Categories: Precious Metals
Topics: Gold Stocks

Revival Gold (TSX-V: RVG)(OTC: RVLGF) CEO Hugh Agro on Advancing 6-Million-Plus Gold Ounces at Mercur and Beartrack-Arnett, USA — and the Value Proposition as Gold Retakes US$5K

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of Revival Gold Inc. (TSX-V: RVG)(OTC: RVLGF) — Mr. Hugh Agro. Hugh, it is great to have you back on. How are you on this fine day, sir?

Hugh Agro: Excellent, Gerardo. Great to be back with you.

Gerardo Del Real: Well, listen, let’s get right to it. Gold is right back over the $5,100 per ounce level. Silver is right at the $84 an ounce level. The dollar seems to want to break down here. It’s down below the 97 level. And I just read a congressional report — a nonpartisan one, by the way — that estimates that within a decade, the national deficit here in the US will be $64 trillion.

Thus, I think a pretty substantial case can be made that gold and the precious metals continue a lot higher. Within that backdrop, you’re putting out news that not only validates the continuity at Mercur but is also now poking at nearby extensions. 

As I understand it, this is the first time you’ve been able to do that because the land package was fractured for quite some time. Can you speak to the latest release where, among other hits, you have intersected 30 meters of one gram per tonne gold, extending the mineralization there?

Hugh Agro: Yes, and let me start with your comment about the price of gold. Look, we come at it from the point of view that there just are not a lot of new gold projects in good geographies to feed future production. 

This has been our thesis for, gosh, now about a dozen years. But if you look at the pace of discovery, it’s at abysmal lows relative to the continued pace of global gold production — running at about five to six times the pace of discovery.

And I’d note one commentator observing that there haven’t been any discoveries of note in the last couple of years, let alone in good locations. So we start with that as an underpinning thesis. I don’t think the price of gold moves down significantly at all. In fact, as you’re proposing, I think it’s going to continue to move higher, and for good reason.

We’re fortunate to be in great locations: Utah with the Mercur Gold Project, hosting 1.6 million ounces, and in Idaho with the Beartrack-Arnett Project, hosting 4.6 million ounces. 

To your point, we’re getting excellent results from the drill bit. Mercur is a solid deposit that could generate about 100,000 ounces per year over a 10-year mine life, and we’re drilling to advance that project.

Importantly, these holes are also demonstrating expansion potential. What’s really interesting to me is that we’ve already completed the foundational work — soil geochemical analysis, geophysics, and structural interpretation — all of which suggests potential for deposit expansion in the main Mercur area. 

These drill holes now provide physical evidence of mineralization beyond the existing pit shells. That’s validation of meaningful upside in the story.

Gerardo Del Real: Well said, and I’d be remiss not to mention that you have not just one asset I really like — the near-term production optionality at Mercur, which I think could hit the sweet spot of the profit cycle — but also a very exciting exploration project at Beartrack-Arnett. Can you touch on that a bit more?

Hugh Agro: Sure. It’s really about option value. The reason investors look to developers like Revival Gold at this stage of the cycle is that we offer substantial option value, which comes in a few different forms.

As an investor, you can pay up for a producing gold company, typically at 0.7 to 1.0 times net asset value. Or you can take on a bit more risk and invest in a developer, which often trades closer to 0.5 times NAV. In Revival Gold’s case, we’re trading around 0.1 times NAV — implying significant upside potential.

Then, the question becomes: what risk are you assuming for that additional value? In our case, we’re operating in brownfield locations with a relatively short timeline to potential production, and we have a team that’s done this before.

When we talk about option value, it’s not just exploration upside. It also includes the value of ounces that are not yet captured in engineering studies. In Revival’s case, less than half of our roughly six million ounces of gold resources are reflected in the NAV we reference.

So for investors, the Beartrack-Arnett resource base represents substantial leverage. Six million ounces of gold equates to roughly $30 billion of in-situ gold exposure at current prices. Of course, we need to responsibly extract that value, and we may not recover every ounce, but the key point is the scale of exposure.

Every $10, $50, or $100 move in the gold price meaningfully impacts the valuation of a developer like Revival Gold. That leverage is a core part of the investment thesis.

Gerardo Del Real: Very well said. I’m not going to top that. I think the case speaks for itself but you articulated it brilliantly. Hugh, great to have you on. Excited to have you back. Lots of catalysts ahead in 2026. I’m looking forward to it. Thank you again.

Hugh Agro: Alright, thanks, Gerardo.

 

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