Revival Gold: The Overlooked Multi-Million Ounce Gold Deposit in Idaho

Revival Gold (TSX-V: RVG)(OTC: RVLGF)

In July, while Revial Gold was trading near 52-week lows, I told premium readers of Family Office Advantage that:

Revival Gold is the gold stock to look at this week as it remains near 52-week lows. It has three million ounces of gold at 1.1 grams per tonne, and is likely headed to five million ounces. It has also completed a first phase preliminary economic assessment (PEA) with a prefeasibility study due out next year. It is drilling now with early results due out next month. Revival has a market cap of C$45 million. There are other companies in Idaho with smaller resources at lower grades that trade with significantly higher market caps. Revival is a buy under C$0.70 and trades at C$0.61. I bought a bit more today.

The first summer drill result came out in early August, and it was exactly what the company was looking for. Revival announced that its first completed summer hole into the high-grade Joss target — hole BT21-237D — returned a strongly mineralized interval of 2.67 g/t gold over 84.6 meters including 11.79 g/t gold over 2.5 meters and 5.36 g/t gold over 5.8 meters.

You’ll notice the lowest grade there is more than twice the average grade of the company’s resource.

It’s high-grade stuff. And the market knows it, sending shares to C$0.75 on the news.

A second hole, BT21-238D, intersected similar stockwork. Assays for it are pending. Another hole — BT21-239D — is currently being drilled 400 meters south along strike. 

And a second drill rig arrived on site in early August to accelerate the pace of drilling.

Upcoming drilling will also focus on the Haidee area, which already hosts a ~200,000-ounce gold resource. It remains open in all directions, and additional ounces would add to the mine life of the planned first phase restart.

Other analysts are taking note, with Far East Capital's Warwick Grigor publishing in an August 28th commentary that:

There are many encouraging aspects about Revival that
provide an opportunity for a re-rating of the stock;

• a low market capitalisation of only C$48m giving a valuation of $12/oz in the ground.
• a substantial 3 Moz resource base
• potential to increase to 5 Moz with mineralisation open in all directions
• staged production plan to minimise capex up-front
• Phase One heap leach project benefits from recent mining and continuity with previous management
• well credentialed management
• good infrastructure and a safe, mining friendly jurisdiction with minimal geopolitical risk.

What more can you ask for in a prospective gold producer? It is difficult to see that Revival Gold would not be attractive to a corporate raider.

You can read that full commentary on Revival Gold here.