GoGold Resources (TSX:GGD) – You get the best of both worlds (Transcript)

GoGold Resources
  • TSX: GGD
  • Shares Outstanding: 222M
  • Share price C$0.59 (26.03.2020)
  • Market Cap: C$124M

Interview with Bradley Langille, President & CEO of gold and silver company, GoGold Resources (TSX:GGD).

This is a Mexican gold and silver play with plenty to be excited about. GoGold Resources Inc. is a Canadian-based silver and gold producer with projects in Mexico. The management has experience building, buying and selling mines. The team has built three mines, and is developed a fourth in Mexico, over the last 24 years. GoGold Resources has one project generating cash flow, the Parral Tailings Project, in addition to its recently acquired Mexican exploration play, Los Ricos. Langille thinks the project in Mexico is one of the very best remaining undeveloped trends in the jurisdiction.

Historically, the management team has raised over C$800M equity and C$200M debt for their projects. The management team appears to be decisive and does what it says it will do.

Langille starts by talking about what all investors want to know: how is COVID-19 affecting the business? It has certainly changed the way that GoGold Resources is operating though. Sanitation is the order of the day, but are these new WHO protocols anything more than a mild inconvenience? Langille says they aren’t. It is business as usual. Langille thinks these current market conditions are simply a broad-based sell-off. Investors are selling anything that isn’t nailed down. Langille thinks the quantitative easing that governments around the world are currently engaging in has historically always been good for gold and other precious metals companies.

Parral is currently generating around US$700,000 per month, and GoGold Resources has around US$20M in the bank and is owed US$11.5M from the Mexican government. GoGold’s US$25M financing at the end of February looks like a great deal given current market conditions; raising capital at today’s rates would be far from ideal.

The balance sheet looks strong, and Langille is confident GoGold Resources’ share price will bounce back once COVID-19 comes under some sort of control. Operational figures have been impressive, and other than a delay in delivering its 43-101 (now due in May), things appear to be running smoothly.

At Los Ricos, GoGold is currently undertaking a 10,000m diamond drilling program of HQ size core in conjunction with a field program of geological mapping, sampling and trenching on the property. This has recently increased from 2 drill rigs to 6. The focus is on the southern end of the 35km trend. Work is also underway at a separate project 20km North. Deals have been sealed to secure GoGold’s control of the Resource. A drill hole in the northern structure has demonstrated 24m @ 27g/t gold, and Langille claims there are plenty more. Langille believes Los Ricos South will have a Resource size of around 1Moz gold equivalent, but the earlier stage Northern project has the potential to be even larger.

In terms of timeline, Los Ricos North is about a year behind Los Ricos South. Los Ricos South should have a gold Resource delivered on it in the near future. If investors base their economic assessment around the “anchor” of 1Moz gold equivalent at Los Ricos South, without even factoring in the potential of the north and the existing cash flow at Parral, GoGold Resources is shaping up to be a strong player in the gold space.

Institutional investors have bought into the holistic business model: a solid producer at one end, with a secure, an expandable resource at Los Ricos South and cash flow from Parral, and the excitement and risk of exploration at Los Ricos North at the other end. This looks like a tempting package, but what do you think?

We Discuss:

  • 2:09 – Company Overview
  • 3:20 – Covid-19’s Impact: Business as Usual or New Problems to Deal With?
  • 5:57 – Market Conditions: Ongoing Struggles and Getting Back to Where They Were Once it Recovers
  • 9:42 – Company Financials: Recent Raise and Cash Position Going Forwards
  • 13:25 – Volatile Silver Prices & Managing Contract Terms
  • 15:25 – Tailings: Plans and Findings
  • 21:15 – Growing the Los Ricos Project: What Have They Got and Found?
  • 29:03 – Economic Studies and Timeline of Delivery
  • 32:49 – What did Institutions Buy Into: The Possibilities of GoGold

CLICK HERE to watch the full interview.

Company Website: https://gogoldresources.com/

Matthew Gordon: Hello Brad. How are you sir?

Bradley Langille: Good, good. I’m good in this new world were living in.

Matthew Gordon: You’re coping, you’re coping. So where are you at the moment?

Bradley Langille: I’m in Halifax, Nova Scotia – at home.

Matthew Gordon: At home. Okay. Well that’s the place to be. Well, let’s get into this. I’m sure we will talk about the C-word somewhere in the conversation, but for now, why don’t you kick off with a one-minute overview for people new to the story, and we’ll get into it.

Bradley Langille: Okay. GoGold Resources is a Mexican-focused mining exploration development company. We have one operating mine and we have an exploration project, which has really now developed into two exploration projects over a 35km trends. The group and the four public companies that I’ve been management of, CEO of, had been based in Mexico for, well my whole career; I’ve been at this 27-years now, so excellent relationships in the country of Mexico. We’re good at raising capital, which we deploy into our projects. We’ve built three mines over the last 24-years. We’ve major refurbished a 4th mine, raised over USD$800M equity for our projects and we’ve raised over USD$200M of debt for our projects over the years.

Matthew Gordon: Okay, thanks, Brad. There’s, you know, and we’ll flash up some of the previous interviews on the screen up here. People should go and reference those for a bit more detail about the projects. But, so let’s kick off the question everyone’s going to be asking: is the Corona virus affecting business?

Bradley Langille: Well, certainly the way we’re operating is a little bit different than how we’re operating a month ago. We’re following all the procedures as far as sanitary, as far as, in fact, people entering the site. We’re taking care of temperatures, we’re following, abiding by all the you know, the laws enacted in Mexico to come up with this, and above; we’re trying to follow the WHO protocols. So the operation, the mine is still running as per normal with the exception of those protocols. And our development asset is still drilling away.

Matthew Gordon: Okay. So it hasn’t slowed down what you’re doing, but you have had to implement some new procedures. Those don’t sound like costly procedures. So is it generally business as usual?

Bradley Langille: No, it’s generally business as usual. Those procedures aren’t costly really at all. They’re just, you know, we are abiding to, most of it is just good common sense.

Matthew Gordon: Right. Okay.

Bradley Langille: In Mexico at least so far, and we certainly hope it remains this way, the rate of Covid in the population appears to be much lower than obviously in Europe, and in even in Canada, in the US. So for now, that’s a function of; who knows? We don’t know, maybe it’s warmer weather, or maybe it’s just a lack of testing; we’re not sure at this point and we’re monitoring it day by day.

Matthew Gordon: So all of your workers are Mexican, then you’re not having travel restrictions, and local Mexicans at that. So it’s not affecting travel plans, but it has a knock on effect on your business by the sounds of it.

Bradley Langille: So travel: I mean, we do have 2 gentlemen from Halifax who travel back and forth. So that has been, well for now it has been terminated, that travel. Myself, I’m very hands on. I’m usually there every month. It’s been a month now since I’ve been there. And you know, it’ll make it more difficult to be onsite from Canada here, but fortunately, most of our people, and we have a very, very strong team and a very strong management team in Mexico, our chief operating officer’s lives in Mexico, in Jalisco, so he’s there. So it really hasn’t impacted us too much.

Matthew Gordon: Now, we’re getting that a lot from a lot of the CEOs that we’ve been interviewing. There seems to be a resounding ‘business as usual’. However, obviously the markets are taking a different approach. I think we had that reset where, you know, at the end of quite a long bull run, I think a lot of the institutions are taking money off the table. Normal. You’d expect that, but very quickly followed close on the heels by the Covid-19 outbreak, and it going global very quickly. That’s had a big impact on a lot of junior companies. You’re in production, you’re got some cash flows, you’ve raised some money recently, but your share price got knocked. And I’m not going to pick companies up on this because everyone’s got knocked; the market sentiment seems to have taken a whack to the abdomen. So what’s your take on market conditions? When it’s going to recover? And if so, do you think you’ll get back to where you were?

Bradley Langille: You know, I think we’re just in a broad-base sell off right now, and people are selling anything that’s not nailed down. So it’s a run to cash, but we saw this in 2008. I mean everything was sold in 2008 and then it came back up after the crisis had settled down. I do feel that all this quantitative easing, and I think the governance and the central banks are doing the right thing; that’s what they have to do, but there’s been being a tremendous amount of money created right now, and that typically in the longer-term is good for precious metals. So I look forward to the price of the metal regaining what it’s lost and going up from there. I think that we just almost exponentially increased the amount of money out there. And the stimulus.

Matthew Gordon: Yes, for sure. But let’s be clear; you’re talking about 2 different things there: we’re talking about your share price and its ability to regain value, and then you’re talking about the price of Gold. So can you give me your views on how both of those things correct themselves?

Bradley Langille: Right. And we talk about how our share price has taken a hit. I mean, it had a very, very good year last year; we were up 200%, and we did get our new project down at Jalisco, and we’ve been drilling there and the results have been extremely good, which was very good for our share price. You know, we hit a high of USD$0.85 cents. We did opt to do a financing and there was some discussion about that. It was dilutive but we did it for one reason; because we were getting such great results on our project down in Jalisco at Los Ricos and we were able to nail down some deals for some plains in what we’re calling our Los Ricos North project. And that project, we’re slowly working, a little bit quietly working away at that. And we saw an opportunity there, but we had to get that consolidation done first. And really we’ve gone from starting at two rigs to now where it’s six drill rigs, so it hasn’t slowed us down there at all. And we had the opportunity, we were noted for USD$15M. There was a demand for over USD$50M, and we sell it at CAD$25M. So the company has over US$20M. We report in US dollars, in the bank. Parral, hey you know, the metal price just hit USD$1,250. But really, we’ve been making money at Parral at around USD$700,000 us a month. We’re also owed USD$11.5M from the Mexican Government. So you know, we’re well-positioned, and actually, the financing now in hindsight looks pretty good.

Matthew Gordon: Well, it looks like a stroke of genius, and sometimes luck plays a part, and timing plays a part. But you did that at $0.70 cents. It gives you a lot of cash in the bank at the moment. And you know, if things did get worse, you’ve got optionality I guess there. I should say that you’ve got a little bit of revenue coming in, I want to dig into that in a second. So the companies that we see struggling, the ones that don’t have cash in the bank, you know, they are restricted in terms of what they can do, and if they do go and raise now, just one short month after you raised your money, that’s a very expensive raise for most of these guys. So you must be pleased, I guess.

Bradley Langille: Yes, look, we’re happy. We’re happy with the raise. We’re very happy with our balance sheet. Even at USD$1,250, you know, USD$1,250 is below our All in Sustaining Costs (AISC), but now our All In Sustaining Costs has probably changed because the peso has just been clobbered. It’s up close to 24 pesos to the US dollar. And we generate, we sell in US dollars. 60% of our costs are in pesos. So the peso devalues, our costs goes down, and we’re getting that US dollar which is strengthening. It’s interesting that the US dollar is strengthening and Gold’s going up. But you know, so we look at that and we say, strong balance sheet, we have a mine that we’ve been operating now for five and a half years, which is working great. I really think that sober being at $1,250 is an anomaly, but the base will devalue. I think we’re pretty close to being cashflow positive still at site. And there’s one other thing there I’d like to mention; on site at the mine, we just are commissioning and we should be finished commissioning imminently a SART. And that is a plant that we built for USD$3M. It should pay back for the next 6-months. As we speak here, we were consuming 14t of cianide a day. That’s our biggest consumable, and it’s in US dollars by the way, and it’s about USD$2,500 per ton now. That SART plant right now is generating about 4t a day – so an extra USD$10,000 a day, and it’s generating Copper too.  

Really at Parral, I feel that at mine site, we’re breaking even still at these prices, or doing a little better and breaking even. And I think it’s an anomaly. The Silver price at $USD1,250. It’s at a ratio to Gold of, it almost a hit 120:1, which has never happened.

Matthew Gordon: Yes. So Silver has always has been fairly volatile, you know, so you’ve got to take a slightly longer-term view, which is, I guess what you’re doing in terms of your decision-making and your planning. I do understand that, but can I just compartmentalise, because I don’t want to bounce around too much, can I sort of compartmentalise this. So with the Silver component of revenue stream, you know, we talked last time about the tailings component for instance, where I think you talked about a USD$13 Silver price being paid. I mean, how do you manage the terms of those contracts whenever Silver dips to below the price which you’re being asked to pay, how does that work?

Bradley Langille: I’m sorry, the contracts?

Matthew Gordon: Yes, on the contracting side. Because you talked about, you know, with the tailings you were removing the liability, you’re doing the remediation there, but in the last interview you talked about a price of around USD$13, but at today’s prices that doesn’t necessarily work.

Bradley Langille: Yes,All in Costs was around USD$13, and the contracts that we have are with the municipality where it’s USD$50,000 a month that we pay; that’s our obligation. And no obligation to reacclimate the old tailing site, that’s the city’s obligation. We only have an obligation to reacclimate the facility we built, which is of course at the same standard is US, Canada, Europe at world standard. But as far as the cost at USD$13, I’d go back again to, you know, there’s been a lot of things shifting here, and one of the main things shifting here is that the peso has been massively devalued, because they’re an oil producer and their base got hit pretty hard. So that reduces our cost substantially.

Matthew Gordon: But by how much though? Are you making money still? I guess that is what I’m getting at.

Bradley Langille: Yes, that’s what I’m saying. We’re break even or making a bit of money at site, even at USD$12.50, so I think we’re in a very enviable position there. I doubt that there’s any, or very few other producers of Silver in Mexico right now making money at these prices. But we feel, and you know, we’re analysing it, but we feel that the peso will probably reduce our costs by around USD$1.50 an ounce.

Matthew Gordon: That’s the number I wanted. Okay. Understood. Understood. And with the tailings you talked about having some IP, some intellectual property there, you came out with your own process which you think is quite unique, obviously. And he talks about the ability to perhaps sell to other groups in South America because you know, companies like DRD Gold or Jubilee Metals, they are doing their thing in Africa. There’s no real competition in South America. Have you been carrying, I know it’s not the core focus, but have you been carrying on those conversations?

Bradley Langille: You know, we have, and the project is very much a project that the Mexican Government likes, you know, for obvious reasons, the social, economic environmental you know, we now have an operation that’s operating. It’s been operating five and a half years. We’re looking at all kinds of opportunities of other tailings, even if they’re kind of far away, if they’re high, high-grade or for us, high-grade, they can make economic sense to truck them over to our operation. So we have 8-years of Reserves today, next to us at Parral, but we’re looking for all of these other opportunities within trucking distance of our operation. And there’s some that we’re looking at right now that could substantially, if they come together, could substantially impact our costs; reducing it and increasing the metal produced. Also we’ve developed this technology, I mean this almost proprietary technology now, some of it’s an agglomerate deeply just not new to the world, but on tailings it is, and we’ve found a way to do it that works. And it wasn’t easy. The first 3-years were very difficult for the mine, but the last year and a half, 2-years have been running quite nicely, and I just wanted to touch base here as well – currently our operation is running beautiful: like we’re going to have another order in line with what we’ve been doing the last two or three quarters. So yes, we do have something there. It’s not the sexiest mining project in the world, but if it can make money, there’s nothing wrong with that. Especially in this new world.

Matthew Gordon: That’s again where I’m getting at, because I think this market reset is going to, you know, sort the wheat from chaff. Right? And I’m trying to dig down and look at companies which have something different about them. You know, in terms of mitigating risk, alternative revenue streams and this, the tailings component here, I know it’s not core and we’re going to come onto Las Rico’s in a second, it seems to be that if you’ve got the process right, and Silver, volatile Silver, bumps up a bit over the course on average, you’re going to be able to contribute to your overhead by making a margin on these things. And if you’re capable of nailing down these tailings contracts with other groups, it could be quite meaningful. And it’s very attractive in terms of a sort of non-dilutory financial contribution. So when you say, ‘it’s business as usual’, you mean it, as opposed to, I’m sure I’m going to this week and next be hearing lots of businesses usual messages without doubt. But it’s not business. It’s not making money as usual. It’s a case of we’re surviving. So just trying to dig down sort of understand if that’s still on the table and if that is still, you think, going to deliver revenue for you going forward?

Bradley Langille: No, it probably is going to deliver revenue. I think even at this price it’s delivering revenue. And I think this price is an anomaly, but even though it’s delivering revenue right now, our costs have just got reduced a lot by that SART plant as well – by USD$10,000 a day – that’s substantial. So Parral is delivering revenue. We’re looking at more opportunity for Parral, we tried to increase that revenue, and we have something that could be applicable to other tailings in Mexico in the future. But I think the game may have changed a bit. I mean, I’m talking not just for GoGold, I’m talking for everybody. I think we’ll come out of this there’ll be more of a focus on who is generating revenue. And the exploration development place, even the exploration development place,  I think the focus on them will be more around, okay, you have something. Is this going to be a mine in five years, seven years? Or maybe there’s the 1Moz that you have in front of you that you basically drilled off and that that could be a mine in a couple of years. So I think the benefit of what I believe will be higher prices for the commodity are going to filter down, obviously to majors first and then to mid-tiers and producers and projects that are not in the grassroots but in the development stage. And I think we’re well-positioned in that regard as well.

Matthew Gordon: No, I think that’s true. A lot of what you just said is true and it’s going to require people to look at the fundamentals of a business in a way of which perhaps pre this current phase we find ourselves in, they haven’t done very well, and we’re certainly going to encourage people to look a little bit deeper as to the business fundamentals. You know, what does the management team doing to enable and ensure its success going forward? And I just quite like the tailings component as part of the story. But let’s get onto the main attraction, which is, you told me on a couple of occasions is the best project you’ve been on or seen for the last 20 years: Los Ricos. So what’s been happening?

Bradley Langille: : It is. And it still is. We were drilling with 2 rigs, now we are at six. We’ve been focused on the first area, which is Los Ricos, now we have two projects. Really it’s a 35km trend. We’re focused on the Southern end of that trend, which we’re going to call now Los Rico South. And then we had another called Montefiore at the North end of the trend. It’s 20km away. It is a separate project and it’s very good-looking project. We were in there with crews on the ground, but a little bit quietly because we had some real holes in the claim package that we had to close deals on, which we’ve done. We announced one about a month ago, and those deals now have consolidated everything we need there. And brought in data; it’s almost like at Los Rico’s North, or Montefiore, we are renaming it Los Ricos North project, it’s almost like we’re starting all over again a year later where we were at Los Ricos South.

 We started looking at Los Ricos South, we had 60 drill holes, and we went in there and started drilling and getting great results and showing, you know, building up a resource there, which we will still get out in the next couple of months. And at Las Rico’s North, we started off there, and once we got this deal done a month ago, that deal was really pivotal for us. That also came with 50 drill holes, and they’re not bad drill holes. There’s a drill hole up there that’s 24 meters at 27g/t Gold. And there’s a lot of drill holes up there like that.

So the company we were dealing with, they were last in there in the early 2000s, and they just did a few small claims, and we were all around them with the claims that we own, and they did a deal, they had a change of business. They’re going in a different direction, in a different business and they contacted us and said, would you like these claims? I saw the drill holes; we said, absolutely. And it’s not an inexpensive deal either. I mean, we’re paying here about USD$450,000 over a couple of years, and you know, tying everything together up there. Our team really feels that Las Ricos North, now at 50 drill holes. At an earlier stage in Los Ricos South because that’s getting close to the first resource and we think it should be a Million or a Million plus there in that first resource, Gold equivalent, that project to the North, Los Ricos North, we feel that that has the potential to even be larger. And there’s an old map that we have up there from 1916. from the Jalisco monograph, and that map shows 50 prospects on our claims up there.

On the Los Ricos South project, that map showed about 5. And we’ve got one of them, or two of them drilled now almost to completion. At Los Ricos North, we’ve had one team, they’re just out climbing those hills and prospecting and finding targets to drill. And up there as well, we have the first three targets that are ready to drill, and we’re just now getting the final permits so we can start drilling off those plus Ricos North.

Matthew Gordon: So again, when we spoke before you thought you’d have the resource by the end of March, around now, right? You’ve just explained why that’s sort of setback When do you think that’ll be ready?

Bradley Langille: I think by May, for sure, we’re going to get that resource out by May. And it is a little delayed, and we’ve been doing a lot of drilling and we’ve just thrown a lot more machines at it after the financing. You know, we’re hitting good results. We want to get everything into this main resource. I don’t think, especially where things are in the world at the moment, that an extra 60 days will make much difference. So it’s better if it’s cross, if it’s a better defined resource and it is more measured and indicated, and if it’s that’s size.

Matthew Gordon: Yes, well I don’t think in today’s market it matters if it’s 60-days out, if there’s a reason for it, because people still, investors still expect management team to do what they say, and if the reasons are good enough; like you’re hitting some big numbers and you’ve got some more drill rigs in there and they’re still hitting the kinds of numbers that you wanted – that’s fine. I agree with you on that. But I think there’s a need to, I mean, I’ve just looked at some anecdotal information here, but you know, our viewing numbers are up 70% in this last crazy month, and it’s not necessarily because we’re doing anything different. It’s just because I think people are sitting at home waiting for news because they’re not allowed out. They’ve got to get the data, right?

Bradley Langille: That’s a good point. We’re not distracted with other things as much, right? They’re actually at home, turning it up.

Matthew Gordon: Yes. But they need you guys – guys like your company to be talking to them and explaining why things are going on. So resource will be out end of May-ish. Is that fair?

Bradley Langille: Yes.

Matthew Gordon: Okay. You’re expecting 1Moz or so?

Bradley Langille: 1Moz or so. The grade we’re expecting, you know, it’s two to three grams. Two and a half to three grams is still the Gold equivalent grade that we’re expecting, and the things that we’re focusing on right now and take a little more time. We want to get some deep drilling in there because what we had seen as we drove this thing deeper and deeper, we’re getting some great results. You know, we had one of our deepest holes that hit 18m of 8g/t. Now that’s something we want to follow up. That’s something that can be material to follow that up for the resource. And then to the Northwest, on the trend that we’re drilling, the 1,100m trend, we’ve been getting some real good results there in a second war shoot that we’re seeing. So we want to drill that and we want to include that in the resource. We want this resource. We put out to best represent what we feel we have. And look, we’re going to have lots of news over the next 60 days about things like the SART being finished. We got lots of news over, lots of drill results coming out, and there’s some great drill results. I’m sure they’re going to come out in the next 60-days. And we’re going to develop that first resource that really is a better defined resource as well; one that we can move quickly into a PEA.

Matthew Gordon: Well, that brings it nicely on to my next point, Brad, which is; guys like you, you’ve been there and done it before. We’ve been doing it for a long time, successfully. You have bought, sold and made people money, which is fabulous, right? But you’ve got a picture in your head, and I’m looking at this going, okay, we’ve got a 43-101 coming out in May. You have told me in the past you’ve got a sense of what this thing’s going to cost. You’ve got a sense of the economics because you’ve built:  you’ve built plants, you’ve built mines, you have drilled holes. You know what’s coming down the line and you get a feel for it. But at what point, and how quickly can you get into some kind of economic study, which is what the market’s going to look out at? First thing; probably a PEA, it’s, you know, as a fairly early economic study. But how quickly can you get there? And when does a Pre-Feasibility Study happen? What’s that timeline look like?

Bradley Langille: Well, I think we can get there very quickly, especially now with, you know, I look at it this way – I think that if we can have an anchor on this project, this is where I’d like to end up – there’s an anchor that’s 1Moz. One pit, great grade and that we can put a PEA around and it’s solid. It’s mostly measured and indicated. And we can do that and we can say to the world, here’s something that’s solid. You put your economics around that. And by the way, we’re a year behind up at the other end of the trend, but we’re hitting some amazing drill results up there. And then we have the best of both worlds. Well, we have a mine that is producing cash, we have a project that now becomes more shorts than a PEA, but it becomes more nearer term, nearer-term economics, nearer-term production. And with a team that’s built three mines, and we’ve rebuilt a fourth, you know, that people say, well, these guys can sell it, and there probably could be a lot of interest from buyers, and also these guys can build it. And let’s see where the dust settles here. Let’s see what brings real value in the market.

Matthew Gordon: But if we can, let’s come back to the question, which was tell me what that timeline looks like? Or could look like.

Bradley Langille: Well, for the PEA; really drilling this, all this drilling right now can actually shorten up that timeline as well because when we’re finished here we’re going to have good data to do that PEA, and I think we can get that PEA done by the end of the year or first quarter next year.

Matthew Gordon: Okay. Okay. So that’s nice and aggressive. And then because of the amount of drilling, do you envisage being able to get a PFS out quicker? Because these are the signals, this is the language that is used in the market, again, to define how people value you. You listed off a whole bunch of reasons why you are very comfortable: because you’ve done it, you’ve done it, been there, got the t-shirt. I get that. But people need these signals from you. So this accelerated timeline is important to them because there’s a lot of people screaming for attention out there at the moment. So I’m just going to get you to tell me how you’re going to do it.

Bradley Langille: I think about that in my head and from my experience, and my team, you know. And the key guys have been with me for 10 to 15-years and we’ve built mines together. The way I think about it is that we drilled us off, we drilled us off, you know, we drill it off with the mindset, how does this look in the mine? It’s not just that we’re out doing exploration, we’re building models all the time. We build PIP models all the time, block modelling all the time. Every 10 holes we build, we added to our block model.

So what I’m trying to say is that, you know, for us, we’re really drilling this off for it to be a mine, for it to be big for, you know, for this to be something very, very solid. This is not just promotion. This is real economics. This is real. Something that the institutions in particular, and we just brought in some of the best institutions into that last financing and  those institutions can quickly see, and all of our investors, are able to see the real value in that. And at the same time, at the other end of the project, we also have something that’s going to develop to be what I think very, very large along with this. So you have the best of both worlds. You have one end of the project, which is Million, a Million plus, that is defined, that can quickly be moved through the next studies to get to the point where you say – hey, this thing’s ready to go. And at the other end, at the same time, we’ll be building up the 1Moz up there. And that’s just a year or year and a half behind. So I think that is the strategy. I think it’s a strategy that’s going to get us the most value in the market, and I think it’s going to make us very appealing to some of our peers as well. So we’re not sitting there hostage, you know, just sitting, waiting for somebody to come in and make us an offer. We don’t have to build mines.

Matthew Gordon: That’s my point; what have the institutions bought into it there? They bought into the fact that you’ve got, you mentioned a word there – big. You’ve got scale to this. This is a very long strike zone we’re talking about here, and you’re sitting at both ends. And what’s the idea? Do you sort of work your way down and meet up in the middle kind of thing? Or do they have the option of doing that? That’s what’s going to get the big guys to take notice of you and step in.

Bradley Langille: I believe that we have one of the very best trends remaining in Mexico that is not developed. From my 24-years of experience doing this from building some large mines, and I believe that we have consolidated what hasn’t been essentially consolidated since, you know, the early part of the last century. And, and we are, you know, it’s to come up with things that are Millions of ounces -that’s quite remarkable. I think, you know, myself and this is my own personal view, I think we have a trend that ultimately with drilling and exploration success can be +5Moz. And it’s just a strategy of how we develop what we see from our experience as being that has world-class size to it. And you know, part of that would be what’s the narrative in the market? What does the investor want to see as well?

Like, we could do good technical work; we know how to take a project and move it through the stages of resource, economic studies, and we know how to do it quickly. And we have a lot of experience that we know what’s worth chasing. And I’ll tell you one thing, that 35kms of strike length and Los Ricos North, and the project where we’re now moving on to the next stage, resource and beyond. That’s the things from my experience in my career that is exactly what we should be doing right now with GoGold Resources, and I hold the same opinion. This is the best thing I’ve had in the last 20-years. Maybe the best thing I’ve had in my career. And we have the bank account, we have the skill, we have the experience to develop this into what will be, I think the most attractive project in Mexico.

Matthew Gordon: Brilliant. Brad, ultimately though you’ve got to deliver for shareholders. Okay. So there’s a lot of positives today. It’s a difficult market. It’s mining; it was tough already. You’re going to have to deliver for shareholders this year, and I think you’re going to do that by better communication, or regular communication with them, because it seems to me that you know what you’re doing and you know where you’re going. So I appreciate your time today. Thank you very much. From your bolt hole to mine here. I hope we get out of this and the next few months but stay in touch. Let us know how you’re getting on.

Bradley Langille: I’m very sure we will get out of this. And we’re continuing on as per normal, and stay safe.

Matthew Gordon: Thanks very much.

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