Cashed Up and Drilling For Gold

Written by Gerardo Del Real
Posted May 20, 2019

Joining us today is the President and CEO of Ethos Gold (TSX-V: ECC)(OTC: ETHOF), Mr. Craig Roberts.

Ethos Gold was up 40% last week on news the company will be drilling a Carlin-style gold target in Nevada. Ethos is also drilling in Mexico later this year and is fully funded with approximately C$0.12 per share in cash.

I spoke with Mr. Roberts about the new project, the addition of Quinton Hennigh as a consultant and advisor leading the drilling effort in Nevada, and why the Carlin-style project has the potential for a company-making discovery. Enjoy.

To your wealth,


Gerardo Del Real
Editor, Junior Mining Monthly and Junior Mining Trader.

Gerardo Del Real: This is Gerardo Del Real with the Outsider Club. Joining me today is the President and CEO of Ethos Gold (TSX-V: ECC)(OTC: ETHOF), Mr. Craig Roberts. Craig, how are you today?

Craig Roberts: I'm great thanks, Gerardo. Really well. How are you doing?

Gerardo Del Real: I am excellent, it's good to catch up. It's been a little bit over a month and a half since the last time we spoke. The last time you and I had a conversation, I hinted to the fact, and you mentioned, that the company had a healthy cash position, that it was looking to deploy by bringing in accretive, attractive projects with the potential for large-scale discoveries.

You've obviously been busy, the stock took a bit of a hit the last month on lack of news. But things are all of a sudden picking up quickly. Stock was up 40% last week on news that Ethos will be drilling a Carlin-style gold target at Iron Point, Nevada with a 50% earn-in with Victory Metals. You also added a pretty big name as a technical consultant on the project, Mr. Quinton Hennigh, who will be running that drill program.

So, I want to start there. And then we can talk about B.C. and Mexico, but obviously the news that you'll be drilling this Carlin-style gold target has been very well received by the market. So congratulations on that deal. Can you provide some details, Craig?

Craig Roberts: Yeah, happy to, Gerardo. We are very excited by that project. A little bit of history, the Iron Point is actually at the intersection of the Getchell trend and the Battle Mountain trend in Nevada. It's about 20 miles east of Winnemucca. It's a project area that's been recognized historically and had a lot of work done, actually historically exploring for gold. There's a very large, sort of indicator, geochemistry footprint there. Gold's been found in quite anomalous amounts on surfaces and in trenches and historically it's been drilled by a number of the major companies. It's been drilled by Newcrest, by Aur Resources, Newmont Santa Fe.

So there's a lot of work that's been done and Quinton Hennigh, who you mentioned, has now joined us as a technical advisor, was actually involved in a number of programs. He drilled at Newcrest and Aur Resources, for example, historically. One of the big breakthroughs was Quinton's done some fossil analysis of what's called the Comus Formation there. It was always mapped as Upper Plate or Ordovician stratigraphy. The work that Quinton did showed definitively that it's actually Devonian and therefore sort of Roberts Mountain Popovich Lower Plate stratigraphy.

While that may be a bit technical, it's extremely significant in terms of the prospectivity for gold and a very important fact that's resulted in the re-interpretation of the area. Based on that, based on the historic surface exploration that I mentioned, and then also based on a number of intercepts through historic drilling, Quinton's come up with a model for Iron Point which is actually very similar to the model at Newmont's Twin Creeks mine, which is about 25 miles north of Iron Point. It's basically Lower Plate rocks that have folded into a Zed fold up against range front fault. There's actually a section in our news release that shows that. All of that historic work, Quinton's involvement and expertise, and the re-interpretation has led to the definition of this new target.

Based on all of that, we've got three vertical holes planned that will be drilled between 500 and 800 meters of depth. Those holes will drill through the Upper Plate into the prospective Lower Plate rock near the range front. Obviously, we're very optimistic that we'll find something. We'll drill those holes and hopefully we do find a Carlin-style deposit down there. Obviously no guarantees, but we think it's a pretty exciting shot at a discovery.

Gerardo Del Real: Excellent, and I understand Quinton is running that program. Correct?

Craig Roberts: That is correct, yeah. Absolutely. He's actually already located the three holes. Victory Metals has a vanadium project there that they have a current drill program on. So we're actually fully permitted already to drill and we haven't quite yet finalized our plans for drilling. But without giving a particular timeframe I'd say that it's possible we could be drilling in actually quite a short timeframe, drilling these deep holes.

So it's not going to be a long period of waiting for permitting, etc. I think we'll have an announcement on that soon, but we have the opportunity to drill fairly quickly there.

Gerardo Del Real: To be clear, all of the exploration and drill programs this year in Nevada, BC, and Mexico are fully funded by the treasury. Correct?

Craig Roberts: Yeah, we currently have about $6.8 million and, if I've done the math correctly, about $0.12 per share in cash still. We'll have significant amounts of cash even if following the completion of everything we have planned, we've only used up a small portion of our cash, actually.

Gerardo Del Real: Look forward to a busy drilling season. Thank you for your time today, Craig.

P.S. Before I go, I just wanted to share three commandments that I use in my trading strategy. These commandments flip the script on everything Wall Street is doing and I’m showing them to you for the first time. Click here to see this strategy in action.

For the past decade, Gerardo Del Real has worked behind the scenes providing research, due diligence, and advice to large institutional players, fund managers, newsletter writers, and some of the most active high-net-worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.

*Follow Outsider Club on Facebook and Twitter.


Investing in Marijuana Without Getting Burned