The Gold Report - Tue, Jan 30, 2018

Idaho Gold Projects Benefit from US Fiscal Policy

The U.S. dollar index is now at its lowest level since 2014, creating a tailwind for domestic gold producers.

Revival Projects

A weaker U.S. dollar could mean a higher U.S. dollar gold price.

This is good news for gold producers in general, and in particularly for companies like Barrick Gold Corp. (ABX:TSX; ABX:NYSE), which generates 45% of its total output from U.S. mines.

Revival Gold Inc. (RVG:TSX.V), an Idaho-based exploration and development company, could benefit from the current upward gold price trend.

Revival has the right to acquire a 100% interest the former producing Beartrack Gold Project and the neighboring Arnett Creek Gold Project.

On January 18, 2018, Beacon Securities published its "Spec Buys for 2018."

"We are initiating coverage of six micro/small-cap mining stocks," stated the report, "which we believe can deliver newsflow this year that can lead to a material re-rating of shares."

Revival Gold was featured in the report, "as an attractive speculative play for exploration success for gold-silver mineralization in Idaho. The company has an option to acquire the past-producing Beartrack gold mine in east central Idaho, and holds an 100% interest in the adjacent Arnett Creek property. The Beartrack mine produced about 600,000 oz of gold via an open pit, heap leach operation in the 1990s. The site has been fully reclaimed by Kinross Gold, but has good infrastructure that we believe could facilitate a mine re-start with exploration success."

The same day Beacon issued the "Spec Buy" report, Revival released results from the final eight holes of the twelve-hole 2017 portion of the company's planned 11,000-meter core drilling program at Beartrack.

Highlights include:

  • 1.73 g/t Au over 29.2 meters from 99.1 meters to 128.3 meters in BT17-200D
  • 3.51 g/t Au over 67.5 meters from 98.6 meters to 166.1 meters in BT17-201D
  • 1.99 g/t Au over 54.7 meters from 91.6 meters to 146.3 meters in BT17-203D
  • 2.76 g/t Au over 51.9 meters from 53.6 meters to 105.5 meters in BT17-205D

The grades and widths in the January 18 results suggest the potential for an economic deposit. But Revival warns that "true width estimates are not yet known but are estimated to be approximately half of the drilled width."

Only when the drill bit hits the mineralised section at a perfect 90-degree angle, will the "True width" and "drill width" be the same. This concept is illustrated in the diagram below:

"All eight holes released intersected significant gold mineralization," stated Hugh Agro, Revial president & CEO. "Revival Gold will now initiate work on an updated resource estimate for Beartrack."

According to the January 18 press release, seven of the eight drill holes targeted near-surface oxide and mixed oxide-sulphide mineralization. These holes were designed to confirm historic drilling completed by Meridian Beartrack.

Revival Gold's near-surface drill results at both Ward's Gulch and the South Pit were generally better than the historical drilling completed by Meridian Beartrack. Revival geologists are currently preparing an updated geological and resource model using data from the drill programs completed in 2012, 2013 and 2017.

Summary assay results from near-surface holes are in the table below:

Gold mineralization at Beartrack occurs along five kilometers of the Panther Creek Fault and high grades have been encountered in a number of deep holes along strike.

After examining the modern drill data, Revival believes that "potential exists for additional high-grade along strike."

As well as surface drilling, Revival plans further deep drilling to testing for high-grade mineralization in the Ward's Gulch area "and in four other known mineralized areas at depth along the Panther Creek Fault."

Revival's 2018 exploration program is fully permitted and will include about 8,000 meters of core drilling. The map shows the location of 2017 drilled holes and the location of the planned holes at Beartrack in 2018.

In addition to its interests in Beartrack and Arnett Creek, Revival is pursuing other gold project opportunities. The company also own a 51% stake in the Diamond Mountain Phosphate Project in Utah.

PI Financial has a Buy rating on Revival Gold. It rates the project as a "quick restart with low capex."

"The actual spend for the build out of the project was only US$72M given the simplicity of the flowsheet," stated analyst Brian Szeto in the report, "Although most of the processing facilities have been sold off when the mine shut down, the ADR plant, core shack, power substation, and access roads all remain in good shape. As a result, we believe that this will positively contribute to a low initial capex number when a decision is made to restart the mine."

Disclosure:
1) Lukas Kane compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Revival Gold. Streetwise Reports does not accept stock in exchange for its services. Click below for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Arrow Resources, a company mentioned in this article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Revival Gold, a company mentioned in this article.

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