This is a very brief summary of what was a lengthy interview. Don’t rely on this summary. Watch the full interview which is linked at the end of this post.
Please note that this company has not paid for the creation of this content. The Resource Talks interview rules are simple.
The companies, albeit paying or non-paying, get no questions upfront, no questions off the table, and no editing rights.
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Time to Read: 6 minutes
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About Arizona Gold & Silver
Arizona Gold & Silver Inc. (TSX-V: AZS) is a Canadian exploration company focused on developing high-grade gold and silver properties in Arizona, USA. Its flagship project is the Philadelphia Project, located in West-Central Arizona, which has a history of high-grade gold production and significant exploration potential. The company aims to expand its resource base through systematic drilling and exploration.
The high-grade vein system we’re exploring has proven continuity over 1.5 kilometers, with significant potential for further expansion.
Mike Stark, CEO Arizona Gold & Silver Inc.
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Arizona Gold & Silver CEO Interview
Why should I trust you with my money?
Management owns over 25% of the company and has never sold a single share. We’re deeply invested in this company’s success, both financially and personally. We’ve consistently put the majority of our funding into the ground, with 91% of our recent drilling budget spent directly on exploration. This shows our commitment to increasing shareholder value through expanding our discovery.
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How aligned would we be if I were to buy AZS shares today? How important is this investment to you?
There were no founder shares in this company; every share was purchased by management during the IPO and subsequent financings. We’ve conducted multiple financings without warrants to avoid dilution, keeping the share structure tight. Personally, this investment is very significant to me and my team; we continuously invest in the company because we believe in its potential.
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Why should I trust you now, given the history of the project and past challenges?
The Philadelphia Project came into our hands after Greg Hahn, who had been watching the property since the early 1980s, noticed that the highway had been relocated, opening up development possibilities. We staked the claims in early 2019 and have since expanded the land package to 2,400 acres. The high-grade vein system we’re exploring has proven continuity over 1.5 kilometers, with significant potential for further expansion.
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Who else was buying into the recent financing, and why are shares down about 15% now?
We saw some selling after the four-month hold period ended, which is typical. However, management continues to buy in the open market because we believe in the project’s potential. Our next drilling campaign, which will target the Red Hills, could significantly increase the value of the company if successful.
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What’s the game plan for the next drilling campaign, now that you’ve received your BLM permit?
We plan to drill four initial holes vertically into the Red Hills, which we believe is the heat source for the mineralization at Philadelphia. If successful, we’ll continue drilling with up to 40 holes, exploring the full potential of this large system. This campaign could be a turning point for the company, both in terms of size and value of the deposit.
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How will proving the Red Hills as the mineral source impact the company’s valuation?
If we can prove the Red Hills as the source, the company’s valuation could increase significantly. This would confirm our geological model and suggest a much larger resource than currently known. The potential size and grade of the deposit would attract more attention from investors and could lead to a substantial rise in share value.
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What are the permitting challenges in Arizona, and how are you addressing them?
We have about a year’s worth of drilling ahead of us with the current permits. We’re already starting the process to secure additional permits for the southern and eastern sections of the project. Arizona is a mining-friendly jurisdiction, and while permitting can be slow, we’re taking proactive steps to ensure we can continue drilling without delays.
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How are you managing your finances, and what are the plans for future capital raises?
We currently have just under $500,000 in the bank. Most of our recent financing was spent on drilling, which has already yielded encouraging results. We plan to start the next drill campaign soon and will consider raising more capital after proving the concept with our initial Red Hills drilling. Timing and market conditions will dictate our approach.
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Are you exploring any creative financing deals involving your other projects?
Our focus is on Philadelphia, but we’re open to joint ventures or other deals for our secondary properties, like Sycamore Canyon and Silverton. We’ve made some initial inquiries, and while these properties are not our main focus, they could provide additional funding if the right opportunity arises.
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What’s your timeline for potentially transacting the Philadelphia Project?
If we hit on the Red Hills, the timeline for a transaction could accelerate. We already have several confidentiality agreements signed with interested parties, and a proven discovery could attract offers sooner than expected. However, the market will ultimately dictate the timing.
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What other risks do you see for the project?
The main risk is geological uncertainty, as every drill hole is an unknown until it’s completed. While we’ve had great success so far, there’s always the chance that future holes won’t deliver the same results. We’re also mindful of market conditions and the potential impact of permitting delays, though we’re doing everything we can to mitigate these risks.
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Why haven’t you rushed to complete a resource estimate or preliminary economic assessment?
Spending money on a resource estimate now could be premature, especially if our next round of drilling significantly increases the size of the deposit. We want to make sure we have a clear understanding of the resource before spending shareholders’ money on such studies. It’s more prudent to focus on expanding the discovery first.
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What are your plans for marketing and maintaining a low G&A budget?
We’ve kept our G&A expenses low to ensure that most of our funds go into the ground. While we haven’t spent much on marketing recently, we’re focusing on targeted outreach to long-term investors who understand the value of our project. As we advance the drilling, we’ll look for more opportunities to increase our visibility.
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What should investors expect next in terms of news flow?
Our Annual General Meeting is scheduled for August 22nd, and there will be a press release following that. We also have a couple of other news releases in the works, which should be out soon. Investors can expect updates on our drilling progress and any new developments related to our exploration efforts.
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Arizona Gold & Silver CEO Interview (VIDEO)
In this interview, Mike Stark, CEO of Arizona Gold & Silver Inc., provides insights into the company’s ongoing exploration at the Philadelphia Project. He discusses the significance of management’s stake in the company, their strategy for expanding the resource, and the importance of the Red Hills as a potential heat source for mineralization. Stark also addresses the challenges of operating in the current market, the company’s financial position, and future drilling plans. The interview highlights the company’s focus on shareholder value and the potential for significant growth based on exploration success.
