Hey, everyone. Welcome back to Investors Scene. I’m Jeremy Szafron. Huge, huge news coming out of E79 Resources. It’s a company we’ve spoken to before. CEO, Rory Quinn joins us now. Rory, thanks for being on the show.
– Thanks for having me, Jeremy.
– Now, I referenced a little bit about how big this news is, but it’s also very extremely rare news. The fact that you have visible gold on your first drill here. Let’s talk a little bit about what this means for the company.
– Well, yeah, I could not have asked for a better start. To be in gold, visible gold at that, on the first drill program and the first hole of that first drill program, I think bodes incredibly well. So that’s why we wanted to get this out to the market’s material news that we’re seeing multiple sections of material with visible gold in it. And folks will be able to see the pictures, see the core, and I couldn’t be more excited to have this start at this asset.
I mean, this was our highest value target. Right off the bat, we wanted to get in to drill this area. We worked hard to get the drill rig going and worked with community support. And now we’re drilling, and we’re in gold, and so I think we’ll do a couple more holes.
This week we saw visible gold at about 95 meters, at about 115 meters, and we’ll go down here to about 350 meters. So we’ll get all of that core logged, and then we’ll get it assayed. And we’ll know a heck of a lot more about what kind of rock is, what sulfides we’re in, what kind of sulphite species, all that granular stuff. But for today, we’re in visible gold on our first hole and our first program.
– It’s crazy. I mean, the Victoria Goldfields are obviously very famous. There’s been great results in the past. Gold’s been mined in the area at an ounce per ton in the past. I mean, what does this mean for a company like E79?
– Well, it’s spectacularly high grades historically, and really this area is being overlooked, right? I mean, it took Kirkland Lake with Fosterville to prove out at depth the spectacularly high grades there. And their reserve grade is about an ounce per ton, so one of the highest grade gold mines on Earth. And that’s where the opportunity is for us– is at depth.
What’s interesting about this area, there was over 70 historic gold mines on this property. So really, this is a consolidation of an entire historic gold mining camp. And virtually all exploration of mining stopped at the water table because these were small syndicates of gold miners and they either didn’t have the capital or didn’t have the technology to be able to pump the water out.
But we’re able to come in here and drill diagonally across these structures at depth, getting down to 300/350 meters, and really able to test this at depth. And the fact that we’re in gold at depth on our first hole, I couldn’t be happier. I couldn’t be more encouraged about this program.
– Totally. I mean, it’s a huge material release as you mentioned. I mean, it’s huge for the company too because it’s a great starting point from this point forward. And in speaking about that, let’s talk about the next plans. This is just the beginning coming up for you guys.
– This is just the beginning. We’ve been so busy on the ground. I mean, this is now where the rubber hits the road. We’ve been so busy on working with our community consultations, getting access to these properties. I mean, there’s great road access, but it’s talking to all the folks in the community to get their support for what we’re doing.
And now we’ve got all of these targets on Beaufort, which is about three hours away from where we’re currently drilling. So after we’ve done about 1,000 meters to three of these deep drill holes at Myrtleford, work to understand them, so Happy Valley is the gold target within Myrtleford. It’s in the Southeast corner of that package. Then we’ll move the drill over to these high-value targets that we have over at Beaufort.
And at Beaufort, it’s really amenable to geochemistry as a way to target for gold, and for these high-value gold targets. And our geochemistry program is run by a PhD geochemist, who’s very good, and so he’s really put together this suite of really, really high-value gold targets that we’re going to get into as soon as we’re done here in Myrtleford.
– Yeah, what an amazing time for the company man. I mean, it’s just been incredible to see you have visible gold is a huge, huge release. Thanks again for coming on the show. I know that this is just the beginning, so I’m excited about seeing these next steps now.
– Well, that’s it. I mean, we had a little bit of time there where we didn’t have news, where we’re working to set up all of this drilling and all of these high-value gold targets that we have. And now this is where the rubber hits the road like I said, where we’re going to have lots of news out. And we’ve seen the shares I think trade-off way oversold. I think this represents a massive opportunity.
We’re trading at roughly booked, so the cost of the acquisition of the mining gold– the gold exploration assets themselves plus cash $5 million in cash, and we’re trading at about that value. So I think it represents a huge opportunity for value creation and upside.
– Yeah, you mentioned it is definitely an opportunity, an opportunistic time, especially with the stimulus coming in from the US too. The CEO of E79, Rory Quinn, joining us now. Thanks again for coming on the show today.
– Thanks for having me, Jeremy.