Revival Gold - Advancing the Past-Producing Beartrack-Arnett Gold Project in Idaho

About Revival Gold

Revival Gold Inc. (TSXV:RVG) is a growth-focused gold exploration and development company. The company's flagship asset is the past-producing Beartrack-Arnett Gold Project located in Lemhi County, Idaho. Beartrack-Arnett hosts mineral resources of 86.2 million tonnes at 0.87 g/T gold containing 2.42 million ounces of gold in the measured and indicated category and 50.7 million tonnes at 1.34 g/T gold containing 2.19 million ounces of gold in the inferred category.

The project produced over 600,000 ounces of gold between 1994 and 2000 before being placed on care and maintenance. Revival Gold's experienced management team is advancing Beartrack-Arnett on a fast-track timeline, targeting a restart of heap leach operations and production by 2027-2028.

Interview with President & CEO Hugh Agro

Restarting Production at Beartrack-Arnett

In the recent project update, Revival Gold released a Pre-Feasibility Study (PFS) outlining plans for a phased restart of heap leach operations at Beartrack-Arnett. The PFS envisions a 8-year life of mine, with total gold production of 529,100 ounces at an average of 65,300 ounces per year.

The PFS plan takes advantage of existing infrastructure at the site, including crushing facilities, heap leach pads, a carbon adsorption plant, and other ancillary facilities constructed by previous operators. Using the existing infrastructure is expected to reduce capital costs, accelerate permitting/construction, and lower project execution risks compared to building a new greenfield operation.

CEO Hugh Agro highlighted that the PFS numbers are consistent with the project's 2018 Preliminary Economic Assessment, demonstrating the extensive technical work completed by Revival Gold's team to optimize and de-risk the restart plan.

Exploration Upside

In addition to the restart plan, Revival Gold has been actively exploring to expand resources at Beartrack-Arnett. In July 2023, the company announced an updated mineral resource estimate, increasing total resources by 14% to 4.6 million ounces of gold. The updated resource added 1 million ounces of leachable oxide resources, providing additional feed to potentially extend the proposed 8-year initial heap leach operation.

Furthermore, Revival Gold tripled the underground sulphide resources to 0.9 million ounces at an average grade of 2.96 g/t gold. The high-grade underground resource provides significant long-term growth potential and could form the basis for a larger scale Phase 2 expansion.

Revival Gold is continuing exploration focused on expanding the underground resource, with active drilling underway on several targets adjacent to the known deposit. According to CEO Agro, "We're in four exploration areas on the Arnett side of the property. These are exploration targets, not resource addition which is what we were doing last year, so we're going to have some misses in here, but we are also expecting some wins as we continue to develop out that land position." Demonstrating further growth in resources could substantially increase the value of the Beartrack-Arnett project.

De-Risking the Path Forward

While advancing permitting and development activities at site, Revival Gold is also focused on derisking and adding flexibility to the potential Phase 2 expansion. As CEO Agro explained, "The second phase of this project has lots of potential around it so we want to de-risk things like metallurgy which is a low-cost thing to do but it makes a big difference to the audience here, the corporates that are here, the larger strategic investors." Updating metallurgical test work can demonstrate potential paths to improve recoveries and process the high-grade underground sulphide resources.

Beyond technical de-risking, Revival Gold has added key talent to the team to provide operational and development expertise. This includes the recent appointment of Larry Radford, former COO of Hecla Mining, to the Board of Directors. Radford's experience operating some of the world's largest underground and open pit mines strengthens Revival Gold's capabilities as they transition from exploration and development to commercial production.

Funding and Partnerships

Revival Gold has maintained a modest spending profile, keeping G&A costs below $2 million per year to conserve capital. However, moving Beartrack-Arnett into production will require external funding on the order of $100 million in initial capital. Given current market conditions, Revival Gold is considering a variety of funding options and partnership opportunities.

The Beartrack-Arnett project offers flexibility, with a modest initial Phase 1 heap leach operation plus significant growth potential from the underground resource. This provides multiple avenues to engage potential partners and secure capital to suit the development timeline. In addition, Revival Gold has been opportunistic in consolidating ownership of the project, recently acquiring an additional royalty interest from a partner seeking liquidity.

CEO Agro reiterated that they are exploring funding options but expect to solidify plans over the next 6-12 months as they enter permitting: "The next six months will be an interesting time for us, when we get into the early part of next year we'll start pinning down the plans for permitting the site, for the exploration to come." He added, "I think we've got 3-4 months of getting out and telling the story frankly." Clearly, Revival Gold plans to take advantage of platforms like the Beaver Creek conference to communicate the Beartrack-Arnett investment opportunity to investors.

Conclusion

Revival Gold offers investors an opportunity to buy into a formerly producing, multi-million ounce U.S. gold project on a steep discount. The experienced team has outlined a clear path to restart heap leach operations and generate strong cash flow over a 8-year initial phase. Moreover, exploration results continue to demonstrate the potential for much larger production from underground resources in a Phase 2 expansion.

Trading at a market capitalization below $60 million, Revival Gold appears significantly undervalued based on the inherent value of its gold resources, existing infrastructure, and advanced path to production. Investors have an opportunity to position in Revival Gold before further de-risking and advancement of Beartrack-Arnett leads to a potential re-rating as the company transitions to a gold producer.