General Precious Metals
Revival Gold (TSX-V: RVG)(OTC: RVLGF) CEO Hugh Agro on Hitting More High-Grade Gold Over Impressive Widths at Beartrack-Arnett
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Revival Gold, Mr. Hugh Agro. Hugh, it is great having you back on. We were able to catch up recently in person at Beaver Creek. How are you today?
Hugh Agro: Thanks for having me, Gerardo. Great to be with you.
Gerardo Del Real: Let's get right into it. The overall indices obviously are taken a beating. The gold price has retreated a bit. We have a dollar index surging above 114 and I repeatedly tell subscribers and readers and followers of ours that the better management teams always use bear opportunities to add value because the market turns quick and you have to be in position for that upside. And look, you had some news last week that just absolutely blew it out of the water. You intersected 10.1 grams per tonne gold over 11.4 meters and that was within three and a half grams per tonne gold, over 115.4 meters at the Beartrack-Arnett project. Now this release was important for several reasons. I want to let you provide the context Hugh and then I have a few questions for you to try to make sure that we capture how special these results are and why we think this system is getting a whole heck of a lot bigger than I think a lot of people thought initially.
Hugh Agro: Well, for context, first of all, we're talking about a 5.6 kilometer or three and a half mile strike of mineralized zone that we're dealing with. And within that, we've got a kilometer of strike in this Joss area that we've just released drill holes for. And now 20 drill holes outlying something that's in the order of a kilometer by half a kilometer by a core thickness of one to six meters and a wider zone of 10 to 30 meters. So this is a big target kilometer by half a kilometer with a broad mineralized zone, 20 to 30 meters wide. And the results we've just released, as you point out, 115 meters of 3.5 grams follows up about 500 feet below a prior drill hole that was 110 meters of 4.3 grams per tonne gold. So we're talking about big dimensions, super grades, and lots of scale.
Gerardo Del Real: Look, you already have 4 million ounces of gold across all categories as a resource base. And I say base because with these types of widths and grades and strike length, and it seems like the technical team really is starting to get a laser focused handle on the geometry of what's looking to be another few million ounces here. What comes next? How do you continue to follow this up to see what the limits of this are?
Hugh Agro: Yeah, so it's a trade off between a balance of scale that we're trying to show and then on the other end of the spectrum, continuity between drill holes and along in a particular area. So this year's program is all about showing scale in the Joss area, but there's lots of other places we could be exploring and following up on to add to this. The trick is not to do so much expenditure that we blow up our capital structure along the way. So we've been very prudent about that, very careful with that. And these results, they're really hanging together, as I say now, 20 drill holes in this area at Joss, pointing to something that's going add a million or two ounces to this project once drilled off.
Gerardo Del Real: Hugh, I know that initially the criticism, or if I'm playing devil's advocate, the critique of the Beartrack-Arnett project was that we didn't know if those ounces at depth would be recoverable because we weren't sure – and by we, I'm playing again devil's advocate, this is what the skeptics used to say, right? We weren't sure if the system was big enough to justify going after it. That question seems to no longer come up anymore. That seems to be answered. So you're in a pretty unique situation where you have the option for this oxide project that can easily be developed for low cost and this really exciting high grade system at depth that has to start looking appealing to majors and mid tiers in the space given where the market cap is. Any thoughts on that?
Hugh Agro: Yeah, exactly. We've got first phase project that's, heap leach, a hundred million of capital in the PEA, so relatively modest. And then this larger phase to the deposit that is turning out to be very exciting. I think scale is important. We've talked about that. And as you point out, you need that scale to justify the construction of a mill, the capital involved in a mill. But we're going further than that with these high grade intercepts in that we're also increasing the margin available to the project and that helps with economics. It makes it even more attractive. And the answer to your question, are people waking up to that second phase project potential? Absolutely. We just had a group out the site with some very sophisticated institutional investors. We finished a long couple of weeks of meetings in Colorado related to the gold industry and a lot of corporate interest in what we're doing. These things take time to develop, but we've stepped the ball very much forward here with these latest drill results and it's being very well received.
Gerardo Del Real: You have more results coming from Joss before year end, is that accurate?
Hugh Agro: Yeah, we've got a couple more holes coming here, emphasis has now moved to the Haidee oxide deposit. We need to get some drilling in there this year as well. And so we've got one rig up there now. We'll have the second rig head up shortly and we'll have the results from the oxide target area at Haiti coming shortly. Something that slipped through the cracks with all this drilling is that we've now consolidated a 100% of the land position on the Arnett side of the property. And you spoke about things you can do and when metal prices are down and markets are weak. And one of the things we chose to do was complete the consolidation of our land position at Arnett. So now a hundred percent owned and that gives us a wide license to drill across the property position with our permitting in place and we'll be tackling that next year and in the meantime, drilling at Haidee.
Gerardo Del Real: A lot to like. A lot of new flow coming up. Hugh, thank you so much for the update. Appreciate your time as always.
Hugh Agro: You bet, Gerardo.
Gerardo Del Real: Chat soon.Click here to see more from Revival Gold Inc.