Tower Resources’ flagship is the Rabbit North project, an orogenic gold and porphyry copper-gold project in the Kamloops district of south-central British Columbia, roughly 14 km southwest of the New Afton mine. Two secondary British Columbia properties, Nechako Gold and More Creek, are effectively on hold. The bulk of the conversation covered the thesis flip from porphyry copper-gold to shear-hosted gold, the current drilling and assay backlog, treasury and dilution, permitting, and the plan to bring in a partner.

TL;DR

The pitch is that Rabbit North was drilled for 50 years as a porphyry target and the gold was missed, largely because three of the four gold zones sit under 30 to 50 m of reversely magnetized olivine basalt that shows up as a magnetic low and swamps the geophysics. Averill’s till and gold-grain work in 2021 redirected the drilling, and they now have about 15,000 m of assay data and claim a hit rate above 50 percent, which he defines as roughly 10 m of 3 g/t or better rather than half-metre intervals. They have about C$2 million in the treasury, enough for another 3,000 m of drilling, and CEO Dhami told me he does not expect to go to market in 2026, with second half 2027 as his outside case. Several hundred metres of core from the most recent program is still uncut and unassayed because they could not get core cutters and geologists this summer. Everything is meant to be done by end of October, including a LiDAR survey, with drilling possibly restarting late October. Dhami says he expects participation from an outside technical team within six months, off multiple confidentiality agreements already signed. Averill’s own size guess is a couple of million ounces within 250 m of surface, and he says another 20,000 m at roughly C$8 million might get them to about 1.5 million ounces. Both of them named market recognition, not geology, as the thing that bothers them most.

What have they done for shareholders lately?

The most recent release included an interval of 19 m at 2.6 g/t gold, and they intersected the Rainbow zone again, described as a porphyry copper-gold-moly breccia pipe with good grades but limited volume. Averill said Thunder North has been traced for nearly 400 m and is hit every time, and that Blue Sky has four or five holes with more than 100 m of continuous low-grade mineralization, in addition to the higher-grade shear zones inside it. They completed an archaeological overview assessment, which removes the setback constraints that previously forced them to collar holes far from the zones, and they extended the till survey 1.5 km eastward across the Durand stock in October 2025, returning their strongest gold-grain anomaly to date, reported in the transcript both as roughly 1,000 grains and as 101 grains per 10 kg sample.

How much money do they have and what are they spending it on?

Dhami said they are around the C$2 million mark, with no expected increase in G&A and enough to fund at least another 3,000 m of drilling. The last raise was done in two tranches, about C$1 million of flow-through at C$0.18 and C$640,000 in hard dollars at C$0.16 with a half warrant at C$0.25. There are roughly 183 million shares out, about C$24 million market cap at C$0.13, plus roughly 14 million options and 6 million warrants, taking fully diluted to about 203 million. Averill said total dilution since the December 2021 discovery has been no more than 20 million shares a year. Insiders hold about 20 percent with no founder shares, Dhami about 4 percent, and 70 to 80 percent of the register sits with high net worth retail and a couple of small flow-through funds. Claims are in good standing, holding costs are minimal, and there is a C$4 million PAC credit available for Nechako. Marketing spend is not budgeted yet and no marketing team has been sourced.

Upcoming catalysts

Technical: assays on the remaining core, which is roughly half the metres from the recent holes, with cutting restarting after Labour Day and all results plus the LiDAR survey targeted for end of October; a possible drill restart late October, with shorter holes now that setbacks are gone and a plan to test the top 50 m of Blue Sky and Thunder North.

Operational: final archaeological report to be filed with the ministry to extend permits from 2029 to 2032.

Corporate: Dhami expects participation from an outside geological team within six months, and a marketing program possibly starting late October or early November.

Risks

The near-term risks they named themselves are human capital, since they could not secure core cutters or geologists this summer while the Golden Triangle absorbed crews, and market recognition, with Dhami pointing to peers at C$68 million and almost C$250 million market caps against their own C$24 million and admitting investor fatigue is a fair knock on their small, piecemeal drill programs. Stu also added the standard one, that no gold deposit is continuous and a small program with a bad hole hurts more than a large one. Geologically, the dip is still not confirmed and they have had holes that hit the alteration without the gold. Beyond that, the treasury is small, another raise is possible even if not planned, there are no agreements signed with the First Nations, and Dhami’s comfort on commodity risk rests on his own view that gold holds around US$4,800 and makes new highs in 2027.

Tower Resources CEO Interview

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