Revival Gold (TSX-V: RVG)(OTC: RVLGF) – currently trading just below C$0.90 per share – has now released results from an additional 11 holes from its 4,900-meter drill program at the Haidee target area of the company’s flagship Beartrack-Arnett gold project in Lemhi County, Idaho.
Highlights include 1.01 grams per tonne (g/t) gold over 11 meters and 0.86 g/t gold over 48.5 meters.
Revival Gold president & CEO – whom you’ll be hearing more from momentarily – stated via press release:
“We are very pleased to see additional broad intercepts of near-surface oxide gold mineralization in the Haidee area. The results offer potential to expand the open-pit heap leach mine plan outlined in the results of Revival Gold's first phase preliminary economic assessment released in November.”
Importantly, that aforementioned PEA covers just a fraction, about 25%, of the overall resource at Beartrack-Arnett — only the heap leach oxide gold aspect of the project.
Even with just that small portion of the known resource being included in the first-phase PEA, the numbers are coming in at a robust 72,000 ounces of gold production per year for 7 years for a total of 506,000 ounces at an all-in sustaining cost of $1,057 per ounce of gold — meaning the margin currently sits at about $775 per gold ounce.
Revival has also staked an additional 47 claims on the northwestern boundary of the 14,300-acre Beartrack-Arnett property — effectively locking-in targets identified during the company’s 2020 geological mapping program.
No doubt, there’s a lot to like about Revival Gold at current price levels. The company is wrapping up its 2020 drill program at the Joss target area with additional assays pending from 7 holes at Haidee and 9 holes from Beartrack.
The next key item on the docket for the 3.0 million ounce [1.4M oz M&I, 1.6M oz Inferred] Beartrack-Arnett project is geological modeling wherein the company has tapped renowned geological consulting firm Mira Geoscience Ltd. to generate a three-dimensional model of the mineral systems.
Revival is also bringing in highly-respected structural geologist Brett Davis to investigate incidents of high-grade mineralization within the current mineral resource.
If you’ve been following our coverage of Revival Gold, you know that Beartrack is a past-producing open pit heap leach mine that was operated by Meridian Gold [now Yamana Gold; NYSE: AUY] and produced roughly 600,000 gold ounces — making it the largest past-producing gold mine in the state of Idaho.
The mine was closed in 2000 due to low gold prices below US$300 an ounce.
Gold, as you know, is currently trading 6X above those levels at approximately $1,830 an ounce, which puts Revival in the driver’s seat to get Beartrack-Arnett funded, developed, and ultimately put into production.
Revival Gold (TSX-V: RVG)(OTC: RVLGF) CEO, Hugh Agro, on Newly Announced Drill Results from Haidee Target, Beartrack-Arnett Gold Project — Idaho, USA
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 today?
Hugh Agro: Very good. Good to be with you, Gerardo.
Gerardo Del Real: It's good to have you back on. Let's shoot straight the way we always do where we have kind of a consolidation in the gold space. The juniors, most of them anyhow, are trending sideways to down as we have a combination of tax loss selling season and, frankly, major highs in the US indices that I think is taking some of the major capital away from the better speculations in the resource space.
Revival Gold is right up there. I commented before, that every time you put a release out, you're extending the mine-life, which makes the project worth more — which, eventually, when you get that rerating, is all going to be factored in.
And I think for people that are in the stock recently, it presents a pretty compelling opportunity. Today's release, I think, speaks to that. You intersected more near-surface oxide gold in the 11 drill holes that you reported today at Beartrack-Arnett. And you're doing a lot of other work simultaneously including staking additional claims.
An overview on today's results, Hugh? I know it's not the flashy hundred meters of four grams per tonne that everybody thinks every company should put out every time. But the bottom line is… you're adding value to the project with every release.
Hugh Agro: Oh, I think it's pretty flashy. We've got some great oxide near-surface results here. And for those who watch this stuff closely from a technical point of view, this is key. When we put the land position together, we brought together oxide potential on the Arnett property with the infrastructure and the existing resource at Beartrack. And the vision is proving up here with these drill results.
So what we've got is upwards of 48.5 meters of 0.86 grams per tonne gold. And it's in exactly the location where we want to see it… where it points to a trend upwards into the soil anomaly to the northeast.
We've got a big soil anomaly there. It has not been drilled. It's pretty exciting to us as an exploration target. And in the first instance, what these holes do is set us up for an upgrade to the resource that's there already and an extension of that resource up into the soil anomaly. So, pretty flashy.
Gerardo Del Real: There's a couple of points there. I think people underestimate the phenomenal infrastructure advantage that Revival has. We all know that the precious metal space is very cyclical. And if you're going to take advantage of the most profitable part of that window, you absolutely have to be nimble and able to turn back on within a reasonable amount of time.
Beartrack-Arnett is a brownfield project and past-producer with excellent infrastructure in-place including access roads, power to the project, an ADR plant, and solution ponds.
The fact that you're adding to the open pit heap leach mine plan that you outlined in the PEA at this rapid a pace, I think bodes very well for what Revival will look like here in the not too distant future. It's got to be encouraging to the staff and the team to see the plan improved upon this quickly.
Hugh Agro: We had quite a bit of debate about whether to proceed with the PEA earlier this year, April timeframe. We started out on the PEA, which was released last month. And we had some debate about that because we knew that we had potential to expand the deposit. And the PEA is just a point in time.
But what it does do is it sets the foundation for what these additional holes will do in terms of mine-life, as you say, and in terms of value, ultimately, for our investors. And yes, the team is very excited about this.
We've got a solid restart plan with respect to the Beartrack-Arnett gold project now under documentation in a PEA. That PEA will be filed before the end of the year. And follow-up drill results here today, which point to this deposit being open in all directions with possible expansion to the mine-life clearly evident.
And that's before we get into the mill phase operation, which we've got three locations. We're drilling on the Beartrack main mineralized system this year, and we'll be back in there again next year. We’re at about C$12 million in cash at the end of the last quarter. And so we're well set up to be back in continuing on with the drilling into 2021.
Gerardo Del Real: Assays are pending and you have staked an additional 47 claims on the northwestern boundary of the Beartrack-Arnett property. Can we talk about that a bit?
Hugh Agro: Oh yeah. We've got some more soil anomalies in the Arnett land position. We got out there with some mapping this year. We want to make sure that we've got all of the potential around those anomalies, both soil anomalies and alteration anomalies, and that sets us up for future exploration. But it's the basic blocking and tackling that the team has been underway with.
We've also, as part of our press release, you'll notice that we have engaged a couple of really hotshot consultants to help us with the 3D modeling of the deposits. We look at some of the bonanza-style mineralization in the deposit and are putting together this drill database and geological model for targeting next year.
Lots of work underway and lots to work with. It's a very exciting time for the team.
Gerardo Del Real: And lots of results pending, right? We have results that are expected in January and February. So no shortage of news flow.
Hugh Agro: It'll be busy.
Gerardo Del Real: Hugh, Revival remains one of the better speculations in the space. I encourage everybody to dig into the company and the economics and the exploration upside, which is substantial. Thank you very much, Hugh. Anything else to add?
Hugh Agro: Yeah. Happy holidays to everybody. Merry Christmas. Wish everybody well. It's been a tumultuous year for many. And listen, I just want to shout-out a kudos to our team too. We survived the COVID, we operated without incident and zero lost time on the Revival Gold team. Upwards of 50 people working on the project, three drill rigs this year, and the team just did a fantastic job.
Gerardo Del Real: I think that speaks to the rigor and the methodical nature of your approach to this project. And listen, I was at this project several years ago. Everything you said you were going to do with it, you've delivered in spades. And so upwards and onwards, and happy for a 2021 as we put 2020 behind us.
Hugh Agro: You bet.
Gerardo Del Real: Thank you Hugh.
Hugh Agro: Thanks, Gerardo.
Gerardo Del Real: Appreciate it.
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.