Categories: Precious Metals
Topics: General Precious Metals

Kingsmen Resources (TSX-V: KNG)(OTC: KNGRF) CEO Scott Emerson on $20 Million Market Cap with Billion Dollar Analogue

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president, CEO and largest shareholder; I should note that's important to me; of Kingsmen Resources (TSX-V: KNG)(OTC: KNGRF), our good friend, Mr. Scott Emerson. Scott, how are you today?

Scott Emerson: Good, Gerardo. How are you?

Gerardo Del Real: I am great. I am great. When are we drilling, Scott? I'm being facetious. I joked with you yesterday and last week and once again this morning. And the only reason I lead with that is because of course I've been pretty vocal about Kingsmen being my favorite silver play. It's got a market cap of just below $20 million. You have an entire district, you're permitted, you're in Northern Mexico, a community that's supportive and you're in a mining belt that is legendary. So I just see the kind of upside that can change lives if you're positioned correctly.

Even after the recent run-up, you still have a tiny market cap. So of course, because of that excitement, all of the readers and the audience and subscribers and friends and family, frankly, that are invested alongside me, they want to know the good stuff. And I know the answer, but I wanted to have a conversation about that because you had some really important news the last couple of weeks. Basically, one, de-risking targets, but two; and we'll talk about it in a second; adding to the list of high priority targets.

So welcome and let's get to why we're not drilling and let's talk about that 3D-IP survey as we move along here.

Scott Emerson: Okay, thanks Gerardo. We are going to be drilling, and I thank everyone for their patience. But where I want to start with this is when we put this together and the excitement was we had acquired an old mine called Las Coloradas that had mined from 1944 to '52. And our theory was always the best place to find a mine is where there was one. And we conducted sampling and mapping. We did all the groundwork, we identified drill targets, and then we were brought to notice that there's a type of technology called the 3D-IP.

And what that does, Gerardo, is that allows a look underneath and around your targets. And when I say that, the mine was 300 meters long. We said it went a greater distance. We traced those structures 1.7 and 1.4 kilometers. And we said, “Look, we don't know what's going on underneath the water table."

So we took the time, I know it delayed us, but it took six weeks. We took the time to do that 3D-IP. And what it's showing us in the announcement that I made yesterday, and any of your listeners can look, I've made it quite simple in the sense that I've put the word mine on there, which is the old Las Coloradas mine, and this 3D-IP is indicating that there are sulfides. There's a chargeability signal, and there're sulfides. That's how you get that chargeability.

And sulfides are typically associated with mineralization, gold and silver. So that was just, as you said it in the intro, de-risking our theory because now we're saying, okay, there's something indicated there. But hold on. Along these two structures, the Soledad 1 one and the Soledad 2, there are additional chargeability anomalies that are being demonstrated. That while we were over those areas, it took us back to those areas to do some additional work to say, "Oh, here's another five drill targets."

So we doubled our drill targets. So initially our program was going to be a smaller program, six targets. We were very confident in them, but now we're going to double those. That's why we've had this little bit of a delay. I'll be down there on the 7th, the contractors will be there, the drill pads are being put in place. We'll be marking those drill hole locations for drilling. So that is the next step, is to drill it.

Gerardo Del Real: Well, listen, that's exciting news. For those that aren't familiar, a lot has happened here in the past 12 months that gets ... again, I am an optimist by nature. I say it almost every day publicly and privately. But what really excites me is that over the last year or so, look, I was already excited about what I saw a year ago, but the amount of targets that have been added and the de-risking of those targets and the discovery of not just little anomalies, significant high priority targets, leads me to believe that your 200 million silver equivalent target might prove to be very, very conservative.

Scott Emerson: Correct. We always erred on the side of being conservative, Gerardo, because as a president of a publicly traded company, this is what we all dream of and what we all hope for, and I have to ensure that we've done the best work to de-risk these targets for success. And I'm confident now that that work has been done. It's given us more than what we expected. We didn't know, Gerardo, if this IP was even going to work in this area. We were told, we talked to a number of contractors, we narrowed it down. And, well, I'm going to say we're surprised at what we've received and we're happy.

Gerardo Del Real: The other thing you've done really, really well, and I couldn't be happier as a shareholder, do I want drill holes in there yesterday? Absolutely.

Scott Emerson: Yes. We all do. Absolutely.

Gerardo Del Real: But also as a shareholder, I want you to be a good steward of our capital, and you have been so I do thank you for that.

I want to talk a bit about a really important addition to the board that you brought on here over the past 12 months. And it's curious to me, because you're this tiny little $20 million market cap silver explorer that's got an amazing, phenomenal project, but it's tiny. So when I saw the likes of Mark Pryor ... come on. And for those that don't know, Mark Pryor was someone that was instrumental in developing the Los Gatos Mine, which was acquired by First Majestic. They acquired a 70% interest in Los Gatos for roughly 900 something million dollars. That's in an all stock deal.

What you have at Las Coloradas represents ... It looks like an analog to me. And of course, we have to prove it with the drill bit, but I don't think it's a coincidence that Mark went from Los Gatos to, "Hey Scott, we should team up on this older district with new technology and see what we uncover."

Scott Emerson: And that's something that Mark and his background, he has been part of the driving force to do the work that we're doing to get us to that really confident stage of this drill program. So Mark is on site. He lives part-time in Mexico. He's worked in the area of the district for the last eight years. I couldn't ask for a better person to join us.

Gerardo Del Real: I am looking forward to the drill hole selection, the spacing of those drill holes. I want to see how aggressive you're going to be on proving out the scale with the initial drilling. And I know there's a lot going on behind the scenes that's time-consuming and that, for different reasons, you'll get to when you get to. But couldn't be happier with the share price performance over the past 12 months. I think I'm going to be really happy with the share price performance over the next 12.

Scott Emerson: And I think what else to note here, Gerardo, just before we leave. This 3D-IP survey that we did, we only conducted it on approximately a third of the project area. So we were really focused because we wanted it over our drill targets that we had previously chosen. And then we expanded that. But there is still so much more to do, but we wanted to get in there and drill this thing. And so we did a third. So we've got another two thirds to do yet. I'm not saying it's going to be done immediately, but it may be in step with the drilling that's going to take place. So there's still lots to uncover. That's what I'm saying.

Gerardo Del Real: Absolutely. You just uncovered five new high priority drill targets. I suspect that as the drilling develops and progresses, that you're going to have this problem here over the next several years. Those are champagne problems. Those are really, really good problems to have. And look, I think we're onto a silver market that's going to see new all-time highs, and I think you're going to hit the sweet spot of that cycle with one of the most exciting discoveries here of 2025 in the silver space.

Anything else to add to that, Scott, so I can let you go so you can get to drilling?

Scott Emerson: No, I think that sums it up. So stay tuned, and again, thanks everyone for their patience. But like I said, we're taking those steps to continue to de-risk this, and we're going to drill our best targets.

Gerardo Del Real: Looking forward to it, Scott. Thanks again, sir.

Scott Emerson: Stay tuned. Bye-bye.

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