High-Grade Tungsten Project in Yukon, But Can the Cost Be Justified? | Rackla Metals CEO Interview

**SPEAKER_1** (0:00)
This video is sponsored by Terrahutton, who makes the invisible, investible. Today in the CEO BBQ, early stage tungsten exploration in the Northwest Territories of Canada, together with Rackla Metals. 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 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, Rackla is, dare I say, reactivating the Lentung tungsten scarn in the western part of the Northwestern territories, which is roughly 60 kilometers north of the closed Cantung mine, which is something that I'll definitely touch upon later on.
The deposit here sits in a tombstone belt as a classic scarn developed in limestone along the margins of Cretaceous intrusions, which she lied being the main tungsten mineral.
Union Carbides, it's an older company. They drilled it quite a lot actually between 1977 and 1982 They put down about 27,000 meters, 178 holes across multiple zones, multiple targets, and they generated an internal. For the time, an internal, it's non-compliant right now, so it's a historic estimate that included grades of around and a little over 1 percent as well. Right now, Rackla is on the ground. They're building a new 49-person camp and preparing to start a 10,000-meter program that combines 4,000 meters of diamond drilling, that's going to twin some of the historic holes with 6,000 meters of RC, so reverse circulation drilling. This is going to be some trenching and whatnot, but I'll get a bit more of an update later on in the conversation as to what exactly this program is going to look like. They're also recovering and categorizing old core as far as they could find it. They're restarting baseline environmental studies with outside consultants on the ground and also handling the engineering and archaeological work that's needed for future access, which again, it sounds like a lot, but we'll try to break it down in the conversation as well. The next catalyst here are expected in the second half of this year when the first assays from batches, again, from twinning those holes arrive and the market gets its first modern look at how well the historic intercepts hold up under current QA and QC, as well as costs and whatnot, which of course is something I'm hoping to get more color on later on in the conversation. Now for some of the numbers and a bit of the details here, Rackla is listed as RAC, so R-A-K on the TSX-V in Canada, where the average daily volume over the last three months has been about 200,000 units. 52-week high here is $1 and a 52-week low is $0.08.
With a little under 182.5 million shares outstanding and a $24 million market cap today, this is a $0.13 stock with a 50 and a 200-day moving average at 14.6 and a 15.4 cents respectively. So the stock is now trading below those two. There are 3.6 million options outstanding, 8.9 million warrants, which if you combine them together, they would represent about 6.4% of the 195 million fully diluted shares.
Rackla's most recent financing closed in late May. They raised about $3.5 million in charity flow through with 21.5 cents and it did have a half a warrant attached to that. 20-cent warrant that is and it's exercisable for 12 months, so one-year warrant. Now, how much of that money is left? How much of that money is going to be spent? What exactly are they going to buy with that money this year? Those are all going to be part of the questions later on in the conversation. But for this to actually become a conversation though, I will unfortunately have to shut up already. Simon, I will give you the word here, but first of all, thank you for sitting down with me today.

**Simon Ridgway** (4:18)
Okay. Thanks for the invite, Antonio.

**SPEAKER_1** (4:22)
I'm looking forward to the conversation because you don't seem to have given up on Rackla, even after the disappointing assays last year on a different project. Seems like you have a new plan and a new vision for Rackla. Let's maybe start there. What happened last year and what do you think is going to happen in the future? What's the business plan for Rackla as it stands today?