Revival Gold (TSX-V: RVG) CEO Hugh Agro on Latest Batch of Spectacular, Near-Surface Oxide Gold Drill Results & Outstanding Existing Infrastructure at Beartrack-Arnett Gold Project in Idaho
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of Revival Gold (TSX-V: RVG)(OTC: RVLGF), Mr. Hugh Agro. Hugh, good morning to you.
Hugh Agro: Good morning to you, Gerardo.
Gerardo Del Real: How is the back to school rush in your part of the world? I know it's that time of the year where it's post-Labor Day here in the U.S. and everything kind of picks up.
Hugh Agro: Yeah. Summer's over, but the work week is on. We're starting this with a great set of results from Revival Gold.
Gerardo Del Real: Let's talk about those results. You're off to a heck of a start. I've mentioned in past interviews and releases how important on the oxide gold target at Arnett was as a complement to Beartrack, which is the flagship.
You had some pretty spectacular results that include 60.5 meters of 0.99 grams per tonne gold, 66.3 meters of 0.88 grams per tonne gold, 30.9 meters of 1.14 grams per tonne gold. And it should be noted that all of the results reported today start pretty near surface.
Can you talk about that a bit and why it's important, Hugh?
Hugh Agro: You were quick to see the connection between our existing infrastructure at Beartrack, the ADR plant, the leach ponds, the power to site. All of these things that we acquired with the Beartrack acquisition and the neighboring property at Arnett where we have this oxide material.
If we go back to the days when Meridian Gold was working in this location, this was their objective, develop up the resource at Arnett, process it at the Beartrack site facilities.
And so we're really executing on that plan that Meridian Gold had back in the '90s, but we're doing so in a – can I say $1,500 gold? – $1,500-plus gold price environment relative to a $300 gold price environment back in the 1990s.
So it's a very good connection that you made early on between the two projects that we're now executing on. These results clearly demonstrate the potential of Arnett for possible near term production at the ADR facility at Beartrack.
Gerardo Del Real: Now tell me a bit about the program, as far as both Beartrack and Arnett. I understand that all the planned drill holes are now complete. Is that correct?
Hugh Agro: That's correct. We drilled 25 holes. We released three holes in the Beartrack area in July. We've released seven holes with this news today in the Haidee area at Arnett. And we have another 15 holes to release as we get through getting the assays back, and QA/QC over the next a month and a half or two.
Gerardo Del Real: Excellent. Hugh, you touched on something that I want to highlight a bit more and that's the the infrastructure that's already in place. Revival Gold has a market cap of approximately, let's say, $37 million Canadian give or take a bit. We're in an environment, as you mentioned, where gold is sitting at $1,545 as we speak.
Can you give everyone an idea of the infrastructure that's already in place? Because I think it's a key differentiator for Revival Gold. The dollar value of the infrastructure that you get to benefit from, I'll go out on a limb and say it's pretty close to the current market cap, if not exceeds it.
Hugh Agro: Yeah, you're probably not far off, Gerardo, in terms of that estimate. But we haven't done anything formal. What I can tell you is that it starts with road and power and water access. We have a 69 kV line to site that's active. In fact, the Idaho Power Authority just refurbished that line. We have roads to the property and across the property, which gives us access. And of course we have water rights. So that's the starting point.
Then in terms of buildings and footprints for buildings, we have the ADR plant, which is essential for the production of gold. Takes us right from the leach solution through to dore bars. We'll have to refurbish all of that infrastructure. It's not producing anything in commercial quantities right at the moment, but it's working infrastructure. We've also got this super facility, it's a warehouse, a core logging storage facility, fully winterized, which is available for our geologists to use. We've got the the cyanidation permit on site.
We're about an hours' drive from a town of 3,000 people. So you just can't get much better located than this, relative to greenfields projects or even brownfields projects, where the infrastructure has been raised and is no longer available to be redeployed, let alone projects in the far north that have fly in/fly out access only and require fuel to come in for power generation. Our fuel costs are in the order of five cents a kilowatt hour, which is tremendous. Idaho's got great low-cost power.
So lots of advantages in terms of infrastructure, lots of potential savings. Not just in dollars, but in terms of time to potentially restart the operation at Beartrack-Arnett. We'll investigate that further next year.
In the meantime, focus on getting remaining drill results out, completing a second phase of metallurgical test work. We're doing regional soil sample work to identify new targets on the property position and we're doing an updated resource. We've got RPA busy on that and we'll have that resource out in the first quarter next year.
Gerardo Del Real: Excellent. Hugh, it sounds like it's going to be a busy rest of the year, and a fantastic start to 2020, a lot of work left this year. I understand you'll be at the Beaver Creek Precious Metal Summit here next week, if I'm not mistaken. Is that correct?
Hugh Agro: Full schedule. Yeah, it's a back to back chockablock meetings at Beaver Creek and then onto the Denver Gold Forum in Denver. So it'll be a busy marketing season ahead.
Gerardo Del Real: Fantastic. Let's make it a plan to catch up at Beaver Creek. I'm excited for it. I'm obviously excited at $1,545 gold. And again, the near oxide gold here at Arnett is a big deal to me. So I'm looking forward to the remaining assays from Beartrack and the program.
Hugh Agro: Thank you, Gerardo.
Gerardo Del Real: Thanks a lot. Hugh