Revival Gold (RVG) - Outperforming Peers by De-Risking to PFS

Revival Gold Inc. is a gold exploration and development company focused on advancing its Beartrack-Arnett Gold project located in Lemhi County Idaho. The project is the largest past-producing mine in Idaho and holds a 3-million-ounce mineral resource. The project’s mineral resources consist of 1.4 million ounces of gold in the indicated category and a further 1.6 million ounces of gold in the inferred category. The company is working towards a pre-feasibility study (PFS) of the project’s heap leach operation whilst it continues to explore the project. The company at the end of 2022, had a cash position of CAD$ 3 million and 91.9 million shares outstanding.

Revival Gold Inc. on the 9^th of January 2023 released assay results for the first twelve drill holes from the Haidee deposit area at the Beartrack-Arnett Gold project. The drill holes formed part of the company’s 2022 exploration program. The highlights of the assay results include 1.12 g/t of gold over 18 m as well as 0.81 g/t over 30.1 m. Revival Gold Inc. is awaiting the assay results of the remaining 6 drill cores from its 2022 exploration drilling program, which it believes will further expand the current mineral resource of the project.

Revival Gold Inc. plans to continue advancing the heap leach phase of the Beartrack-Arnett Gold project towards production in 2023 while continuing to explore the project in parallel. The company is fully funded to complete its PFS, exploration initiatives and baseline environmental studies required, with 70% of the necessary PFS works completed. Revival Gold Inc. aims to publish the PFS of the first phase heap leach operations of the Beartrack-Arnett Gold project in mid-2023.

Management

Revival Gold Inc. is led by Hugh Agro, who serves as the company’s President and CEO. Agro previously held the position of Executive Vice President for Strategic Development for Kinross Gold Corp. and was co-founder of Carbon Arc Capital Investments Inc., a private-equity-backed investor in the mining and metals sphere. He has also formed part of the executive leadership teams for Placer Dome Inc., Senator Capital Partners and in investment banking with Deutsche Bank’s Global Metals and Mining Group.

Lisa Ross is the Vice President and CFO of the company and brings with her more than 15 years of experience in the financial accounting and reporting sector. Ross previously served as Director at Kirkland Lake Gold Inc. before it merged with Agnico Eagle Mines Ltd.

John Meyer is the Vice President of Engineering and Development for the company and has more than 30 years of experience in the gold industry, He has held various positions including senior leadership roles in mine permitting and development, underground and open pit engineering as well as reclamation and mine closure. He has held senior and international project management positions with various major mining companies, including Barrick Gold Corp. and Kinross Gold Corp.

Steve Priesmeyer is the Vice President of Exploration for Revival Gold Inc. and brings with him more than 30 years of experience in developing and exploring mineral projects. He is responsible for the delineation of more than 30 million ounces of silver at the El Rayo project, which was acquired by Agnico Eagle Mines Ltd. in 2015.

Pete Blakeley is General Manager for the Beartrack-Arnett gold project and has more than 30 years of experience in the mining sector. He has held the position of Chief Mining Engineer with Andean Resources Ltd. and Senior Advisor of Mining with Rio Tinto OTX in Salt Lake City.

Melisa Armand rounds out the team as the Executive Assistant and Manager of Investor Relations. She has been involved in the administration and corporate communication sector for more than 10 years and is tasked with overseeing record keeping and administration.

Agro explains the company’s management team plays a crucial part in the advancement of the company’s Beartrack-Arnett gold project.

“We've got some super people on the project, working diligently towards advancing Beartrack-Arnett through exploration and then through into that production phase, which will be something that I think is unique among all of our peers. We are working efficiently towards that process and outcome.”

2022 in review

Revival Gold Inc. reached various milestones in 2022, with one thereof being the update of the mineral resource estimate of the Beartrack-Arnett gold project. The company was able to increase the indicated mineral resources of the project by 56% to 2.11 million ounces of gold, with the inferred resources of the project growing by 19% to 1.94 million ounces of gold.

The company also completed 2,600 m of drilling at the Joss zone of the Beartrack-Arnett gold project, with it intercepting mineralisation with grades of up to 10.1 g/t of gold over 11.4 m, showing the high-grade underground potential of the zone.

Agro explains that the company was able to accomplish various goals in 2022, with it including a large amount of drilling at the Joss zone as well as increasing the total mineral resources of the project by 33%.

“We announced that 4-million-ounce resource, 33% higher than the prior resource estimate in 2020, so good progress there with growth in the resource. Secondly, we accomplished quite a bit of drilling, in particular, in the Joss area, where we've got high-grade intercepts.”

The company also completed 2,900 m of drilling initiatives at the Haidee zone of the project, which was aimed at the near-surface gold oxide mineralisation of the deposit. Revival Gold Inc. on the 9^th of January 2023 released assay results for the first twelve drill holes from the Haidee deposit area at the Beartrack-Arnett Gold project.  The drill holes formed part of the company’s 2022 exploration program. The highlights of the assay results include 1.12 g/t of gold over 18 m as well as 0.81 g/t over 30.1 m. Revival Gold Inc. is awaiting the assay results of the remaining 6 drill cores from its 2022 exploration drilling program, which it believes will further expand the current mineral resource of the project. Agro explains that the assay results of the Haidee area will be incorporated into the planned pre-feasibility study of the project.

“Recently, we've been releasing results from our 2022 program in the Haidee area where we've got super near surface oxide mineralization, and that's going into our PFS, which is coming out mid-2023. There's been some really positive progress with the project from a technical point of view.”

Revival Gold Inc. was also able to raise approximately CAD$ 13 million in equity funding and was able to, through this, add the Donald Smith Value Fund, LP as a significant new shareholder in the company. The company also expanded its board of directors with the addition of Tim Warman. Agro explains that Warman has played a valuable role in the development of the envisioned heap leach operation at the Beartrack-Arnett Gold project.

“We've made very good progress with our team and a board addition in Tim Warman, who's been a super contributor to what we're doing in the US with the heap leach and with the exploration experience Tim brings to the table. Finally, in a tough capital market, we've raised CAD$ 13 million in 2022, and it's in equity, and without diluting our capital base so that our owners will have the benefit of enjoying the upside we see coming to us in 2023.”

PFS and Inflationary pressures

The economic downswing in the metals sector of 2022 has led to various operations rethinking their rollout plan. Agro explains that inflationary pressures can be mitigated for Revival Gold Inc. through the brownfield aspect of the Beartrack-Arnett Gold project. The company believes that by advancing the first stage of the envisioned project, the heap-leach operation, it will be able to create cash flow enabling it to be less reliant on the sector in advancing the project as a whole.

“It's a modest scale of the project but we can continue to advance that project, that first-phase heap leach project, which is what the subject of our PFS is all about. We can continue to advance that towards production, and at the same time we build out the larger exploration story in the mill potential of this project. We've got a large resource but we've got lots of targets, we've got lots of places to continue to expand on that.”

The advantage of creating free cash flow for the company, according to Agro, enables it to also not dilute its shareholders, which increases the value creation potential for the company’s shareholders.

“The way we attack this is by recognizing we're in a volatile market; things go up and down, sentiment moves in and out, and have our project moving forward in this stepwise function that allows us to deliver free cash flow in the relatively near term and continue to build upside for the longer term. I think that's our secret sauce, apart from our team, that's our secret sauce.”

Future

Revival Gold Inc. plans to continue advancing the heap leach phase of the Beartrack-Arnett Gold project towards production in 2023 while continuing to explore the project in parallel. Agro explains that Revival Gold Inc. aims to publish the PFS of the first phase heap leach operations of the Beartrack-Arnett Gold project in mid-2023.

“The study is still 5 months out, so I don't have detailed numbers yet, but certainly our expectation is that we will be able to do as well or better than our PEA, and we will be at a much less risky point of the development phase because we will have completed additional column leach testing, geotechnical study work, we will have done more detailed design work in terms of our costs and plans.”

The company is fully funded to complete its PFS, exploration initiatives and baseline environmental studies required, with 70% of the necessary PFS works completed.

“We did not do a big raise at the end of last year. We did not feel like it was the right time to go pushing a lot of equity out, but we've raised sufficient capital to complete our PFS, do the updated resource, which will go into that PFS, get these drill results out from the Haidee area, which we started to do at the beginning of last week, and also to complete further baseline environmental data collection so that we're prepared to go for re-permitting of the site once we have completed the PFS.”

Revival Gold Inc. plans to continue advancing the Beartrack-Arnett Gold project throughout 2023 and aims to reach all the fully-funded milestones it has set, The company plans to minimise its overhead costs and ensure that the funds spent are thought through ensuring that it is prepared for whatever the metals sector may do in 2023.

“We will hit lots of milestones over the next 6 months that are all funded. We're going to have to watch our pennies and be very careful in how we spend our money, but that's second nature to us at Revival Gold.”

To find out more, go to the Revival Gold website