SAN FRANCISCO – I got to see Aaron Keay of Revolution Resources as part of his swing through California.
Aaron, Rob McLeod, Pete Evans and Katie Lucas are developing the Carolinas’ “other” gold prospector in the Slate Belt. The dirt-cheap one.
I was there this past summer, getting acquainted with Revolution’s Champion Hills project thanks to senior geos Pete and Katie. (That is Katie holding some Champion core in the photo.)
Revolution Resources (OTCQX: RVRCF; TSX: RV) has two things going on right now. They are the Champion Hills district scale play in the slate belt of North Carolina (home to America’s original gold rush) and a recently optioned Universo project in Mexico, located next door to Goldcorp’s Camino Rojo property (4M oz gold and 68.3M oz silver) and on trend with Goldcorp’s mammoth Penasquito Mine (17.8M oz gold and 882M oz silver).
Revolution at the top end has CEO Aaron K., Chairman Mike Williams and VP Ex Rob M. the discovery team for Underworld Resources, which is now owned by Kinross.
Here is what got me when Aaron (in photo below) presented the RV vitals to a full room in San Francisco: 10,000 meters of Champion Hills drill holes coming in the next 30 days. I am such a hound for fresh assays and the potential for share gains.
Aaron K. says a compliant resource will hit filings by June: the whisper number is 1 million ounces gold at approximately 1.2 grams per tonne. If all proceeds on target, the Jones-Keystone and Loflin prospects along the Champion Hills trend would result in a super pit with 4 million ounces gold, maybe more. Of course, that’s a big if … and I as yet do not own Revolution shares. But I am considering. I’d like to check out Mexico first before I purchase.
Aaron told a group of us (money managers, financial planners, mutual fund operators, bankers and several private investors), “We are seeing the signatures of another Penasquito” at Universo’s several targets in Mexico. Three drills are running right now down south of the USA border.
Kinross Gold just took a nice slice of Revolution shares in a placement. The Kinross folks might be looking at Romarco, with a far larger market cap and comparable geology at Romarco’s Haile Mine. Or the KGC crowd might like a prospector that has one foot in the USA and another in Mexico.
Revolution calls itself the second largest land owner in the Carolinas’ Slate Belt: 7,500 acres. I saw how tough it is stitching together these parcels. “It’s like scores of land owners here and there, many with mobile homes on land they are not using,” Pete Evans told me. Romarco Minerals (ticker R in Canada) has slightly more acreage than Revolution and is dealing with wetlands issues – something that crushed Romarco’s stock in 2011. Romarco at $700 million is about half its high of a year ago.
Revolution Resources at a $30 million market cap is also half what it was a year ago. Aaron Keay says Revolution has no wetlands issues that might delay permitting. The question came up at his presentation.
Let me point out, as always, that as a partner of Torrey Hills Capital, I could benefit from any gain in the price of RV shares – as Revolution is a Torrey Hills client.
@ LARGE: I will be at Cambridge House’s January conference in Vancouver. It is this weekend, and it promises to be North America’s largest metals conference for retail investors. Organizer Joe Martin tells me there will be 500 companies there. I will be speaking and observing and paneling. Mostly, I will be looking for real prospects on the cheap heap of scrap metals, including gold, silver, platinum, copper … and zinc. Joe is the Ed Sullivan of conference czars in the natural resources industry; he puts on a “really really good shew.” Cambridge House Sunday and Monday is followed by the British Columbia Round-Up of geologists, miners, prospectors and drillers. See: www.cambridgehouse.com.
– Thom Calandra is a lifelong author whose work has appeared in dozens of newspapers, newsletters, magazines and across the Web. He is a founder of CBS MarketWatch, now Dow Jones MarketWatch. He is a member of Torrey Hills Capital. Revolution Resources is a client and provides stock options to Torrey Hills in return for investor outreach services. Your comments are welcome, but please, no foul language. (Photos — Thom Calandra) — babybulls.com