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In this interview, I was joined by Tom Woolrych of Deutsche Rohstoff and Al Kroontje of San Lorenzo Gold. The discussion was about SLG’s Salvadora project in Chile’s Atacama Region, near Codelco’s Salvador operation. Tom walked me through his site visit and his thoughts on the company’s future, and we talked about Cerro Blanco and Arco de Oro, with some mention of Caballo Muerto and Tres Amigos. I then asked Al about drilling, assay timing, permitting, staffing, and how quickly the company plans to scale up exploration.

TL;DR

Al told me they have more than C$20 million on hand after recent financings, they want to ramp to three rigs within about a month or two, and the near-term value drivers are more drilling and a backlog of pending assays, especially at Arco de Oro. What matters most now is not a new grand theory about the rocks, it is whether they can convert that cash into timely drill results, step-outs, and eventually resource work without stumbling on staffing, assay delays, or execution.

What have they done for shareholders lately?

Al told me that Cerro Blanco’s current program is complete for now, with three holes drilled a year earlier and four more in the recent phase, including one on the east side of the IP anomaly with assays already released and three follow-up holes on the west side. At Arco de Oro, they said drilling has reached hole 16, they released a partial hole 9 because the returned interval was considered material, hole 10 was drilled from the same pad in the opposite direction, and they are preparing to drill offsets to holes 9 and 10 while waiting on more assays.

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

CEO Kroontje said cash was north of C$20 million after a recent C$20 million financing and a prior C$6 million financing about three weeks earlier. The plan is to spend the bulk of it on drilling and related field work, with overall drilling costs expected at about US$375 per metre. Al added that that at roughly three rigs this funding should take them through year-end and into the middle of the following year. He also said G&A will rise as they add exploration staff and other support, though they framed overhead outside the field as relatively lean.

Upcoming catalysts

The technical catalysts are the remaining assays from holes 9 and 10, results from Maria Teresa, and the rest of the current Arco de Oro holes that are still pending. The operational catalysts are a return to full drilling around April 15 if pad approvals stay on track, a ramp to three rigs within about a month or two, 100 m step-out fence drilling at Cerro Blanco, more IP work to the north and south, and fresh offset drilling around holes 9 and 10. The corporate catalysts are more hiring in Chile and Canada and the possibility later this year of bringing in a more market-facing senior executive to take over Al Kroontje’s current role.

Risks

The main near-term risk Al talked about is execution. They still need more people in Chile and Canada, assay turnaround is running at about two months, nine or ten Arco de Oro holes were still awaiting assays, and he acknowledged that management depth and the quality of company materials need improvement. On top of that, Cerro Blanco still needs much more drilling before any resource talk becomes concrete, water discussions were left confidential, and permitting is routine so far but still part of the operating cadence.

San Lorenzo Gold CEO Interview

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