Latest / SILVER / GOLD / $UFD Meme Coin Investing & Global Economics / 🚨 NEW Opportunity with Incredible VALUE & Growth 🚨 -- (West Red Lake Gold Mines / Frank Giustra)
Transcript
- 0:00We look at this like a Goldcorp. If you got in the very early
- 0:04days of Goldcorp, you know you became, you made a lot of money
- 0:07over a lot of time. You know, people say that this
- 0:10is like getting into gold corporate $0.40.
- 0:12You know this was Goldcorp became a $20 billion company,
- 0:16the biggest gold company in Canada at the time.
- 0:18So this is the opportunity that offers your viewers to get in on
- 0:22the ground floor and come and follow the journey.
- 0:25And it's going to be a good one for sure.
- 0:30Today we are fortunate to be joined by Shane Williams.
- 0:34He's the CEO of West Red Lake. Gold in Red Lake ON Shane.
- 0:39Welcome to Ron's Basement. Thank you very much, Ron.
- 0:42It's great to be on. Thank you.
- 0:44Well, it's our honor to have you here.
- 0:46On behalf of all of our viewers, thank you for joining us.
- 0:50You're with a brand new gold company.
- 0:52Has an exciting value proposition, but also growth
- 0:56proposition as well. Will you give us a little
- 0:59nutshell description of what's going on right now with W Red
- 1:02Lake Gold? Yeah, I will.
- 1:04Happy to do that, Ron. And yeah, so we we obviously
- 1:08we're backed by a group, the pure A group, which is you know,
- 1:12Frank Giustra and your viewers would know Frank and the track
- 1:15record of Frank. So Frank is very good at timing.
- 1:19You know he times the gold market very well and so the last
- 1:22time he timed the market, he created a company called Wheaton
- 1:25River and it became Gold Corp. So a lot of upside.
- 1:29So we see the same sort of set up in the gold market at the
- 1:33moment and potential there. So we set about looking for
- 1:36projects to do and set up these projects and when you're looking
- 1:40for projects, gold projects, you got to go to Red Lane.
- 1:43It is probably the most prolific area in Canada.
- 1:45It's known for its high grade gold, deep gold mines which will
- 1:50add a lot of value. So we picked up two properties
- 1:53there. One was their Rowan property,
- 1:55which is we call it our exploration satellite property.
- 1:58And then we managed to do a deal and and secure the Max and asset
- 2:03which was the old pure gold asset.
- 2:04Some of your viewers would know pure gold that went into CCA
- 2:08process here in Canada which is equivalent of a bankruptcy
- 2:11process. And we we we went in with some
- 2:15technical due diligence, we understand stood the problems
- 2:18that were there. We understood how we could fix
- 2:20it and from there we ended up securing the asset with two very
- 2:25good assets in a a fantastic area of Canada.
- 2:29That's our story as we read W Red Lakes set up.
- 2:34OK, and you know Frank Giustra is respected as a Canadian
- 2:38mining tycoon. I heard him say that that was
- 2:42the most attractive acquisition that he had done in his entire
- 2:47career. Yeah, we like Frank and
- 2:51ourselves did the deal. We, we we actually went with a
- 2:55low ball offer actually to be honest, we we didn't think we'd
- 2:58get it, but we managed to secure it for like 6 and a half million
- 3:01dollars, some shares and a 1% NSR.
- 3:05And when you think of the project that's there and we'll
- 3:08get into some of that detail, it's it's a, it's a it suits
- 3:11value investors, both gold investors and value investors
- 3:14because it was literally pennies on the dollars.
- 3:17And you know Warren Buffett says it's when you buy, you buy a
- 3:21blood is on the street. So we ended up doing the same
- 3:23model. We secured this project and then
- 3:26we're it's a great value proposition as well as a upside
- 3:30to gold. And I know that in the last
- 3:33cycle that Adson project alone had a market cap of almost a
- 3:37billion dollars. You know what I find very
- 3:41interesting also is that. There was kind of a confluence
- 3:44of factors that had affected it with the previous owner, some
- 3:48financing issues, some I guess you could say management or
- 3:52operational issues and then also at the same time the the COVID
- 3:56crisis came together. So kind of three things that
- 3:59that that that that hurt that situation.
- 4:03But I think what's what's what's most interesting to me, and I am
- 4:07an investor in West Red Lake Gold, is the fact that.
- 4:11None of the problems that the previous operator had are
- 4:15problems that are not fixable. Is that, is that a safe
- 4:18assessment? Yeah, I think what we saw that
- 4:21very clearly when we went in and did our our due diligence,
- 4:24there's a difference it because of the pure gold issues and the
- 4:28the challenges there. I think it's all getting mixed
- 4:30up in the they're all getting tainted and we saw very clearly
- 4:34that there's difference between the ore body and the management
- 4:38and the issues and how they ran the project.
- 4:40So that gave us a lot of hope because the ore body itself is
- 4:43very solid. We've done a lot of DD and your
- 4:45body and then we were able to assess the management issues and
- 4:48they were all very fixable. But you put the right team in
- 4:52place, the right backers, you bring up the right resources to
- 4:55it and they're very, very fixable and that's why we we saw
- 4:58it as an opportunity. You know the other opportunity
- 5:02is they're on that. You know it was the most hated
- 5:05asset in Canada because of the CCA process and we see that as
- 5:08an opportunity. Hence we we wouldn't have got it
- 5:11such a great deal without that. You know there's there's been a
- 5:14lot of history where people have made project, have got into CCA,
- 5:18new groups come in, take the project and bring it to a huge
- 5:22success. So this potential upside is up
- 5:25to a billion dollars of valuation.
- 5:27So that's a lot of upside. Yeah, and it's just an
- 5:30incredible opportunity. You know you've got a high grade
- 5:34resource in a storied mining camp area and all of the
- 5:41infrastructure is there, right? I mean, if I, if I heard this
- 5:44correctly, the previous owner had invested almost $350 million
- 5:49into the mine, the mill and and it's all pretty much in, in in
- 5:54great shape and good shape right now.
- 5:57Yeah, I think that's important for your viewers.
- 5:59You know today in building a mine, it could take 10 to 15
- 6:02years between getting the property, drilling it, doing the
- 6:06studies, permitting construction risk.
- 6:08Now with inflation, there's a lot of projects around Canada
- 6:11now with big inflation risks and cost delays and overruns.
- 6:15And so we saw the opportunity. It's all in place at the Matson
- 6:19property. There's, yeah, 350 million was
- 6:22spent on it. There's a brand new mill
- 6:24tailings facilities are in place.
- 6:27They have a permit, they have discharge, they have water
- 6:29treatment, they really have everything ready to go from a
- 6:32mining perspective. Again, that was shortened the
- 6:34time for reset versus a typical project.
- 6:38Interesting. I'm.
- 6:39I'm just curious how you how you found this.
- 6:42I'm envisioning that that there was a rainbow and at the end of
- 6:46the rainbow you found the Madson mine.
- 6:48The pot of gold at the end of the rainbow.
- 6:51Well I am Irish Ron, so part of gold suits very well to us.
- 6:56Yeah. Yeah.
- 6:56No, very, very interesting. And is it true in this Red Lake
- 7:00area that the deeper you go, generally the grade and the gold
- 7:06deposits are richer? Is that is that a fair
- 7:08assessment? That is very true that the
- 7:11richer you go and and as an example some of your viewers
- 7:14might know, the Red Lake mine in in Ontario are very, very
- 7:17prolific. They're owned by Gold Court.
- 7:19It was a small 50,060 thousand ounce producer.
- 7:23They drilled it very, very deep and they ended up finding an ore
- 7:26body that was an average grade of 70 grams.
- 7:29So the deeper you go the drilling, the more drilling you
- 7:32find. These big big deposits
- 7:35underground were very high grade ore and it transformed Goldcorp.
- 7:39It transformed Goldcorp to a 700,000 ounce a year producer on
- 7:43that mine on that simple bit of drilling in that area.
- 7:48What what about growth like long term growth potential?
- 7:52I heard Frank Giustra talking about his vision for this
- 7:55company and that yes of course you've got this first class
- 7:59piece of infrastructure there you have the, the, the, the mind
- 8:04that has what 22 million oz kind of defined at this point.
- 8:08What about, what about growth opportunities near term, You
- 8:12know just we just picked up the Matson property, We also have a
- 8:16rowing property on the other side of the lake.
- 8:18It has about 800,000 ounces of of again 9 grams average.
- 8:23So it's very high grade. That gives us the opportunity to
- 8:26do a hub and spoke type model that's not so popular in Canada,
- 8:30but in other places of the world where we have a number of
- 8:32sources feeding to the centralized mill and and and
- 8:36that gives us a base. Frank has done this I think four
- 8:40or five Times Now Gold Corp, Lea gold areas mining where you buy
- 8:44these assets, you turn them around and then with the
- 8:47leverage to gold price you do M and A and you grow the company
- 8:50over time. We our intention is to become a
- 8:52mid tier mining gold mining company in Canada.
- 8:55That's the long term vision to build this company.
- 8:59Right. What about the people?
- 9:01The people are important. And let me let me focus on you
- 9:04for a second. I'll allow you to.
- 9:06To brag about yourself, Shane Williams, what, what
- 9:08accomplishments have you had in the past that you think will
- 9:12allow you to, you know, apply past lessons, class, past
- 9:17successes into this, this new growth of opportunity at West
- 9:21Red Lake? Yeah, look, I mean one of the
- 9:24things we wanted to do given the history of this asset is we
- 9:26wanted to build a very strong technical team to get the market
- 9:30to show that we're, we know what we're doing.
- 9:33We have the experience in the board and management level.
- 9:36So my my background and I was involved in the the due
- 9:39diligence process. My background is I worked prior
- 9:42to this, I worked with a company called Skena Resources.
- 9:45Some of your viewers will probably know Skena.
- 9:47In the early days we were again a small company.
- 9:50We ended up doing a deal with Barrick Gold for an SK Creek
- 9:53project in in Northern BC and we went all the way from a $20
- 9:57million company to a billion dollars in valuation.
- 10:01So I was the C 00 for that company.
- 10:03I really ran the company set it up.
- 10:05Prior to that I was with a company called El Dorado Gold.
- 10:08Some of your viewers would know a midtier producer.
- 10:11I and I have worked all over the world.
- 10:13I built mines for him in Turkey, in Greece and recently then
- 10:18Bitten at El Dorado. I came across and did a project
- 10:20called the LAMAC Project. Some of your viewers will know
- 10:22the LAMAC project. It was owned by Integra at the
- 10:25time and we put together A-Team, we bought that and we put into
- 10:28production in 18 months. So my experience, I've done this
- 10:32four or five times taking assets, putting them into
- 10:35production. So very, very experienced at
- 10:37doing this and definitely know what we're doing and how to do
- 10:40it, yeah. So you have experience, correct
- 10:44me if I'm wrong on this, but from taking a mining operation
- 10:49from the exploration phase? In the development in 18 months,
- 10:54is that in 18 months? Yeah, in 18 months we built the
- 10:56LAMAC project and today the LAMAC project is the best
- 10:59performing asset in Eldorado Gold.
- 11:01They are there have we, I built the team, worked with the team,
- 11:05we built the mine pretty similar to Matson.
- 11:07It was an old historic mine. He got it into production in an
- 11:1018 month period. You know the other thing for
- 11:13your viewers is the mining industry as they probably know
- 11:17is getting older and older, you know and so in order to build a
- 11:20company it's a five to seven-year runway and you need
- 11:23young people and there's not a lot of people in the world in my
- 11:26experience who's built and operated mines.
- 11:29And so that's why we put this company together to to do that
- 11:32over Terry, so your viewers can have confidence in our ability
- 11:35to get the job done. Outstanding, Outstanding.
- 11:40What are the immediate next steps?
- 11:42I imagine you're in kind of assessing the situation as you
- 11:47look out over, let's say the next six months.
- 11:49What are your, what are your plans, your action plans to to
- 11:52move this forward? Yeah, we have a lot of catalysts
- 11:55coming up. You know, we have our own
- 11:56property. We're currently drilling that
- 11:58property at the moment and we're getting some very good results.
- 12:00You might have seen there, Richard, Ron, we're getting
- 12:03very, very good results from that property and that's our
- 12:05satellite property with Madson. Our plan is to go back in
- 12:09underground. We started development outside
- 12:11and and do some more and do lots of drilling.
- 12:14One of the challenges of the previous operator was they
- 12:17didn't drill enough detail into this project and we we
- 12:20identified that early as a challenge and one of their
- 12:22issues. So we're going to go back in and
- 12:25spend the next 12 months drilling this or body out.
- 12:28So we're very certain when we start, we're ready to go again
- 12:32probably in 12 to 14 months we'll have a restart this this
- 12:35operation. OK.
- 12:37And we talked earlier about how the the gold deposits become
- 12:41richer the deeper you go, typically speaking in Red Lake.
- 12:44Are there plans to drill maybe a little deeper at the Madson
- 12:48project? Yeah, yes.
- 12:50I don't know how much there's a, there's a, there's an ore body
- 12:53called the eight zone on this Madson property.
- 12:55It's very, very deep. It's down to twelve, 1300
- 12:58meters, but it's very, very rich.
- 13:00It's an average grade of 20 grams.
- 13:02And so this is down deep as we go, as we develop down where you
- 13:07are going to develop deeper and deeper and drill deeper and
- 13:10there is a shaft on this property.
- 13:11So that allows us to get down very deep and drill around the
- 13:14bottom of that shaft to really understand the potential of the
- 13:17ore body. We do believe there is a high
- 13:19grade ore body down there to allow us to ramp up.
- 13:24Okay. And I'm just curious because I'm
- 13:27not a mining expert per se, but I would imagine that it's
- 13:31easier. To do drilling in an environment
- 13:35like Madson when there's not production going on, it kind of
- 13:38frees you up to go where you need to go and and kind of drill
- 13:43where where you think is you know the most effective places.
- 13:47Yeah, there's a lot of challenge with as you're in production
- 13:50trying to drill and grow your body, obviously your production
- 13:53becomes the focus, production becomes the focus.
- 13:55Obviously I think with this break it allows us the time to
- 13:59to really define your body, understand it and the depth
- 14:03where the potential is. Interesting, interesting From a
- 14:06value proposition, you know right now the market cap of the
- 14:10company, obviously it's around 8590 million US when you compare
- 14:15that to the 350 million that was invested just in the Madson
- 14:21project alone. When you compare that to the
- 14:24fact that in the previous cycle, the the Madson project was
- 14:27valued as over $1 billion. Do you see right now that the
- 14:32company offers a compelling investment opportunity very
- 14:38much. So I think it as you say we
- 14:42we're open to two, we're open to two sort of investors.
- 14:45We have the gold guys who like the opportunity there of gold,
- 14:48but also the value investors. There's a lot of value investors
- 14:51there. The gold mining industry, the
- 14:53mining industry as you know has also had a bad history of bad M
- 14:56and a but paying way over the value for projects and
- 14:59operations. So that allows us to get in
- 15:02early, had a very good valuation as we grow.
- 15:06To give your viewers an idea, there's a company called West on
- 15:09Mining in Canada here it produces around 100,000 ounces
- 15:13per per year, which Maxon will do up and running and it's worth
- 15:17a billion dollars today in production.
- 15:19So that gives you the value proposition.
- 15:21It's it's a 10X basically from here.
- 15:24And we're just talking about a normal if the gold prices today,
- 15:27the gold price runs like we believe it'll be be a much
- 15:30higher valuation, but in the next two years that's that's our
- 15:34value proposition we give to the market.
- 15:37And and if you listen to Frank Justra.
- 15:41At some point in the in the not too far distant future, W Red
- 15:46Lake Gold will likely be producing much more than 100,000
- 15:50ounces per year. And the long term strategy like
- 15:53I said is like Frank's MO is by these assets and then True M and
- 15:58A and and consolidation grow and Red Lake is a beautiful way it
- 16:01plays to do that. There are lots of assets there
- 16:03that are really undervalued, underutilized and in Canada, you
- 16:07know there's a lot of consolidation as your viewers
- 16:10would know what in the industry now And some of those assets
- 16:13that they have become Tier 3, they don't become focused and
- 16:16that gives us the opportunity to leverage from that into
- 16:19something else and grow into big production and that's that's
- 16:22really big upside from where we are today.
- 16:25Yeah. I mean if you look at the at
- 16:27the, the proposition just the way it is just at 100,000 ounces
- 16:32in the value that's represented, it's compelling.
- 16:35If you think about increased potential, increased production
- 16:40in the future, obviously that adds cash flow.
- 16:43But on top of that if you have increased production and a
- 16:46higher gold price then you're producing more OZ at.
- 16:50I mean it's the leverage is is really incredible.
- 16:54The leverage is huge and remember also some something on
- 16:59our board as well as Tony Mccooch who maybe some of your
- 17:01viewers will know who who is Kirkland Lake Gold and that he
- 17:06started very small with some small operations, some high
- 17:09grade operations but over time consolidation and drilling and
- 17:13exploration it went to a $10 billion company.
- 17:15So that's the sort of leverage as you grow these can go to.
- 17:19So that's you have a 10X even if just on Matson and potentially
- 17:23much, much more if the gold price and we do M and a like
- 17:26where plan is. Now the previous operator of the
- 17:30Matson mine ran into some. Financing financial type issues.
- 17:35What about West Red Lake Gold? Are you saddled by a lot of debt
- 17:39or what's your how, what's your, what's your current financial
- 17:42statements look like? Well, in in one thing we were
- 17:45really lucky that Damn Sprock were the main lender at the
- 17:50time, Pure Gold. They were very interested in
- 17:53working with us because of the name and the history of the
- 17:55team. So we converted their debt to
- 17:58equity. So now they're a 24% holder in
- 18:01West Relay and so we have no debt at the moment.
- 18:05We're debt free. We have $15 million in the bank
- 18:10at the moment, Canadian dollars and and we have good financial
- 18:14backers. We recently raised $25 million
- 18:18in June. We were oversubscribed for that.
- 18:21We work with lots of interest, so we have very good financial
- 18:24backing. We have money in the bank and we
- 18:26have a fully, fully available project.
- 18:28So we we see a lot of upside and the ability of people to raise
- 18:32money as we go forward in the market.
- 18:34Yep, Yep, Yep. When I when I looked at your
- 18:38financial list, your financial roster, your backers, I saw
- 18:42Sprod, I saw Frank Chustra. And I only saw that in terms of
- 18:47retail float and please again, correct me if I'm wrong, but
- 18:50only 30% of the stock I believe is, is, is is owned by retail
- 18:55investors. Yeah, that's another benefit for
- 18:58your investors is that we're, we're held very tightly by a
- 19:03group of large investors. You know a lot of juniors
- 19:06developers, there's a lot of retail in there and they're in
- 19:08and out and in and out and you know you get a lot of
- 19:10volatility. We've had Frank Joost himself
- 19:13has taken 10% of the company, we have sprouted 24% and we have
- 19:19Van de Vanne gold fund as everybody will know they have
- 19:228%. You know, we've a couple of
- 19:24other big strategic investors. So you're right, there's very
- 19:26small retail which doesn't have a lot of float.
- 19:29So it it even adds more leverage to upside because we've
- 19:33controlled the shares very tightly as we go forward.
- 19:37And I I watched a couple interviews with employees of the
- 19:40company. I sent a high level of
- 19:44enthusiasm. Will you comment for me?
- 19:46I mean what's the, what's the feel around the Madson project?
- 19:50It it felt like to me that there was a real strong attitude, a
- 19:54real growth oriented attitude. Is that, is that a safe
- 19:56assessment? Yeah, that's a safe assessment,
- 20:00right. You know that the team there
- 20:02went through. A lot of bad history with the
- 20:06previous operator. Then it went through probably 80
- 20:10months of the CCA process as they were winding down care and
- 20:13maintenance. I think with us coming in and
- 20:16the team we've brought and the financial backing, there was a
- 20:18lot of enthusiasm and lots of locals.
- 20:21Everybody lives in Red Lake. They're part of the team,
- 20:24they're part of the community. We've met the mayor of the town,
- 20:27we've met the First Nations. We even had the Minister of
- 20:30Ontario mines up at site. There was probably some post
- 20:33that your viewers have seen. So everybody's promoting and
- 20:35helping us to move this forward. So a lot of enthusiasm for this
- 20:39mine in the region. A lot of community support and I
- 20:43also sensed a lot of employee support as well.
- 20:46And that you know that's one of the intangible things that that
- 20:50you can't really see on financial statements or or
- 20:53anything else, but it makes a big difference.
- 20:55Well and it comes down to the attitude of the team.
- 20:57You know when when I did the LAMAC project again we went in
- 21:00and you energize the team you you empower them, you get them
- 21:04part of the bigger group and it it works wonders.
- 21:07They then become feed part of the system.
- 21:09They want to do a good job, they want to be well.
- 21:11So that's part of our men modus operandi.
- 21:15We go in and build strong teams, build the energy, the efficiency
- 21:19and and then they do the work, they help grow the business.
- 21:23Interesting. Shane, thank you for spending
- 21:26this time with me. I sense that that you're a great
- 21:29leader and that we have great things to look forward to at
- 21:33West Red Lake Gold. Is there anything that I missed,
- 21:36anything you want to share with my viewers before we say
- 21:39goodbye? No, I I would say a little bit
- 21:42to your viewers and that the value proposition there is there
- 21:45and you know we we we look at this like a Gold Corp.
- 21:49If you got in the very early days of Goldcorp, you know you
- 21:53became, you made a lot of money over a lot of time.
- 21:56You know people say that this is like getting into Goldcorp at
- 21:58$0.40. You know this was Goldcorp
- 22:01became a $20 billion company, the biggest gold company in
- 22:04Canada at the time. So this is the opportunity that
- 22:07offers your viewers to get in on the ground floor and come and
- 22:11follow the journey. And it's going to be a good one
- 22:13for sure. Yeah, it's a it's a unique
- 22:15opportunity. I'm an, I'm a an old accountant,
- 22:20so I love to look at, you know, I'm a value oriented investor.
- 22:23It's a unique opportunity that you're presenting to the market
- 22:26where it really is an incredible value by any metric.
- 22:32But at the same time it's also an incredible growth
- 22:37opportunity. And if you factor in potential
- 22:40for, you know, a higher precious metals price, you know, the
- 22:44Sky's really literally the limit.
- 22:46So I also think they run a little bit that you know the
- 22:50industry at the moment, as you probably know, it's there's a
- 22:53lot of baby boomers who are there and they're retiring and
- 22:56there's not a lot of new people. And we've put in a young hungry
- 23:00team who want to succeed and that's very important.
- 23:02You need to back a good team. As you know, most of the big
- 23:06mine gold mining companies, you need to back a young hungry team
- 23:09to build this out and we offer that as well.
- 23:11So we offer the energy, the focus to to grow, you know?
- 23:17So yeah, it's going to be an exciting journey, Ron, for your.
- 23:19Yeah, I I agree. You know, I'll be watching both
- 23:24as an observer and as an investor.
- 23:26I own shares in the company and I'll be rooting for you and
- 23:30hopefully we'll get to talk some more in the future.
- 23:33Shane Yeah, yeah, good. And I'd love to come on and and
- 23:37give your viewers an update as we're going through the journey
- 23:40and and and support us and come with us and I like to give
- 23:43people updates and feel part of the journey.
- 23:46It's a really good story, so. That sounds great.
- 23:50I'll I'll put links to the company website and information
- 23:53in the description of this video.
- 23:56And Shane again thank you for your time and we will look
- 24:01forward to talking to you again soon.
- 24:02Thank you. Excellent.
- 24:03Thank you very much. Thank you.