1.3M Ounces of Gold in Nevada, But Does The Metallurgy Work? | Blossom Gold CEO Interview

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This video is sponsored by Terrahutton, who makes the invisible, investible. Today on CEO BBQ, gold and silver exploration in Nevada, together with Blossom Gold. But if you're short on time, subscribe to our free newsletter, and once a week, we'll send you a five-minute summary of all interviews we put out, resourcetalks.com for a free weekly newsletter. Now, although this company has not paid us for the production of this video, you should still understand that we are not financial advisors, and this is not intended as financial advice. It is a broad, general and impersonal piece of information intended only for those who know and understand the risks of junior mining, of which there are many. Before moving on, read the company's official filings on Sitterplus.ca and do your own due diligence. Pause the screen and read all the disclaimers I've shown you because your capital is at risk. If this isn't clear, go to the last section of this video for a longer explanation of the risks and biases, and do not consume this content if you don't agree with everything said therein. Moving on, Blossom Gold's flagship is the Roadbud Project in Perishing County, which is in north-central Nevada. It's about 50 miles west of Winnemucca and 45 miles north of Lavlok. It's a high-croft mine that's roughly three miles to the northwest, so that's very close by. Rosebud is a volcanic-hosted low-sulfidation epithermal gold and silver system that was previously mined. It was mined underground by Newmont Hecla Joint Venture in the late 90s, early 2000s college. Of course, we will talk in depth about the history of the acid here in a few minutes. Right now, though, Blossom is evaluating the broader low-grade mineralized envelopes as an open pit potential. It's an open pit heap leach operation that they're hoping for. Also, they're retaining potential for higher-grade underground mineralization as well. They're doing some work on that, which, of course, I'll be asking some questions about as well.

The most recent technical report had about 1.3 million ounces of gold equivalent in it. It was about 0.6 grams per ton of gold and about 6.5 grams of silver.

Together, if you want to do the gold equivalent on that, that'd be about 0.7 gold equivalent, all of which in the inferred category. Right now, they're doing the work needed to move that resource beyond what is now a conceptual pit shell.

Surface drilling through August was split between resource expansion, so like infill and technical holes for metallurgy, geotechnical work, hydrology and geochemistry and whatnot. Old things, old words that are really too big for my brain, but I'm saying them anyway.

Hopefully, a brief update on that later on as well.

At the same time, there's a contractor there that's reopened one of the historic underground corridors. They're now fixing about 900 meters of the old decline as well, installing ground support, ventilation and utilities, and establishing underground drill stations, if you will, for an eight kilometer infill program from the underground itself, which of course will be part of the conversation as well. Metallurgical work is also running in the background with the initial barter roll test just being released. But there is a more important work that has to be done as well. Those are your column leach programs that are intended to establish the recoveries and leach characteristics for different rock types that they are dealing with across this package. And hopefully that's going to be soon. But of course, maybe a brief update on that later on as well. That's not the only thing they're doing right now, by the way. And outside of the main Rosebud resource area, Blossom is actively testing the Kamma claims as well.

They are west of Rosebud. They're doing an RC program over there about 12,000 feet with the first assays expected in Q4 of this year. And that's something that if we have the time for it, we'll touch upon as well. Now, for some of the numbers in a bit of the details, Blossom is listed as BGAU on the TSX main board exchange. So this is not a venture, actually. Most of the times I do CSE or ventures. This is TSX main board here. The average daily volume over the last three months has been about 28,000 units. 52 week high is $2.73 and a 52 week low is $1.29.

With 131 and a half million shares outstanding and a $187 million market cap, today this is a $1.42 stock. There are 10 and a half million options outstanding. There's no warrants as far as I could tell, but the dilutive securities represent only about 7.5% of the 142 million shares on a fully diluted basis. Last time they raised capital was in November. It was actually the Go Public and Rosebud transaction event, which was a $115 million financing. They did that at a dollar per share. How much money have they got left right now? How far is that money going to get them? When do they think they might have to go back to the market? Those are of course questions that I'll be asking later on in the conversation. But for this to actually become a conversation, though I will have to shut up already and Rick will give you the word here. But first of all, thank you for sitting down with me today.