Revival Gold (TSX-V: RVG) CEO Hugh Agro on Initial Results from 2020 Drill Campaign & Upcoming PEA at the Beartrack-Arnett Gold Project in Idaho
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me virtually from the 2020 New Orleans Investment Conference is the President and CEO of Revival Gold (TSX-V: RVG)(OTC: RVLGF), Mr. Hugh Agro. Hugh, how are you virtually from the New Orleans Investment Conference?
Hugh Agro: What a world we live in. Thank you for having me, Gerardo.
Gerardo Del Real: I feel like a Pokemon.
Hugh Agro: On the sidelines of the conference here.
Gerardo Del Real: Exactly. Listen, you had some news this morning. I want to get right into it. There were 7 holes that were announced from Revival's 2020 drilling program, but I thought that as important as the assays were, the most important part in the release was a hole that hasn't been received from the labs yet. The assays haven't been received. We'll talk about that in a minute. I'd love for you to provide a brief overview of the news today. Then we can talk grades, and oxidized and the difference and why that's important. Right?
Hugh Agro: You bet. So 7 holes released, as you point out, all with leachable material close to surface in the Haidee target area, which is, of course, a satellite deposit to what we have at Beartrack. This is exciting for us because it extends the mineralized envelope from beyond what we have in resource there, which is a modest 200,000 ounces. We're really pleased with the way that those first 7 holes have come out. The balance 23 holes that are to come will add to the resource along the flanks of the deposit, as they've been laid out, assuming we again hit mineralization, which I believe we will. We'll have those results out as they become available. In total, 30 holes in the Haidee area. The two rigs we've got have now moved on to Beartrack. And yes, would love to speak to you about some of that drilling as well.
Gerardo Del Real: Before we get into hole 226D, which I think is going to be critically important moving forward, let me play devil's advocate. Let me say that, as I've read a bit today, 22.9 meters 0.63 grams per tonne gold. Good, not great, right? 41 meters 0.38 grams per tonne gold. Good, not great. But context is important and you mentioned it, the near-surface leachable mineralization. This is important because you're in the midst of completing by year end, hopefully, a PEA that could lead to a near-term production decision.
I know the team at Revival has a focus on high-quality, high-value ounces. So while some may look at the grade and say, “Yeah, good but not great,” it's extremely important for people to understand that the near-surface leachable nature of the mineralization can contribute almost immediately to a potential production decision. Would that be accurate, Hugh?
Hugh Agro: Yeah, thanks for pointing that out. The cut-off grade in this area is about 0.2 grams per tonne. We're already conceptualizing a mine plan as part of the PEA, which will come out before year end. All of this is additive. It's just a bonus to that PEA as we expand the resource here in the Haidee location. The drilling we have planned currently is relatively incremental, I would say.
We will step out into the broader Arnett property position once we've completed the basic geological mapping and the geophysics, which we've undertaken this past summer. In fact, we set out to do a set of geophysics on the Arnett project and we've pretty much tripled that through the program this year. That's something else that came out in this release, maybe in the subtext. That's a big part of our program as we look to continue the drilling at Arnett.
Gerardo Del Real: Let's talk about hole 226D and before we get into the details of that, can you explain what the Panther Creek Shear Zone is? Because again, the understanding of this is important to understand why 226D, I think, is going to be an important hole.
Hugh Agro: The main conduit for mineralizing fluids at Beartrack is the Panther Creek Shear Zone. Currently we know it to be about 5.6 kilometers or just over 3 miles long and mineralized across that distance. It's important because where we intersect the Panther Creek Shear Zone, we tend to find mineralization. We tend to find a lot of it. That's the importance of that geological feature.
Now, before we go into the hole that we've talked about in our press release that's between the North and South Pits, I should say we have three drill targets along the Panther Creek Shear Zone and extensions of the Panther Creek Shear Zone plan for this year at Beartrack.
We've got the drilling at the very south end of the property position at Rabbit, which is over a mile and a half from the footprint of the resource at Beartrack. We've got drilling at Joss, which is currently underway at the end of the footprint of the resource. And we've got this spot between the North and South Pits, which is an obvious bullseye and one we probably should have got to earlier, given what we've encountered here in the hole today.
Gerardo Del Real: Let's talk about what you encountered, both oxidized and unoxidized sulfides, which again, we don't have the grades, but the signature is definitely there, meaning that these two pits possibly connect?
Hugh Agro: Yeah, that's our feeling. We'll have the assay results out as soon as we have them. Of course it's a legacy mine site. We've got all of the infrastructure, we've got all the history from the project. What's interesting is that in the '90s this mineralization was missed and it was missed because the three or four drill holes that were drilled close to surface were on the east side of the mineralizing structure. They were drilled at such an angle that they clipped the top of it. What we did was we came in underneath, we've picked it up. We've got another four holes planned to develop sections in this area and to start with building resource if we get the grades. Let's see how we go here with the grade.
Gerardo Del Real: I recall when you added the third rig, Mr. Nick Hodge said they didn't add another rig to not find more gold. So I suspect that you didn't drill four follow-up holes to not find more gold. Hugh, anything else that you'd like to add to that?
Hugh Agro: Yeah, we've got a big program this year. We're stepping out in a big way on the system. You know that our track record to date, this is our fourth drill season. Our track record to date is that we've hit in every hole we've drilled, but one. So expectations are high and our team is excited to be on the program this year and we'll look forward to getting those results to you as they come.
Meanwhile, we're ticking away on that PEA and we'll have that out here, I would say, well ahead of our target. We'll continue our record of under promising and over delivering.
Gerardo Del Real: Gold's at $1,900. You have 3 million ounces of gold already there across all categories. You're rapidly adding to that. The PEA is on its way. What's the cash position look like, Hugh?
Hugh Agro: We're at about $12.5 million, and we'll end the year with about $7 million, as things currently look.
Gerardo Del Real: A lot to like, and you're still trading at a pretty substantial discount to your gold peers. I don't think it'll be long before that changes. Hugh, thank you so much for your time today.
Hugh Agro: Okay, Gerardo.