Thesis Gold 2023 Drill Campaign Review, Part 1: Drilling out a Better Mine Design at the Lawyers Project.
With the final drill results from their infill and resource upgrade drilling from their Lawyers Project released last week, Ewan Webster and Ian Harris Join me to Discuss their Signficance.
tl;dr:
Thesis Gold Released the final results of its 20,000 meter infill and resource upgrade drilling from its Lawyers project in 2023 (with the 30,000m from Ranch not yet fully back from the lab). This interview - with CEO Ewan Webster and COO Ian Harris - reviews the results of this campaign and how they fit within Thesis’ goal of redeisgning the mine plan to improve economics. A discussion of the good, the bad, and the impact on the drill program on the new mine plan is had, as well as discussions on ongoing met work. Below you will find my companion article, and written summary with timestamps to help you track my conversation with Ewan and Ian.
Tickers mentioned: TAU.V
Index
The Interview
Companion Article
Timestamped Summary + Transcript
1. The Interview
2. Companion Article
On January 11, Thesis Gold released the final 15,000m of their 20,000m drill campaign at their Lawyers project. Now, this isn’t the “exploration story” half of the company - that would be the Ranch Project. Lawyers has a preexisting PEA from prior to the merger with Benchmark and the areas around the pit model have been well explored from multiple vendors over decades. However, that doesn’t mean that this drill campaign can’t still have a meaningful impact on the economic viability of the project.
This is because Thesis is looking to redesign its mine plane to target new, high-grade zones underneath the current pit design. This starter underground mine has the potential to add roughly a full year’s worth of high-grade production (10,000tpd at 4 gpt is roughly ~470,000oz - which is roughly their target) to the start of the current mine plan, which would of course have a significant, positive impact on the economics of the whole project.
Critical to this is how easy accessing these zones would be. Topography is playing nice with Thesis, as illustrated by the visual below. No expensive shaft having to get sunk, just a gentle, sloping adit, that is just a couple hundred meters away from the first zones of mineralisation, thanks to being able to dig in from the valley edge. Cheap, fast, easy.
You understand, then, why Thesis decided to dedicate considerable resources to trying to prove up this new model with their drill campaign this year. In a market were early stage developers are withering on the vine in a risk-off, inflationary environment, Thesis has a rare opportunity to actually, materially, meaningfully, improve its economics from one study to another. How often does that happen? I have written about this in previous articles, but now we get to see
And it certainly looks like Thesis put enough points on the board at Lawyers this year to make this strategy viable. They didn’t knock the lights out everywhere with big time grades and discoveries (theoretically that’s Ranch’s job now with the assays they have left this year and whatever drill campaign ends up happening in 2024). Dukes Ridge displayed strong grades and intercepts at depth that remain open along strike, while Cliff Creek - which still found lots of success - ultimately produced more marginal numbers as they there seem to have found and defined the edge of the system.
Napkin math certainly seems to suggest pretty clearly that Thesis was successful enough to confirm the viability of their new mine plan. And that is the critical hurdle it had to overcome. Take a look at the cross-sections below to get a sense of how Thesis advanced Lawyers in 2023. (For assays to cross reference against the diagrams below, click here.)
Aside from a discussion of drill results, the interview touched on other topics as well. As Ewan and Ian discuss in the interview, the two deposits play nice with each other metallurgically despite some potentially problematic differences (low sulph vs. high suph), and a flow sheet that works for both should not be too challenging. As Ian said in the interview, Lawyers is so simple and easy it is boring.
Ewan also discussed a variety of catalysts due in 2024 - not just the upcoming, universal MRE and updated PEA which are 3-6 months out, but ahead of that also the release of the final batch of assays from Ranch as well, which so far has produced some very impressive results.
Once those Ranch results are in, I will be sitting down with Ewan and Ian to hold a similar discussion on the conclusion of that 30,000m campaign on a project which holds much more in the way of blue sky exploration potential. I will also be meeting to chat with him at VRIC where Thesis will have a booth, so feel free to drop me a line if you have any questions.
Again, where the market seems to see confused priorities with Thesis (explorer? developer?), I see a huge runway for growth. There is much more going on here than is seemingly being given credit for. A hot region in a strong jurisdiction. A big, high-grade, deposit. Lots more potential for growth. Strong financial backing. A reconceptualized mine plan now confirmed by substantial drilling driving strong economic improvement. With any luck, the PEA that unites all these factors and all these deposits into one high-impact project will help convince the market just what Thesis is building.
By the time it is all said and done, I believe Thesis has a clear pathway to tier 1 deposit status and is a prime takeout candidate for mid-tiers or even majors, many of whom already have a presence in the area. And for those reasons I believe it is a strong, strong company.
3. Timestamped Summary + Transcript
Click here to see the full transcript.
02:00 How did Lawyers evolve with the 20,000 meters drilled into it this year.
Ewan Webster (01:50): Describes the Lawyers Project as a low-sulfidation epithermal gold system in British Columbia, a past high-grade underground mine. Emphasizes the potential beyond previous mining, mentioning the project's growth from a small resource in 2018 to 3.5 million ounces, highlighting open pit and underground potential.
Ian Harris (03:21): Explains the strategic focus of the year’s drill program on areas that could improve the overall project design and financial results, emphasizing early-stage impact.
06:10 Where do Lawyers results fit into pre-drill expectations?
Ewan Webster (06:51): Reports that the campaign met expectations, with particular success at Cliff Creek and Duke's Ridge. Highlights significant mineralization found and the system remaining open for exploration.
Ian Harris (09:15): Adds context to Duke's Ridge’s potential, pointing out its ease of access and significant impact on the project’s early stages.
10:50 Any Surprises?
Ewan Webster (12:35): Mentions Marmot as an advanced target on the Lawyers Project and prioritizes exploration targets on the Ranch Project for future drilling.
13:40 Did you get what you came for? Are you happy with what happened?
Ian Harris (14:26): Affirms that the campaign was successful and transformational for the project, emphasizing its strategic planning and the upcoming market impact.
15:50 Did you get the grade you need to make an underground starter mine viable?
Ewan Webster (20:16): Clarifies the project’s underground mining strategy and its economic viability, pointing out the higher grade zones within larger mineralized areas.
24:50 Met works and flow sheets – how simple is it and how does Ranch and Lawyers work together
Ewan Webster (22:38) & Ian Harris (23:34): Describe the Lawyers Project as having a simple, clean low-sulfidation system, and the Ranch Project as high-sulfidation but also clean. Harris explains that grinding is the major cost driver in the flow sheet, with both projects showing good recoveries. They are optimistic about the upcoming results and the project’s overall scope.
29:10 What can we expect from 2024 – timeline of catalysts
Ewan Webster (29:38): Indicates more drill results coming, with a new mineral resource estimate in early Q2 and a PEA in early Q3. Notes 2024 plans will be influenced by market reactions and gold prices.
30:40 What do conferences like the upcoming VRIC offer you?
Ewan Webster (33:23): Finds VRIC valuable for shareholder interaction, while PDAC is more chaotic but still useful for different purposes.
Ewan Webster (34:41) & Ian Harris (37:00): Webster sees conferences as a chance for direct shareholder communication and feedback, while Harris emphasizes the need to continue promoting the company's story and the quality of their projects.
33:40 Final thoughts from Ewan and Ian
Ewan Webster (37:44): Highlights upcoming catalysts with new drill results and resource estimates. Sees the upcoming year as transformative and a starting point for further exploration and expansion, particularly on the Ranch Project.
Ian Harris (37:44): Expresses confidence in the company's focused strategy and anticipation for demonstrating their achievements to the market.
Matt (40:13): Concludes the interview, thanking the guests for their insights and promising a future discussion about the Ranch Project.
As always, I offer you my sincere thanks for reading my work. Until next time.
-Matthew from JRI
