Riverside Resources with John - Mark Staude and Brent Cook
Published on September 3, 2017
00:00:07 John-Mark Staude: I am John-Mark - you can basically bring Brent's up here because Brent's follows the prospect generator business model. If you could show the next slide please. It's the forward-looking statement and then the next slide is actually about the prospect generator business model and what Brent has really helped us with is to follow this model. Riverside's done that for a decade. We basically have $6 million cash. We've had over $40 million dollars of partner funding.
00:00:33 What Brent has pointed out is some of the challenges that happened for companies by Riverside having partners fund the work - we've been able to go through sixty different projects to develop a portfolio of 10 projects today. We lower the risk of exploration through partner funding and we do all the exploration operational work. Next slide.
00:00:55 Brent Cook: Is that it?
00:00:56 John-Mark Staude: Yeah, that’s it. Go ahead.
00:00:57 Brent Cook: Okay I think you know I mentioned earlier shared delusion and gave an example. You've been in business now what? 10 years and we're still looking at forty four million shares out six million in the bank and how many projects have you worked your way through?
00:01:10 John-Mark Staude: Yeah, we worked through over sixty projects.
00:01:15 Okay so sixty projects. You've had a shot at 60 potential discoveries and still you have not been diluted out of this company. When and if success comes you stand a chance of making good money. Really in my view, and you tell me, but winning in this game is a matter of persistence and staying alive and so far you've done that. When you're dealing with major companies I'm curious - what are you seeing now? They're coming to you I could assume looking for projects. What are they asking for? What do they want?
00:01:48 John-Mark Staude: They definitely want size. They want big projects. It's one of the things we focused on in Mexico is things that can be open pit. We look at things that are near the surface. The other thing they're looking for is ownership. We've cleaned up the ownership so River Site owns these projects. The third is they're looking for quality management quality data. That's what we focused on. I started working in 1987 in Mexico so with 30 years in Mexico and amazing databases that's what the majors look for.
00:02:14 We've been able to have five alliances where they have funded for three years straight a hundred percent with the major putting up all the money and Riverside putting the boots on the ground.
00:02:26 Brent Cook: Generally what is it that – I mean when you've lost a lot of partners what is it that turns them away? Is it because the property is just no good or what is it? Why do they try to walk away?
00:02:38 John-Mark Staude: Next Slide. The thing they first off is the reason – one of the things - they look for access to the projects. The reason they like to be there is Mexico is a mining friendly country. It's a major place that lots of mines have been developed. Right now they are five mines being developed right now into production. You can build a mine there. The majors like it. Secondly they like you can see in these two pictures the one on the left our Cecilia Project.
00:03:02 A big hill, not too many people, not really complicated, a good place to work or high grades on the right there from the underground of the Panioles Mine, long historic areas. What they really like are high-grade, big areas to work.
00:03:17 Verses – what does it cost say a major to do the same work that you're doing? Is there is there an advantage to using you in terms of costs as well?
00:03:28 Next slide please. The advantage for us in using cost is we've gathered all the historic work. We got all the historic data. This is the project I visited in 1987 and now we own it as Riverside. Look back to what you were doing 30 years ago and we've known that, so the majors can get these types of projects turnkey with Riverside guys, myself there with the geologists. These geologists worked with me for a decade. They're part of our family. In some cases their fathers worked with me. That's the type of continuity that you need and that's what the majors get because the majors come in and out.
00:04:03 Brent Cook: I know it's hard to get you excited but again I think you know cost-wise - can you do it more efficiently – is there an advantage to them using you rather than their own team?
00:04:17 John-Mark Staude: All day long. I don't ride in the front of the plane. We don't do any business class. Secondly, we would use local vehicles, local people. We don't add all that bureaucracy. The third is we work all the time. You guys are here on weekends. We work all the time. We're able to do it. The fourth is that we don't have to pay all those types of benefits and all those things because we have people tied to projects. We staff it ourselves. Those are key things that you can do to keep the costs much, much lower.
00:04:44 Brent Cook: What is your burn?
00:04:45 John-Mark Staude: Our burn rate has been for a decade less than a million dollars a year as Riverside for 10 years and from that you've been able to build a whole portfolio of Brent said 60 projects tested and a portfolio of 10 projects including two coming IPOs. The next slide. This is the type of thing you get - a burn rate that's actually converted into new companies. Riverside had an asset that going forward is the Silver Viper. You as investors could own shares in Riverside or you could invest in the new IPO. Riverside own shares in that. We own a royalty in that.
00:05:21 You could do that with Croesus and we've done this eight times in a decade. By owning shares in Riverside we have a very low burn rate and we convert that into ownership and other companies.
00:05:35 Brent Cook: I'll let you go.
00:05:36 John-Mark Staude: Well that's it. Really the exploration results- that's why we're all here is to have results and what we have is results from Riverside ourselves. We have a booth right outside with Raffy and our team here. We'd love to meet you. Secondly we have drilled results. Having the partners drill the projects where Riverside is operator is knowledge for us with the Sentara as a major company 100 percent funding. Riverside's excited to have the Glore Project.
00:06:03 It's an interesting project because it's the type of project that was in another company. It didn't get the attention - that company was Pediment Gold. Pediment was bought out by Argonaut, a great example. These companies get bought out or other projects in their portfolio were very interesting. It went over to Argonaut. It was not a key asset for Argonaut. Riverside now owns that. Now we have Sentara Gold fully funding it and please come- you can look at some drill cores and we'll have press releases on that. Those are the type of things we have going.
00:06:35 Brent Cook: So Cecilia I may be mistaken but I think you're actually going to put your own holes into this one. Is that correct? If so why? What's the tradeoff there?
00:06:47 John-Mark Staude: The tradeoff really is risk to reward. In this market people aren't giving Riverside much value. Our market cap is $20 million. We got 6 million cash. That's an enterprise value of $14 million. I've gone and looked at many different jurisdictions and many other areas. You can't get a better project. We'll have news in the next two weeks of the surface sampling to see if the surface sampling matches what was done historically by the Mexican government and by Cambior Mining Company.
00:07:15 Both of them doing projects. We have now been able to consolidate that district. The thing that makes difference is at the surface high grades and us checking that. If we're coming through with that that's a very low-risk play for Riverside.
00:07:28 Brent Cook: We're all sitting here, we get the news release. What do we need to see to tell us you were successful? What trench results et cetera? What are you looking for if we're going to go ahead with this?
00:07:44 John-Mark Staude: We're looking meters over grave. We're looking for 30 meters, 50 meters, half a gram to a gram gold. In this case also looking for silver and if we're seeing silver 30 meters, 100 meters then we're seeing bulk tonnage potential. We're doing this in trenching and underground workings. We're not looking just for veins. We're looking for something that can be big, robust. Those are the type of grades that are consistent with many of the mines in Sonora Mexico.
00:08:10 Brent Cook: I'm assuming this is it going to be oxidized? You're looking at oxide heap bleach deposit type thing. Is that correct?
00:08:19 John-Mark Staude: That's exactly right. Another thing to look for is are we doing metallurgical tests? Are we doing bottle role tests? Are we doing thin sections? Are we studying the mineralogy? Thus we bring the core here to our booth. People can see. The core out here is red, red as iron. Iron is rust as you were talking about. It's the oxidation. Those types of things are what we're looking for, heap leach.
00:08:42 Brent Cook: Okay so 0.6 grams over 50 meters we're happy?
00:08:45 John-Mark Staude: We're in the game. We're not happy. We're happy when it's 2 grams. What you're doing is you're seeing the type of mineralization that's consistent but what Brent has talked about is things that are game-changers. When we're finding 0.6 we're hoping there's better. When we start drilling there's 0.6 then we find partners. We've been able to do that three times where Riverside has drilled and every one of those has turned out to be a resource. Where Riverside is drilled we've drilled five holes. For those first five holes we've identified yes there's something here. Someone's able to move it ahead. It's not going to be for Riverside shareholders.
00:09:24 We'll pass on and look for better. That's the trust you can have in me as the CEO. We're committed to making the value. I'm a shareholder I've bought shares. I've never sold a share. I work 100 percent for this. I'm not a director in any other public company. I'm fully committed to Riverside. I hope you'll become shareholders with me. Please come out to the booth.
00:09:45 Brent Cook: Is there any more slides - last slides?
00:09:46 The last slide is just introductions and so really from the introduction is the hill there on the drill rig, having partners drill with us managing makes you a shareholder’s money. Having us do this 10 times over lots of projects is a good opportunity.
00:10:01 Brent Cook: Well thank you John-Mark that was very exciting.
00:10:06 John-Mark Staude: Thank you very much guys.
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