Revival Gold

Gold is soaring. The yellow metal recently broke above $1,900 an ounce. And quality gold stocks are taking off as well.

Revival Gold – which is currently trading below C$1.00 per share on the Toronto Venture Exchange under the symbol RVG – just announced new drilling at its Beartrack-Arnett Project, Idaho.

Now is a perfect time for investors to start looking at Revival Gold:

• Revival Gold is evaluating the restart of the past-producing mine with significant infrastructure in place

• This comes after a recent resource update increased the gold resource for the project to 3 million ounces

• Revival is also in the middle of a 5,000 meter drill campaign with results upcoming

• Revival is now one step closer to restarting the Beartrack Gold Mine

• READ: Our interview with Revival’s president & CEO, Hugh Agro

This updated resource of 3 million ounces of gold at Beartrack-Arnett may be all that’s required for Revival to officially announce the planned restart of the Beartrack Gold Mine, located in Lemhi County, Idaho.

That would mark a very important development for a US gold market that just recently turned the corner.

You see, Beartrack is a past-producing open pit heap leach mine that was operated by Meridian Gold [now Yamana Gold; NYSE: AUY] and produced roughly 600,000 gold ounces. The mine was closed in 2000 as a result of low gold prices, below US$300 an ounce.

The days of cheap gold are history; the yellow metal is now more than 6X those levels!

Hence, it’s easy to see the Beartrack/Arnett opportunity for Revival Gold AND for investors seeking to gain exposure to an emerging gold area play in one of the safest mining jurisdictions in the world — the United States, and specifically, Idaho.

From an individual investor standpoint, it’s critical to understand that Beartrack is a classic advanced-stage “brownfield” gold project. This brings with it a number of important advantages over the typical “greenfield” mineral exploration project — including reduced risk, huge discounts on capital costs, and a shorter time horizon from exploration to production:

• A key defining advantage of a brownfield project is the vast amount of available exploration data, which derisks many aspects of the project while offering immense economic benefits to both the company and its shareholders.

• Brownfield projects range from advanced development stage with a known resource...all the way to proven producer.

• Greenfield exploration projects carry the risk of operating in literally uncharted territory, typically with very limited geophysical data and drilling (if any).

• The Revival Gold team has a firm understanding of these advantages and has them in-play for RVG shareholders.

The GOLD is THERE!

The state of Idaho has a long and distinguished record of placer gold production and is considered among the most mining-friendly US states. Placer gold was discovered in the Napias Creek drainage after the Civil War with estimated placer production between 400,000 and 600,000 ounces of gold.

A 30-stamp mill was put into operation at Arnett around the turn of the last century but there was little lode production from the project area until the Beartrack deposit was put into production in the late 1990’s.

Beartrack – which is located in Lemhi County, east-central Idaho, approximately 13 miles northwest of Salmon – had life-of-mine production of approximately 600,000 ounces of gold during its initial run...before low gold prices below $300/oz forced its closure.

Times have changed: Gold is over $1,900 an ounce. Revival Gold controls the Beartrack-Arnett Project. $Billions in gold were left behind!

At present, Beartrack-Arnett boasts a current resource estimate of 1.35 million ounces at 1.16 grams per tonne gold indicated and 1.64 million ounces at 1.08 grams per tonne gold inferred for a total of 2.99 million ounces of gold.

That’s a very substantial near-surface gold resource...one that few junior gold companies ever achieve. Again, it’s one of those distinct advantages brownfield projects hold over their greenfield counterparts! Also impressive is that greater than 60% of the resource is in the “indicated” category.

At current gold prices above $1,900 per ounce, 2.99 million ounces of above ground gold has a value of more than US$5.0 billion.

Revival is aiming to advance toward a restart of the mine.

As you can see, there’s a lot of exciting things in-play right now with Revival Gold. We’re at a crucial development stage for the company, and the drills will soon reveal even more about the underground prize.

Our own Gerardo Del Real had the opportunity to sit down with Revival’s president and CEO, Hugh Agro. Hugh is a former Executive VP at Kinross (NYSE: KGC), where he was instrumental in the company’s growth initiatives in Russia. He is also a former executive with Placer Dome.

Needless to say, he knows his way around a precious metals deposit. Please enjoy the interview.

Interview: Hugh Agro, president

& CEO of Revival Gold

The Opportunity

Revival Gold remains largely undiscovered by Wall Street and undervalued as well — giving investors a timely opportunity to get involved in RVG at this exciting development stage.

The company’s roughly 71.2 million outstanding shares are currently trading around C$0.70, giving it a market cap of just C$47 million.

The chart (below) reveals that Revival Gold is trading at the low end of the spectrum relative to the current amount of measured and indicated gold it controls.

That means RVG could trade much higher in the near-term.

Specifically, as Revival Gold continues to add significant gold ounces by way of the drill – while simultaneously advancing its Beartrack/Arnett project toward production – it seems inevitable that the stock will undergo a substantial rerating to the upside in order to compare more equally with its peer group.

I have no doubt that major US miners are keeping a close eye on Revival Gold and its pending mine restart at Beartrack.

It’s the kind of brownfield operation that could have large implications across the gold sector as mining firms seek to reignite other past producing mines across North America and globally in the current $1,900+ per ounce gold market.

As a formerly producing mine, Beartrack offers numerous valuable advantages over the typical greenfield exploration project, including a maiden two million ounce gold resource, an 11,000 sq ft core facility, leach ponds, and existing power and water. And the property lies just 10 miles from the town of Salmon, Idaho, making for an easy drive with roads all the way into the main project area.

At Beartrack/Arnett, we already know the gold is there! And analysts are starting to pay attention:

With the 3 million ounce resource and the potential for Revival to add significant gold ounces at Beartrack/Arnett, renowned research analytics firms Paradigm Capital and Beacon Securities recently put out price targets of US$1.85 and US$2.00 per RVG share, respectively.

Those price targets are up to TRIPLE what Revival Gold currently trades…and they may prove conservative.

Learn more about Revival Gold and sign up to its investor list by clicking here.

And click here to get real-time updates from the company on their Twitter feed.

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— Resource Stock Digest Research