Categories: Precious Metals
Topics: General Precious Metals / Gold Stocks

Revival Gold (TSX-V: RVG)(OTC: RVLGF) CEO Hugh Agro on Expanding Land Position and Advancing Exploration South of Joss

 

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's great to have you back on. How are you today?

Hugh Agro: Thank you for having me, Gerardo.

Gerardo Del Real: Well, listen, let's get right to it. We talked a bit off-air. We have a robust gold market, right? We are some 30, $40 away from new all-time highs. And despite that, a lot of the equities, Revival included, simply have not kept up. And that's presenting a heck of a speculation. And look, anytime that you get a market that shows such a severe disconnect between value in the ground and market cap, I think speculators and investors in this space, it would behoove them to really put pencil to paper and start looking at some of the more attractive comps out there as it relates to valuation versus ounces in the ground. And Revival Gold presents a pretty compelling case that it should be amongst the top companies that should be getting looked at. And I have to believe that there's conversations being had behind the scenes by some of the corporates that are probably seeing some of the same things.

So when I saw the latest news release where you expanded the land position and you advanced the exploration south of Joss, it was curious to me. Because expanded land positions tend to be attractive to bigger players in the space. I wanted to talk about the release. There was a lot of geo speak in there. I understood a lot of it. I'm also not a geologist, so there's a lot that I'm sure I missed and I wanted to get the details from you.

Hugh Agro: Thank you again, Gerardo. Listen, you've got great instinct here. Those of us who've been invested in the space for the last half dozen years or more are certainly feeling some pain. And we're wondering why the heck are we in this space for those big returns? It's been a tough grind, but I tell you, it's never been a better time to be positioned. The industry as a whole is in really good shape. We've got 30% average margins in the industry. In the gold mining industry, 10-year record of that kind of level of profitability is really, really healthy.

And as you point out, we've got great valuations. So in the case of Revival Gold, trading here at 0.25 times underlying NAV, underlying net asset value. And that's before we give any credit to the resources that are not in our current pre-feasibility study, some 3.5 million ounces outside of that study. So lots of value in companies like Revival Gold, in a healthy industry with good solid margins. And of course that overlying trend, which is that the pace of global discovery is way, way behind the pace of global production. And that does set up really good dynamics for M&A in the sector.

Gerardo Del Real: I couldn't agree more. Let's talk about specifically the expansion of the land position and the motivation there.

Hugh Agro: As part of our work, we need to be thinking about the bigger potential in the project. Look, we've drilled across 5.5 kilometers of the Shear Zone at Beartrack-Arnett. The work that our geologists have been doing over the last six months has really pinpointed the continuation of that structure to the south, defined it with geophysics, with soil sampling, with structural modeling computer work. And we've got another 5 kilometers of strike. So in a sense, this is like an iceberg where we're seeing half of the berg above the water and there's another half of it beneath the water yet untested. And this is the kind of tantalizing opportunity that the bigger players salivate for. Of course, we had Barrick come into Idaho on an exploration idea just in the last few months with a big investment, and others are looking, I can assure you of that.

Gerardo Del Real: How is the week shaping up for you? I know this week and next week, you're spending a lot of it on the road, a lot of meetings, a lot of shows. Tell me how that's gone and tell me the plan for the next week or so.

Hugh Agro: BMO conference last week, very well attended, some excellent meetings in progress there with our initiatives to raise the profile of Beartrack-Arnett among some of the bigger players. And then this week, the end of this week, we're doing the Red Cloud Showcase, which is a pre-PDAC session in Toronto. And then we run into PDAC. And of course that's a busy time in Toronto. We've got thousands of our best friends coming into the city to talk mining, exploration, and investment in the space. So a busy time, and we are certainly out telling the story. I invite any of your listeners who happen to be at any of those events to reach out, to contact us. Happy to meet up and in person.

Gerardo Del Real: Anything else to add to that, Hugh?

Hugh Agro: Thanks, Gerardo. We're appreciating your confidence in the story and in what we're doing, and I can assure you we're working very hard to deliver those exceptional returns you expect from us.

Gerardo Del Real: Good stuff. Looking forward to it. Looking forward to catching up post-PDAC. Good luck out there and safe travels.

Hugh Agro: Thank you.

Gerardo Del Real: Cheers.

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