VIDEO: Golden Ridge Resources (CVE:GLDN) New Discovery Sparks Trading Frenzy

Golden Ridge Resources (CVE:GLDN) (FRA:44G) CEO Mike Blady discusses the company’s new discovery hole with 1.94 grams per tonne silver, 0.35 grams per tonne gold, and 0.31 grams per tonne copper at its Williams Zone project in British Columbia. Blady explains Golden Ridge’s targets in the area, including a new target zone, the Boiling Zone, a 500 metre diameter area of 5 grams of gold in soil or higher. Blady outlines that Golden Ridge’s drilling plan for the area is approximately 75-80 percent complete. Golden Ridge’s stock is trending upward as a result of the discovery announcement after a slow summer period. Blady expects more drill results to be released in two weeks, pending a successful QAQC.

Transcript:

James West:   Hey, welcome back to Midas Letter Live. My guest in this segment here is none other than Mike Blady, CEO of Golden Ridge Resources, who announced yesterday an incredible – we’re going to call that a discovery hole, Mike, if we can.

Mike Blady:   Yes, you may.

James West:   327 metres greeting 0.31 percent copper, 0.35 grams per tonne gold, 1.94 grams per tonne silver. There’s additional holes coming, and that’s why I just bought another 100,000 shares out of the market right now. Just sayin’. Again, I’m not telling you what to do, I’m telling you what I’m doing – and why. Mike, what’s the deal here? What kind of discovery is this?

Mike Blady:   James, Ed, it’s always nice to see you guys when I come through Toronto again, so thanks for welcoming me back. I guess it’s some good timing, good news out. So it’s always –

James West:   Yeah, we thought you planned it this way.

Mike Blady:   It makes me a little bit more interesting when there’s news, I guess.

Ed Milewski:  You feel like there’s a little more demand for your presence.

James West:   Yeah, your discourse.

Mike Blady:   We’ve been working hard up in the Golden Triangle. This is our third year of pretty extensive work that we’ve done up there. Last year we made a discovery, the Williams Zone at surface, but all we had was in situ rock samples; we didn’t have any drill core or anything like that, it was geophysics, geochem, and some good old fashioned hand stripping and hand trenching to get down to the bedrock.

So we put news out on that late last year, and no one really batted an eyelid. And then we went back this year, and our first drill hole, we made a discovery. We hit that nice intercept that you talked about.

Ed Milewski:  Viewers should know that Mike’s a geologist. Just saying.

James West:   Yeah, among other things.

Ed Milewski:  Among other things, but the fact that he’s a scientist is –

James West:   Geologist is all you need to know for today, exactly. [laughter]

Ed Milewski:  Just to add to the veracity of our discussion.

James West:   This is serious business.

Ed Milewski:  Just saying.

James West:   So Mike, when you say a discovery, just because we’re going to assume that a large part of our audience is smoking a lot of cannabis and probably is not conversant with mining terms, so, what exactly constitutes a discovery?

Mike Blady:   Well, in my mind, a discovery is something that’s previously unknown, and exactly what it is: previously unknown, and when you discover it, has potentially mineral that’s economic or ore-grade or –

James West:   Potentially.

Mike Blady:   Potentially, yeah.

Ed Milewski:  Or, ore body size, like…

Mike Blady:   Yeah, you know, it has the size, potential grade, and previously was unknown about – in my mind, that’s a discovery, right? Some people might call it a showing until you can prove it’s actually economic, but I think it’s a discovery, because as we know, metal prices fluctuate drastically; so one day, it could be economic, one day it could not be economic.

James West:   Right. In which case, care and maintenance. But so in this context, essentially what you’ve done is drilled 327 metres, which for our US friends is over 1,000 feet of mineralization that contains an average grade of 0.3 percent copper. Now you’ve got, if we were to look at the other charts here – or sorry, this map that is going to be on the screen in 4…

Ed Milewski:  One second.

James West:   There we go. So you’ve got other holes at the lab?

Mike Blady:   We do, yes. So we have been drilling, one rig has been basically dedicated to the Williams Zone this year; the other rig is across the valley at the epithermal targets we were drilling last year, so the lower alteration zone.

Ed Milewski:  This is the lower alteration?

Mike Blady:   No, this is the Williams Zone. Williams Zone is the new discovery. Lower alteration zone has been there a long time. That was discovered by

Ed Milewski:  There’s also an upper alteration zone.

Mike Blady:   There is an upper alteration zone.

Ed Milewski:  There’s three areas now.

Mike Blady:   And then we’ve added a fourth conceptual target called the Boiling Zone, which is in between the lower alteration zone and the upper alteration zone.

Ed Milewski:  Boiling, is that where you boil the water for your coffee?

Mike Blady:   The boiling refers to – epithermal systems are normally very close to surface when they form, and what happens is, these very hot mineral-rich fluids, as they come up from depth, there’s a certain point when the pressure is low enough that the water turns to vapour, and that’s called the boiling zone. And normally in the boiling zone, what happens there is, you’ve got a lot of precipitation of metals. And depending on what part –

Ed Milewski:  Water evaporates, leaving the metals, and they –

Mike Blady:   Correct! The metals can’t evaporate, they can’t fly away like the water molecules do, so they’re in place, they’re in the rock, right? So the boiling zone specifically refers to the temperature, the point, where the gold is most likely to precipitate or –

Ed Milewski:  Sure. Or copper, or –

Mike Blady:   This is in specific reference to gold, because if you look at the boiling zone diagram of the map of the entire property, it’s an area of about 500 metres of diameter of 5 grams gold in soil or higher, which is extremely anomalous. That’s, you know, up there with –

Ed Milewski:  So the discoveries, they, the hole designated one, that’s the discovery?

Mike Blady:   Correct, and that’s in the Williams Zone.

Ed Milewski:  That’s in the Williams Zone, that’s the copper area.

James West:   Okay, so we’re expecting you’re going to release in a news release when the lab is done with them, three additional holes from this zone, and then the rest are across the valley? Or that’s where you’re drilling next?

Ed Milewski:  There’s two drills.

Mike Blady:   Two drills. So, one is focusing on the Williams; I believe we’re going to drill eight holes there at least.

James West:   Eight more holes?

Ed Milewski:  No, eight –

Mike Blady:   Eight total.

Ed Milewski:  Eight total, and you’ve drilled four now?

Mike Blady:   We’ve drilled at least six now; there might have been one more. So we have about two more to go.

James West:   So looking at the map…

Ed Milewski:  The map’s a little outdated, then. This map.

Mike Blady:   This map was, yeah, made last week. So we have a new power point that’s –

James West:   So it’s only one week old? We don’t consider that outdated.

Mike Blady:   Well, we drill quick. We drill quick up there. So we’ve updated the power point; if it hasn’t been uploaded to the website yet, it will be today for sure, and basically it shows all of the drill holes we have done today on a plan map for people. So where we’re at is, I believe we’re on hole number 13 now, total, out of the 6,000 metre program –

Ed Milewski:  That’s what you budgeted? You budgeted a –

Mike Blady:   Six thousand metres, correct, yeah. So we’re on hole 13, and we’re, I believe, about 75 to 80 percent complete, the drilling program.

Ed Milewski:  Did this hole end in ore? When you drilled it, the 327, or did it stop and you drilled further?

Mike Blady:   Yeah, it was still mineralized, yeah.

James West:   So in all these holes, is the mineralization you’re running into the Bornite?

Mike Blady:   Yeah. So normally, the system that we’re in, the porphyry system, it has a phyllic alteration zone around it, which is very close to the potassic core, and the phyllic normally has a lot of QSP alteration, a lot of clay. It is also mineralized, but it’s normally less mineralized than the monzonite, right? And then once we get into the monzonite, and when you start seeing bornite, that’s a sign that you’re close to the high-temperature core of the system.

James West:   The boiling zone.

Mike Blady:   No, the boiling zone is epithermal. So I don’t want to have to – [laughter]

James West:   Damn, I thought I was…[laughter]

Ed Milewski:  You and I should go and get our degree in geology, I think.

James West:   It would take too long. There would be a geological time commitment.

Mike Blady:   So in a textbook, basically, when you go back to school and get your guys’ geology degrees, they’ll show you a diagram of a porphyry system, and normally how porphyries work is, they form a couple of kilometres deep in the earth at minimum, right? And then there’s another area, mesothermal gold, which is kind of in between porphyry and epithermal, and then epithermal is normally within about 500 metres to the surface, right? So epithermal and the boiling zone is one thing. Two kilometres down, there’s so much pressure, and the temperature is so high, there’s no boiling going on there. It’s fluid, because of the pressure. It can’t boil.

Ed Milewski:  The pressure prevents it from bubbling away.

Mike Blady:   Correct. It cannot boil. But once it gets close, within a few hundred metres of the surface, there’s enough, you know, the surface pressure the cracks and the gaps in the rock, it’s able to expand and it’s able to boil, right? So the boiling zone is only epithermal; it’s only to the south of the Williams Zone, across the creek. Yes.

James West:   Interesting.

Ed Milewski:  I see we’re looking at some information about world class porphyry zones.

James West:   Well, we can’t find a good enough image, so we’re not going to bother. This is sort of Geology 101. Let’s look at what discovery has done for your share price, and talk about that.

Mike Blady:   Okay, yeah.

James West:   So you announced the discovery here, stock started moving here – I suspect this is drillers buying or something? No, it was me buying.

Mike Blady:   You know, what’s funny is that we had a really nice run-up kind of at the beginning of July, when we started drilling, and then for some reason it seemed like the whole market softened. Obviously at that time, we were –

Ed Milewski:  Summer doldrums, perhaps.

James West:   Muskoka fever.

Mike Blady:   Yeah, I thought we were going to kind of hang out around the $0.20 range and then put out news and then see if the market liked it or not, whether the stock went up and down, but I was actually up at the project the whole time when it started cratering there. So I guess maybe I wasn’t doing my public service duty to the shareholders and answering calls and keeping people informed; maybe, I don’t know.

James West:   Yeah, no doubt.

Ed Milewski:  So what’s the deepest hole you’re going to drill in the Williams?

Mike Blady:   Deepest hole we’ve drilled to date there is 603.5 metres. Hole 13, which we’re drilling now, hopefully we’re going to push the limits of this drew and try and set a new depth record at the Hank.

James West:   Whoa! That gets exciting.

Ed Milewski:  The lower you go, the rock gets a lot more dense, doesn’t it?

Mike Blady:   It’s not so much the density; the problem is, the drill is powered by a motor, and the motor only has so much horsepower.

Ed Milewski:  Well, maybe you need to get an extra one.

James West:   That’s what I was just thinking. [laughter]

Mike Blady:   So every time you’re adding on more drill string, which is heavy metal, that’s harder and harder for that motor to turn the bit that’s way down on the end of it. So eventually, you know, you don’t have enough horsepower to keep drilling. And normally what happens with these is, they’re the Hydracore 2000, so they’re designed to go to about 2,000 feet of depth, right? So once you get past that, the drilling slows down a lot, and it becomes very expensive.

Ed Milewski:  So at 2,000 feet, 600 metres, roughly.

Mike Blady:   Roughly, yeah. So it becomes cost-prohibitive after that. You can keep drilling, but, you know, if the rod gets stuck or something jams or you have to pull the rod straight, it takes the drillers a long time. And yeah, if you get the rod stuck down there and you can’t get it out, guess who’s on the hook to buy all new rod string? Not the drillers, the company. So we try not to get the drill string stuck.

Ed Milewski:  The shareholders.

Mike Blady:   Yeah, the shareholders, correct.

Ed Milewski:  And you are probably the largest shareholder of this company.

Mike Blady:   Which I am a large shareholder of.

Ed Milewski:  Do you know how many shares you own of this? Or what percentage?

Mike Blady:   To be honest, Ed, I don’t really, off the top. But a few million.

Ed Milewski:  Ten percent?

Mike Blady:   Not quite that high.

James West:   All right. So when can we expect more drill results?

Mike Blady:   So we have, you know, assays kind of trickling in now, so we obviously have to get the next entire hole, and we have to QAQC it and make sure it’s all tickety-boo, and the lab’s been holding up their end of the bargain.

James West:   You don’t own the lab.

Mike Blady:   No, we do not own the lab.

Ed Milewski:  That’s a great idea.

James West:   Not bad, I own the drills, I own the lab, I own the holes.

Ed Milewski:  Vertical integration.

James West:   Vertical integration.

Ed Milewski:  There you go.

James West:   And in the drilling business. That’s easy to understand.

Ed Milewski:  And then maybe have a reporting service that describes things and maybe throws out hints once in a while.

James West:   You should buy IIROC. [laughter]

Mike Blady:   Are they for sale?

Ed Milewski:  They’d put it out of business.

James West:   And own the TMX while you’re at it. Exactly. All the stocks would go up.

Ed Milewski:  Now, would you ever release partial assays, or is that frowned upon? That’s bad practice, isn’t it?

Mike Blady:   We wouldn’t. I think it’s important, especially if you’re drilling a large kind of bulk tonnage target, to get the full picture and the full scope. I think if we just did the first 100 metres and were like ‘oh, we’re just starting to get into it at the end of the hole’, I think that can be misleading for people. So we do at least one entire hole at a time; looks like hopefully we’ll have two holes complete at the same time from the lab, that’s what we’re pushing them to do.

Ed Milewski:  So you’re going to have two holes done for the next, you’re thinking that?

Mike Blady:   Hopefully, yeah. We’re still waiting for it to trickle in, and then we have a procedure for our QAQC that, you know, if certain samples are over limit, or certain samples are, you know, ore-grade they call it at the lab, we have to do extra testing on them. So that can sometimes delay the results coming out a little bit, because even if our lab is turning it around in three weeks or four weeks, and then we get the results back and we’re like oh, look at that! This one’s over limit, this one’s over limit, this one’s over limit, then we have to resend it back to them, or they take the pulp that they already have and they have to re-analyze it.

James West:   So, best case scenario, when will we see some more results published in a press release?

Mike Blady:   I love how you put me on the spot.

James West:   I mean, that’s,

Ed Milewski:  Why is Mike sweating all of a sudden?

Mike Blady:   I’m actually, this is the coolest I’ve been all day, this is great.

James West:   Assuming nothing goes sideways, the QAQC happens, when do we see more results?

Ed Milewski:  Couple weeks.

Mike Blady:   Two weeks, yeah.

James West:   All right. We’re going to leave it there, Mike, for now. Thank you very much.

Ed Milewski:  Just one – never mind.

James West:   No, by all means, Ed, you have another question.

Ed Milewski:  You said these things are numbered chronologically as they’re drilled, so the next hole is number two, which is on the Williams?

Mike Blady:   Correct.

Ed Milewski:  And three and four are in the lower alteration.

Mike Blady:   Correct. And then five is back in the Williams. Well, sorry, the Kaip Zone, not technically the lower alteration. It’s a new zone we discovered last year we drilled.

Ed Milewski:  So theoretically, we should get number two next? And then three and four.

Mike Blady:   Yeah, hopefully two and three, yeah. So what would happen is, we have two drills going this year. The second drill was a little, it was a little bit late getting up there. The drillers were kind of slow getting up there, and then we had some initial mechanical problems. So that’s why the first couple holes were on the Williams Zone and then it jumps around.

Ed Milewski:  Well, that’s great. So it looks like stay tuned.

Mike Blady:   Everything is running smoothly up there now.

James West:   All right.

More Great Mining Content

• Aben Resources Posts Materially Better Follow-Up Assay Results in BC
• VIDEO: Soloman Iron Corp (CVE:SIC) Strikes Gold
• Sokoman Iron Corp Strikes Gold, Rises 760% In 8 Trading Sessions

Original article: VIDEO: Golden Ridge Resources (CVE:GLDN) New Discovery Sparks Trading Frenzy

©2018 Midas Letter. All Rights Reserved.