Revival Gold (TSX-V: RVG) CEO Hugh Agro on expanding gold oxide at Haidee, Pending Assays & Future Exploration at Beartrack-Arnett
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of Revival Gold — Mr. Hugh Agro. Hugh, how are you this morning?
Hugh Agro: Excellent, Gerardo! Thank you for having me.
Gerardo Del Real: You just reported results from the final 7 drill holes from the 2020 drilling program on the Haidee zone. And it seems like you achieved… well, not achieved… you actually exceeded expectations!
You absolutely expanded the footprint of near-surface gold oxide mineralization, which, of course – with the infrastructure advantage that you have and the PEA – is extremely important for adding to the existing mine-life. And, of course, ounces, which, at $1,800 gold, despite the consolidation — those are valuable ounces and that is valuable oxide gold mineralization.
So congrats on that front! I'll let you provide the overview of today's news.
Hugh Agro: Well, you've summed it up very well! I would just add that these are just the results from Haidee. Of course, we’ve still got results to come from the Beartrack side of the project, and we're excited about those coming here in the next month or so.
Coming back to Haidee, though, you've hit a nail on the head here. The ounces that we add to this project are incrementally huge to the value of the project. If we can extend the mine-life, the planned mine-life, at Beartrack-Arnett and the first phase heap leach project by two or three years — that'll have a dramatic impact on the after-tax NPV and on the IRR of the project.
I won't speculate as to exact numbers until the engineers get to the data and pull it all together… but a couple of years of cash flow at $30 or $40 million a year has got to have a big impact on NPV.
Gerardo Del Real: Especially considering the market cap, which is, what, right now, Hugh?
Hugh Agro: Yes, C$50 million. So lots of excess value to be surfaced in this stock.
Gerardo Del Real: Let me go over some of the results. Again, very, very solid:
- 0.55 grams per tonne (g/t) gold over 16.7 meters;
- 0.53 g/t gold over 20.5 meters;
- 18.6 meters of 0.61 g/t gold;
- and 22.6 meters of 0.56 g/t gold.
Very consistent mineralization, which, of course, for any mine plan is critical, right?
Hugh Agro: Correct. We've extended the dimensions of the footprint of mineralization from 400 meters of strike to 600 meters of strike. And now we're up to about 400 meters of width. And the deposit is open in all directions. Recall that the resource grade at Haidee is between 0.5 and 0.6 grams per tonne. So these are all within the resource grade that we've intercepted here. It's all close to surface; all in oxide material.
So there's an added benefit to these holes that we're drilling because we're starting to see that the mineralization continues up-dip, uptrend, along the previously planned pit walls from the PEA work that we did at the end of last year.
So these holes give us the appearance of something that's going to reduce the overall strip ratio, add to the resource, and, because this is oxide material, we're going to bring down the average recovery for the life-of-mine of the project. All of these things will be value enhancing to the plan that we've already put on the table.
And remember, this is a brownfield site so we've got the existing infrastructure on-site. It'll be a relatively quick turnaround once we make a decision to go through to construction. And that'll come up in 2022.
Gerardo Del Real: I can make a pretty compelling case that Revival will be the next Idaho producer. I could also make a pretty compelling case that I think Midas Gold is in-play as a takeout target, which – if either of those two scenarios develop the way I think they will – should make for a very interesting 2021… especially in light of the fact that you're already beginning to resume expansion drilling in the springtime, correct? You’re preparing for that?
Hugh Agro: We are. We've got more drill results to come out. We've got engineering work to do. All of the field activities will start in May. It's a pretty active program for our team.
Remember, we ended the year with C$9 million of cash. So we're funded for the work we have currently planned. This is a project that's got a ton of potential. We're open in all directions at both Arnett and at the main Beartrack deposit… so lots to come!
Gerardo Del Real: I'm looking forward to the results from Beartrack. It should be a fun 2021. I know from the emails I'm getting that this is the boring phase of the most recent consolidation in the gold space in the juniors.
I tell everyone this is where I've made the bulk of my money… is buying quality names of quality teams when no one is looking. And Revival is absolutely, hands down, one of the better speculations, and most undervalued speculations, in this space.
So keep up the good work, Hugh!
Hugh Agro: Thank you, Gerardo! We'll keep you posted.
Gerardo Del Real: Appreciate it! Thank you.