Categories: Precious Metals
Topics: General Precious Metals

Kingsmen Resources (TSX-V: KNG)(OTC: KNGRF) CEO Scott Emerson on Maiden Drill Program at Las Coloradas

 

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president of my single largest silver holding. That is of course, Mr. Scott Emerson of Kingsmen Resources (TSX-V: KNG)(OTC: KNGRF). Scott, congratulations are in order. You have been busting your behind for the last 19 months to put together for the first time ever a historic past producing high-grade silver district. That is now a reality. A couple of years ago, you came to me and you said, "Gerardo, I have this great idea." And I said, "Well, you let me know if you're able to put that together. Scott, I think it's a great idea, but I hear a lot of great ideas." And true to your word, you were able to do that and now the rig is a turning. Congratulations, Scott. How's it feel?

Scott Emerson: It feels, you know what, a long time coming. It's been a lot of work to put it together, as you said, 19 months and we're now at the stage of the drill bit. So the next three months is going to be exciting for us as the drilling takes place. You know the work that we put into it. And yeah, I'm just, I'm relieved and excited at the same time.

Gerardo Del Real: Let's talk about this drill program. A total of 14 holes have been proposed. I got to provide context to the market and people on this. This is the initial program folks. This isn't going to be all that is drilled. This is the initial program that will be focused on the Soledad and Soledad II structures, vein systems, right?

Scott Emerson: Yes, that's correct.

Gerardo Del Real: Tell me what that target looks like. Scott, what are we excited about here?

Scott Emerson: Yeah, so what it looks like is if your listeners and shareholders look, the original Las Coloradas mine was 300 meters long and it was approximately 150 meters deep to the water table. And our whole theory and what we've built this around is history will tell us that that should extend, and we've traced that for 1.7 kilometers on the Soledad and 1.4 kilometers on the Soledad II on those structures. So we've been able to, over the course of that 19 months, do our surface sampling, trace it, follow it is I guess an easier word. And now the theory is, hey, we're going to step out on either end of that 300 meters, so to the North and to the West we're going to step out and then we're going to go deeper, which means we're going to go below the water table. So that's a simplified answer to that question.

It's a pretty simple theory, and we all know that there's been no new mines discovered in Mexico. When we talk about companies that are bringing projects into production, those were really from the turn of the century. Those were old mines that these companies, and we can talk about Gatos or First Majestic Silver, those were all old mines that they acquired and then they were able to have successful programs and expanding it, and now those mines are going into production. So turn of the century really is when those original mines were discovered. So that's what we're excited about. As you mentioned, we've been able to not only acquire the Las Coloradas mine, but then I assembled the whole fragmented district around it, which means all these claims that surrounded it and we control it all now. So that's the excitement, that's what we're excited about.

Gerardo Del Real: Well, listen, I'm going to go ahead and add to that excitement because I know that this initial program is just 14 holes, but you also have a pretty juicy gold target that's kind of sandwiched in between. Can we talk about that and when that's going to see a drill hole?

Scott Emerson: So I think what I'll say to that is that's what we call the saddle target, and that's a target that's approximately three miles from where our current focus is. And that's going to be drilled, I would think, in the latter part of 2025. So if we have the success of a open, I think that we're going to have, we'll then keep the drill rig and we'll just continue to drill, but then we'll go out and look at that other target. That's another complete new area I always said, I think in our interviews, Gerarado, that's like having another project in itself. So yes, I mean our focus right now is Las Coloradas and the extension and along strike and depth, but then we branch out if we have continued success.

And to that point, I want to just say that recently the company, we did a small financing again because every junior, what we do is we spend money looking for these discoveries. So we did another financing and it was, I would say somewhat non-dilutive to the company. It was a million, just over a million dollars at 72 cents. And that capital is going to allow us to continue our regional program in that Parral Mining District, which means I still think there's a lot of opportunity in the district, and it's really a question of identifying these situations where you start again with a past producing mine, and then you go and you see if you can acquire the ground around it. And that's something that we've always been doing over the last 19 months, but we haven't talked a lot about it because we've been really focused at Las Coloradas. So that's a long answer to your question.

Gerardo Del Real: I'm going to put you on the spot. I know you're not going to respond to me in any clear way, Scott, but I've known Scott for quite a bit now. And that’s Scott folks, that’s Scott language for, he's still likely looking at other things and didn't want to tip his hand. I know that that private placement was very strategic, and I know you're always looking at things. I also know the pedigree and the network that you have in the region, bringing somebody like Mark Pryor who was just involved with a $970 millionUS for a Las Coloradas analog, right? They paid 975 millionUS for 70% of that project. So when I see Kingsmen at 22 million, the company cashed up, the drill bit turning, and Scott and the team likely using that network to see if there's other opportunities. Look, with $3,400 gold and silver breaking the $34 level here soon, I couldn't be more excited as a shareholder, Scott.

Scott Emerson: Well, thank you for your support. I mean, that allowed me to, but it allowed me to, for you and your listeners and whatnot, those that did participate, it's given me the time to build out what my vision was. And although, Gerardo, we started 19 months ago, this was really in play almost a year before that when I had the vision, when I first started to talk about it. And the goal here is to build this mining company and to be the preeminent explorer in the Parral Mining District. And there's a lot of opportunity.

Gerardo Del Real: Well, there's a lot of opportunity between $20 million where the market cap is now and over a billion dollars as the analog goes. And again, that's just on one project. Scott, when do we anticipate assays? Before I let you go. I'm going to put you on the spot for that one.

Scott Emerson: You know what? That I'm not going to answer because I don't know when we can anticipate assays. We're just getting started now, but believe me, they'll be coming. And that's how I'll answer that.

Gerardo Del Real: Excellent, Scott.

Scott Emerson: They'll be coming.

Gerardo Del Real: I'm a happy shareholder. Congratulations. Let's chat soon. We can talk about what the core is starting to look like here over the next several weeks. Thank you.

Scott Emerson: You got it. Thanks, Gerardo. Bye-bye.

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