Transcript
Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:05 My name is Brett Richards. I'm a mining executive. I've been in this space for about 35 years. I have run listed companies in London and on the main board and on the London AIM exchange, as well as the TSX main board and the TSX Venture Exchange. Primarily based on precious metals over the past 25 years, but I've been in the steel business, in copper, cobalt, iron ore, diamonds and gold throughout that time, but focused over the last 15 years, let's say on gold. Gold Shore came to me about 6 or 7 months ago from a colleague, a mutual colleague who we've known each other for some time. And I expressed an interest that I felt that gold projects which were traditionally underdeveloped or under drilled because of the economic assessment done when gold was $1,200 or gold was $1,500, that they just get parked in their portfolio and I felt that now is the time for those types of projects to come to the forefront given our philosophy on gold trading.
1:15 Over the next 3 or 4 years, we think that gold is going to trade between $1,750, $1,800 and around $2,200 with spikes up and down to that trading range. But we feel it's going to trade in that range over the next period of time. So I was introduced to Goldshore and Goldshore fit that mantra and I got very excited about you know participating in the in both the financing and the development of the company. The transaction came together actually Gail and McNamara was the real architect of the transaction from an early stage. He and I were introduced and I got involved because I understand the philosophy.
2:02 I support the philosophy. And quite frankly, I thought this was one of the premier assets that underpinned that philosophy. And what is that philosophy? That is, there are a number of gold projects that are sitting in mid-tiers or majors portfolios. They're in the pipeline, let's say, but they weren't economic at $1,200 gold or $1,500 gold, but they are economic at $1,600 and $1,700 gold. And our view is we take a view that gold, the trajectory for the gold prices is going in one direction. There will be pullbacks and there will be, you know, rockets up beyond a range, but we feel that gold is going to trade between $1,750, $1,800 and around $2,200 over the next 3 or 4 years. So we're looking for projects that fit in that and that are highly economic in that space.
3:00 Early on Galen got in touch with West Elm about the Moss Lake project and again it's one of those projects that fits in that philosophy quite well and 1 that I had supported all along. West Elm had a lot of interest from other parties in this, but I think they saw 3 things. They saw the quality of the management team that we had put together and the board that we had put together. And there's some significant mining executives that are attached to this company. The second thing is all of our experience in developing these types of companies. I've built several mines. My VP of Exploration has been with me on the last 7 projects. There are several individuals on the board and on the advisory board who have all worked together in the past on previous projects.
3:48 And the chemistry is exceptional. This is not just a junior mining promote. This is a mining company development project of which everybody on the team has the experience to do that. So that's why I'm excited about it. And that uses my skill sets to the best of their ability as well.
4:11 We recently closed a $25 million financing and with our transaction with Westdome, $12.5 million that goes to them on closing. So that will leave us around 12 and 500,000 plus the cash we have on hand. So we'll have about close to $15 million to get the company started on the ground. Initially, we're going to put some small infrastructure on the ground to support our drilling campaign, to support the other activities we're going to be doing there. That'll be based on the Thunder Bay, but we very quickly are going to get into consolidating and interpreting all of the historical data on the historical resource using that information building on that information by re logging a lot of core that is still an excellent shape out in the field.
4:59 And in certain storage facilities, so we're going to look to re log core put some more information into the database. And then we are gonna run a airborne geophysical survey, a VTEM survey over the entire Moss Lake project and Coldstream and Hamelin as well. We plan to run Moss Lake on 50 meter centers and the balance of the property on 100 meter centers. And using that interpretation, using that data, interpreting that data in order to come up with drill targets and priority drill targets. And we feel that between the data consolidation we're going to do. The additional work we're going to do by re logging the geophysical work that we're going to embark on in April and May, we should we should be well positioned to have significant amount of high priority drill targets to start getting into our drill program.
5:50 We'll start with 1 rig, we'll ramp up to 5 or 6 rigs over a period of 5 or 6 months. Yeah, in addition to the geophysical survey, I think what we're going to do is really focus on drilling and getting the most out of our dollars going into the ground. We don't have a very large setup at all. We simply want to use the capital to get as much information, as much data, as much intercepts as possible in and around the deposit. We originally said, and we stick by this, that we want to upgrade the quality of Moss Lake. We want to infill Moss Lake historical resource after we validate it. And then we want to step out and step down to Moss Lake in order to demonstrate geological potential over a much longer period of time than, let's say a 10 or 12 year mine life.
6:48 So those are going to be the activities we're focused on and everything around that supporting that. So I see the next 6 months laying out is channeling all of this data, all this information into a point where we are extremely focused on drill targets. I think it can be replicated. This model is not unique. There are certainly other companies out there developing these types of projects. Our philosophy, as we have stated, is gold is going to trade within a particular band for a period of time and a long period of time, given the macroeconomic climate in the world today, given the pandemic and the financial support of governments in order to backstop this, we feel that there's strength in the gold price, the trajectory is up, And although there'll be trading up and down outside of the range, we feel this range is going to be pretty set.
7:56 So we're looking for projects that fit that model and Moss Lake really does fit that model. And there are many other projects out there in Northern Ontario, Northern Quebec, Northern Canada, and also in the US that are high volume, low grade, open pit near surface deposits. That is really, it's a bit of a glorified earth moving exercise, but these projects are very, very sensitive to the gold price. And if gold goes up $100, the NPV in these projects can go up 150 or $200 million. So yes, I really do believe that we can replicate this model and we will. And I will start looking for the next project very soon on as we get stabilized on the ground and we start moving forward with our drill campaign.
8:45 I will start looking for the next project that we can put into the portfolio.
8:54 I think if you look at Goldshore, we tick a lot of boxes. We have a very, very experienced management board and advisory board. We have a lot of strong reputations, a lot of strong backgrounds of guys who have executed on projects. I had built multiple mines around the world in some of the toughest jurisdictions known in our sector, in Southeast Asia and in very difficult parts of Africa. I'm not saying that the Ontario jurisdiction is a walk in the park. We have a lot of work to do, but I think what we demonstrate at the end of the day is we demonstrate that we're able to execute. We're able to navigate jurisdictions were able to deal with the challenges and the opportunities that come forward to us out of these jurisdictions, and I fully intend to do that. I really look forward to getting on the ground again and getting rigs turning and getting some information out into the market because this project is a winner and as I said we do tick all the boxes.
10:02 This has the dynamics to have size and scale and I'm excited. I can't wait to get moving on it.
