for a bit. The headline reads: Scottie and AUX Announce Merger to Consolidate the Stewart Mining Camp in the Golden Triangle. You know, this is a very cyclical business and the quality management teams typically do one of two things in tough markets. They either wait for a better market to start promoting and getting out there, or they add value either via the drill bit or an acquisition or a combination of things. And this, I think, is extremely accretive. And like we talked offline, math doesn't lie. Congrats on the deal. Can you give us some context?
Brad Rourke: Sure. When I first started at Scottie, oh, I'm in my sixth year now, we started with 400 hectares of a past-producing gold mine, done well over a dozen transactions and now mostly two contiguous pieces, we're well over 55,000 hectares of really relevant ground in the area. As you know, I spent most of my life in the area. I know it very well. You know, size matters and that's what I've learned along the ways in the last five years, talking to the bigger entities. And what we've created here is something that's just never been available before. So we can look at these things to the theoretical geological settings rather than the borders that have been put up with, it used to be owned by 15, 20 different people at that this time.
So going to the bigger entities, whether they're funds or the major companies, that's what they've said they'd like to see, so we've created that. We've still got to go to the next step, but we're feeling pretty good about it. The efficiencies of owning these lands and then being able to apply all the work in Canada, it's easier for us to hold lands, let's say than in Nevada, where it's really expensive to hold large tracts of land. But here, as long as it's contiguous, and for the most part this is, we're doing the work anyways. We owned, the AUX fits like a glove into our Southern Cambria Project and so we're excited to get at it. And it's really going to be just not too much more work than what we were doing anyways. So it just fits in there really nice.
Gerardo Del Real: And let's be absolutely clear. Right? There's that old saying that the best place to find a new mine is right next to an old mine. This isn't a big contiguous greenfields project. This is you have five historical mines, there's three advanced projects. You're looking to drill, if I understand it correctly, all three of those in 2021. Walk me through what the rest of the year looks like once the deal is actually finalized.
Brad Rourke: Sure. So we'll get the definitive agreement signed shortly, again, unless there's any big headwinds. But I can tell you it's been nothing but enthusiasm for what we've done. But the main focus is the Scottie Gold Mine that we'll be doing the gist of our work up there and just following up on the past two successful drill seasons. But we'vre also been working for a little while on the upper part of that Cambria Project on our Independence properties. Now that's part of the AUX, and just so people know, I'm very familiar with AUX as I was on the board of AUX. And Thomas, my vice president of Exploration, he participated in AUX's drill program, so we understand the geology very well.
So the second focus is we're going to, there's one of the claims, called the Independence claim, up and around the Red Cliff past-producing mine, and so we're going to go and put 3,500 meters into there. And we've been working on it for about a year now, just vectoring in on where we think the best place to put some holes in there. And then, of course, we hit on the Georgia River from the AUX side last season and came away with some very interesting intercepts on that southwest vein, 100 gram meter type holes, and so we will continue with that program.
So yeah, we have three pretty much all past-producing gold mines that we're working on at this moment. And I think there's in total nine past-producing gold mines on the package now.
Gerardo Del Real: Wow!
Brad Rourke: Some of them are a little smaller, done in the '40s, when the real, real tough people were out there doing with pickaxes and such. But again, that just gives a lot. We know mineralization is there. We've consolidated, so there's running room to make it worthwhile if we do find something. And yeah, we're excited to get at it, for sure. Yeah, I just got back from Stewart. I was there for the last couple of weeks, pulling the core from the successful holes at Scottie and from AUX. And so our geos are up there and just using that information to try and vector in on some spots that we'd like to put some holes into.
Gerardo Del Real: And the commodities you're targeting: gold and silver. Right?
Brad Rourke: Correct. Well, Scottie Gold is dominantly gold 100%, but as we get closer to the south, there's a lot of polymetallic opportunities down there. But we are focusing even on the Independence, it's more maybe gold-silver. Scottie is 100% gold. And I'd say the silver values at Georgia River, they're there, but it's dominantly gold as well.
Gerardo Del Real: Excellent. Excellent. Post-transaction, assuming everything closes the way it's supposed to, I understand you'll be very well capitalized. What will that look like?
Brad Rourke: Well, I think it leaves us with about $6.3 million hard dollars in the bank. No debt. Well, when I say no debt, there's a few little payments, but it's really nothing major at all. Very, very palatable, so we're going into the season in a position of strength and not having to raise any money anytime soon. And then if you look at some of our bigger partners, there's a lot of the bigger shareholders of AUX are the same big shareholders of Scottie. So they're happy and I just assume, and they'll keep supporting us if we keep coming across with the results we've had up to this point.
Gerardo Del Real: Well, I know the Stewart camp is an area and a camp that has needed consolidation. You reference it in the release for not years, for decades. It seems like you pulled it off. Congratulations. Anything else to add, Brad?
Brad Rourke: No. You know, we're excited. Most of my team have been working in the area for four years now. We understand it. We just keep applying that work ethic and knowledge and we're happy. I'd like to point out that Yamana bought just under 7% of Ascot, which we've, it's one of our neighbors. And at the end of the day, it's kind of Pretium, Ascot and now Scottie would be the major players in the area. So I think that's great for the area, not to forget that Newmont just did the GT deal. And so there's a lot of action happening and we're seeing these bigger companies take pieces. And I think that's great for Scottie and for everybody up in that area. So we're excited and yeah, we just want the snow to melt so we can get to work. I was there last week, but June drills will be turning.
Gerardo Del Real: Well, it seems like you're in the right neighborhood. I'm looking forward to having you back on when you get those drill bits turning, and yeah, keep in touch.
Brad Rourke: Sure appreciate your time. Nice hearing your voice, and stay safe out there.
Gerardo Del Real: Same your way. Thanks a lot, Brad. We'll chat soon.
Brad Rourke: Okay. Bye now.