- 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?
- 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?
Langille: Good, good. I’m good in this new
world were living in.
Gordon: You’re coping, you’re coping. So where are you at the moment?
Langille: I’m in Halifax, Nova Scotia – at
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.
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.
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?
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.
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?
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.
Gordon: Right. Okay.
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.
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.
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.
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
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.
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?
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.
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.
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.
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
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?
Langille: I’m sorry, the contracts?
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.
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.
Gordon: But by how much though? Are you making money still? I guess that is
what I’m getting at.
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.
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
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.
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?
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.
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
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.
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.
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.
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?
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.
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,
Langille: That’s a good point. We’re not
distracted with other things as much, right? They’re actually at home, turning it
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?
Gordon: Okay. You’re expecting 1Moz or so?
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.
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
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.
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.
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
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.
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
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.
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
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?
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.
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.
Langille: I’m very sure we will get out of
this. And we’re continuing on as per normal, and stay safe.
Gordon: Thanks very much.
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