Transcript: Westhaven Gold (WHN) - What's the Maiden Resource Number Going to be?
Westhaven owns a 100%-interest in 4 properties covering over 35,000 hectares within the prospective SBGB, which is situated within a geological setting like those which host other significant epithermal gold-silver systems. There is evidence of a significant mineralised alteration system within the property.
0:00 – Company Overview
00:18 – Current Market, Drill Plan & Drill Charts
06:36 – Target Priority, Drill Map & Taliskers Collaboration
14:57 – Budget Allocation, Market Interest & chasing fundamentals
21:15 – Outro
Gareth Thomas: Hi, I'm Gareth Thomas, I'm the President, CEO and Director of Westhaven Gold Corp. We are focused solely in southwestern British Columbia on what's known as the Spences Bridge Gold Belt and we'll be talking mostly today about our flagship Shovelnose Gold property.
Matthew Gordon: Hey good to see, how have you been, haven’t seen you since April?
Gareth Thomas: It's been a while, yeah as good as can be and yourself?
Matthew Gordon: Well, I haven't had wildfires to contend with so yeah by comparison very well, thank you. I was just wanted to reach out to you because I'm seeing a lot of quite interesting numbers actually. But I'm also looking at your share chart and it's kind of you seem to be doing whatever every other Gold companies is doing which is moving south, any thoughts on what's happening in the market?
Gareth Thomas: Yeah, I mean it's as we were chatting there briefly before, it's a bit of an odd time, I think there's so many things you can try and put your finger on the pulse of many things out there on the macro level. And you hear some industry veterans really successful people talking about in this real odd time in 40-years, some of these careers they're going I've never seen something like this where even mentioning the Nickel, the Copper, the Lithium, the ones with the EV movement the stocks are still going down. So with Gold it's a tough interesting time but you know what, maybe there's light at the end of the tunnel and this is time where people start to realise that maybe these things are good valuation but when will that be I'm no expert on this as we discussed before but it's an interesting time for sure Matt as you well know.
Matthew Gordon: Yeah, I think we're both sort of scratching our heads there just before we switched the cameras on trying to work out what's going on but I think all the companies like you can do is get on with the business of doing your business and the market will do its thing, will work out who's standing at the end of it. Like I said the thing that interested me were some of the numbers that are coming out of the drilling are quite interesting. You're getting big long intercepts; you're getting the greater good. So should we focus today because for anyone who hasn’t heard the story before, go and take a look at some of the previous conversations we've had. We go through business strategy, plan strategy, the team, what you're doing broadly and what you're hoping to do but today I wanted to just kind of dive down into the drilling and the drill plan for the rest of this season. So you said you might whip up a few diagrams and few charts.
Gareth Thomas: I'll just while I'm doing that there Matt as mentioned there so today we've drilled our Gold this year our budget was budgeted for 40,000m so we're up to about 32,000m so well on planned schedule for the end of the year. I'm grabbing up these here so yeah, we're very much on schedule for that and so that's a look of our long section from the South Zone went up to Franz so this is a long section. This year we put a lot of, we're doing a resource as you know I think in April, I think we did announce that we were going to be doing that I think our first interview we were kind of on the fence but we were going ahead with this. So the majority of the drilling the resource will be coming from this area pretty much in here, we have 4 holes that are outstanding that are in the lab, that are looking quite interesting that might be adding some flavour to this so we're hoping to get those sort of holes into the resource but this is where it's 600 by 200m will be where our resources is coming from for this year.
Matthew Gordon: Is that still on schedule by the way, you talked about year-end to me?
Gareth Thomas: So we are still planning for end of year. The only reason why that may be early Q1 is just the fact that we were halted which we can touch on a little bit, we were halted for 4-weeks we were evacuated because of the wildfire situation up on Shovelnose, about half the property got fairly well burned so we were sort of down for about a month there. And of course, the assay labs now as usual where we usually see it coming in September, October they start to come up really towards the end of the year. So we want to make sure we obviously had our best, we want to get everything into the resources as we can so that'd be the only reason that we would be delayed for any reason but we're so far we think we'll be out for Q4 sort of end of November is what we're aiming for so hopefully we can do that.
Matthew Gordon: Can I ask about the, with the fires I mean is that so unrevealed anything because obviously the lot of cover is going to have gone presumably.
Gareth Thomas: Yeah, we have teams, geologist on boots on ground right now, that particular area was I mean I could talk for hours about how it actually started, how these fires converged but I'll spare you.
Matthew Gordon: What actually was it just so I understand because they were heavily reported but what was the cause?
Gareth Thomas: It was actually, there was apparently a couple maybe had a few too many wobbly pops and he had a lit barbecue then they got into a fight this couple like I said they were drunk and he chucked it in the back of his pickup and it was driving along the road and his truck lit on fire and so that really is what I mean it's really sad to actually it's quite, you can’t make that story up but sad what happens to the devastation. But as you mentioned that if there was anything positive about something like that is you can tend to see a little bit more rock or there's certainly less under-brush to look around there and prospect but we were focused more on the eastern side of the property anyway, but yeah, it certainly opened up areas but it's sad how they happen human cause fires for sure. But I think that guy's in custody anyway, and rightfully so actually not maybe what I'll do just some of the viewers who haven't seen this, I'll just go out to another.
Matthew Gordon: Sorry to interrupt the questions, but I was just fascinated about the way that you're going about it because 40,000m obviously, that's a big drill programme for anyone quite frankly. I kind of want to get the rub of the matter in terms of the targets and how you have been focused on and prioritising the targets, because the numbers likes they've been quite good. We've been through information and the various press releases. It's better than we thought it was going to be if I'm honest, so I'm intrigued about the prioritisation if you can maybe help me with that.
Gareth Thomas: Yeah, excellent question. So for this year, as we decided we're going to do a resource we think this is going I won't sort of chuck a number out there but I think a lot of people have done their own back of the envelope calculations, but we feel this is at a stage where we have the one south zone which is a pretty significant, it was big significant discovery in 2018. We've since added a lot of really good intercepts there as well but now we're starting to see this more the 265m you mentioned there of 0.5g that certainly adds to the more broad low- grade envelope. We're seeing a lot more of this as we move to the north and the Northwest and not to put, not to make any sort of comparisons here though, but Artemis has the Blackwater deposit which they just came out with their Feasibility Study there and quite a 0.2 cut off I believe, and that certainly sparked our, we've drilled a lot of 200m of 0.5g, 200m of 0.25g plus these high-grade veins. Do we want to find more high-grade veins? certainly but it also is not a bad thing to see really long broad intercepts of low-grade Gold too that could potentially add to a scenario of a mining scenario. So yeah, we're seeing results like this are quite encouraging and as mentioned there since we spoke last in late May or early June we announced 16m of 9g up on FMN which is another 2.5km from the South Zone and that's really just scratching the surface there. I could pull up a figure here in a sec but that's of interest because obviously just how far away it is here and I'll share this one as I was going say, Matt, so just to give you and some of the viewers that aren't familiar with this story, the south zone is in and around this area here, FMN is at the end of this red line up here. So this is where Vein zone 1 is actually being traced up to here now to where Franz is, which we discovered late last year, which is also 7.78m of 15g there. But really early days on this FMN and so you asked where resource drilling is almost kind of finished here now that we're going to be having 2 rigs move to this FMN. We have 1 there currently, and it's looking very, very interesting and the key there is to actually get where we need to get it at a more favourable angle to attack it and it was kind of what happened at South Zone, where we were drilling down here at azimuth of about a 60 degree azimuth and we changed that to 110 and before we knew it, we were hitting there 70m at 24.5g. So we've seen 16m if 9g up 2.5km from the south zone along this trend, which I'll just go back to this other one if you bear with me. So here's a long section of that what’s getting to south zone, lots of drilling, resource coming, very little drilling all along here up at Tower we've gotten some really broad thick low-grade intercepts up here as well. Not a tonne of drilling between here then we're getting into FMN once again not a lot of drilling here. This is an outstanding assay which is due back hopefully in the next couple of weeks and then nothing between here and FMN sorry with Franz. So we're really keen to get back as I mentioned, the 1 drill is here and we're looking to get the 2nd drill up here as well and drilling from the southwest towards the Northeast, which once again I'll just show as one more little share screen here of what I can put into what I mean by that. So that 175 hole here which when across here so we're looking to get across down now to the southwest and drill back this direction which we haven't done yet. We're quite keen to get back here and drill to the North East where we think will be much more favourable angle attack there. That might have bored the viewers enough for the slides there but that's sort of the gist for the more technical people who want to see where the drills are. And yeah we're excited like I said we've set out to do everything we said we were this year, resources is coming where we're finding new zones and there's a lot more targets on the porphyry on the rise and I should say as well. So really these things are drill intensive, you never like to say oh patience are but you know these things do take a lot of drilling so as you see by that long section we think there's going to be multi-million oz here, it's just a matter of getting there and you know treasury is in good order right now as well and hopefully this market doesn't stay this way but if it does, we're in good shape there as well.
Matthew Gordon: Are you doing some sort of collaboration with Talisker?
Gareth Thomas: Not a collab, no, we're strictly I'd say we're close, we chat to them relatively regular, but the only sort of relationship we have is we have a 2.5% NSR on about 70,000 hectares of their ground. But yeah, we certainly chat, we stay in touch with Terry and Matt and Andrew and yeah, they're some similar shareholders as well so we're certainly but nothing formal.
Matthew Gordon: Nothing formal, no collaboration and nothing financial either.
Gareth Thomas: Yeah, no, they're focused primarily they're drilling something a bit further to the east right now. Like with a fire season up there it's been pretty tough unless you're sort of already set up and working with the infrastructure like we were, it was kind of a challenging year to, obviously very challenging for the communities up there, some real devastating losses up there and which is horrible but even for working up there's been a bit of a unprecedented year and hopefully it's in the past I mean in terms of these fires, but yeah, like the market who knows right?
Matthew Gordon: Yeah, who knows? Okay, so we've talked a little bit about obviously Shovelnose, FMN and Franz, Skoonka anything to say there?
Gareth Thomas: Yeah, so Skoonka is one that is actually we're permitted to work there and we've been sort of making plans to drill there just this year, the village of Lytton burned that was June 30, the whole town there or village where we've stayed in the past, we worked, we know people there really sad story there. And that fire went right up towards Skoonka and in fact, we just had someone up there just checking it out the other day and it's just being scorched. So we're being patient with Skoonka and we want to make sure it's the right timing for that I mean, obviously we got our hands full with Shovelnose and our resources obviously there, we don't want to blow the share structure out of the water here yet. Maybe that's something if the Gold market proves it's there, maybe we do put all hands on deck and get to Skoonka but it's certainly something we're keen to get to. It's just a matter of timing here and where we put our resources but the fire was pretty bad this year, we weren't going to get up there any time.
Matthew Gordon: Okay so we know you're at 30,000m, you've got money to finish the 40,000m metre drill programme and obviously you go a long strike up FMN and also Franz. What are the plans with regards to this market? Is it just like I am going to ignore what's going on the market because like Gold’s at a reasonable price actually quite frankly, but equities not so much right across the board. You've got the budget to do that, do you slow down your budget allocation any because you think well I don't know how long this thing's going go on for, how do you play it because if it’s original plan you know when the end date is and you go right okay, now we need to raise some money, not very exciting share price it's going be a little bit more expensive or you say you know let's just slow down a bit, let's get out of 80% capacity instead of 100% and just ride this thing out a little bit until more certainty, what are you thinking?
Gareth Thomas: Excellent question, where we're at it's obviously your chicken or the egg, are you going to spend that money to try and find more exciting veins zones like the South Zone or you're going to try and preserve some of that capital and go market isn't looking very good for that foreseeable future so it's a fine line in terms of where we're at. At the moment like I said, we're good on budget here for well into next year so yeah, we're good at Treasury, we've done everything we said we're going do this year. It's hopefully a little bit more positivity from the market and we're excited about where things are going with us.
Matthew Gordon: Let me just ask you one more question because this is really just about what are you doing about the drilling and that was really that last question I want to get to how you play this out because a lot of people in the same boat right where you're putting out nice numbers market doesn't care, just doesn't care right? everyone's looking somewhere else nervous about the economy, nervous about lots of things are seeing other opportunities whatever's going on out there but how do companies play it but I'm kind of intrigued by what are the things that you think you can control you've got your drill programme going on there, is there anything that you feel you can say to the market is going to get them interested or do agree with the assessment that you're all in the same boat, you got to play out the same way.
Gareth Thomas: Yeah, I mean like it's sometimes that's exactly what you said what can you control and then sometimes that's a cop out to say oh we're like everybody else in the same boat I mean, that's a fair assessment and fair reason these days. But for us like I said, we're excited about the resource, we know that's where we're located it's exciting, whatever the number is it's we think it's where we're located, it's great location and drilling here we're hoping FMN we are seeing a lot of interesting things there as well and we got hundreds of other targets as well that we got boots on the ground looking at now. These things are drill intensive they take time but it won't be long before we have another South Zone intercept and it's going add we think there's going to be multi-million oz on this project and we have 3 more of these on the belt so yeah, all as good as can be.
Matthew Gordon: Okay, so I've got one more question then which is, you've got a capitalist moment right? Like I said, I think the normal rules don't apply anymore so you're the normal and in normal circumstances a catalyst will be a maiden resource where you put out a number which you think the market is going to be happy with right? And obviously you're aiming for the end of the year, I appreciate the assays are a little bit hit and miss at the moment. So maybe beginning of next year, whatever, it won't matter. It's not a big deal. But we've seen companies come out and put maiden resources that just kind of get the ball rolling saying like, hey, we got something here 0.5Moz, the markets go up. Oh, man, that's so disappointing. That is so disappointing and they've been marked down as a consequence. And then we've seen companies drag this thing out till they can come to the market with a 1.2, 1.5Moz, I mean, have you got a sense of where you think you need to come to market with in terms of the quantum, I know, you won't give me a number but do you know the range?
Gareth Thomas: Yeah, I think people will have a rough idea. I mean anything over 0.5Moz we're going be excited depending on and especially where it's at in terms of there are 3 scenarios, there's open-pit, there's underground, there's a combination of the both, depending where we're at, we're not sure yet, we just got the ball rolling with the company that's doing the resource. They're conservative group, that's what we want, we want real oz here. We're not looking for a promo thing that this is a real legit, and we want the good companies that we've had a lot of them looking at us and they're going like what we come up with here. I'd like to say anything over 0.5Moz will be very, that's a start, it's a south zone. What we're discovering here is going to be a lot more of these like I think there's going be multi-million oz here and south zone will give us a real good understanding. We have a great new model coming out, I'm excited about what the resource will bring.
Matthew Gordon: Chasing fundamentals and not hype, I'm not sure that will work.
Gareth Thomas: I’ll just say one thing that we had, I'm not going name the name but we had a very well-known industry PhD, geo who also runs a fund up at our sites and he goes, it doesn't matter what you have in terms of oz. He has no idea what our numbers going be either but he said, it doesn't matter where you're located, this is a tier 1 area, we're right off the highway, like it's, we're 30 minutes from Merritt. We're 2.5 hours from Vancouver. It's a very good location. And he's not concerned about whether it's a million or a million and a half, and he sees the potential add more oz and that's the whole idea here. I think people see that who really understand the story, it’s drill intensive. Is it just a start? It's 500m strike length and anything over 0.5Moz, I think we'll be doing very well.