Categories: Precious Metals
Topics: General Precious Metals

Kore Mining (TSX-V: KORE)(OTC: KOREF) CEO Scott Trebilcock on Drilling For Feeder Structures & Oxide Targets at Long Valley

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Kore Mining, Mr. Scott Trebilcock. Scott, how the heck are you? It's good to chat again. I last saw you at Beaver Creek. It's been a few weeks. I know at the time you and I chatted we were excited about the upcoming drill program and you finally received approval from the USFS for a Long Valley drill program. Congrats on that front. I know it's been a wait.

Scott Trebilcock: Yeah, absolutely Gerardo. Great to talk to you again. This time we're not in beautiful Beaver Creek. I'm back up in Vancouver but we recently got that permit from the Forest Service. Team did a great job working with the Forest Service to make sure that we meet all the stringent California requirements and while the process was slower than we anticipated we ultimately achieved our goal and the team's up there right now, setting up the logistics.

Gerardo Del Real: It's a, initially a 3,000 meter phase one drill program but you're looking to test both the near surface oxide targets and what you believe could be the feeder structure targets for underground potential. Is that correct?

Scott Trebilcock: Absolutely. This is a large epithermal gold system that was only drilled back in the nineties when gold was three and 400 bucks for very surficial oxides and no one's ever tested the potential at depth for high grade gold mineralization and even base metals. I mean, this is a deep rooted, young, fully intact epithermal gold system. So, could come along with all kinds of interesting things at depth and we're really excited to get out there and test some of these targets.

Gerardo Del Real: Let's talk market disconnect. We're in the midst of a 13 or 14 month gold consolidation, right. A consolidation in the gold price that has taken the price of even the quality juniors like Kore to pretty attractive and borderline ridiculous levels. I mean, for those that aren't familiar with the company can you just give everyone a brief overview of the two projects that you have and the potential production profile that comes along with those?

Scott Trebilcock: Yes. Yeah, exactly. So in 2020 we completed economic assessments and mine plans for a total of 4 million ounces of gold in the two projects. The project we've just received the drill permit in is Long Valley. It's got a nice PEA on it, mine plan that should produce at a hundred thousand ounces of gold for eight or nine years. We're looking to expand that with this upcoming drill program. We've got a second asset even more advanced down Southern California that should produce 150,000 ounces a year. So we've got a pipeline of up to 250,000 ounces per year production in some great projects. And we're trading at a, I don't know, whatever the market cap is today, at $35 million market cap. So yeah, you're right. The junior stocks have been really beaten up just because there's no bid on a whole bunch of these stocks.

Gerardo Del Real: What is the combined net present value for both projects? I believe that just for Long Valley the NPV somewhere around $273 million, right?

Scott Trebilcock: Yeah. That's US dollars. So, we're half a billion US at $1,600 gold between the two projects. It's about trading and getting a bid on the stock. The potential 500 to a billion dollars of value here to unlock by taking these projects forward. So there's a great prize here for moving forward. It's when the market will wake up and see some of these values, you get a bit of glimmer in the gold price and stocks like these can really move and you saw that happen with Kore in 2020 and we went up to $1.70.

Gerardo Del Real: We know that the first phase of this program is going to be an initial 3,000 meters as I mentioned but there is the potential to expand the program up to 15,000 meters, depending on just what mother nature delivers with the drill bit, right?

Scott Trebilcock: Yeah, exactly. We've got, we've permitted multiple, we can drill multiple holes off each pad because we're drilling both surficial oxide targets and then targets at depth. We can use angles and multiple holes to go back and make sure we're thoroughly testing all of our targets. The pads are really spread out so we're testing a huge area here. This is really about seeing what the growth potential is and really stepping out and hopefully making some great new discoveries.

Gerardo Del Real: Primarily gold targets but I understand you'll also be assaying for silver and I believe that's the first time that's happened at this project, correct?

Scott Trebilcock: Correct. In an effort to keep costs as low as possible in the nineties gold companies would fire assay gold on RC drilling and nothing else. When they did the map work they found out not surprisingly, given it's an epithermal system, that there's a significant amount of silver associated with that gold but, it was never assayed in the drill holes. So we're looking to go assay for that for the first time and over time to move that into the resource which would hopefully unlock some more value in future studies.

Gerardo Del Real: Well, these epithermal systems have a reputation for delivering some spectacular grades when you do find those feeder structures so I'll be watching the program excitedly and waiting for assays. Anything else to add to that, Scott?

Scott Trebilcock: No. I mean, you hit all the great things. We're testing a, what is, looks like it's a very large system, only been shallowly drilled. Looking for some really spectacular grades at depth and some great step outs at surface and excited to get out in the field and do some work. We've got capital in the bank to do it so looking forward to starting here in the coming weeks.

Gerardo Del Real: Looking forward to having you back on. What's that treasury look like before I let you go?

Scott Trebilcock: Currently have about five and a half million dollars Canadian cash in the bank from our raise we did earlier this year.

Gerardo Del Real: Excellent and that raise was done, I should add at much higher prices hence, the opportunity, right. I believe the raise was done at what 90 cents?

Scott Trebilcock: 95 cents with a half warrant. So yeah, there's some great opportunities and lots of stocks in the market. Everyone should have a look at Kore. See what they think.

Gerardo Del Real: Agree. Can't wait to have you back on. Thanks again, Scott.

Scott Trebilcock: Thanks, Gerardo. Always a pleasure.

Gerardo Del Real: All right. Chat soon.