Revival Gold (TSX-V: RVG) CEO Hugh Agro on Adding a Third Drill Rig at the Bearnett-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, how are you this morning?
Hugh Agro: Fantastic, Gerardo.
Gerardo Del Real: Reporting from the field. I understand that you were just on-site and now you are back home, kind of-ish, right?
Hugh Agro: Yeah. We've got to go through a bit of a quarantine here. But it was well worth the trip down to Beartrack-Arnett this past weekend, visiting with our team there and looking at the rocks and the progress to date. All thumbs up.
Gerardo Del Real: Hugh, you had a news release yesterday, which is the reason that I reached out. The headline reads, "Revival Gold Drilling Program Now 25% Complete; Third Drill Rig Secured for Beartrack-Arnett." In the words of Mr. Nick Hodge, the co-owner of this site and someone who covers the stock, “I don't think they brought in a third rig to not find gold.”
Can you walk us through the release briefly here and how things are developing there?
Hugh Agro: All smiles on-site this past weekend. That's how I can describe it. We don't have any assay results back yet. We'll expect the first batch of results around mid-October, but all smiles. The rock is looking good. We've got great progress through the drill bit with about 25% completion on the total program. We're halfway done on the satellite deposit at Haidee.
As you know, it's open in all directions and we're making really good headway there. Third rig, yes, absolutely. We're excited about what we have. We have the geological team in place. We're ramped up here with two rigs already. The third is just going to accelerate the pace of results coming to the market.
Gerardo Del Real: Revival continues to be one of the better speculations in value at this point. You have 3 million announces across all categories. You're well on your way, I believe, to 5 million ounces. You're cashed up following the $15 million equity financing in August, and now you're bringing in the third rig.
I think it's important to note that a substantial amount of the drilling this year is focused on new discovery and exploration. The project hosts 10 to 11 kilometers of favorable structure. When you say it's all smiles down there, me as a shareholder, that gets me excited.
Hugh Agro: Yeah. We're stepping out about a mile, a mile and a half south of the existing resource at Beartrack this year. These are greenfield targets. They've never been drilled. We're very excited based on what the geophysics is showing us there. These are big hit-the-light-out-of-the-park type of holes. We are drilling closer to the resource up at Joss and between the north and the south pits as part of this program this year as well. So we get a little bit of a mix of both some really adventurous and blue sky drilling, as well as resource expansion opportunities.
Gerardo Del Real: The company and the valuation is anchored by the $15 million financing in August that I mentioned, the 3 million ounces of gold that I mentioned, and, of course, the drilling that's going on that I have to believe is going to add a substantial amount of ounces. But you also are on track to potentially make a decision on heap leach operations. You have substantial infrastructure, I stress at every interview, because unless you've been to site, I don't believe it can be fully appreciated.
How is the PEA coming along, Hugh?
Hugh Agro: We're making good progress there. We've been moving through tradeoff studies, which is part of the process, looking at trucking options, looking at our options for the configuration of the heap leach pads, trying to maximize the positioning within the existing brownfields footprint at Beartrack so that we can optimize our permitting schedules. All of that work is taking place behind the scenes and as part of the iterations to optimize the value coming out of that PEA.
We are on track to complete it by year-end. I'd say everything's going as we hope to see here. We are looking at a capital of about $100 million. We're looking at 50 to 60,000 ounces a year of gold. Those are our objectives. We'll see where the results come out in the PEA, but the team's doing a super job. I'm satisfied with where we're going on the PEA front. That's only part of the story, but it is a big part of the story.
Just going back to your earlier comment about relative value, we're trading at about $15 an ounce in the ground. Our peers are trading at two to three times that. We think that this PEA is going to be a big value catalyst for the company. We're fully financed to go through it and to continue to drill and deliver drill results next season. It's all lined up. We're in good shape. We're making great progress. The value I think is just starting.
Gerardo Del Real: How are things going with the assay labs? When do you anticipate possibly the first round of assays being released?
Hugh Agro: Mid-October is what we're looking at. We'll put the results out in batches and we'll just continue to roll through the next few months here as we get the results back and get them QA/QC and we'll get them out in the market. It's not something we're going to hold back on, I'll tell you. As I say, there's lots of reasons to be excited about what we're coming up with in the field. The rock's looking good. The assay labs will tell us ultimately where we get to, and we have results in October.
Gerardo Del Real: That's a lot of newsflow coming up, Hugh. Thank you so much for taking the time today. Anything else that you'd like to add?
Hugh Agro: Just a big thank you. We're in an exciting gold run here, Gerardo. I love telling the story with you. We'll chat again soon.
Gerardo Del Real: Seems to get funner every time we chat, right?
Hugh Agro: That's right.
Gerardo Del Real: Thanks Hugh, appreciate it.
Hugh Agro: Okay, bye