Ethos Gold (TSX-V: ECC)(OTC: ETHOF) CEO Craig Roberts Talks Drill Results from La Purisima in Mexico, Pending Assays from Nevada, & Exploration Work in Quebec
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me from the field is the President and CEO of Ethos Gold (TSX-V: ECC)(OTC: ETHOF), Mr. Craig Roberts. Craig, how are you this morning?
Craig Roberts: Doing okay, Gerardo. Thank you. How are you doing?
Gerardo Del Real: I'm well. I'm well. I want to thank you for jumping on a call so quickly. Let's get right to it. The stock is down right now, some 15-17% on drill results from the La Purisima Project in Mexico.
So let's get right to it and talk about the results there. You had some lower grade hits that were not what you were expecting. You've decided to terminate the existing options. And I want to be very clear to existing shareholders and people that are looking at Ethos Gold as a potential speculation. The goal that La Purisima – and correct me if I'm wrong, Craig – was always to test, inexpensively, the more attractive targets there.
We know what exploration is. You're either going to hit or you're going to miss. On this one, it looks like a miss, but I want to talk about how inexpensive it was to test this and what else you're doing. I mentioned off the top there that you're in the field right now, so I know there's a lot of irons in the fire.
Craig Roberts: Yeah, that is correct, Gerardo. In the end, on this drill program, we've drilled 16 RC holes, our total costs, direct costs for that drilling was about $154,000 US, of which we get just over $20,000 back in IVA. So yeah, it was actually very inexpensive program.
Based on the surface sampling and the trenching we had, we were certainly expecting better results than we got. But we've got to deal with the reality here that the drilling wasn't delivering the kind of numbers that could lead us towards an economic project and to building shareholder value. So we've just decided not to put more money into the project to terminate it.
We've certainly got a number of other things in our portfolio we're quite excited about. And we'll just move on to those. That's exploration, I guess.
Gerardo Del Real: Absolutely. Let's talk about those other projects. So you have a market cap, I think, of approximately $11 million or so. I want to talk about the projects in a bit, but I also want to provide a bit of context. I said that the stock was down some 15, 16, 17%. That's a couple of pennies to be clear. It's not quite as dramatic as that sounds. That $11 million market cap is backed by how much cash right now, Craig, as of the latest reporting period?
Craig Roberts: As of now without Nevada drilling completed, our Mexico drilling completed, we're at about $4.5 million Canadian currently.
Gerardo Del Real: Got it. So about 40% of the market cap backed up by cash. And let's be clear, we're waiting on assays from Iron Point.
Can we talk about that project and how things are advancing there?
Craig Roberts: Sure, yeah. We've drilled four holes to depth at Iron Point. First of all, a core hole went to 2,350. We were still actually waiting for the assay results from that hole. That was the first hole we drilled. Unfortunately in Nevada there's a big backup at the labs at the moment. Barrick and other companies have a lot of activity there. So it has been quite delayed getting the results. We're certainly seeing what we anticipated in the core and we're looking forward to getting those results from the first hole.
We've also drilled about a little more than a mile north of that location. That's an area where the lower plate comes right to surface where there's been some historic drilling with some quite anomalous gold in it. Also big footprint on surfaces, quite a significant gold anomaly on surface. So we've drilled deeper there with two holes and we're anticipating those results fairly soon as well.
Gerardo Del Real: Excellent. You're in Quebec, you're at another project. You're definitely not short on activity. What are you doing in Quebec right now, Craig?
Craig Roberts: Well in Quebec we've done a little more surface sampling, mapping, rock chips sampling, et cetera. But more importantly, we've just completed a ground-based geophysics program, which is both IP and MAG. Historically, this project had approximately 200 holes drilled to about 300 meters of depth.
That drilling has intersected some actually quite high-grade gold. The best intersection is, if I recall correctly, about 10.6 meters at 13.5 grams. I think the press release has the exact number, but I'm pretty sure that those are the numbers. And there's a number of other quite significant high-grade intersections.
The geologists that worked on the project historically always thought that it needed IP to try and get geometry on that mineralization. So that's what we've done now and we will be following that up in the fourth quarter here with drilling.
Also the project's very prospective deeper for Laronde-type mineralization. Laronde is the primary project of Agnico Eagle.
Gerardo Del Real: Right.
Craig Roberts: This project has a lot of features that are similar to Laronde in terms of geochemistry, the geology, the environment. Historically, and even recently, there was an airborne geophysics survey which picked up targets at depth. We've now done the ground-based geophysics to refine those targets.
We've got a consulting firm over in Val-d'Or in Montreal doing a complete data compilation on the project and pulling together all of this current recent year physics with all of the historic work to help us really refine our drill targets. And, as I say, we're anticipating to do quite a significant drill program in the fourth quarter of this year targeting both the shallower high-grade targets and also the deeper Laronde-type targets. So we're quite excited by it.
Gerardo Del Real: Good. And I want to cut in real quick Craig.
That Placer Dome hole 73 that you referenced there was a 10.6-meter interval of 13.47 grams per tonne gold. That started at about 173.9 meters down the hole. So obviously, if you're able to hit anything close to that with some sort of consistency and continuity in the context of $1,545 gold here US, I think it's going to be a heck of a fourth quarter.
So, I'm looking forward to results from Iron Point in Nevada. I'm excited to get a clear picture of what that project looks like moving forward and obviously looking forward to drilling in the fourth quarter out of Quebec.
Is there anything else that you'd like to add, Craig?
Craig Roberts: The only other point I'd make on Quebec is what a fantastic jurisdiction it is to operate in. The project is very accessible. It's going to be quite low cost to operate from the logistics point of view. The cost of drilling in Quebec is very low as well. Core drilling and just the general environment here is very, very positive. So that's another key element I would add for that project particularly.
Gerardo Del Real: Excellent. Craig, thank you again for jumping on this morning, and hopefully the next time we're talking, we're talking great news out of Nevada.
Craig Roberts: Yeah, and I look forward to it, Gerardo. Thank you.
Gerardo Del Real: Awesome. Thanks again.