Kingsmen Resources (TSX-V: KNG)(OTCQB: KNGRF) CEO Scott Emerson on Consolidating a Past Producing Silver-Gold District


Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of one of my favorite, if not my favorite, high risk, though not that risky, but high reward gold-silver plays or silver-gold plays in the entire space, Kingsmen Resources – Mr. Scott Emerson. Scott, how are you today?

Scott Emerson: I'm good, Gerardo. Thank you for having me on again.

Gerardo Del Real: Well listen, let's get right to why I believe that Kingsmen should be a company for anyone that's looking for quality silver-gold exposure to look into. You have a market cap of $3.3 million. I can make a pretty compelling argument that the data alone that you've been able to accumulate on this brownfield district is worth at least that much, and likely more. For the first time in the history of this district, the entire land package has been consolidated. You've done a brilliant job behind the scenes of putting it together, and, frankly, I don't think very many people know about the company.

Let me preface all that by saying I am biased. I'm a shareholder. I participated in the last financing. I own all my shares, and I will continue to participate, especially at current prices.

So I say all that to say, Scott, that I really like Kingsmen and I really love what you're doing. Tell us a bit about what you're doing. We have a gold and silver market right now that clearly, clearly looks to be on the verge of breaking out in a very, very substantial manner.

Scott Emerson: Thanks, Gerardo. When you say high risk, I want to say that the greatest wealth in the resource sector is generated at the point of discovery, and that's essentially what Kingsmen is about, is it's about exploration and the upside potential.

Just to carry on from where you left off, we have a consolidated brownfield silver-gold district that took approximately 18 months to acquire. It was just after COVID. We touched briefly on my last interview with you on that. The company owns 100% of the project.

This project was a past producing mine. It was operated by Asarco from 1944 to 1952. The only reason Asarco stepped away from this is because of the fragmented ownership, and they ran into difficulties with the land owners. They weren't able to resolve their differences and Asarco walked away. Then the project area sat idle for 20 years while it was slowly consolidated by other companies. Then I stepped in just after COVID and acquired the ground from each of those individuals and those companies. So that's how the package was put together. Then what I went about doing was acquiring or assembling the data from each of those individuals of work that had previously been done, all of the old Asarco records. That's how this project came to be.

Once that was done, then we put boots on the ground, and we initiated an exploration program of sampling and mapping to go back to those old areas that had previously been mined and areas that hadn't been touched. When I say that there are two existing structures on the property that we know of, we think there's possibly a third, that have only been mined for roughly 300 meters and approximately 100 meters of depth. So they're open along strike, what we say along strike, and it's open at depth. Because back in the day, they didn't have a way of dealing with the water, so they essentially went to the water table and then they stopped. That is it in a nutshell. As part of our summer program, we conducted detailed sampling on the two major structures just to the southeast. Of those, we had grades higher than 500 grams, and we discovered another structure which is approximately 300 meters long.

That's what we've been doing, and that's why we're encouraged to date, and that's why we're continuing to sample and map this project, with drilling scheduled to be probably in the first or second quarter of 2024.

Gerardo Del Real: How important is it to you for people to understand just how mining-friendly the part of Mexico you're operating in is? Because I know there's a stigma right now to a lot of parts in Mexico, and rightfully so in some parts, about operating and exploration and mining. But you happen to be in an area that is extremely friendly. Can you speak to that a bit?

Scott Emerson: Sure. Our project is located in the Parral District, and it's in the center of the Mexican silver belt. This particular area of Mexico has greater than 400 years of mining history in the area. So it's very mining-friendly. We have no Ejidos on this project area. Like I said, it was individually owned by 17 landholders. Again, we're in a mining-friendly jurisdiction. I don't know what more you want me to say about that, other than we have had no issues. We've now been on the ground physically for the past year with our crews, and we have had nothing but welcoming to the area. So that's what I can say about that.

Gerardo Del Real: I talked about the high reward nature because of the tiny, minuscule market cap that Kingsmen has. When do I as a shareholder get to see that value being added via the drill bit, which I think is going to be the catalyst that really takes Kingsmen from a company trading at a $3 million market cap to many, many, many, many multiples of that?

Scott Emerson: Right. I think what you're identifying there, Gerardo, is we have 19 million shares outstanding. We have approximately $1.1 million in cash. I can tell you that we have very strategic shareholders, and you being one of them. What our process here is going to be is to finish up the sampling that we have. We just recently acquired the ground magnetics that were done back in 2020 by another company. We're going to synthesize that data.

To answer your question, I feel very comfortably that we'll be drilling by late first quarter next year, early second quarter, if that answers your question.

Gerardo Del Real: Absolutely. I'm looking forward to that.

Before I let you go, Scott, can you just do me a humongous favor? Can you provide a bit of detail on the grades from prior production? Because I think that should speak to everyone about the kind of mineralization that you're targeting here.

Scott Emerson: Yeah. What we've been able to do is with us getting the Asarco data, we've been able to see the grades that they mined over the course of their 10 years that they were there. Those grades, again, range from 250 grams to almost 600 grams of silver. I would say average would be about ... I think we've said 334 grams of silver that they mined with gold, with lead, with zinc. Again, our target there for our first drill program is going to be in excess of 200 million ounces of silver equivalent. That's what we're targeting. That's what we think the potential is there.

Gerardo Del Real: Well, it's going to be worth a whole heck of a lot more than $2 million or $3 million. Scott, I'm looking forward to seeing that value unlocked. I want to thank you for your time, and I'm looking forward to having you back on here soon, because I know there's a lot of work that's going on behind the scenes that you probably should be reporting on here shortly.

Scott Emerson: Thanks, Gerardo. We'll be in touch.

Gerardo Del Real: Appreciate it. Chat soon.

Scott Emerson: As I always say, stay tuned. More to come.

Gerardo Del Real: I like it. I like it. Thanks, Scott.

Scott Emerson: Bye-Bye.

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