Angold Resources (TSX-V: AAU) CEO Adrian Rothwell on Developing New Drill Targets in Nevada & Drilling at Dorado
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Angold Resources, Mr. Adrian Rothwell. Adrian, it's been an interesting week. How are you doing?
Adrian Rothwell: Sure has. Well, I'm doing all right. Doing all right. Just watching what's going on around us here in the markets and some of it's quite fun to watch.
Gerardo Del Real: It's been an interesting week, great for popcorn sales and I suspect this isn't going to be the last of it. I think 2021 is going to be quite, quite interesting on many fronts, not the least of them Angold. Right? You've had a bit of a pullback in the share price. I think we all know when we see end of month settling of accounts and you see the kind of selling that's happened in many of the names in the resource space, I think we kind of know what that is. People get caught up with too much leverage and margin, and I think it presents a heck of an opportunity. You just had some news outlining some new drill targets in Nevada, a lot going on. Can you give us a brief overview there?
Adrian Rothwell: Yeah, sure. I mean, just a lot of points there to cover. I think not really leverage and margin in our stock, but yeah, I mean, we've had some big volume in this week and I think that that's just, we need the money to circle back into this sector and away from perhaps some more of the meme stocks. And the stock market in general is doing well, so when that rolls back, we'll see money start to pour into this sector as a whole, on a much more aggressive level and I would expect Angold to do very well.
You'll see in the market, I've been buying some of this stock and I sound like a broken record, but the stock being sold right now is the free trading 40 cent sub receipt stock. So they're selling at a loss. I'm more than willing to pick some of that up. So on the project itself, everything's going great. I mean, first of all, on Dorado we're drilling now. We've got around about 347 meters drilled on our first hole. Second drill is running as well as of this morning. So 347 meters as of this morning, I should say, and the second drill has been running for also about a week. So everything's going fantastic at Dorado.
And yeah, I mean, Iron Butte, you mentioned we had news come out two days ago on Iron Butte that just really summarized the project, that the objective here was to introduce the project to our followers and familiarize them with the claims, the work we've been doing in the background. So we've been spending a lot of time looking at the historic resource on the project and the structures that we are seeing from our surface work that we conducted in Q4 last year, and give people a bit of a heads-up as to where we will be drilling and what we're looking at.
Gerardo Del Real: You have some very long intercepts of excellent grades, historical holes. Can you speak to that a bit for people that aren't familiar with the project?
Adrian Rothwell: Yeah, sure. I mean this project, there's a few holes that really have mineralization from surface down to 500, 400 feet. And we've highlighted some of those holes in the news release. I'm going to switch from meters to feet here. We've got 12 meters at 1.7 grams per tonne, and that's within a 72 meter intercept of 0.4 grams per tonne, 55 meters at 1.13 grams per tonne. So we see very good grades that hold together very well to make a nice resource.
And one of the objectives of our planned drill program will be to complete QA/QC and a little bit of infill on some of the historic drilling, bring some of that historic drilling into a new and updated resource, as well as extending the depth of what we're looking at. As I said, we had multiple drill holes ending in mineralization, so we're going to keep going and look at the extension.
Gerardo Del Real: It's important to note, I think, you read those intercepts that most of those are either or all of those I should say, correct me if I'm wrong, are either from surface or pretty darn near surface. Right? We're talking 98 meters of 0.70 grams per tonne gold from surface. We're talking 21 meters of 1.54 grams per tonne gold within that from 29 meters. And so that's an important point because the system, as I understand it, it covers an area of at least 1.3 kilometers by 2.9 kilometers. That's a pretty robust sized system.
Adrian Rothwell: Yeah. So our aim is along the range front there, and there's certainly, we've got mineralization in the North Zone and mineralization in what we call the Red Ridge Zone, but very sparse drilling between the two and so we'll be looking at that as part of this next program. But yes, you're correct. I mean, the drilling is quite close to surface. Historically, drilling was only done to around 300 feet and the historic resource I think we can add to that.
Just by the way for anyone new, the historic resource we have here is around 600,000 ounces and about half of that is in oxide. Around 313,000 ounces is in oxide. So it's a very near surface resource.
Gerardo Del Real: Excellent. You mentioned the drilling at Dorado. I saw a picture of some really good looking core from the initial hole. When do you anticipate having those assays back, Adrian?
Adrian Rothwell: Yeah, so we're actually sending our first pallets, which will be around, a pallet's around 200 meters of drilling, so that's up to our core cutting facility in a town called Copiapo today. That'll go to the drilling lab next week and we'll get our first results back probably in about around two to three weeks.
Gerardo Del Real: Well, if we can get Angold on Reddit, I suspect we're going to have a pretty, pretty excellent February. Listen, the core looked good. We all know that exploration drilling is high risk/high reward, but frankly, you have a portfolio of projects that I would be extremely surprised if you weren't successful on at least one of these. And I suspect you'll likely be successful at multiple projects. Anything else to add, Adrian? I actually, I know that you're not excited about the pullback in the stock, but junior resource stocks are like real estate. You make your money when you buy and any time you get a pull back like this, I think it's a gift from the market that should be taken advantage of.
Adrian Rothwell: Yeah, I agree. As I said, I've brought and bought at the current levels in the market, and we'll continue to watch it, but yeah, it's a great deal right now. And our total market cap is around $35 to $40 million and still got $8 million in the bank that funds the programs we're doing. So yeah, it's a very compelling investment and I think we'll see some good, strong results here.
Gerardo Del Real: Look forward to following it. Thank you so much for your time today, Adrian, and we'll chat soon.
Adrian Rothwell: Yes, for sure. Thanks, Gerardo.