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Trident Resources (TSX-V: ROCK)(OTC: TRDTF) CEO Jonathan Weisblatt on Hitting 7.03gpt Au Over 43.25m Starting at 121.0m Depth, Including 30.06gpt Au over 9.25m at Contact Lake Gold Project
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of the all of a sudden really popular Trident Resources (TSX-V: ROCK)(OTC: TRDTF), Mr. Jon Weisblatt. Jon, an overnight success after 10, 15, 20 years at this, right? Congratulations on a phenomenal day with some phenomenal results, sir.
Jonathan Weisblatt: Yes, thanks, Gerardo. It's really exciting to be speaking to you and your audience today. And this is five years in the making since I came on board with what was then called Rockridge Resources. We did the three-way public company merger with MAS Gold and Eros, and we closed that merger in January this year. We consolidated the stock, we raised a little bit of funds and we got to work on the exploration program at Contact Lake. And as you and your readers all should be aware, Contact Lake is the former high-grade Cameco producer back in the late '90s. This exploration program was the first work that's been conducted on this former Cameco producer in almost 30 years. So it is an overnight success in the stock, but a lot of hard work and a lot of thought, and a lot of teamwork has gone into this. So thanks for that.
Gerardo Del Real: No, look, and I want to make sure I absolutely provide the context. You hit 7.03 grams per tonne gold over 43.25 meters, starting at 121 meters depth. That included 30.06 grams per tonne gold over 9.25 meters. Look, this is the first modern exploration we've seen here in nearly 30 years. It's just the first three holes, and I know people get excited when they look at the share price and it's up nearly 100%. But I want to emphasize to everyone that's listening, market caps and share structures matter, and the reason it was up 100%, one, because the results are phenomenal, but two, because even after that 85, 90, at one point 100% pop, you still have a minuscule market cap relative to where this could go. Can you explain the share structure for the folks that are at home thinking, "Man, I missed it. Right? It doubled already. This doesn't have anywhere to run now"?
Jonathan Weisblatt: You are absolutely correct. So let's just put the spectacular exploration results aside from the first three holes. And by the way, there's another 17 holes and results that the market should be seeing in the coming weeks and months. But let's put that aside for a second. This is a company with 31 million shares outstanding. It has a market cap at today's close of around 48 million. We are well-funded, Gerardo, with 12 million in cash and marketable securities. That works to an enterprise value of just $36 million. Many of our peers trade at many multiples higher than this particular company as measured on an enterprise value per ounce in the ground metric.
This company today, even after doubling in size, in market cap, it still trades between 25 and $30 per ounce. Our peers trade well above 50 and some as high as 140. We also believe that if you look at market comparables like Sitka Gold, which is a Yukon gold story, it has a market cap of 400 million. They started out from very similar humble beginnings like us. Again, just to reiterate, 31 million shares and a market cap of 48 million and an enterprise value of just 36 million. So very tight share structure, very tightly held. Insiders, so management plus directors plus other insiders, hold just under 20% of the stock. The float is very tightly held and we are very well funded. So the stock, although it did very well today, it is still relatively and absolutely undervalued.
Gerardo Del Real: Look, assays pending, this has the potential to kick off a brand new gold camp, 17 holes that we're waiting on assays for. Can you explain to me what the approach is going to be given the discovery holes moving forward with drilling? You're cashed up and clearly you're getting a much better validation of the geologic model here.
Jonathan Weisblatt: Yeah, absolutely. So the drilling commenced in the late summer, so late August. We are just about through the 6,500 meters at present. Remember, we started off with 5,000 meters. We expanded the program by about a third because we were seeing visual mineralization in just about every hole that we had drilled to that point. So we expanded that. The final 17 holes should, the results which the company will be receiving in due course, will be released to the market as they are presented to us from the assay labs. It's very busy with gold being $4,200. So assay labs, their turnaround is not as robust as they were 12 months ago, but as we release those results, we will share them with the market. We continue to collect as much analytical data as we can as we start to really unravel and learn more about the geological model here at Contact Lake.
But I do want to remind your listeners of a couple of things. Saskatchewan has been under explored in the past. Historically, it's been very well known as a potash and a uranium province. Gold has not been a core theme for exploration in the province. Trident is really looking to become a core, focused, Saskatchewan-based exploration company. And on top of that, Contact Lake is not the beginning and it's not the end of the story for this company. There are four other mineral deposits in our portfolio, all within the vicinity of Contact Lake, all along the highway with power and infrastructure. And those other four deposits, they make up the historical mineral resource of 1.2 million ounces, and that does not include Contact Lake. So Contact Lake is potentially going to be over and above the 1.2. And the next potential catalyst for our stock, for our shareholders is going to be an updated mineral resource estimate, which we are expecting in the short coming weeks. So I think everybody should pay attention. There's a lot of new slough coming down the pike. These are exciting times for our shareholders.
Gerardo Del Real: Best time in the history of the world for a new gold discovery. Good work, sir. Chat soon, I suspect.
Jonathan Weisblatt: You bet. I think we'll be chatting soon as well, Gerardo.
Gerardo Del Real: Thanks, John. Appreciate the time.
Jonathan Weisblatt: Pleasure.
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