Today, we are lucky to have Trillium Gold Mines (TSXV:TGM) (OTC:TGLDF) CEO Russell Starr with us and appreciate your time. Trillium is poised for growth leveraging their flagship Newman Todd asset in the Red Lake mining district.
1. Trillium owns several properties that are located in high-profile mining regions and that have been the site of major discoveries. Can you tell us about the strategy that Trillium has to acquire property that is located near these strategic areas?
We currently own multiple strategic properties within the Red Lake Gold Camp. A camp which has produced over 29.5 million ounces of gold at an average grade of 15.41 g/t gold during the past 90 years. We have a portfolio of projects some of which we recently acquired in which we plan to have our team better define the exploration programs which include fine tuning the mineralized controls. We recently acquired an 80% interest in the Gold Centre which is located ~1km away from Evolution Mining’s head frame and 350 metres away from their historical workings. This is a great target with all the right ingredients of being a world class asset. This project is under explored and we are just beginning the first phase of drilling in over 12 years. Big question is whether or not the Red Lake Mine extends onto the Gold Centre property. If we hit at Gold Centre, we could potentially be unlocking a world class asset. Another project in our portfolio is Leo which is 15km away from Great Bear’s Dixie Project which recently intercepted 19.25m of 18.58g/t. Leo is grassroots and could be a potential closeology play to the Dixie Project. Newman Todd is our flagship project which has over 50k metres of historical drilling of which 41% hit over 10g/t gold or greater. We recently announced drilling from Newman Todd which intercepted 15.41 g/t over 7.05 metres. Again, this is all within the 20km radius which we believe Evolution Mines considers meaningful when considering trucking ore to their mills. Currently Evolution Mining is operating their mill under full capacity. These are just a few of the great assets we hold in the Red Lake Camp.
We will continue to focus on M&A which may with the goal of becoming the #1 land package holder in the red lake gold camp.
2. Can you tell us about the properties that are owned by the business and the biggest potential catalysts for growth?
In the gold environment which we are in right now, I would say, drilling! We are fully funded and currently drilling on our advanced projects, Newman Todd and soon to be Gold Centre. If we hit at Gold Centre, this could prove the extension of Evolutions Red Lake Mine. The recent success of our drilling results from Newman Todd is very exciting given we are fine tuning the understanding of the mineralized controls here and are excited to see what will come of the Southeast extension, which is formerly the Rivard property. Most importantly, we have been focusing on refining the structural and mineralized controls in the region to validate our hypothesis of the structural model with the drill results to date, and its proving to be accurate. This is key to discovering additional mineralization in the camp.
3. Several Canadian junior miners have made major discoveries in the region and have been rewarded by the stock market with high market caps. Can you tell our readers about the valuation that are associated with the properties that are located nearby?
In 2013, the Newman Todd asset was a 50/50 JV. Both companies had a market cap of $100mm, giving Newman Todd a total market cap of $200mm. We now own 84% of Newman Todd, along with Gold Centre, Leo, and more, and we are only sitting at a $50mm market cap.
4. Congratulations on completing an oversubscribed private placement a challenging market environment. How does the company plan to allocate the capital among the projects that it is working on?
75 – 85% – advanced (Newman Todd and even Gold Centre)
10% – early stage exploration
5% – GNA/marketing
5. Precious metal prices have been trending higher and we expect this trend to continue as governments across the globe print capital to combat the COVID pandemic. What is your outlook on the precious metal market?
I have worked in financing and the capital markets for over 20 years and have a Phd in economics, so I have a lot to say on this. But simply put, it’s only a matter of time before the investors catch on to the fact that buying gold equities at all time highs in the US makes no sense, and you should be buying and looking at gold and gold producers right now. The other really important thing here is that most of the gold producers, their production falls off a cliff in 2021, and I imagine they’ll be looking for add-ons to continue to maintain their production over time.
6. Trillium has made a number of strategic property investments and acquisitions. Is this a trend that we can expect to continue?Yes. We have acquired multiple projects as of late and will continue to evaluate additional properties which we believe have the potential of being tier one and tier two assets.
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