General Precious Metals
E79 Resources (CSE: ESNR)(OTC: ESVNF) CEO Rory Quinn on Spectacular High-Grade Gold Intercepts from First Two Drill Holes at Happy Valley Gold Prospect — Myrtleford Project — Victoria, 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, very, very busy Mr. Rory Quinn. Rory, congratulations! How are you?
Rory Quinn: Very good! Yeah, you're right — it's been an incredibly busy handful of days around the clock… but yeah, very, very pleased to get this out this morning. And yeah, I mean, there's been a lot of work that has led… it's taken a long time to be an overnight success!
Gerardo Del Real: Well, let's get right into it!
Rory Quinn: And thank you.
Gerardo Del Real: Absolutely, no, go ahead, Rory.
Rory Quinn: And congratulations to you too… you were on this from the beginning and highlighting this for the investment community. So I appreciate your support… and you guys knew what you were looking at.
Gerardo Del Real: No, look… all the credit to you and your team. We know the region. Let's give some context to those that are listening and reading along here. The headline speaks for itself:
E79 Resources drills 11.1 meters of 160.45 grams per tonne gold at the Happy Valley Prospect in Victoria, Australia.
Among that was a 0.60 meter interval of 2,430 grams per tonne gold. You mentioned that we were early to this. We were early at highlighting the potential, which, again — it's kudos to you and your team because it's very easy to highlight the potential in this part of the world.
We know that the grade exists; we know that there's scale. And it's just a matter of finding it and figuring out, in your case, whether or not there were mineralized structures that were below the known historic mining levels.
Rory Quinn: Yeah.
Gerardo Del Real: And so all of those things are kind of what led us to want to be a part of the story here and help tell it. But this is phenomenal! Congratulations — good work. Give me some context, Rory. How does this change the approach, right?
Rory Quinn: Well, let me just recap for those listeners that maybe haven't listened in to our conversations before, Gerardo. I mean, there's a lot of people working, first of all, in Victoria. And I mean, you can tell me… but other than Fosterville and Kirkland Lake — other than Kirkland Lake — I'm not sure anyone has had a hole like this in all of the work that people have been doing in Victoria.
So I think this is exciting for the entire region.
I mean, we're not drilling where we know there's going to be gold. This is honest to goodness exploration — looking for an exciting discovery. So our first hole was 60 meters below historic workings, any known historical mining, 60 meters below that. And we were in visible gold. And we reported that and you and I talked about it. It was about a meter.
And then, our second hole, only our second hole, we were in broader visible gold at 80 meters below that. So about 140 meters below any known gold mining, historic gold mining. And there, we were in 3 meters of visible gold.
And I guess I've heard people say, "Well, visible gold, yeah, that's great but it doesn't always… we'll have to see what the assays say."
So, obviously, there's exceptions to the rule. But surprise — three meters of VG is good!
Gerardo Del Real: I always joke that I'm not a geologist but I'd much rather have it than not.
Rory Quinn: Sure, right! And then, just to also put it in perspective… you get people who will say, "Well, okay, that number is ridiculous."
I mean, I did a double-take when I saw it from the lab: 2,430 grams per tonne. That's silver grade numbers, right, on a good day… except for silver is worth 28 bucks an ounce and gold is worth $1,860 an ounce today!
And so, incredibly rich; over 0.6 [meters]. And now, why did we report this as 11 grams per tonne? And why did IIROC pour over it and their geologists and basically all of the geos that I talked to and economic geologists and mining engineers? Because you can't go and mine 0.6 meters, 150 meters underground, without taking waste with it, right?
Gerardo Del Real: Correct. Absolutely.
Rory Quinn: You can't. So that is why it is spread over a mineable width. But also because we ended that intersection in, I think, what is it… 174 grams per tonne is the final meter of that intersection. We got, I think, it's 178 grams per tonne over a meter?
Gerardo Del Real: 178 [grams per tonne]; you got it, over a meter.
Rory Quinn: And then, only 33 grams per tonne over a meter. And then, 174 grams per tonne. And that's where it ends. So we're going to have more information from this hole.
What I had the guys do when we had this visible gold is put it on a pallet yesterday and get it to ALS, get it to the lab, and expedite it. We've got the rest of that to come. Obviously, if we hindsight 2020, we put all of this, somehow, on multiple pallets… expedite all of it.
Gerardo Del Real: Sure.
Rory Quinn: But we wanted to get the VG. But we're going to get much more information. And then, we're going to have holes No. 4 and No. 5.
So we're going to be methodical with this. We're going to work to understand all of the assays. We're not going to go off half-cocked. We're going to use all of the information that these holes give us.
And these were exploratory holes. We're going to give all of that expert information the attention it deserves before planning a Phase-2. But for context, we're drilling right now at Beaufort; I can redeploy that drill in 36 to 48 hours.
Gerardo Del Real: Excellent! And the stock, obviously, the market has responded well. You're up over 150% on substantial volume. Talk to me about hole No. 2, which, the intercept there was 0.70 meters of 99 grams per tonne gold from 94.9 meters down hole. Walk me through that hole.
Rory Quinn: That was the first hole that we had. I mean, on that hole, we might've been lucky, right? And you and I talked about that. But when, on the very next hole, 80 meters away from that, to be in…. we've tended to see that… we've seen it at Fosterville; these things… and folks like, in the Victorian Goldfields, Mandalay, with their mine… they've shown that it gets richer and richer at-depth. And so we're just getting started here; totally open at-depth.
And our first, that was about 1.7 meters of nice grade. But then, 80 meters below that in just one drill hole — we're obviously in that spectacular grade but in a section that is 11 meters of 160 grams per tonne including that 0.6 meter at 2,430 grams per tonne including the 3 meters of 136 grams per tonne.
Gerardo Del Real: Right.
Rory Quinn: So it's not like all we had was that 0.6 at 2,430 grade. We've got four other bonanza-grade intersections. So that's why I said in the release, this is not a one-hit wonder. I mean, it's one drill hole that has intersected gold multiple times.
And we're intersecting — if you see the cross section I put in the news release — it's all underneath where this historic mining took place. And that historic mining graded about an ounce per tonne. And an ounce per tonne is about what Fosterville graded as well. That's their reserve grade at Fosterville.
Gerardo Del Real: Assays are pending. Turnaround times… what does that look like?
Rory Quinn: Yeah, well, we'll get it off to the lab by the end of this week. We've been very busy working on all fronts. Look, I'll know more by the end of the week. I don't want to give anyone dates that I can't support at this moment. But we'll be certainly putting out news and updates on our timing and what else we're seeing.
We'll put out news on the remainder of hole No. 2 and No. 3. And then, No. 4 and No. 5. And then, we'll come back with a Phase-2.
Gerardo Del Real: We'll make sure to put a link to the release. Some pretty looking rock in there. Congrats, again, Rory, and we'll talk soon!
Rory Quinn: Thanks, Gerardo.
Gerardo Del Real: Thank you.Click here to see more from E79 Resources