High-Grade Gold Project in Ontario, But Can They Actually Build It? | Galleon Gold CEO Interview

**Resource Talks** (0:00)
This video is sponsored by Terrahutton, who makes the invisible, investible. Today on the CEO BBQ, sheer hosted gold exploration in Timmins, in Canada, together with Galleon 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, theresourcetalks.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 advisers, and this is not intended as financial advice. It is a broad, general, and in-personal 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, Galleon Gold's flagship is the West Cache Gold Project. It's a sheer hosted mesothermal gold system sitting 13, 13, and that's one three kilometers west of Timmins along the Porcupine Destor Corridor, roughly seven kilometers from Pan American's Timmins West Mine. The most recent Ni43101 resource is from 2022 and it shows 472,000 ounces at 3.6 grams per ton gold. And then there's another million ounces of inferred at 2.9 grams and that's all at a 1.6 gram per ton underground cutoff. The company has drilled a lot of meters since then though, particularly into the higher grade Zone 9 chute. So how much effect would that have had on the resource size is something that I hope to be asking later on in the conversation today. On the ground right now, they are in the early execution phase of an 86,000 and a half ton bulk sample program aimed squarely at that Zone 9, which of course we'll talk a lot about later today. Surface work, including the box cut, is underway. Underground development has been awarded to the Madagami First Nation joint venture and the company continues to test down plunge continuity, all of which I'm hoping to ask about later on. They also have a secondary asset, it's called Golden Prove, which is in Idaho and it's a high-grade vein system that sits largely on hold while all the capital and management's attention, they stay focused on West Cache as far as I know, but maybe a quick update on that in a latter part of the conversation.
Now for some of the numbers and a bit of the details, Galleon is listed as GGO, so Galleon Gold on the TSX-V in Canada, where the average daily volume over the last three months has been about 175,000 units. The 52-week high is $1.38 and the 52-week low is 46 cents. With a little under 135.5 million shares outstanding and a $142 million market cap, today this is a $1.04 stock with a 50 and a 200-day moving average at $1.02 and $0.97 respectively, so the stock is now trading above those two. There are 34.5 million warrants outstanding, exercisable at between $0.18.5 and $0.75, and there are 10 million options at between $0.19 and $0.98, as well as there are 60.2 million units related to the convertible debt, which I'll also ask about later on. All in all, the diluted securities make up about 44% of the 240 million shares on a fully diluted basis.
The most recent financing they closed was in December last year.
It was done at $0.60. It got them gross proceeds of $30 million, and then two weeks later, in late December, that was. They also closed a $46 million senior secured credit facility with Pan American.
That's a prime plus 7% to 24 month term, first ranking security over essentially all assets, and drawing down the first 11 million immediately to buy back the Newmont royalty, and paying the 2.5% arrangement fee in shares as well, but hopefully some more color on that later on. Now, how much money do they still have right now? How much money are they going to have at the end of the bulk sample program? When's next time they might raise capital and so on and so forth? Those are all questions that I hope to be asking later on in the conversation. But for this to actually become a conversation, though, I will have to shut up already. And David, I'll give you the word here, but first of all, thank you for sitting down with me today.

**David Russell** (4:41)