Over the weekend I caught up with John Anderson, Executive Chairman of Triumph Gold, and we talked about the news from last week that caught the market's attention, what's next for Triumph Gold, and who are the backers behind them.
On The Next Bull Market Move we have a brand new guest. We have John Anderson of Triumph Gold, who's the Executive Chairman. How are you today, John?
I'm doing very well. Thank you very much for taking your time to talk about Triumph Gold.
No problem. Let's first talk about about your background. How did you become involved with Triumph Gold as it is right now?
I've been involved in the resource market since 1995, when I used to do the investor relations for Bema Gold and left that company in 1999. And at the bottom of the market, I saw a project in a stand alone Company that once had an $800 million market cap collapsed down to about $30 million. In the next bull market, just six years later, sell for that $800 million again. And I was enamored by that story. I stayed involved in the market and had a gold fund in 2005 to 2009, ran it essentially with my partner out in New York. We got involved in Northern Freegold at the time, which is now Triumph Gold as an investor. I really was intrigued by the project, and the timing of the project hotting the market and where it was located.
There's been some very exciting news for the company this week, and I noticed that in an updated presentation, you have a slide with the title - "Presenting the highest grade porphyry in the Yukon." Can you give our readers some details about this?
Yes, we announced some pretty spectacular drill holes this week which were the first confirmation of what we really discovered last year with a small intercept in a big step out from our known resource on our 200 sq. km property. Triumph Gold, has a district sized property blessed with great Geology and Geography having a government maintained road going to and thru the property. Myself and our current management team took control of it in 2015 and aggressively started looking at the project with different eyes and a different approach in 2016. By that, I mean we knew we had had a substantial Gold resource that was on the property which was a low grade and had an at surface resource. We weren't getting any value for it in the market, at least comparable to what a market cap per ounce valued projects were being valued at.
So in 2016, we looked at the project differently and said, "Okay, we've got the Big Resource. We know that those resources will be worth a lot more money at a higher gold price." What we wanted to do was look at our project differently. In the market, we were being valued as an exploration company, so we decided to act like an exploration company. What we needed to do then was look at the property for something that would be more attractive and more relevant at today's gold prices around $1,200. And that's really what's led to the discovery of, or the announcement of, what we came out this week with a fairly large, a robust gold rich porphyry system in the Yukon.
And you have some major shareholders backing you. They include Goldcorp and Palisade Global Investments. Why did they become involved? I imagine they would only want to be involved with companies that potentially have a large resource and are going to become a lot bigger in the future.
Yes, good question. I contacted Palisade early in 2016 when I saw what they were doing in the marketplace, along with one of our major shareholders, Gold 2000 out of Zurich. I explained what we were doing conceptually with a big project, that I needed to clean up the balance sheet, attract new people and mirrow that other project we spoke about earlier that went from $800 million, down to $30 million and back up to $800 million. Essentially that our project was the ultimate call option on a higher gold price or copper price, with no expiry date.
Subsequently to doing some more work, we were able to track other large investors. You mentioned Goldcorp. In 2016, Goldcorp showed up in the Yukon and really gave credibility to area as a whole. When Kinross was there and struck with their plans in about 2009, the area saw no love in the market. However, when Goldcorp showed up and purchased Kaminak Resources for $520 million which is up the path from us, it opened everyone's eyes, especially mine.
A few months later, they became aware what we were doing, and we came to an agreement where they bought 19.9% of the company. That was in March of 2017. Subsequent to that we drilled 13,000 meters on Tony Baressi’s our VP of exploration concepts and new targets. Tony was successful in hitting 4 new discoveries last year that technically were huge, but the market din’t really value as their were all the “first pass” drilling. This year's program that Tony designed followed up on this and that led to the announcement this week that has woken up the market.
So what plans do you have for the rest of the year for Triumph Gold?
We're kind of giddy right now because we've announced a confirmation of a major gold rich porphyry system with fairly robust grades, .3% copper and over 1 gram of gold on a number of holes. We've still got more holes to come out of Blue Sky, which is what we call it.
And on top of that, we still got a four other targets that we've drilled on the property this year that we've still got to release, and once we get those assays back, we'll obviously know how we're going to approach the rest of the property for the balance of the year and into next year
And as a final question, what would you tell investors who haven't looked at Triumph Gold yet? Why should they invest?
We definitely have, I think, the best risk reward proposition in the entire gold market. We're in the Yukon geopolitically. We've got incredible infrastructure, which is a huge benefit for not only exploration, but more so the development of a project. It will save just tens if not hundreds of millions of dollars.
However, geologically we now have got an elephant by the tail with this Blue Sky porphyry that we just announced. I think it's early stages, and there's going to be a lot of upside to it. It could just be the discovery of the decade in the Yukon
Thank you very much John, and we'll speak again soon.
Great. Thank you very much for the time.
The Next Bull Market Move
For more information go to Triumph Gold go to https://www.triumphgoldcorp.com
Palisade Research also released an updated report on Triumph Gold - https://palisade-research.com/triumph-gold-strikes-gold/
Disclaimer - Interviews are conducted in the name of research and learning from the best. Only you can decide what makes a good speculation/investment.