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Kalo Gold is targeting a vertically preserved low-sulphidation epithermal gold system at the Vatu Aurum project in Fiji. This interview with CEO Terry Tucker covers his professional background, the company’s geological reinterpretation of legacy data, and its plan to validate a new exploration model through trenching and drilling. The conversation also covers insider ownership, financing strategy, technical risks, community relations, permitting in Fiji, and other potential challenges for the company.
TL;DR
- 1. Kalo Gold is pursuing a discovery-focused strategy at its Vatu Aurum project in Fiji, targeting a potentially intact low-sulphidation epithermal gold system.
- 2. CEO Terry Tucker and his team have reinterpreted historical data and identified over 20 potential upwelling centers, with drilling planned to begin mid-2025 pending financing.
- 3. The company owns its own drill rigs and aims to conduct a 4,500-meter drill program with a budget of approximately $225 per meter, excluding assay costs.
- 4. There are no private royalties on the asset, and the company holds valid exploration permits with low holding costs and a stable relationship with the Fijian government.
- 5. Key risks include financing uncertainty and the inherent geological risk of not confirming the model through drilling, which the CEO acknowledges as the major inflection point ahead.
Is Terry Tucker the Right CEO for Kalo Gold?
Terry L. Tucker is a geoscientist with more than three decades of experience. His career includes discoveries such as the Wolverine deposit in Yukon and the Tulu Kapi project in Ethiopia. He has worked in various jurisdictions, including Canada, Northern Ireland, Africa, and Central America. He previously founded Strata Gold, which was acquired by Victoria Gold after raising over $60 million and accumulating 6 million ounces in resources.
He became CEO of Kalo Gold in April 2022. Since then, the company has raised approximately $3 million and inherited a large exploration dataset, which Tucker claims totals more than 30 years of historical data.
Does the Geological Team Have Relevant Experience?
According to Tucker, the technical team is led by Andy Randell, a P.Geo with epithermal specialization and previous experience in tropical environments.
The team also includes advisors such as Paul Harbidge (Faraday Copper), Dave Medilek (K92), and Jeff Hedenquist. The group was assembled to reprocess historical data and develop a new exploration model.
Is There Any Executive Presence in Fiji?
No Kalo executives reside in Fiji full-time.
However, Director Michael Nesbitt, whose family was involved in private exploration of the asset for over a decade, has participated in most programs since 2010. According to Tucker, Nesbitt provides historical and logistical continuity.
How Many Shares Does the CEO Own?
Tucker reports holding approximately 9 million shares, all acquired via participation in financings.
He also holds standard options and RSUs. He emphasizes financial alignment with shareholders, stating past lessons where low ownership limited upside in other companies.
Why Has a Director Been Selling?
One director has reported small share sales.
According to Tucker, these sales were not part of a strategic move and were likely an oversight. The amounts involved were minor, in the low five-figure range.
Do Executives Hold Royalties on the Asset?
No.
The project carries no private royalties. Government royalties apply only upon granting of a mining license, at a rate of 5 percent.
How Is Executive Compensation Structured?
Three individuals are paid: Tucker, CFO Kevin Ma, and Director Michael Nesbitt.
Compensation is structured as flat-rate monthly consulting fees. There are no formal performance incentives beyond equity. A change-of-control clause in Tucker’s contract provides one year’s compensation.
What Is the Company’s Strategic Plan?
According to Tucker, Kalo is positioned as a discovery-stage explorer rather than a developer.
The objective is to validate the new epithermal model through drilling. The company owns its own rigs and aims to deploy them shortly after financing closes.
How Will the Company Be Financed?
The company is currently raising $2 million at 5 cents per share.
Tucker acknowledges the dilution but states it is necessary to fund exploration. He claims ongoing dialogue with major companies including Newmont, K92, and OceanaGold, though no formal JV or strategic deals have been disclosed.
What Is the Timeline for a Discovery?
Tucker claims that the historical data has accelerated Kalo’s position in the discovery cycle.
He cites trenching in late 2024 that intersected quartz veins at surface as validation of the company’s model. He believes a drill-based discovery could be made within six months, though this is speculative.
Why Have Previous Operators Failed to Make a Discovery?
According to Tucker, past operators applied the wrong geological model.
He says companies like Placer Dome and TVI Pacific were focused on Carlin-style systems and drilled vertical holes, missing steeply dipping veins. He also states that early explorers failed to assay for key pathfinders such as selenium and antimony.
Is There Evidence the Epithermal Systems Are Intact?
Tucker argues that surface features such as sinter terraces and opaline silica indicate preservation of the top of the epithermal system.
He also references the presence of pathfinder elements typically deposited in cooler, near-surface environments. These observations are consistent with an intact low-sulphidation system but remain unverified by drilling.
Are There Metallurgical Risks from Arsenic or Other Elements?
According to Tucker, past metallurgical studies on the Qiriyaga deposit showed good recoveries.
However, these were conducted on a separate zone and may not reflect the broader system. He acknowledges the presence of arsenic and similar elements but downplays their potential processing impact at this stage.
Have Boiling Zone Indicators Been Identified?
Yes.
Tucker reports that trenching encountered multiple quartz veins with typical upper-system epithermal textures. Grades ranged from 0.3 to 3.5 grams per tonne. While early-stage, these intercepts are consistent with shallow levels of a low-sulphidation system.
How Are Targets Prioritized?
Targeting is based on geochemistry, especially selenium highs and potassium depletion, supported by structural interpretation. Over 20 potential upwelling centers have been identified, concentrated in the ORM epithermal field. Other targets such as Dongaloa and Wacoro are secondary priorities.
Is There Evidence of a Deep Feeder System?
No intrusive rocks have been observed at surface.
Tucker believes the chemistry supports a low-sulphidation origin with fluid pathways exceeding one kilometre in vertical extent. Structural preparation is cited as a key control, particularly along the Nubu Graben.
Will Additional Geophysics Be Conducted?
Unlikely.
A CSAMT survey completed in 2023 is being used in conjunction with reinterpretation of historic airborne and ground data. The company believes it has sufficient geophysical coverage to proceed to drilling.
When Will Drilling Begin?
Tucker states that drilling could begin in June 2025, contingent on financing.
The company owns two rigs, one of which is operational. A 4,500-meter program is planned, with an estimated cost of $225 per meter plus assays.
What Would Be Considered a Successful Outcome?
Tucker defines success as intercepts of 10 to 20 meters grading 5 to 7 grams per tonne.
This is above the grade encountered in surface trenching and would represent the core of a productive zone if validated by drilling.
What Is the Scale Potential of the System?
Tucker compares the geological setting to the Martha Mine in New Zealand, a 10 million ounce deposit.
He believes the ORM field could host a similar scale if exploration proves successful. This claim is speculative and unverified.
When Would a JV Be Considered?
Tucker says the focus is to drill extensively before entering JV discussions. He suggests an 18-month runway for this phase, after which strategic options could be reassessed.
How Challenging Is the Terrain?
The project area is described as flat to gently rolling hills. Elevation changes are minimal (under 40 meters), and no topographic barriers to exploration are currently identified.
What Is the Infrastructure Like?
Access is by commercial flights to Labasa followed by a one-hour drive. The camp is connected to grid power. Basic infrastructure is in place to support exploration.
Are Operating Costs High?
Not significantly.
Local produce and fish are available at low cost. The only reported expense pressure is on meat and protein. Logistics appear manageable.
How Socially Sensitive Is the Land?
The license area involves approximately 40 landowners. Kalo maintains formal access agreements and employs 26 local workers. Relationships are reportedly stable. Tucker highlights the importance of social license but no formal issues were disclosed.
What Role Does the Government Play?
Fiji’s Ministry of Mineral Resources administers exploration permits, which are issued for five years with negotiated work programs. Permits have been consistently renewed. A 5 percent royalty and standard corporate taxes apply at the mining stage.
Will G&A Rise in 2025?
Tucker says G&A should remain flat. Reported quarterly costs ranged from $47,000 to $60,000. Staffing levels remain low.
What Is the Company’s Marketing Strategy?
Marketing is currently limited.
Tucker is skeptical of high-cost promotions and favors content-based engagement. No specific budget has been disclosed. He states a preference for one-on-one meetings and long-form interviews over trade show booths.
What keeps Terry up at night?
Tucker identifies failure to raise sufficient capital and unsuccessful drilling as the principal risks. “You can’t see through rock,” he says, noting the inherent uncertainty in exploration. He also notes macroeconomic risks, including geopolitical instability, as secondary concerns.
Kalo Gold Interview with CEO, Terry Tucker
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