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Revival Gold (TSX-V: RVG)(OTC: RVLGF) CEO Hugh Agro on Path Towards Production in a Gold Bull Market
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of one of the most undervalued speculations in the entire resource space. I'm talking about Mr. Hugh Agro from Revival Gold. Hugh, how are you today?
Hugh Agro: I'm really good, Gerardo. Great to be seeing you in person here on video, as opposed to just over voice. Nice to have a chance to do this a little more together.
Gerardo Del Real: Absolutely. It's good to be able to wear different hats from time to time, so happy to see you. Happy to be in 2025. Really excited about $2,800 gold. Despite $2,800 gold, Revival still has a market cap that trades even in this junior environment at a substantial discount to its peers. So, I wanted to highlight the potential production profile that a company like Revival could either possess one day or supplement for, say a mid-tier that's looking for six, seven, potentially eight, 9 million ounces of gold. In a great jurisdiction, the great jurisdiction of Ohio, which of course, recently just permitted the Perpetua mine, the Stibnite project. And just yesterday or the day before, we got news of the Speed Act, with an emphasis on fast-tracking permitting in Ohio. So, I couldn't think of a better time to have you on. And it just so happens that gold cooperated with us this morning. Talk to me about Revival and for those not familiar, what Revival has.
Hugh Agro: You're onto some really interesting themes here. And we're pounding the table, Gerardo. This is outstanding value for a company. 6.4 million ounces of gold in resource. 150,000 ounces of target production from our two projects, advancing through engineering studies and permitting preparations. And so, tremendous value in the space. And as you point out all this, while gold has, gosh, over the last five or six years, more than doubled, almost tripled in price. So, the setup is great. The valuation at about $6 an ounce in the ground right now is phenomenal, even relative to the beaten up sector that we're in. And it's a really good time to be pounding the table for Revival Gold.
I can talk about some of the details on the projects. But just from a very high level, I would say, and to come back to your earlier question, we are the kind of building block upon which intermediates and even majors build great companies. We'd like to do it on our own. We'll count on financial markets being behind us to do that on our own, but the opportunity is just too good to pass up. And I'm sure that folks are watching pretty closely where the valuation is today and the opportunity that we present.
Gerardo Del Real: Myself, our group, several people that I write checks alongside with have supported Revival Gold for a very long time. And aside from the great jurisdiction and what started as a great project, now it's two great projects. And I want to talk about that. The bet was on the jockey. The bet was always on Hugh Agro and the experience, the leadership ability. You know exactly what mid-tiers and majors look for, because you've worked with them and you've guided those companies in the past. Tell me what is attractive about, again, not just one, but two deposits that I think in this price environment, and by the way, I think gold goes a lot higher, are going to be very, very profitable either for yourself or for somebody that comes in and takes you out at a substantial, substantial premium to today's prices.
Hugh Agro: Yep. Not so evident in the share price performance. Gerardo, both you and I are big shareholders in the company. And it's tough to see the value that our team has delivered. But over the course of the last seven years, we've gone from nil to now 6.4 million ounces of gold. We've gone from nil to two projects. We've gone from nil to engineering studies, development plans, all of the soft things around social relationships in the communities, and permitting preparations and team building. All of that has taken place. And those are exactly the kinds of things that big corporates, intermediate corporates, and others in the industry are looking for.
They're looking for projects that can move to free cash flow, and that have scale, and that can do so on an efficient basis. And if you have the team, if you have the community support, and if you're in the right locations of the world, it really makes things a lot less risky. And so, those are the things that we've built in this company. And again, I would emphasize that we have a really good team. We have projects that are absolutely across the plate for any of the major players in our industry. And it's just a matter of time before that value is surfaced, the value has been created. The next step is to surface that value for our shareholders.
And as a shareholder myself, I'll tell you, I can feel my fellow shareholders' pain as we've gone through a really tough market. Very scarce pools of capital out there. You've got to have brass balls to be an investor in the junior developer space, but boy, it can be rewarding. And patience is the key, betting on the jockey. I take your compliment. Thank you for that. But you're also betting on my colleagues who I work with day in and day out. And these people are outstanding. They've had great track records, they've done great work at Revival Gold. And I think that value's coming. I know that we've got a lot of potential beyond even the value we've surfaced to date, so we're working hard to surface even more.
Gerardo Del Real: The exploration upside, which you lightly referred to there, is pretty substantial. So, it's great that you have over 6 million ounces between two deposits. You have the potential for a very, very attractive heap leach oxide operation in one project. And then you have the potential to do it again with a lot of ounces also down at surface. But the potential to increase that resource from over 6 million ounces to 7, 8, 9 and 10 is very, very real, and can be done in a relatively short timeframe given the right budgetary allocations. And a lot of that could be self-funded with the price environment.
Assuming that you go at this alone, you always want to assume that. And if a white knight pops up and decides they want to pay fair value, then that's something to consider. But assuming that you go at this on your own, how do you see the next several years for Revival Gold to flesh out that exploration upside, but also to not miss out on this sweet spot of the profit cycle with gold surging to brand new record highs?
Hugh Agro: Job one is to advance our Mercur Project in the State of Utah. 1.6 million ounces of gold in heap leach. The resource is entirely on private ground. That's really important in the United States. We have infrastructure. This is one of the hallmarks of Revival Gold, is to pursue these revival opportunities where we've got infrastructure, power line, roads, water access, supportive communities. In fact, we're an hour's drive from Salt Lake City in Utah. And so, this makes it a very special opportunity to progress to cash flow. And in a unique situation in the Western United States, it's a 15,000 acre land position. And that gives us scale and scope for a much bigger deposit. We have the right geology, Carlin-type deposit at Mercur. And so, we're marching forward with a PEA, a preliminary economic assessment, to put value to the ounces that are in the ground and to demonstrate to the market the engineering plans.
We're also preparing a permitting schedule and approach, so we'll have that all completed over the next two or three months. And I think that's very important to launching us on the next steps at Mercur, which are to move that project through permitting and ultimately into operation. And we think we can do that over the next two or three years. And we think we can do that for less than $200 million of capital. Something that would produce in the order of 80 to 90,000 ounces a year of gold, and do so for nine or 10 years mine life. Something that would do that in the Western United States, where we don't have to worry about being robbed or we don't have to worry about being expropriated, and where we can put jobs back in North America and in the US specifically. This is absolutely in line with where the current federal administrations is going.
Our second project in the State of Idaho, as you pointed out, just has come out with the Speed Act. All about moving these projects more quickly into operation. Here we have 4.6 million ounces of gold. And this project has two phases to it. The first is heap leach. Already at a pre-feasibility study stage, so we're moving permitting preparations ahead. And we'll do that over the next three and a half years or so, as we move towards a construction start. In the meantime, we've got tremendous exploration potential at Beartrack-Arnett, our project in Idaho. Already three miles of strike outlined with mineralization. We've got another three miles of strike that is open for exploration. The deposit’s open at depth. And I think with capital available, we'll absolutely want to continue to grow that deposit.
I can tell you our chief geologist, Dan Pace, is a mine finder. He's done it before with the Silicon Project, which AngloGold's advancing right now. And he is itching to get out there and do some drilling. So, if everything comes together as we'd like for later this year, we'll be back in drilling at Beartrack-Arnett and continuing to expand that 4.6 million ounce resource there, even while we progress permitting on the first phase. So, there you have it. Mercur, first in line. We moved to production on private land in the State of Utah. Get ourselves up to that 80 or 90,000 ounces a year.
At Beartrack-Arnett, we progress coming along in second with another 65,000 ounces of heap leach production in the first phase. And that exploration potential for something in the underground to follow. This is a pipeline company of assets in the Western United States, synergistic in supportive communities. And with actionable value creating opportunities just even in the next two, three months as we progress our studies.
Gerardo Del Real: Listen, the potential production pipeline and profile is exciting. And I know the market hasn't caught on yet. It hasn't yet rewarded all of the hard work that you and the team has gotten through. But I think that day is coming. And I have to believe that mid-tiers and majors are looking at the company and chomping at the bit. Given where the market cap is, and given that gold is at 2,800 and doesn't appear like it wants to slow down price appreciation wise anytime soon. Anything to add to that, Hugh?
Hugh Agro: Look, I'm pounding the table. I believe in what we've built. Sometimes these things are a six or seven year overnight success. All it takes is one catalyst, one realization. I can tell you there are a lot of moving parts right now. It's an exciting time. Watch this space.
Gerardo Del Real: Mr. Hugh Agro, always a pleasure. Looking forward to catching up again soon. Thank you again for your time, sir.
Hugh Agro: Okay, thank you Gerardo.
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