Revival Gold (TSX-V: RVG) CEO Hugh Agro on 2018 Drill Programs at Beartrack and Arnett Creek: Mission Accomplished on Both Fronts

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, how are you this afternoon?

Hugh Agro: Very good, Gerardo. Good to be back.

Gerardo Del Real: Well I understand you're actually in Spokane, busy as always getting the word out. How has Spokane treated you and what are you doing in Spokane?

Hugh Agro: I was at the AEMA annual meeting and conference event. That's the American Exploration Mining Association. They do it in Spokane where the association first started, which is interesting. It's a historic mining location in the state of Washington, beautiful town, and lots of folks running around with a specific focus on mining here at the conference.

Gerardo Del Real: Excellent. The last time we spoke we talked about Arnett possibly being a satellite deposit to Beartrack. We now have some near surface oxide gold confirmed at Arnett, and you also extended the Beartrack mineralized trend by 250 meters. You had some news a couple of days ago that I want to talk about. Can we start by stepping back a bit and giving listeners an overview of what the 2018 drilling program was intended to do? Then let's talk about what it actually did.

Hugh Agro: Our objective with 2019 was to advance the prospect for us to fast track a restart of the leach plant that exists at Beartrack and then build out the concept for a potential mill operation in the longer run. We've achieved both of those goals in 2018.

Gerardo Del Real: Excellent. Let's talk about the latest release. We had holes from Arnett and we had somr holes from Beartrack. Let me go over some of the highlights. Hole AC18-12D intersected 1.44 grams per tonne gold over 4.6 meters. As important is that it was very near surface and it was oxide gold. You also had some high-grade hits within that, a 4.1 meter intercept of 9.19 grams per tonne gold. I can continue, but can you summarize how you feel about the initial drill results from Arnett?

Hugh Agro: The first objective there was to confirm that we have oxide mineralization as a second potential source for the existing facilities at Beartrack. That's what we've done with these six holes that we released earlier this week. We've got another two holes to come. But it's an initial program. It was targeted to confirm that we've got oxide mineralization there. The holes themselves and the way we've released them, some folks have looked at that and said, “well geez how does this all work?” Well, they're all within 125 meters of surface, these intercepts, and what we've chosen to do is give the narrower, higher grade intercepts. But of course we would be looking at this as a potential bulk mining scenario.

We're just getting started with it. It's quite exciting for us. As you point out we've got some really good grades there. We'll have to do a lot of work over the next two or three months to start putting these into plans that will allow us to maximize our drill program for next year around building this out into a resource, but that's our intention for 2019. With respect to 2018, to use an oft used phrased, it's mission accomplished with respect to Arnett and our initial drilling there.

If I can just jump to Beartrack, at Beartrack of course the job there is to show that we've got scale to this deposit. As you point out, we've stepped out another 250 meters. So in total we've got now 950 meters of mineralized trend that extends beyond where the resource of a couple million ounces ended. That's a very large scope for us to build on the resource. We'll of course have to get in there with infield drilling. We'll look to do that starting in next year's drill program, but that's huge potential for us to grow the resource at Beartrack. Again, mission accomplished on both these fronts. It's a really good way to end the year.

Gerardo Del Real: And just to provide a brief overview for people that may not be familiar, the 2018 drilling program was approximately 15 core holes. I believe it was about 7,600 meters. There's still two holes pending from Beartrack as well. Correct, Hugh?

Hugh Agro: That is correct.

Gerardo Del Real: Excellent. So 2019, what can shareholders look forward to Hugh? I know you touched on it a bit earlier, but just to summarize.

Hugh Agro: We have four holes to come out, two from Arnett, two from Beartrack. We are pursuing four different permit applications in the area and we're making really good progress on that. We'll have an update on that in the beginning of the year. Then we'll move to about 5,000 to 10,000 meters of drilling in 2019 with the objective that by the end of the season, that is by the end of the year, we'll have initiated an update to the resource estimate. All of this will be done with a view that we can get into some kind of a PEA in 2020. In addition to the drilling we'll be looking at a second phase of metallurgical test work and we'll be starting some work on economics and building up the information that we'll require for PEA in 2020. It will be a big year for us.

Gerardo Del Real: Hugh, you have an excellent share structure. It's 42 million shares outstanding approximately, if I'm not mistaken. You had a working capital balance as of the latest reporting period of approximately $2.3 million. The last time we spoke you mentioned that you had your eyes on potentially accretive opportunities.

It's a very tough market for most of the juniors. The share price for Revival has held up well. I still believe it's one of the best value propositions in the space. With all that being said are you still looking at potential accretive acquisitions that would make sense, or is the focus, and I know the flagship is Beartrack, you are obviously excited about Arnett, but are you still using that very, very influential Rolodex of yours to look at things?

Hugh Agro: We are, but I've got to say at $0.65 a share it's pretty compelling to be buying our own stock today than buying new projects. I think we'd have to see a much elevated share price before we found anything that would be as accretive as what we've got at Beartrack or Arnett. We've really only scratched the surface.

One of the things that we haven't talked about is the land position at Beartrack and Arnett. We've now built that up to over 5,000 hectares. We've got, as I mentioned earlier, a number of permitting processes in play that will give us drill targets across that property position. We've got lots of places to go to find gold in our own backyard. We'll continue to look, and we think there's some very good value out there, but we're choosy and we think there's pretty damn good value in the Revival Gold share price today.

I should note that both our Chairman and myself have been buying shares in the market. We’ve put our money where our mouth is. We think there's good value in the company and we intend to continue to deliver for shareholders and build this company. We've got a great foundation to do that from as it stands already. I feel very good about our position as it stands, even on a status quo basis.

Gerardo Del Real: Hugh, I've had the good fortune of being at the property twice now. Can you explain the infrastructure advantage that you have over some of your peers? Because I think that's very understated and not appreciated by the market. A lot of it is lack of due diligence frankly on many analysts behalf. The infrastructure advantage is significant. Can you provide a brief overview of what currently exists on the property?

Hugh Agro: Perhaps we haven't done a very good job of communicating that, Gerardo. You'll see, for folks who want to get a sense of it, I encourage you to go to our website. But at Beartrack we have power to site. We have existing leach ponds. We have an ADR facility that while it will have to be rehabilitated is currently operating. It's processing leachate from the historic leach pads. Nothing of consequence, Gerardo, but the point is it's operating infrastructure. We've also got the access, the roads, the water. All of these things give us great advantage in terms of the possibility for a restart of that operation on leachable material.

We're of course also building out the possibility for a mill scenario. There is a very large sulfide resource that we're growing, as we've discussed, at Beartrack. But in the immediate term that infrastructure that we have there is a huge and important advantage relative to our peers. Along with that infrastructure we have the people. We have the former general manager for the operation who works on our team and is our general manager based in Salmon committed to the project and a very seasoned veteran in the mining industry.

We have both physical and human resource infrastructure that will allow us to move quickly on that project. We've got a lot more drilling to go here, but we've got all the pieces together to put this back into operation.

Gerardo Del Real: That's a lot of anchors for a company with a market cap of approximately $27 million Canadian. Hugh, thank you so much for taking time today. Enjoy the conference.

Hugh Agro: Thanks, Gerardo. We'll keep you posted.