General Precious Metals
Revival Gold (TSX-V: RVG)(OTC: RVLGF) CEO Hugh Agro on Value Proposition & Start of Drilling at High-Grade Joss Zone at Flagship Beartrack-Arnett Gold Project, Idaho
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of Revival Gold — Mr. Hugh Agro. Hugh, how are you today?
Hugh Agro: Good to be with you, Gerardo. Thanks for having me.
Gerardo Del Real: I hate to sound like a broken record… thank you for coming on, first off… but I hate to sound like a broken record but every time you come on, I preach to the audience about the value in Revival Gold and just how great of a speculation it is at current levels.
So I just want to provide some context this time around because adjectives are nice but numbers are better because they're factual, right? You have a current market cap of approximately C$45 - C$46 million. You have a resource across all categories of at least 3 million ounces of gold.
Gold is flirting with $1,900 an ounce as we speak. And, not to mention, you have infrastructure that — I can make a pretty compelling case — rivals the value of the entire market cap. If you were to replace the entire infrastructure, the past-producing infrastructure onsite, I could make a good argument that it would take C$45 million to replicate that.
And yet, here you are trading near 52-week lows!
I suspect there's two reasons for that. The first being the consolidation in the gold space that everyone's gone through. And the second is there was a month or two where it was a bit quiet on the news front. That changed today.
You've resumed drilling at the high-grade Joss target. I would love some context on the drill program because it's a modest one to start out — but it's an important one.
Hugh Agro: It's catalytic, Gerardo. As you know, we've got about 850,000 ounces of our 3 million ounce resource in the PEA for the heap leach phase of this operation. But this drilling that we're doing in the Joss area, which is a high-grade target at Beartrack-Arnett, is catalytic to our longer-term plans for this project — the mill project.
And that's a project which would produce something in the order of 200,000 - 300,000 ounces [of gold] a year under the currently contemplated production rate that our consultants are using in the resource 43-101.
And it's a project of scale that is really exciting to the market, especially, as you point out — in a rising gold price environment. Joss is about three quarters of a mile in strike. We've got 14 drill holes into it so far. And we're going back in to continue to expand on strike and to add to the understanding of that mineralized body.
Gerardo Del Real: Excellent! I also understand that you'll be mobilizing a second rig in June.
Hugh Agro: Correct. And that's focused on the Haidee target where we have oxide resources on-surface in an open pittable situation; open in all directions. And to add to some of the earlier metrics that you were mentioning, every year of free cash flow from our first phase project equates to our current market cap.
So as we add additional years to the mine life in the oxides — which are open in all directions — we are going to continue to multiply the value opportunity for our shareholders today. And we'll get drilling with that in June.
Gerardo Del Real: The most recent PEA (Preliminary Economic Assessment) envisions a seven-year mine life, initially. We know that's going to grow. But an initial seven-year mine life at an all-in sustaining cost [AISC] of $1,057 per ounce of gold. The margins there, of course, approximately $843 per ounce of gold. That doesn't include any of the other components that we chatted about.
You have a cash balance as of March 31 of approximately C$7.4 million. And something that I love, Hugh, is you have skin in the game! You're not one of these CEOs that says you're undervalued and then does not act it. How many shares do you currently own of Revival Gold, personally?
Hugh Agro: Gosh, I'm over 4 million at this point; most recent purchase was C$0.66 a share a couple of weeks ago. I think we've got tremendous value. We've got a team that's driving hard on all fronts efficiently for shareholders. And the risk/reward potential on Revival Gold is outstanding.
So yes, I'm long. And yes, I'm a believer… but for good reason. And I've been in this business for 30 years. I think we've created something here with Beartrack-Arnett in its modern edition, which is going to have reverberations in the US mining scene. It'll be, in my view, one of the top six gold producing assets in the United States. And at just the time when other parts of the world are falling apart.
Even some of the traditionally more comfortable places to be like Chile and Peru have gotten a lot more difficult; Mexico, very difficult. We're seeing expropriations in some of the European and Middle East and Southeast Asian countries. This is a project that's coming in at precisely the time when people want to come back to the United States and Canada for good opportunities to feed ‘Made in America.’
Gerardo Del Real: You have grade; you have margin; you have the team; you have exploration upside; you have infrastructure; you have a solid cash balance. The drills are turning; insider ownership. Did I miss anything, Hugh?
Hugh Agro: Great value proposition with these catalysts. So yeah, great to have the audience getting this information today. I couldn't be more excited about the potential of Revival Gold than I am at this time.
Gerardo Del Real: Agreed. To make money in this business, it's buy-low and sell-high. This is the buy-low portion of the sell-high equation everybody. Mr. Agro, thank you so much for your time. I appreciate it!
Hugh Agro: Gerardo, a pleasure!Click here to see more from Revival Gold Inc.