Goldstorm Metals’ flagship is the Crown project. Crown sits about 45 km north-northwest of Stewart in BC’s Golden Triangle, on trend south of Seabridge’s KSM and Tudor Gold’s Treaty Creek. Ken, the CEO, was part of the Brucejack/Valley of the Kings discovery and spent 19 years with the Silver Standard team. He was also Tudor’s CEO and is now its SVP Exploration. Goldstorm was spun out of Tudor and holds Crown and the smaller Electrum project. In this introduction interview, I asked him about the history of the project, why nobody tried to do the same thing he is now trying, and what the future might hold, as well as time, money, and risks.
TL;DR
Goldstorm just drilled Crown for the first time and made an unexpected discovery. Hole OR-26-03 hit 407.55 m of 0.39 g/t gold equivalent, but that is mostly silver: 0.11 g/t gold and 18.3 g/t silver. The better section was 15 m of 2.89 g/t AuEq inside 25.5 m of 1.97 g/t. Assays for holes 4 to 7 are due imminently. Ken thinks the system dips west and may be the upper part of a deeper intrusion-related source. He was clear this is one hole and he can’t yet say what kind of deposit it is. They have about $3M left and want at least two rigs and about 8,000 m next year, so expect a raise.
What have they done for shareholders lately?
They closed a $7M financing in April and completed a seven-hole, 4,155.5 m program on part of the 1.2 km Copernicus IP chargeability trend. They told me it cost about $3M, so under $1,000 a metre. Hole 1 was lost. Ken owned that one: he said the rig was set at minus 50 instead of minus 53 and the hole ran into a fracture near a glacier-cut slab. Hole 2 returned 13.9 m of 0.80 g/t AuEq, almost all silver. Hole 3 was the headline. Fieldwork also got Delta West ready to drill. A follow-up chip sample there repeated the original 39 g/t grab at 40.42 g/t gold over 60 cm, with about 22 g/t over 60 cm along strike. They’re also holding back roughly 216 to 300 reconnaissance samples. I asked about insider alignment. Ken said management holds no royalties, there are no change-of-control payouts he knows of, and his pay isn’t tied to KPIs. He hasn’t bought much Goldstorm stock because he’s “fully loaded” at Tudor. He guessed insiders own about 30% but said he’d have to check with VP Corporate Development Chris Curran.
How much money do they have and what are they spending it on?
Ken said they started the year with about $6M, spent roughly half, and will have about $3M once the assays are out. That covers about one rig doing this year’s program again. The program he actually wants is at least two rigs and about 8,000 m. To fund it he mentioned a possible new raise in the new year, ideally flow-through and charity flow-through, plus warrant exercises if the stock cooperates. The 15M warrants include the April half-warrants at 30 cents. He said burn is low because they share a camp, helicopter time and crew minimums with Eskay Mining’s program next door. He also said management voted against granting themselves options at current prices until the results are out.
Upcoming catalysts
First up are assays for holes 4 to 7. Ken was hoping for the first week of November and said “about a week to 10 days.” He was most upbeat about hole 7, which was drilled right at the Copernicus copper showing, and about hole 5. He had reservations about hole 6 and plans to extend hole 4. After that come the remaining reconnaissance results, including a newly found stockwork zone at the south end that the geophysics predicted. They’re renewing the five-year notice of work, which expires around March. Ken also expects a marketing push and likely a financing in the new year. Then there’s the 2027 program: two rigs, one following up the hole 3 zone with step-outs and a vertical hole, and the other testing new targets like Delta West, where a pad is already built. Electrum is on the back burner. He’d consider selling it if a neighbour wanted the ounces.
Risks
This is one decent hole, and the long interval is low-grade and silver-heavy. The gold equivalent uses a 66:1 gold-to-silver ratio, so the AuEq number moves with silver prices. Ken admits he has no firm model yet. He has looked at porphyry, VMS and intrusion-related ideas, and there’s a real chance thrust faults have cut the system off. Ken is both CEO and QP and splits his time about 50/50 with his Tudor role. He was open to bringing in a separate QP when I raised the question. Funding the two-rig program almost certainly means dilution. Drilling is helicopter-supported, and the daylight rules cut this year’s season short. On royalties, Teuton holds underlying NSRs of about 2%. Ken said he’d like to negotiate a buyout cap, but none is in place.
Goldstorm Metals CEO Interview
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