Gold

Why Is the CEO of Golden Triangle Junior Scottie Sources So Excited?

Brad Rourke, CEO of Scottie Sources, speaks with Peter Epstein of Epstein Analysis about his firm’s main land acquisition in British Columbia’s Golden Triangle.

Scottie Sources Corp. (SCOT:TSX.V) is a lesser recognized Golden Triangle (northern BC, Canada) gold junior, who’s ship could have simply are available in…. Sometimes, when the phrase, “blockbuster” is used, it refers to drill outcomes. On this case I consult with Scottie’s not too long ago introduced possibility on a large (>1,500 hectares) piece of property (the Summit Lake claims) surrounding its current 100%-owned Scottie Gold Mine property {see map beneath). Even earlier than this announcement, Scottie appeared like a pure takeout goal for Ascot Sources (TSX-V: AOT), [C$160 million market cap]. (Notice: the corporate introduced the intention to lift C$1.zero million in an fairness capital increase on Might 13th.)

Ascot acquired IDM Mining and its Pink Mountain venture in March, and the Silver Coin property from Jayden Sources and Mountain Boy Minerals late final yr. Moreover, Ascot simply upsized a capital increase to $15 million. Topic to TSX approval, Scottie will personal or management a contiguous land bundle [the Bow, Scottie Gold Mine, Summit Lake and Stock claims] totaling almost eight,800 hectares = ~21,750 acres. But, that approximate eight,800-hectare place is lower than half the corporate’s whole of greater than 18,500 hectares.

Scottie Sources has one other 10,000 contiguous hectare block adjoining, immediately west, of IDM’s (now Ascot’s) property. One want solely look on the map to see that the possibilities of Ascot desirous to take out Scottie have seemingly soared. Earlier than choosing up these new claims, administration was enthusiastic about its 472 hectare Bow property, the topic of this April 26th press launch. Beneath are some historic drill gap intercepts from the Bow property, which is contiguous with the Scottie Gold Mine property. Think about if the corporate might discover extra intercepts like these on the newly expanded property that is now roughly 18x the dimensions of Bow.

This “blockbuster” land acquisition opens up far more than extra hectares; it enhances the likelihood of placing the venture into manufacturing on a standalone foundation. It opens up the chance that different mid-tier or main treasured metals corporations would possibly need a piece of the motion, regional gamers like Pretium, NovaGold, Seabridge, Imperial Metals and GT Gold Corp. Or corporations exterior the district that need an entry into the world-class Golden Triangle. Giants Teck Sources and Newmont Goldcorp Corp. have already got direct pursuits within the district.

The next interview of Brad Rourke, president, director & CEO of Scottie Sources, was accomplished by textual content, e mail and cellphone within the week ended Might 10th. As at all times, please see disclosures on the backside of the web page.

Peter Epstein: Please give readers the most recent snapshot of Scottie Sources.

Brad Rourke: Our focus is on the previous producing, high-grade Scottie Gold Mine property in Canada’s Golden Triangle, in northern British Columbia, which operated for almost four.5 years from 1981–1985. It produced >95,000 ounces of gold at ~16 g/t or zero.5 decide, with a 200 tonne per day mill. On April 30th we introduced a blockbuster land transaction. Our VP Exploration, Dr. Thomas Mumford, commented, “The optioning of this land bundle is actually momentous for Scottie Sources. It essentially adjustments the potential of the Scottie Gold Mine property by considerably increasing our beforehand restricted footprint. Whereas high-grade gold is thought to exist alongside our borders, we had been unable to correctly advance it. With this new alternative to discover the whole mineralizing system, we’re desirous to get boots on the bottom this summer time.”

Important potential exists attributable to extensions at depth, extra zones alongside strike and in parallel mineralized constructions. We additionally produce other contiguous properties, (see map above), close by, between and bordering land managed by Ascot Sources. In whole, we now personal or management >18,500 hectares within the Golden Triangle. By comparability, Ascot’s flagship Premier Gold-Silver venture is roughly 10,500 hectares in measurement. Nevertheless, the Premier venture is far more superior.

Peter Epstein: Are you able to increase upon the historical past of your organization?

Brad Rourke: Positive. Since Scottie Sources (previously Rotation Minerals) acquired the Scottie Gold Mine claims in 2016, (we began with simply 400 hectares) there was 713 meters of floor drilling (three holes), 1,935m of underground drilling (18 holes) and 162 floor rock samples taken. Earlier work on the property included 29,000+ meters of underground drilling, airborne geophysical surveys, geological mapping and numerous soil and floor geophysical grids. There was $150 million of infrastructure expenditures, and there is an current 200 tonne/day mill, six portals, a rail system and 7 kilometers of drifts.

Peter Epstein: Why is final month’s announcement so essential? Why was it so laborious to get this land bundle?

Brad Rourke: We simply picked up the Summit Lake claims, I believe it could be among the best offers within the Golden Triangle in a long time! Summit Lake is a tremendously engaging alternative, a land bundle that we and others tried to amass many occasions through the years. Nevertheless, the worth tag was within the tens of thousands and thousands. These claims are an actual game-changer. The proposed phrases are very cheap; over 4 years, a complete of $250,000 in money + 2.2 million shares + a 1.eight% gross smelter return (GSR) royalty.

This newly optioned property fully opens up our skill to discover the mineralizing system that fashioned Scottie. Previous to this, the Scottie Gold Mine property consisted of solely ~212 hectares of crown grants that the mine was on and 110 hectares of mineral claims. We had been fully surrounded by the Summit Lake claims proprietor, who was very reluctant to make offers that smaller juniors might fairly entertain.

Peter Epstein: The Golden Triangle is a really complicated district; you want a robust technical workforce. Inform us about your workforce.

Brad Rourke: You are proper. The core of our firm consists of technical personnel, three members of our Board of Administrators are technical professionals, both geologists or mining engineers, Ernie Mast, John Williamson and Ed Kruchkowski. We now have a number of executives with observe data of constructing profitable useful resource corporations.

As well as, our VP Exploration, Dr. Thomas Mumford, is a seasoned discipline geologist, with sturdy mapping expertise within the Golden Triangle in addition to managing drill applications throughout Canada. We have additionally been lucky to be working with one of many premier mineral exploration consulting corporations in Canada – Fairness Exploration.

Peter Epstein: Please speak extra in regards to the tailings alternative.

Brad Rourke: The Scottie Mine operated for almost four.5 years, at a mean grade of 16.2 g/t gold. Recovered grades had been about 17.5 g/t for the primary two years, however dropped to 14.1 g/t in 1984, at the same time as mill recoveries improved from 75% in 1981 to 92–95% in 1984. With decrease recoveries within the first two years, a major quantity of gold ended up in tailings, deposited right into a lake that has since drained. This previous summer time Fairness Exploration sampled the tailings. Gold grades as excessive 6.2 g/t had been discovered. This season we plan on doing extra infill sampling to higher outline grade distribution and get a stable estimate of potential tonnage. We predict that we must always have the ability to monetize hundreds of ounces of gold from tailings beginning as quickly as subsequent yr, however extra work is required earlier than an working resolution might be made.

Peter Epstein: What is the likelihood of discovering different metals in concentrations excessive sufficient for them to be by-products or credit?

Brad Rourke: By way of by-product metals, the one we’re most enthusiastic about is the cobalt-rich veins on the Bow property. Many mineralized gold intercepts returned cobalt values starting from zero.10% to zero.44%. (NOTE: on the mid-point of zero.27%, the in-situ cobalt worth = ~$130/t.) A spotlight of future drilling on the Bow property will probably be to evaluate the distribution and grade management on the cobalt and its affiliation with the gold.

Peter Epstein: How is Scottie Sources totally different from the handfuls of different gold juniors within the GT?

Brad Rourke: How are we totally different? We host a past-producing mine with street entry, six portals, shafts, a rail system and seven km of drifts. There is a $440 million energy line going by way of our property. A brand new world port is ~48 km from the venture. $150 million price of infrastructure is in place. We now have the size that might entice mid-tiers and majors. It’s extremely laborious to consolidate land, however we’re doing it; we began with simply 400 hectares, now we management ~18,500 hectares. We’re working with a newly outlined understanding of the geology, modeled for the primary time by Fairness Exploration, that was not understood when the Scottie Mine was in manufacturing. All historic exploration information has been re-logged and digitized. We share borders with each Pretium and Ascot. The Scottie Gold Mine venture is excessive grade, even by Golden Triangle requirements!

Peter Epstein: Why ought to readers contemplate shopping for shares of Scottie Sources?

Brad Rourke: Any current shareholder of Scottie Sources (TSX-V: SCOT) who knew the story earlier than final month’s information ought to be thrilled with this newest improvement. Should you favored it at 20c or 25c, with our tight float, you must like it now! We now have a $12 million (C$zero.20/share on Might 13th) market cap, and our closest significant neighbors, each of whom we share borders with, have market caps of $160 million (Ascot Sources) & $2.zero billion (Pretium Sources).

As you, Peter, talked about in your opening remarks, I reiterate that different gamers within the Golden Triangle embody NovaGold ($1.75 billion), Seabridge ($990 million), Imperial Metals ($285 million), GT Gold ($95 million), Nice Bear Sources ($84 million) and Garibaldi Sources ($78 million). If this season or subsequent we’ve got extra success with the drill bit, on a a lot bigger footprint, we expect our $12 million Enterprise Worth has appreciable upside.

Peter Epstein is the founding father of Epstein Analysis. His background is in firm and monetary evaluation. He holds an MBA diploma in monetary evaluation from New York College’s Stern Faculty of Enterprise.

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Disclosures: The content material of this text is for info solely. Readers totally perceive and agree that nothing contained herein, written by Peter Epstein of Epstein Analysis [ER], (collectively, [ER]) about Scottie Sources, together with however not restricted to, commentary, opinions, views, assumptions, reported details, calculations, and so forth. is to not be thought of implicit or specific funding recommendation. Nothing contained herein is a advice or solicitation to purchase or promote any safety. [ER] shouldn’t be accountable underneath any circumstances for funding actions taken by the reader. [ER] has by no means been, and isn’t at present, a registered or licensed monetary advisor or dealer/vendor, funding advisor, stockbroker, dealer, cash supervisor, compliance or authorized officer, and doesn’t carry out market making actions. [ER] shouldn’t be immediately employed by any firm, group, group, get together or particular person. The shares of Scottie Sources are extremely speculative, not appropriate for all buyers. Readers perceive and agree that investments in small cap shares can lead to a 100% lack of invested funds. It’s assumed and agreed upon by readers that they may seek the advice of with their very own licensed or registered monetary advisors earlier than making any funding selections.

On the time this interview was posted, Peter Epstein owned no shares of Scottie Sources and the Firm was NOT an advertiser on [ER]. Nevertheless, ER is negotiating with the Firm for it to develop into an advertiser on [ER] within the close to future. Readers ought to contemplate me biased in my opinion of the Firm. Readers perceive and agree that they need to conduct their very own due diligence above and past studying this interview. Whereas the writer believes he is diligent in screening out corporations that, for any causes in anyway, are unattractive funding alternatives, he can not assure that his efforts will (or have been) profitable. [ER] shouldn’t be chargeable for any perceived, or precise, errors together with, however not restricted to, commentary, opinions, views, assumptions, reported details & monetary calculations, or for the completeness of this interview or future content material. [ER] shouldn’t be anticipated or required to subsequently observe or cowl occasions & information, or write about any explicit firm or subject. [ER] shouldn’t be an skilled in any firm, business sector or funding subject.

Streetwise Stories Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The next corporations talked about within the article are billboard sponsors of Streetwise Stories: Pretium Sources, Seabridge Gold and Nice Bear Sources. Click on right here for essential disclosures about sponsor charges. The knowledge offered above is for informational functions solely and isn’t a advice to purchase or promote any safety.
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