Revival Gold's Underground Opportunity Just Got Much Bigger

0:16Trevor Hall: Welcome back into Mining Stock Daily everybody. Continuing along today with a much needed corporate update with our friends from Revival Gold, been a longtime partner of the podcast, longtime supporter. They trade on the venture with RVG and on the OTCQX with RVLGF. The company put out news earlier this week of a new drill result, I mean exceptional drill result, coming out of the BearTrack Arnett project and the Joss area. and it's kind of eye-popping, 131.7 meters of 3.43 grams per ton gold. That was the headline number. And obviously we can break down a little bit of those sub-intervals in there.

1:00Trevor Hall: Happy to welcome in CEO, Mr. Hugh Agro. Hugh, congratulations on this. It kind of felt like, I mean, not that Revival was kind of riding off Joss because it kind of kept on delivering, but this is not the same Joss area that it once was maybe a year ago because of this hit. Yeah, we can walk and chew gum at the same time. We can move ourselves into production or at least a production decision, which is where we're going with Merkur in Utah, and which is our priority because it will lead to the generation of free cash flow. but we can also deliver exploration results. And in doing so, I think we can avoid some of the challenges that some of our single asset peers will have with something called the Lausanne curve.

1:54Joss is a really exciting exploration project for us at the BearTrack Arnett Gold Project, already five and a half kilometers of mineralized trend. And we're now not only delivering high-grade intercepts, but we're starting to show continuity to the system, building scale. And continuity and scale in an underground gold system are key. These are the keys to unlocking the value of that project. Okay.

2:24Trevor Hall: Maybe let's maybe go into my new show with this drill result. It was drill hole 255D. and there was a couple of shorter intervals in there that you break down with mineralization. Can you maybe just describe to us what you were seeing with this drill hole and really what is new? What part of this kind of really opens up Joss? You were unexpected, but what also provides continuity with what you already knew? So just a bit of background. We put this project together in 2017, 2018, and we've been systematically drilling away on it, discovered 4.6 million ounces to date, finding costs of less than$10 an ounce in the ground.

3:10The Joss area is where we start to go underground with the deposit. We've got over 20 holes in it now, and we've mapped out about 1.2 kilometers of that 5.5 kilometer trend as underground strike in the deposit in the Joss area. We, with this program just recently completed, have now taken the mineralization down to about 850 meters depth. That gives us about a 70 % increase in the overall vertical extent of the deposit at Joss. the most recent hole released here 255 fills in on a section where we now have four drill holes with high grades in the order of this six grams over 43 meters that we're speaking about earlier in in the in the section and and over about 700 meters vertically so just to put this into perspective we're talking about 1.2 kilometers of strike 700 meters of depth uh all uh in the joss area and now we're starting to show the continuity in the section and a long strike with the uh the holes out of this program it's all really really um exciting the core of the mineralizations are running uh you know true thicknesses of two to twenty meters uh grades of five to eight grams per ton gold.

4:47We've got a core, this high-grade core mineralization, then a broad halo around it. And this is very typical of a orogenic gold system. We like to point to Kittla as a deposit model. It's a similar kind of situation to what we have here. They're mining down to two kilometers depth now, which would be more than twice what we've already outlined, as similar underground grades, Europe's largest gold producer. So all in the backyard here in the western United States.

5:24Trevor Hall: You do have a couple of holes still pending here at Joss. Can you kind of describe to us where those holes ended up and how it will better define this area? Yeah, so eight pierce points through the mineralized zone with this program just completed, two left to release. These ones are important because they are our first wedge holes. That is to say, we've been able to offset slightly from a drill hole, a mother hole, to be able to see how the mineralization trends in close proximity. and that helps us with our geostatistics. It helps us with understanding what kind of mining methods we could use here.

6:07So those two holes will be important. They'll come out in September. I'm pretty sure the way things are going with the assay labs, we should get that date all back and out in September. And that will help us further define mining method costs and approach to how we might exploit this underground deposit. that we've already brought on the engineers to start looking at the data. And as we fine-tune on geological models, we want to take that into consideration. Economics is a big part of the way we target at Revival Gold. And we're not just drilling for ounce's sake here. We're drilling to find dollars.

6:49And so the engineering has to fit with the geology and right alongside of it. Okay.

6:57Trevor Hall: Hugh, with these results and obviously more pending assays to come, what makes Joss, is Joss strategically more important now to bear track our net than say it was a month ago when you and I last chatted? It's definitely trending in that direction. Okay. You know, if we think about it, the attraction of our portfolio is we've got three phases to our growth. Merkur, first in the queue, plus or minus 100 ,000 ounces a year, coming up for a production decision in 2028 on private land in Utah. That's dead easy. Open pit heat bleach, dead easy in terms of being first in the queue. um second in the queue right now is the heat bleach uh open pit heat bleach opportunity at bear tracker and ed in idaho uh another 65 000 ounces a year taking us up to 160 000 ounces a year but this underground project uh at joss you know you start to think about something in the you know uh you know one and a half two three million ounce uh size uh potential that's a you know that's a pretty exciting slug of potential NAV, and it may wind up jumping in front of the open pit heat bleach plant at Bear Track Arnett.

8:19Still to be determined, we've got lots of time to sort these things out. Priority is to get Merkur into production. That's our cash engine and will allow us to continue to invest. And importantly, we've got an organic portfolio to invest in. We You don't have to go out and buy something else. We've got homegrown success here with BearTrack Arnett following up on Merkur. Yeah.

8:47Trevor Hall: Let's talk about the market reaction. What's your understanding of maybe this? Yeah, I'm not as close to my screen as you are, Trevor. But listen, we've got$1.2 billion worth of NAV. The gold price is moving. There isn't a lot in the U.S. to go to. and we're trading at a market cap of, you know, plus or minus 200 million US. So I think there's a ton of upside in the stock. I think investors, you know, they do, they do, you know, come around to things in fits and starts. A drill hole like this means a lot to the project. And I think the street recognizes that. Yeah, absolutely. I think so too. All right, Hugh.

9:27Trevor Hall: Well, obviously you and I are going to be talking about more drill results coming out of BearTrack or net. Can you give us kind of a lay of the land of what's happening there in Utah at Merkur. Yeah, so the next step there is a metallurgical program results. We'll have some initial results out of that program. It is a little bit long coming. We had one of our peers drop a big load of samples off with the folks at Kappus Cassidy right before we started our test program. So that slowed us down a little bit, but we're looking to get metallurgical test results We've got a lot of drill holes ready to come out as well from the Merkur drilling program.

10:08Now, about 8 ,500 meters into that 18 ,000 meter program this year. So look for drill results out of Merkur. The baseline study work is coming along very well. And we expect to be able to wrap that up by the end of the year, which sets us up to complete the permitting steps in 2027. We are, you know, we are working very hard to coordinate all the pieces that will be required to get us to a production decision in 2028. The next major milestone up in that regard is the PFS targeted for the end of the first quarter next year, permitting by the end of next year. And then we've got to get a feasibility study done and design engineering and so on.

10:57So, 2027, 2028 are going to be big, big years for Merkur, and the program is certainly well underway here. We've got two rigs drilling right now at Merkur. Another two coming by the end of this month takes us up to four, and it's a busy, busy team. All counts.

11:19Trevor Hall: Hila, before we do let you go, let's have a quick chat about the gold market here. As I mentioned, it's been a nice big week for gold. It was up 3.5 % yesterday. Many are calling it a breakout, but there's some analysts out there and those that study the market. Maybe don't think this is the real move. As a gentleman who's in the gold equity space, it's got to be the enthusiasm from yesterday is obviously there. What are your thoughts here on this gold market? Is this something we can start hanging our hat on once again, or do we need to be a little bit more concerned? Gosh, you know, even if we have$3 ,000 gold, projects like the ones we're developing at Revival Gold have healthy, healthy margins.

12:06The industry is making a ton of cash right now, and I think we can all be satisfied with a$4 ,200 or$4 ,300 gold price environment. Is it going higher? Absolutely. can we say whether that's this month, next month or next year or the year after, I don't know Trevor, I'm happy where we are,$4 ,300 gold's pretty darn good from where I sit

12:35Trevor Hall: Hugh, thanks so much, congratulations we'll chat again here in the next couple weeks more drill results on both BearTrack, Harnett and Merker, have a great rest of your week and rest of your summer Hugh hopefully you're getting a little bit of vacation in there somewhere you bet, thanks Trevor All right. Revival Gold does trade on the TSX Venture with the symbol RVG and on the OTCQX with RVLGF. The information presented should not be considered investment advice. Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein.

13:10Trevor Hall: Please do your own research or speak with a licensed financial representative before making any investment decisions. Thank you.