What’s Really Going On in Junior Mining? | Riverside Resources CEO Interview
Summary
Junior Mining Focus: The podcast discusses the junior mining sector, emphasizing the role of prospect generators and royalties, particularly through the lens of Riverside Resources.
Market Outlook: The current junior mining market is described as bullish, with significant capital flowing into financings, although early-stage exploration remains underfunded.
Riverside Resources: Riverside is highlighted for its stable stock performance and strategic spinout of Blue Jay, which provided shareholders with significant value.
Sector Capitalization: The discussion notes that large resource stories are attracting capital, while early-stage exploration and prospect generators face funding challenges.
Mergers and Acquisitions: There is an expectation of increased M&A activity, particularly in precious metals, as companies seek to consolidate and deploy capital efficiently.
Project Developments: Riverside's drilling activities in Sonora and the strategic plans for Blue Jay Gold's listing and exploration in the Yukon are key operational highlights.
Risks and Challenges: Potential risks include broader market downturns and sector-specific environmental or regulatory challenges, with a focus on maintaining project momentum.
Future Prospects: Riverside is focused on expanding its royalty portfolio and exploring opportunities in British Columbia, with an eye on unlocking further shareholder value through strategic transactions.
Transcript
Today on the CEO barbecue, we're talking junior mining and uh with a specific focus on prospect generators and royalties together with Riverside Resources. If you want a bullet point summary of this conversation and all the other CEO barbecues in your inbox once a week, go to resourcealks.com and subscribe to our free newsletter. Now, the company you're about to hear from has paid us for the production of this video, which means that this is not research. It's an advertisement, and you should treat it as such. Research is conducted by reading the company's official filings, which you can find on setterplus.ca. And please only watch this if you absolutely know what you're doing. This interview is intended only for experienced junior mining speculators because mineral exploration development and mining is a very tough business where failure is the norm and should be the expectation. This is going to be a conversation that is general and impersonal nature containing forwardlooking statements. I am not a licensed financial adviser and my business sells content producing services which also makes me biased in multiple ways. So, before continuing on, please talk to an independent investment advisor with a good long-term track record because your capital might be at risk. If you're not 100% sure you understand 100% of the disclaimers I just showed you, please go to the last section of this video and do not consume this content unless you fully understand and agree with everything said therein. That all said, Riverside is listed as RRI on the TSX Ventures Exchange, where over the last 3 months, the average volume has been about 76,000 shares. With a market cap of just over 12.5 million and 75 million shares outstanding, today this is a 17 cents stock with a 52- week high of 23 cents and a 52-we low of 12. The 50-day moving average is at 15.7 cents and the 200 day moving average is at 15 1.5 cents, which means the stock is now trading above both of them. No fancy long intro needed for Riverside though since John Mark's been on the channel many times over the last year. And I have collected all those interviews in one playlist which is going to be linked in the description of this video for your ease. Time for me to shut up already though and and John Mark let you do the talking here. But first of all, thank you for sitting down with me today. >> And Dion, thank you so much for having that playlist. It's really great and I have a lot of people that come and follow your your videos. So, it's great to be on the show again. >> I'm glad to hear that. And uh again, a pleasure is is all mine. Uh look, I know that you're here to talk about Riverside specifically, and we'll definitely get into some of the details, but uh when I looked at the stock price between last time we spoke and now, it's kind of been flat more or less uh while the underlying metals are doing well. So that got me thinking about the junior market as a whole because you've been through multiple of these cycles both as part of of of majors where you worked before and as part of of running Riverside for almost what two decades now. So from from where you sit today, what's going on? How would you describe the current situation in the junior market? Is this the beginning of an overall bull market? Is it a fluke? Is it a a bare market? What's going on? >> No, it's actually quite a bullish time, honestly. And I think what's happening is lots of financings and so I think a lot of capital is going to chase financings. I think financings are great and I think that we'll see I've been through this several times before where we'll come through in the fall here where people will be cashed up. You'll hear people saying, "I have enough money. I'll never have to finance again." Or that, "Hey, I've got all this capital and we're going to do it." And I've seen this movie and it's great. And uh then people start to spend that capital and then all of a sudden the market shifts over and it gets tough and then people lock down their treasury, sit on that capital as though they're sitting on a treasure chest and don't spend the capital again. But right now the capital will be flowing and there'll be a lot of drill results, a lot of exploration and I think that so money is going to those companies that are spending money, money is going towards those companies that are doing those financings with an expectation of great results. Exploration is a risky business and when results don't hit what the market expects be selling and then you'll see selling and people start to freak out. So the fact that you mentioned our share prices being fairly flat and stable for us during a summertime usually summer doldrums. We were pleased also the fact that our stock is trading more or less at the price where we were before we spun out Blue J. And we spun out Blue J at over 8 cents a share and now Blue J is doing the equivalent of close to 15 cents a share in its financing of Riverside Stock as an equivalency. you get a complete free company out of Riverside and that's a liquidity event and so it's just phenomenal because you're right when you look at our chart it looks boring or whatever but if you were a shareholder prior to May 15 you actually got an automatic double and that's pretty impressive and you got this spin out a double I mean that's amazing as a new company completely doubling the value and Riverside being stable through that you could talk about going X dividend and so what's happening in this market for us is fabulous as well because we have a double implied through the spin out and now people have sold or done whatever and now we found a stability and we didn't go way down back down. If you took if we were at 16 cents and if you took 8 cents out we would be trading at 8 cents. The fact that we're trading at 16 cents means that we gave the complete company for free but you're right when you look at our chart it doesn't really show that. It's kind of it's hard to see that. And I think the industry in general is up and those companies that are doing things for us doing a spin out for companies that are doing things, they're really getting treated in the market with great runs upward. It's really exciting times. >> I do want to know about the plans with Blue J and and the timeline of that listing and everything. So, we'll get to that for sure here, John Mark. you. It's funny you bring up financing is because, you know, we often hear, "Oh, juniors are starved for for capital, but I see big checks written basically daily. Snowline, $80 million bot deal, right, just recently." So, is the junior market starved for capital from your perspective? What does that look like? >> There's actually three things. One is those big resource stories that are getting all the capital whether it's Fireweed or Snowline or Vista Silver and you know and they're getting you know with a big resource with a big story. The bankers get behind it. They can bring an institution tied around a a resource. They're kind of beyond exploration now. They're actually resource development resource drill out. And so we talk about being starved. Exploration is starved. This is kind of not exploration. And this is following it up in terms of development. And so development is getting lots of money. So it's trickling down from producers to development resources. Then you get to solid explorers that have good targets that are doing things and and those are getting money as well. So they're getting it around a story, maybe a 5 million or a 10 million financing. But again, they you know, they definitely have already had some results and things like that. So it's not early stage exploration at all. There's very little interest or money for grassroots. There's very little men money for prospect generators. There's very little money in that respect. Generally, they want to see around drilling and drill results. And so then when you talk about starved Yeah. So the early stage feed the pipeline, what's going to be the next things that is starved. So definitely money for the big resource plays where you can put a lot of money into huge drill programs to try to expand the resource and keep growing and progressing the resource. That's where the money is going, I think. What do you think it's going to take for the sector as a whole to start outperforming and attracting capital though? And and and when I say outperforming, I really mean the underlying metals though because we as speculators, we're taking the risks of venture capital because of the potential or at least the promised outsized gains, right? Relative to the underlying metals. But again, sector as a whole has not really seen those outside of a couple of exceptions there. So what do you think it's going to take for the sector as a whole to start attracting capital and outperforming the metals? the sector of of of corporations to outperform the metals I think does still going to be that upper 20% or even the upper 40% not the entire group but those will bring up and do a lot and so I think that you find that quality teams quality companies and quality jurisdictions and quality projects are getting capital and and and move it ahead so the sector does have the capital and going in that direction and I think this fall as long as kind of the stability in the general market is there. The equities and the resources should really begin to move because they haven't moved compared with other things and other things are kind of leveling off and the metal prices are high. the metal producers are making money. And so for ourselves, we're preparing for our meetings in uh in Colorado and our meetings in in Switzerland with uh institutions and with with corporations who are looking for projects and looking for good assets that they can get into. So I think what what it takes is simply coming into the fall now, everything is teed up in a great position to do that. And with the metal prices high and people having made money during 2025, it really sets it up great for the final uh quarter quarter and a half into of 2025 into 2026. So I think that's what really does it is now time is there and good quality projects. >> This actually comes closer to your personal perspective, but you're mentioning the the producers here making money and and it's getting me thinking about JV and M&A appetite. Do do you get the feeling that majors are are holding off and waiting for what better valuations again as a group or is it all strictly dependent on on the asset in in question? Are we going to see an M&A frenzy or are we going to keep seeing sort of bite-sized takeovers where it's like specifically focused on one asset, that top 20% that you mentioned? >> Well, it's interesting. You know, in Mexico, we saw Torx now not not a major, but they bought out Raina Silver, now they've bought out Prime Mining. So we're actually seeing groups consolidating at different levels. We saw Equinox merge and take over Caliber put together with Caliber. So we are seeing these mergers happening actually honestly I think right now we're seeing people you know corporations taking on different transactions and doing it. Yeah, I think we'll see much more of that as we go into the fall when people kind of come back from whatever they're doing over the summer. I think we'll definitely see more of that. It's typical and people are making money and and they're they're getting good returns and so there is a lot of capital that needs to be deployed if you're sitting on that capital. The investors want to see what are you going to do with it. So I think yeah you'll we'll see transactions. I think we're beginning to see that and I think we'll continue particularly in the precious metals. I think we definitely see that and on silver I think we see different groups going for silver projects and and we saw Pan-Amean silver buy out mag silver for example and that was a really great step. So, we're definitely seeing a lot of transactions. Sorry to bring up so much about Mexico. It's just I follow Mexico closely and it's been so exciting to see that Mexican assets are being merged and transacted. People have seen, hey, things do work in Mexico and and hear these different groups are consolidating in Mexico. So, it's just kind of interesting. It's something that I watch closely, but in other jurisdictions as well. But I think we can get permits quickly and move ahead. That's really important for whoever you're acquiring is that the projects can move ahead in Valentine. It's great. You know, here it's moving ahead helps Equinox and it's really helped Equinox and Caliber to grow. So, seeing that in Canada also, >> I was going to say it almost it almost sounded like you might be a little bit bullish there on on Mexico, but also maybe a little bit biased too. Uh, what do you what do you think though is the is the biggest risk here for companies like like Riverside or just the juniors as a whole though, John Mark? Is it a full-blown back row crash or is it something more localized? What's uh what could bring the sector in danger? >> Yeah, I think both of those could. I would think last year we in the Yukon what happened with the Eagle project for Victoria really hit a region in terms of the environmental uh impact or we've also seen where in the past uh uh in in incorrect data or incorrect information has caused a a sector specific event. But I feel fear every day when I'm listening to the is the larger what happens in the global markets having gone through the global financial crisis and through other changes and so watching what happens in the broader markets because the broader markets will rain on all of us and affect all of us and and bring us down and so that's really you know when I've seen all a sudden you know things go no bid for the entire entire se entire uh stock market and equities in general that's really the danger I think at the industry specific It's enough of diversification that even if it's one thing, it won't necessarily hit everything. And I think the commodities are strongly supported. I think the commodities are are somewhat are not going to be necessarily hit as much. Uh you know, they they're up, but I think inflation is up. I think that interest rate pressures are being pushed down at the US level and and there's a lot of of additional debt going on that I think definitely the commodities are intrinsic value a store of value and I think that uh globally uh Asia, China, other places will want to have those resources as well and so if the equities get cheaper I think the assets could be acquired by other by other countries and other groups that do see the intrinsic value because these projects especially royalties have a great value. They're long-term. They're held and there's a super good value in that. And then in projects, you know, having a diversified portfolio gives you a really good uh holding and in commodities and commodities have a really good store of value. >> Well, talking about that diversified portfolio, that might actually be a good segue into talking about what you've been doing recently because you've uh spun out a new company in Blue J Gold. Again, we've covered the basics there before. We had Jordy on last time as well and we we'll I'll have him on for a full-blown interview sometime soon when you guys are listed. But I thought it should have been trading by now cuz it's uh middle of August right now. What's uh when is it going to be trading? What's uh what's going on there? >> Yeah, so it's it's we we did the share split and so that allowed Blue Jay to then move ahead and Blue Jay's added a very nice large gold resource in the Yukon. That's the Skookum project. It's white horse gold. It's what you tin corp is owned. And what blue jay has done is blue j is doing a financing to uh complete three parts. One is the listing which is fine. Secondly is an exploration program and third is paying the environmental liability to the yukon government to support to take over this asset from tin corp. So what's happening is summer and summertimes is not the best time to be raising money necessarily and talking to pe to people, but the team at Blue Jay is in the field right now up in the Yukon working there getting things together. And so here now in the fall, come September, we'll be able to do a financing. Once we close the financing, then we'll be able to find file the paperwork for listing. And so by the end of this year, early into next year, it'll be all listed and traded. Everything is good. It's a simple the process of doing it. So, it's a it's a reporting issuer, but it's not publicly traded yet. But we do have the trading symbol J A Y J and all the documents are all kind of lined up, but we just need to close this financing and then file for listing on the company of Blue J. >> Well, having just come back from the Yukon myself, I now know what Skookum means. is actually related to uh one of the first people uh who who found gold uh in and around Dawson in in um in Bonanza Creek in like 18 90 something uh the late 1800s. So uh that's an interesting point but so okay you to the topic of blue J here John Mark you're saying uh trading at the latest early next year is that right? >> Mhm. >> Yes. >> Okay. Is it looking like they're going to be drilling this year or doing any any any type of heavy lifting work or is it mostly just kind of trying to figure out that environmental liability thing listing and and uh and going public? Yeah. And all these things? >> Yeah. Working with the government on the uh environmental situation because after Eagle after what happened in Victoria Gold, remember Victoria Gold is over 600 kilometers to the north. You're in the Yukon. Yukon's a big pro big territory. is not a province, it's a territory far to the north and then we're all the way down south in down there near the British Columbia border, but working with the government to figure out, okay, if we put up money for the bond, how do we get back that money? Like, how do you how do you actually So, they they they and they haven't quite figured out some of these details. So, it's like, okay, you you you've you've opposed a new bond. The former bond was only $70,000 and now you've opposed a bond of $2 million. So how is that bonding work and what is this new and how do you do that? So before we pay the bond we want to make sure that we can figure out how we would recover that bond and work with that so it is a bond and not just a fee to the government or something but well what we have to do to clean up and and we're scheduling the cleanup and it's a former mine site. So, we actually have a former tails, a former mill, all the buildings, everything, which is a great asset to get and we're getting it for the cost of $600,000 Canadian dollars in two tranches that paid in equity of Blue J. So, that's a great deal. It has a resource of over 700,000 ounces of gold at over 7 g per ton gold. Super rich. Often we talk about resources of one or two grams. So this is a really sweet asset that you can drive to. This is no helicopter or anything like that. This is drive straight down from White Horse South and then on a dirt road right to the project site. This project site was mining in the past roads and trucks and all of that stuff. So it's a really nice site for Blue J to get. It really shifts Blue Jay from being just the Ontario very nice projects of Pette Cl and that area and oaks and having a very nice around Equinox gold but in fact now adds this other really great set of assets in the blue in the Skookum district there and that adds up and that's over 35 kilometers east west but 20 km north south huge area with many targets. So it it's a big project that Blue Jay's taking on. It takes the capital to do that. Lining up the capital, lining up the right shareholders into that and then listing. >> You're not So no drilling from from Blue Jay this year, then that's something for next year. >> I I don't Correct. That's what that was my I I I'm try to be conservative and realistic, not optimistic and and promise something that I'm not going to get done as you know. Well, as I've said before, we'll get Jordy on for proper CEO barbecue once they're trading and and and doing some more of that work. You are actually going to be drilling in Sonora with uh Quest Corp. Uh 1500 m over six holes average depth, 250 m testing the CRD potential of the system. But what is it that you want to see in the core there in Mexico? What would you consider success? >> So for we're looking for gold and base metals. We've know that there's been up to ounce gold on the surface and we know that there's been up to 10 and 15% zinc and and a high-grade silver and other elements. So looking for grade looking for intercepts of mineralization in the carbonate replacement and some of the quartz sites that have hit with gold as well. So we're looking for gold mineralization. It's shallow. The mining in the past is only down to 100 m vertical true depth. So, we're drilling interval holes that are 200 m holes at a 50° angle. So, they're hitting down at 140 150° right below the old workings to see where it would go. We've completed the first hole. We're now on to the second hole. I was going to put the backdrop picture today. I just got from the drilling and we'll have that up here uh uh going forward with the drilling. It's going very well. We are just making a new video as well about the drilling that's going on. I just spent last week out at site. loved being out there. It was great to be on the rocks. What I hope to see is carbonates, mineralization, quartzes with mineralization, oxides, and then going into sulfides that would be pyite that would be rated gold around it. And last length, looking for geochemical indicators, arsenic, and other elements that maybe are zoned around that would show we're vectoring into a nice deposit. the deposits to the north in Arizona, the things like the Taylor deposit where South 32 has spent over $200 million and it bought it out for $300 million and big big projects there with good potential and there's good systems and of course in the Canona district as well the Buenav Ventura mine and Buen a Vista mine and and definitely what we see that can group Mexico is done and cana are giant carbonate replacement systems. Carlos Slim with La Pazos as well with the company Monero Frisco as well having large carbonate replacement deposits. Carbonate replacement deposits are the some of the best uh precious and base metal deposits around and we're glad to have them in Mexico and at our project. You are going for economic mineralization in the core here though you're not looking for geological success like this is that you you want to see um economic intercepts already. No, this this first round we're testing one or two holes into a number of targets. We have five targets and we're only doing six holes. So right now we're simply getting a sense that we're into the system. We we're testing the concept. Are these carbonate replacements? Are there quartz site with gold mineralization? So, we'd like to see mineralization. We don't expect to see economic at this time. We're simply trying to see that are we into a system with these few holes. 1,500 m is the beginning. You really need about a 5,000 meter program. So, we're 1/3 into a real program that you need for discovery. And then you'd want to do a 10,000 meter program after that to really grow and try to see what's there with scale. So when you're doing a,500 meters, it's barely an appetizer. It's a it's a it's a drink in a in a in a in a few, you know, in a guacamole chips right now. So it's the start, but it's definitely not the main main event. It's just part of it. So that's what we're just trying to see is make sure that we're getting the right tastes to use that metaphor uh kind of to start off with here. And so we're, you know, it's giving us a good taste. to taste like a good margarita and some good chips and salsa. And we know we're waiting for the next next big uh trunch of capital. Quest Corp needs to spend 5.5 million. This is only the first million into the project to earn in interest. So this is just the start. This would be only 20% of the earn spending. So this is just the beginning in the program. >> Uh and there that's actually a good point on on the topic of how much they're spending. That's something that I wanted to bring up as well. Where would you place this project on a scale of uh importance to the Riverside story as a whole though? >> In the short term is it's important because it gives us our catalyst for discovery and success. So right now it'll be on the deck cover and it would have been the back here. So in the short term it's really exciting something we're doing. The reason the deck the picture behind me is British Columbia because in the medium term British Columbia right now we're acquiring projects. We're in the field this summer and I'm certain that by come uh spring we'll have results from our British Columbia work that'll be uh front and center and quite interesting for Riverside as Riverside has transitioned last year in Ontario and and then getting Blue Jay spun out and now British Columbia for 2026. But in the short term, the results that we see from this project and overall exploration on this is is a lead catalyst in the next three months for Riverside to have a really nice trajectory with the discovery if that happens. But as you said, this is kind of the beginning. And so I'm not counting on that. Just simply seeing mineralization and and testing these ideas and targets. The system is a past mine and so we're excited by the possibilities at Union. you are going to hold a 9.9% um ownership in Quest Corp if I understand correctly if it's approved of course and all that but what's the plan for that equity would you would you use it to um finance Riverside by selling it down the road or what are you planning on doing with it >> so right now we'll hold it because it gives us ownership into the project and it would convert as well we'll get another 5% in a year and then we'll get upon when they earn in we'll get another 5% owning 20 or 19.9% % overall. So, we haven't sold any, we're glad to be owners. And so, it allows the Riverside shareholders to get a free ride for Discovery as well. So, should it go up in value or something, that's great for with Discovery. And so, yeah, no, we're it's a way that we're participating. We love the project. We like the potential there. It's a very good project and doing this deal where we're operating and doing the exploration work. So, yeah. So, in the short term, we're holding that equity and glad to do that. Should the project no longer fit and should we no longer be working with Quest Corp as we've done in the past, then we'll have to see what we do with that equity at that time. But right now, we're glad to be owners in Quest Corp and and have it move ahead. And we're not looking this as a equity play. This is all about the asset and the potential to have a big discovery at the Union Project. >> When are you going to know if it works though? I mean, in terms of timeline, talk to me about assays. When do you want to have those out? >> So, right now we're doing the drilling. The drilling usually takes about two months to do and we we're now on to second hole progressing. Then it takes about a month or so to get the assays back. And so from now you could see 3 months. So if now we're here in in August, September, October, November would be a time frame to kind of see that uh you're getting results out potentially. Uh that'd be a good, you know, kind of a natural flow of uh of getting the results out. >> All the work is permitted though, locals, everybody happy. Nothing that could come in between that. I really look forward to having people go and look at the videos. I've the video is not yet launched, but it will be uh in, you know, in a number of days here and it'll be with the news release that we'll have coming out in early September. So, we've put together the video and you'll see there's no locals. It's just desert. The only locals out there are cactus and bushes. There's no people. It's great on private ranch. Secondly, you'll see the scale. It's a really big project, wide open. You'll see how small it is. These little drill sites we're doing are just just a beginning. I can't say the iceberg cuz it's over 100° Fahrenheit there. So, there wouldn't be any iceberg and it's pretty dry and hot, but just under the rock, you know, so if you don't have a scorpion under the rock there, you might find uh find some nice gold. So, it's a big scale. So, I think that yeah, we're we're definitely on the right track to find big things there. And we have all the permits. It's all working. We're drilling in the videos. Uh if you follow our social media, you'll see that we're putting on little clips of the work daily of what we're doing there. So, it's all going quite well and and and and progressing every day, 24/7 we're on we're we're progressing the drilling right now. >> How are the logistics in that part of Mexico? I mean, sourcing water, power, contractors, because you said there's no locals, etc. How's that been? >> So, I say no locals on the project, but in fact, we have a nice city to the north of us at Kaborca. It's great. We have a great relationships with people. There's good infrastructure. We have water on the branch and then we have water down the way. We're actually in an agricultural region, just not at the property, but we actually are in where they grow asparagus. And the asparagus that you get throughout most of uh much of North America comes from Kaborca region. It's kind of the uh the asparagus growing capital. And so there's a lot of agriculture that comes not from our property, but from the area. Local people are keen. There's big mines. Fresno operates the Aradura mine which has operated since the early 1990s is the largest gold mine in Mexico a large open pit gold mining and in that region in Fresno being the world's largest silver producer in the planet there a big mining company and also we have Groupo Mexico operating in Cananaa so there's a lot of activity near us paved highway to the north of us power lines actually a power station at Porto the Lobos just to the west of us on the sea of Cortez. So, there's lots of good infrastructure there. It's just right at sight. It's nice and and sufficiently remote that we don't have problems, but sufficiently close that you can build a mine very cheaply and efficiently. It's very flat, not tough topography or anything like that. Uh, it's really good place to work. >> It's also not you spending money on the project that is Quest Corp spending their own money. So, they're not spending your money. Uh, I think you have about 4 million in cash if I'm not mistaken. What is it that you're spending Riverside money on? >> We're spending our money on royalties and on British Columbia. So, we're looking at different royalties to grow our royalty portfolio with the transaction of Blue J that helped to beef out our royalty portfolio with royalties there plus the Capitan royalty where Capitan has now done very well. The stock has gone up quite a bit. I am the chairman there as well and all of the Riverside shareholders that have stuck in there have had a four or 5x gain on top of getting those shares for free. So those shares are been up over 90 cents Canadian and so that's great and and so that's good. So we have a royalty there plus the royalties that we have with Fresno at the Tahits project. So for us the royalties are good. So, where we're spending our money is in British Columbia and on looking at other potential near-term royalties that we could add to get more royalty cash flow and the ability to kind of build out the royalty business and the British Columbia and Mexico. So, we have the three prongs of Riverside, British Columbia, royalties and Mexico. And now we'll look at transactions during 2026 to unlock those. So, being a shareholder now is good. you get shares and you get a chance to have the participation in union and I think it's a good valuation where we are right now and then as we do that with the royalties you get just it's an amazing upside win plus British Columbia is a really good win and then also owning that Mexican portfolio. >> Have your plans for BC changed your expectations for needing to tap the market for capital though? Do you think you're going to have to raise money sometime soon for Riverside specifically? Right now, Riverside has over three and a half million in the bank. We're in a good position. We haven't had to do any substantial financings since prior to CO. We did a little financing in 2022 with the drilling at Oaks using a flowth through structure that we've now recovered with the Blue Jay transaction. So, Riverside's in a good position. And yeah, I don't think we'll go a full decade without financing or anything like that. That would be uh you know, we're not there and we're not trying to we're trying to make good growth and things like that. So no, I don't see us we need to tap the market. I do like the sense that you in Canada one can use a structure of government subsidy through the flow through doing that and if you do this as a charity flow through where you place it uh with existing shareholders then it's not simply going out to the market. It's a way to use the government support and that's good. So if we do substantial work in British Columbia it's the most wise thing to add capital. We don't need the capital. we have enough capital, but it makes sense to get the 40% premium in Canada when you're doing work in Canada. I don't see us doing that in the near term right here. I think we're able to work with where we are, but we are making nice progress at the Deer Park project and some other projects. So, I think that there's good chance and we'll look forward to seeing how we do with deals in British Columbia. I would also expect because of how flowth through works and giving you two calendar years to spend it. But so within within the two years, I would also expect you to do that early next year as opposed to late this year. Exactly. So people always tell me how bad I am and like you should do it. Why? Why are you waiting? But you're actually totally right. the flow through becomes available at the end of the year because people are doing their tax planning and so there's this real push and so people can more easily raise flow through at the end of a year but then you only have that shorter time to use it. So, Riverside has consistently raised it early in the following year and and the way we structure it is is where it's a charity where we're we're doing it with existing to ex to shareholders that we know or shareholders that want to be part of it. And you're correct doing it early in a calendar year gives you the two years. So, that's what we've done in the past. >> Worth the update on on the royalties portfolio as well. I think you just touched upon it there, but let's maybe uh take them one by one. So, Sugarloaf, last time I heard something about it was a while back. What's going on with Sugarloaf? >> Yeah. So, that's inside of Arizona Metals Corp. And Arizona Metals has been working at the K project, but also the Sugarloaf Peak has the really big resource. It's over 1.2 million ounces in a 43101 historic non-compliant resource that they've worked with. And that's only down to 60 m depth. So, it's very shallow, wide open at depth. So, we like that. And we like the potential as well below the gold. It's a gold I think on t cap of a of a copper system. So it's a very nice project and so that with Arizona Metals is a nice resource. It's a good location right along Interstate 10 in Arizona and western Arizona. You're over 100 kilometers from any golf course. So that's what I like. You know, no golfing, no people, you know, it's just it's a good place to have mining. And the southern boundary has a bombing range. That's even better. I like bombing ranges as your boundary cuz you know, no one's going to be there. It's just the US government. and they're not going to change the bombing range boundary. So, it's a good location kind of nestled in there, the Sugarloaf Peak. So, again, I'm always looking for places that make sense, places that should be a mine, places that if you find something or when you do find something, it makes a lot of sense to build it. Not that you're going to have to change and move and and and kind of fight with people, but places that are easy. And this is a very easy, great place there at Sugarloaf Peak. >> You don't like golf. What do you what do you like doing for fun? >> So, for me, I like bicycling. I'm really enjoying bicycling and hiking and hiking gets me in shape for being ready in the field. So, that's really good. And if you have to drive a long way from my project to golf, that's all the better because I don't want to have a golf course on my project. That's for sure. >> You're a PhD geologist. I thought all you guys did for fun was licking rocks. >> Oh, well, here I'll show you a book. See, I got my book right here. So, there you go. So, I got my economic geology book right there for me. So, there you go. What's uh what's going to be the next material piece of news though from um Arizona from Sugarloaf? >> I think the would be the activation of more work going on there by Arizona Metals and I think also Arizona Metals had toyed with the idea of putting it into a company called Sugarloaf Gold. I hope that'll happen. I think it should happen. I think that'd be great because the project is quite robust. It was the lead asset for what became copper bank. it was the lead asset that kind of moved on and now that's called Faraday Copper. It's a really good project with good copper as well as gold and I think that that project would be great. So a neat news release would be that they are going ahead and going to separate and do it or secondly that Arizona metals decides yeah we will actually move ahead on exploration and and progressing and it's very low risk. We know there's gold mineralization there. We know we have that there and we have some very nice geohysical targets as well. So I think it's a really great uh exploration project. It's something that we liked a lot. I myself was really excited when uh Johnny Kvachevich took it on with Choice Gold which became copper bank and and and worked on it and I think that it's got really neat potential. So news would be the announcement of progressing exploration moving forward with drilling. Western Arizona is a great place to work and we see lots of success and I think that things are happening in Arizona. Many different projects and so it really makes this project a good one there at Sugarloaf Peak. >> We'll keep going south from Arizona though and then we'll end up in Mexico for Neo and Titos. What's happening there? What are they doing right now? >> I'm looking forward to meeting them at Beaver Creek here in at the precious metals conference here in September and we get the updates from them. We were able to visit site which was great and it was really great to go and visit the location, be out there in the field, see all the core, see the active team, see the multiple drill rigs. Things have really been going well. They've been drilling with multiple different uh rigs on different targets and growing and we have a 2% net smelter royalty on the internal key claims and also on the very large area round for the brownfields upside. So for us, we're glad to see the project moving ahead. And I think a lot of it ties to the politics of Mexico. We hear that Mexico was saying, "Oh, it's okay for open pits. We will allow open pits. It's not such a big issue." And also, we hear Mexico saying, you know, we want you to work with community, work with the environment, work with the social. This is all on private ranch land. It's outside of Kaborca, very close to our union project. Very good support for mining in that area. So, I think all the green lights for moving ahead. So I think it's actually just a matter of Fresno deciding, okay, we think we can work with the current administration and push this ahead. >> Are they telling you anything about timelines though? You know, I I guess it is hard to to commit to a time to any type of timeline really given given that uncertainty that you just brought up, but yeah, what's what's a reasonable timeline on on moving that moving Titos forward? >> I think that it's important to look at what Fresno puts out in news releases and things like that. So, we're simply a royalty holder and so we can only talk about what's put out in news releases and Fresno doesn't put out a lot of news releases. We do get confidential information being a partner, but that's we cannot share. Uh, but what we can say is what they put out in news releases and what they put out in their annual reports and they've put it on their triangle of development near the top and they've put it on their triangle of development as one of the projects that they have moving ahead toward a toward a a future production scenario. So we don't have a timeline in in that they've formally said, but it's nice to see that the project has moved from being in the lower part of their pyramid towards the top of their pyramid in terms of some of the more significant projects that they're looking to develop and progress. And so that's that's a very good sign. >> Staying on the topic of Mexico, Capitan has been doing well as you mentioned 100 million market cap now and uh you have a royalty on their cruise plat project. Any any updates on that? any changes in the timeline or anything like that there? >> It's booming and I think it's actually got a lot of good growth to go and it's really awesome and I think that what's amazing there is that they're getting deals now with Fresno. They've announced that they're moving ahead on getting different deals done and consolidating making it a much bigger picture much bigger project. That's great and I think that's helping to make it good. Secondly is they're now able to go for the silver that they couldn't go for before because they didn't have the key ground and we have that ground coming right on ours on the H sus Maria vein system and on the uh other vein system coming as well. So so it's very good that we have a couple of vein systems and the gully fault zone that have very good silver and so now the silver is good. So very excited to have the silver as well as gold and I think that they'll uh come out maybe even with an updated resource including on our royalty ground the resource on the royalty ground. So for us that'll be another way to better appraise the value of that royalty. So it's exciting to see. >> When are they going to have some news out to market? What are they doing right now? >> So right now they're working and they're drilling. They've announced uh I think a 10,000 meter program and so that's progressing on the drilling and I think there'll be news coming out here in in the next few weeks uh ahead of the uh Beaver Creek uh precious metal summit and and getting deals done. So very exciting. They've been drilling and and progressing and so that's really good to see uh with Capiton Silver. >> I got to reach out to Alberto and and um schedule an interview with him as well on the back of the on the back of that drilling. That'll be interesting to see what they have going on. >> I think that'd be great to do. And he will be at Beaver Creek as well. >> Oh, that's good. Um, you also have some royalties in Ontario, four of them actually, if I'm not mistaken. Any they're earlier stage if I'm not mistaken too. What's going on there? >> Yeah, they're earlier stage. There's exploration. You know, I'm really excited by Blue Jay's Cl Pette project. I love it. It's great. And it was our lead project for Riverside. And so I'm delighted and it's a really exciting exploration play and I think that uh here we'll get listed with Blue Jay and then have drilling there uh in the spring will be great. The winter drilling program will be wonderful there. You can work there all year round and so I think that'll be really good for work there at Oaks as well as is at Duck and and that's good. And then over in the High Lake uh uh Greenstone belt over there in Canora as well we have royalty. So, it's nice to have that royalty portfolio and uh it's longer term but good quality projects and a good jurisdiction. So, it's really good for to back just be another start a strong part of a royalty portfolio. With the way the royalty landscape has been evolving here as a whole and and on top of what we've talked about previously about the market, has anyone approached you in in an effort to try and take those royalties off of your hands either as a whole or someone, you know, calling in for a specific asset where where because you said you want to be buying royalties, but are you being called about potentially selling some of the royalties you already have? >> Exactly. So if we can make our royalty portfolio that much more robust and do some work that even makes it more of a transactional value. So I think in the medium long-term 100% that's uh that makes a lot of sense of where to go. So right now if we can uh get some uh some additional cash flowing royalty into it, then it just really adds a cherry to the top of what's already a very good portfolio of royalties. And so yeah, so there's interest and uh and that's good. We don't need the capital right now. We're delighted to have that. And I think for the Riverside shareholders right now, buying Riverside right now, you get that royalty portfolio. And you could see that in the medium-term, some type of transaction would be a rerating on the royalty portfolio. It's pretty impressive. You know, we spun out Blue J and we're trading at the same valuation before and after the spinout. That's that's phenomenal. You know, that's really unlocking value and you got a complete double for free with no risk. And with the royalty, I could see that happening again or a triple or quadruple. So, I really am bullish on it and continue to buy more shares of Riverside and hold shares. And yeah, I think that that's a good step to go. And you're right. Yeah, there'd be a lot of interest in the royalty portfolio and royalties, they get better over time as the projects progress and they get closer to production. So should Fresno make a decision or an announcement or if Sugarloaf Peak if Arizona Metals makes an announcement or things like that that really just helps that portfolio be be that much more valuable. So yeah, I think there's interest and we are contacted. Yes. >> On the topic of of spinning out, why don't you spit out the royalty portfolio as well though? I mean, wouldn't it be more competitive if it could raise its own money and do its own deals and kind of operate it as its own company? also because I'm sorry for continuing on but I've got this been thinking about the royalty space and I think large periods of consolidation will come along. So, all those small royalty companies will have to get bought out because I think they're a big competitor to some of the big guys and and while they maybe don't really uh ruin any of the bigger deals, they're still in the market and maybe raising the prices of otherwise easily available royalties. And so, so I do think that there's going to be a period where a lot of consolidation happens in the royalty space. So, why don't you just spin it out and and kind of build its own value proposition there? So the people ask what's your producing royalty or what's your nearest producing royalty and so we're working on answering that question. >> Okay. Right. Uh that's uh I feel like there's not much you can tell me about uh about that there now. But >> no this that would make sense, right? So if we have that then it would be a complete rerating and so working on on you know answering the unanswered question and making sure then when the people ask we have that done. So it's good. And uh we have a major milestone with Fresno coming up in in a year. So in one year from now, Fresno has to decide what they're going to do with the royalty. And after that, it's game on. So we're kind of just sitting on it right now and working and adding value. and uh you know when we'll sit down uh next uh next November it'll be uh we'll see but there'll be a interesting uh situation with Fresno and you know and they they themselves also maybe will just see but we're in a good position on this and and you're right that uh it would make sense in the medium term to do that and so owning Riverside now you get the upside from the union drilling right now you get in a good position right now and there should be you know should move up from here quite well and we've consolidated from the spin out. So anyone that was waiting to see how low the shares would drop post spin out, post dividend, it happened. We trickled down to 13 and 14 cents a little bit and 15 cents, but we didn't go down that much. And now we have really strong strength. Uh and uh I think you know myself too, I'll start to continue to accumulate shares as I'm delighted to own more Riverside. >> Well, come to think of it, Capitan, you spun out in 2020, Blue J 2025. That's a 5year gap. Is that intentional or do you wanna Yeah, >> no, it's just the market. It's not so you know I'm trying to work on it right now and uh are if we can have things together by November December of this year such that we could then go to our AGM for a vote as we did last year in March and then we were able to have Blue Jay spun out as of May. So potentially we could do something, you know, and so every year I'm trying to figure out if I've got to do it. Got to have a good CEO. Need to have a lead person. Need to have a really good project. We have good projects in Riverside that can do that. We're working on updating our 43101 technical reports on a number of our projects so they're ready to go. And so if we can get the right CEO person that wants to do it, we could then have uh something happen much more quickly. So, no, I don't think uh uh 5 years is nothing magical and it doesn't uh we don't want to wait that long and right now we're we're unlocking the value to Riverside. So, it's a really good time to buy the stock. >> All right. Well, John, Mark, I know you're on the clock here a little bit, so I'm going to try and be respectful of your time. I I normally ask you, what keeps you up at 9 uh right now? What do you think is the biggest risk to the company specifically? Let me maybe turn that question around a little bit. What do you think is the most fair criticism that you've heard of the Riverside story recently? >> It's so boring that we're not doing enough, you know, and and and that we should be doing more and Riverside's not drilling enough. And I'm like, okay, you know, but we are D. So that's those are the criticisms I receive and I accept those criticisms. Boring isn't bad if we make you money. Secondly, if we're running a business, the business is doing and you know, we're not here to be excitement. We're here to make shareholder return. We've had a 90% gain when you look at the spinout of Blue J plus the Riverside escalation this last year, which is amazing and that's great. That's not boring. It's simply being a dividend receiving company and shareholder. And so I think, you know, we're not saying that we're going to do that all the time, but when we do that, and I think we're drilling, Riverside has drilled and Riverside has hit, we drilled in Ontario, we hit that we now dividended that to shareholders. We drilled in in Mexico at the Cruz de Plat project. It was at that time called the Capy Ton and Blue and Polises project, but the Cruz de Plat. And we've given that to shareholders. So, we've actually drilled and hit and turned it over to shareholders. So, I think our speed is a little slower in in value, but we actually don't crater as much and don't have to go back. We've had no roll backs. We've been going 18 years and only have 75 million shares out. So some one of the criticisms is you're not growing enough. You're not spending enough money. On the other hand, we're like, yeah, we're not diluting or cons, you know, having to go through bad things. So that's good. We're not sitting on our cash. We're using our cash. We're actively in the field. The photo behind me, a photo of our team out there all working in British Columbia. But those would be some criticisms and I think they're, you know, fine to say, and I think we have good reasons and explanations for what we're doing. And I think the proof is that we've been able to deliver good value and upside. Right now, we're drilling with with Quest Corp. And so, by owning shares in Riverside, you're getting the upside, as you said, the 9.9% in the in the company. But more importantly, Riverside still owns 100% of that project. If Quest Corp does not complete all the requirements of the option earning, they don't get anything. There's no intermediary step, and we'll have it 100%. So, it's a great time to own the upside for Discovery right now in Riverside. Well, I'm looking forward to having update conversations over time on these things. When do you think is the next time we're going to be speaking? When when are you going to have something interesting to see? >> Well, looking forward to seeing you there here at Beaver Creek and things like that. We may have some results from the drilling that we're doing. We'll see. And also then I think in definitely in October we will have made progress on the Mexico assets. We're really working hard on that. And so if we can have a Mexico transaction, that would be amazing. That's something we have on. And then in November maybe something about royalties. So we have three different catalysts coming. September would be some of the drilling. October would be stuff about Mexico. In November would be something about royalties. So we definitely have some good news and we love being with you on your show. >> Well, thank you so much for doing this. What do you think I'm forgetting to ask you? Anything else that you came here hoping to talk about that I failed to bring up? >> No, I think you did really well. I think it's we are working at British Columbia on gold and that's excellent. I think we will continue to add and rare earth elements. we will be progressing on that. We don't need to dive into that now. It's something that we're just kind of progressing quietly along as a generator and we really appreciate that you've brought up so many different things today. >> Thank you so much for your time today, John Mark. >> Thank you. >> And as always, thanks to everyone for watching Resource Talks. I have a couple of more things to say though. The fact that this company was interviewed here today does not mean that they're necessarily a good or a bad company. I'm not here to endorse nor attack anyone. I am simply here to ask some questions. If you find that I have failed in asking a question that you would have liked to hear an answer to, which will happen as I'm not an experienced interviewer, please let me know and I will try to correct that mistake in a future interview. As mentioned at the beginning, please understand that mineral exploration and development is an extremely risky business. Losing money is the norm and should be the expectation. 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What’s Really Going On in Junior Mining? | Riverside Resources CEO Interview
Summary
Transcript
Today on the CEO barbecue, we're talking junior mining and uh with a specific focus on prospect generators and royalties together with Riverside Resources. If you want a bullet point summary of this conversation and all the other CEO barbecues in your inbox once a week, go to resourcealks.com and subscribe to our free newsletter. Now, the company you're about to hear from has paid us for the production of this video, which means that this is not research. It's an advertisement, and you should treat it as such. Research is conducted by reading the company's official filings, which you can find on setterplus.ca. And please only watch this if you absolutely know what you're doing. This interview is intended only for experienced junior mining speculators because mineral exploration development and mining is a very tough business where failure is the norm and should be the expectation. This is going to be a conversation that is general and impersonal nature containing forwardlooking statements. I am not a licensed financial adviser and my business sells content producing services which also makes me biased in multiple ways. So, before continuing on, please talk to an independent investment advisor with a good long-term track record because your capital might be at risk. If you're not 100% sure you understand 100% of the disclaimers I just showed you, please go to the last section of this video and do not consume this content unless you fully understand and agree with everything said therein. That all said, Riverside is listed as RRI on the TSX Ventures Exchange, where over the last 3 months, the average volume has been about 76,000 shares. With a market cap of just over 12.5 million and 75 million shares outstanding, today this is a 17 cents stock with a 52- week high of 23 cents and a 52-we low of 12. The 50-day moving average is at 15.7 cents and the 200 day moving average is at 15 1.5 cents, which means the stock is now trading above both of them. No fancy long intro needed for Riverside though since John Mark's been on the channel many times over the last year. And I have collected all those interviews in one playlist which is going to be linked in the description of this video for your ease. Time for me to shut up already though and and John Mark let you do the talking here. But first of all, thank you for sitting down with me today. >> And Dion, thank you so much for having that playlist. It's really great and I have a lot of people that come and follow your your videos. So, it's great to be on the show again. >> I'm glad to hear that. And uh again, a pleasure is is all mine. Uh look, I know that you're here to talk about Riverside specifically, and we'll definitely get into some of the details, but uh when I looked at the stock price between last time we spoke and now, it's kind of been flat more or less uh while the underlying metals are doing well. So that got me thinking about the junior market as a whole because you've been through multiple of these cycles both as part of of of majors where you worked before and as part of of running Riverside for almost what two decades now. So from from where you sit today, what's going on? How would you describe the current situation in the junior market? Is this the beginning of an overall bull market? Is it a fluke? Is it a a bare market? What's going on? >> No, it's actually quite a bullish time, honestly. And I think what's happening is lots of financings and so I think a lot of capital is going to chase financings. I think financings are great and I think that we'll see I've been through this several times before where we'll come through in the fall here where people will be cashed up. You'll hear people saying, "I have enough money. I'll never have to finance again." Or that, "Hey, I've got all this capital and we're going to do it." And I've seen this movie and it's great. And uh then people start to spend that capital and then all of a sudden the market shifts over and it gets tough and then people lock down their treasury, sit on that capital as though they're sitting on a treasure chest and don't spend the capital again. But right now the capital will be flowing and there'll be a lot of drill results, a lot of exploration and I think that so money is going to those companies that are spending money, money is going towards those companies that are doing those financings with an expectation of great results. Exploration is a risky business and when results don't hit what the market expects be selling and then you'll see selling and people start to freak out. So the fact that you mentioned our share prices being fairly flat and stable for us during a summertime usually summer doldrums. We were pleased also the fact that our stock is trading more or less at the price where we were before we spun out Blue J. And we spun out Blue J at over 8 cents a share and now Blue J is doing the equivalent of close to 15 cents a share in its financing of Riverside Stock as an equivalency. you get a complete free company out of Riverside and that's a liquidity event and so it's just phenomenal because you're right when you look at our chart it looks boring or whatever but if you were a shareholder prior to May 15 you actually got an automatic double and that's pretty impressive and you got this spin out a double I mean that's amazing as a new company completely doubling the value and Riverside being stable through that you could talk about going X dividend and so what's happening in this market for us is fabulous as well because we have a double implied through the spin out and now people have sold or done whatever and now we found a stability and we didn't go way down back down. If you took if we were at 16 cents and if you took 8 cents out we would be trading at 8 cents. The fact that we're trading at 16 cents means that we gave the complete company for free but you're right when you look at our chart it doesn't really show that. It's kind of it's hard to see that. And I think the industry in general is up and those companies that are doing things for us doing a spin out for companies that are doing things, they're really getting treated in the market with great runs upward. It's really exciting times. >> I do want to know about the plans with Blue J and and the timeline of that listing and everything. So, we'll get to that for sure here, John Mark. you. It's funny you bring up financing is because, you know, we often hear, "Oh, juniors are starved for for capital, but I see big checks written basically daily. Snowline, $80 million bot deal, right, just recently." So, is the junior market starved for capital from your perspective? What does that look like? >> There's actually three things. One is those big resource stories that are getting all the capital whether it's Fireweed or Snowline or Vista Silver and you know and they're getting you know with a big resource with a big story. The bankers get behind it. They can bring an institution tied around a a resource. They're kind of beyond exploration now. They're actually resource development resource drill out. And so we talk about being starved. Exploration is starved. This is kind of not exploration. And this is following it up in terms of development. And so development is getting lots of money. So it's trickling down from producers to development resources. Then you get to solid explorers that have good targets that are doing things and and those are getting money as well. So they're getting it around a story, maybe a 5 million or a 10 million financing. But again, they you know, they definitely have already had some results and things like that. So it's not early stage exploration at all. There's very little interest or money for grassroots. There's very little men money for prospect generators. There's very little money in that respect. Generally, they want to see around drilling and drill results. And so then when you talk about starved Yeah. So the early stage feed the pipeline, what's going to be the next things that is starved. So definitely money for the big resource plays where you can put a lot of money into huge drill programs to try to expand the resource and keep growing and progressing the resource. That's where the money is going, I think. What do you think it's going to take for the sector as a whole to start outperforming and attracting capital though? And and and when I say outperforming, I really mean the underlying metals though because we as speculators, we're taking the risks of venture capital because of the potential or at least the promised outsized gains, right? Relative to the underlying metals. But again, sector as a whole has not really seen those outside of a couple of exceptions there. So what do you think it's going to take for the sector as a whole to start attracting capital and outperforming the metals? the sector of of of corporations to outperform the metals I think does still going to be that upper 20% or even the upper 40% not the entire group but those will bring up and do a lot and so I think that you find that quality teams quality companies and quality jurisdictions and quality projects are getting capital and and and move it ahead so the sector does have the capital and going in that direction and I think this fall as long as kind of the stability in the general market is there. The equities and the resources should really begin to move because they haven't moved compared with other things and other things are kind of leveling off and the metal prices are high. the metal producers are making money. And so for ourselves, we're preparing for our meetings in uh in Colorado and our meetings in in Switzerland with uh institutions and with with corporations who are looking for projects and looking for good assets that they can get into. So I think what what it takes is simply coming into the fall now, everything is teed up in a great position to do that. And with the metal prices high and people having made money during 2025, it really sets it up great for the final uh quarter quarter and a half into of 2025 into 2026. So I think that's what really does it is now time is there and good quality projects. >> This actually comes closer to your personal perspective, but you're mentioning the the producers here making money and and it's getting me thinking about JV and M&A appetite. Do do you get the feeling that majors are are holding off and waiting for what better valuations again as a group or is it all strictly dependent on on the asset in in question? Are we going to see an M&A frenzy or are we going to keep seeing sort of bite-sized takeovers where it's like specifically focused on one asset, that top 20% that you mentioned? >> Well, it's interesting. You know, in Mexico, we saw Torx now not not a major, but they bought out Raina Silver, now they've bought out Prime Mining. So we're actually seeing groups consolidating at different levels. We saw Equinox merge and take over Caliber put together with Caliber. So we are seeing these mergers happening actually honestly I think right now we're seeing people you know corporations taking on different transactions and doing it. Yeah, I think we'll see much more of that as we go into the fall when people kind of come back from whatever they're doing over the summer. I think we'll definitely see more of that. It's typical and people are making money and and they're they're getting good returns and so there is a lot of capital that needs to be deployed if you're sitting on that capital. The investors want to see what are you going to do with it. So I think yeah you'll we'll see transactions. I think we're beginning to see that and I think we'll continue particularly in the precious metals. I think we definitely see that and on silver I think we see different groups going for silver projects and and we saw Pan-Amean silver buy out mag silver for example and that was a really great step. So, we're definitely seeing a lot of transactions. Sorry to bring up so much about Mexico. It's just I follow Mexico closely and it's been so exciting to see that Mexican assets are being merged and transacted. People have seen, hey, things do work in Mexico and and hear these different groups are consolidating in Mexico. So, it's just kind of interesting. It's something that I watch closely, but in other jurisdictions as well. But I think we can get permits quickly and move ahead. That's really important for whoever you're acquiring is that the projects can move ahead in Valentine. It's great. You know, here it's moving ahead helps Equinox and it's really helped Equinox and Caliber to grow. So, seeing that in Canada also, >> I was going to say it almost it almost sounded like you might be a little bit bullish there on on Mexico, but also maybe a little bit biased too. Uh, what do you what do you think though is the is the biggest risk here for companies like like Riverside or just the juniors as a whole though, John Mark? Is it a full-blown back row crash or is it something more localized? What's uh what could bring the sector in danger? >> Yeah, I think both of those could. I would think last year we in the Yukon what happened with the Eagle project for Victoria really hit a region in terms of the environmental uh impact or we've also seen where in the past uh uh in in incorrect data or incorrect information has caused a a sector specific event. But I feel fear every day when I'm listening to the is the larger what happens in the global markets having gone through the global financial crisis and through other changes and so watching what happens in the broader markets because the broader markets will rain on all of us and affect all of us and and bring us down and so that's really you know when I've seen all a sudden you know things go no bid for the entire entire se entire uh stock market and equities in general that's really the danger I think at the industry specific It's enough of diversification that even if it's one thing, it won't necessarily hit everything. And I think the commodities are strongly supported. I think the commodities are are somewhat are not going to be necessarily hit as much. Uh you know, they they're up, but I think inflation is up. I think that interest rate pressures are being pushed down at the US level and and there's a lot of of additional debt going on that I think definitely the commodities are intrinsic value a store of value and I think that uh globally uh Asia, China, other places will want to have those resources as well and so if the equities get cheaper I think the assets could be acquired by other by other countries and other groups that do see the intrinsic value because these projects especially royalties have a great value. They're long-term. They're held and there's a super good value in that. And then in projects, you know, having a diversified portfolio gives you a really good uh holding and in commodities and commodities have a really good store of value. >> Well, talking about that diversified portfolio, that might actually be a good segue into talking about what you've been doing recently because you've uh spun out a new company in Blue J Gold. Again, we've covered the basics there before. We had Jordy on last time as well and we we'll I'll have him on for a full-blown interview sometime soon when you guys are listed. But I thought it should have been trading by now cuz it's uh middle of August right now. What's uh when is it going to be trading? What's uh what's going on there? >> Yeah, so it's it's we we did the share split and so that allowed Blue Jay to then move ahead and Blue Jay's added a very nice large gold resource in the Yukon. That's the Skookum project. It's white horse gold. It's what you tin corp is owned. And what blue jay has done is blue j is doing a financing to uh complete three parts. One is the listing which is fine. Secondly is an exploration program and third is paying the environmental liability to the yukon government to support to take over this asset from tin corp. So what's happening is summer and summertimes is not the best time to be raising money necessarily and talking to pe to people, but the team at Blue Jay is in the field right now up in the Yukon working there getting things together. And so here now in the fall, come September, we'll be able to do a financing. Once we close the financing, then we'll be able to find file the paperwork for listing. And so by the end of this year, early into next year, it'll be all listed and traded. Everything is good. It's a simple the process of doing it. So, it's a it's a reporting issuer, but it's not publicly traded yet. But we do have the trading symbol J A Y J and all the documents are all kind of lined up, but we just need to close this financing and then file for listing on the company of Blue J. >> Well, having just come back from the Yukon myself, I now know what Skookum means. is actually related to uh one of the first people uh who who found gold uh in and around Dawson in in um in Bonanza Creek in like 18 90 something uh the late 1800s. So uh that's an interesting point but so okay you to the topic of blue J here John Mark you're saying uh trading at the latest early next year is that right? >> Mhm. >> Yes. >> Okay. Is it looking like they're going to be drilling this year or doing any any any type of heavy lifting work or is it mostly just kind of trying to figure out that environmental liability thing listing and and uh and going public? Yeah. And all these things? >> Yeah. Working with the government on the uh environmental situation because after Eagle after what happened in Victoria Gold, remember Victoria Gold is over 600 kilometers to the north. You're in the Yukon. Yukon's a big pro big territory. is not a province, it's a territory far to the north and then we're all the way down south in down there near the British Columbia border, but working with the government to figure out, okay, if we put up money for the bond, how do we get back that money? Like, how do you how do you actually So, they they they and they haven't quite figured out some of these details. So, it's like, okay, you you you've you've opposed a new bond. The former bond was only $70,000 and now you've opposed a bond of $2 million. So how is that bonding work and what is this new and how do you do that? So before we pay the bond we want to make sure that we can figure out how we would recover that bond and work with that so it is a bond and not just a fee to the government or something but well what we have to do to clean up and and we're scheduling the cleanup and it's a former mine site. So, we actually have a former tails, a former mill, all the buildings, everything, which is a great asset to get and we're getting it for the cost of $600,000 Canadian dollars in two tranches that paid in equity of Blue J. So, that's a great deal. It has a resource of over 700,000 ounces of gold at over 7 g per ton gold. Super rich. Often we talk about resources of one or two grams. So this is a really sweet asset that you can drive to. This is no helicopter or anything like that. This is drive straight down from White Horse South and then on a dirt road right to the project site. This project site was mining in the past roads and trucks and all of that stuff. So it's a really nice site for Blue J to get. It really shifts Blue Jay from being just the Ontario very nice projects of Pette Cl and that area and oaks and having a very nice around Equinox gold but in fact now adds this other really great set of assets in the blue in the Skookum district there and that adds up and that's over 35 kilometers east west but 20 km north south huge area with many targets. So it it's a big project that Blue Jay's taking on. It takes the capital to do that. Lining up the capital, lining up the right shareholders into that and then listing. >> You're not So no drilling from from Blue Jay this year, then that's something for next year. >> I I don't Correct. That's what that was my I I I'm try to be conservative and realistic, not optimistic and and promise something that I'm not going to get done as you know. Well, as I've said before, we'll get Jordy on for proper CEO barbecue once they're trading and and and doing some more of that work. You are actually going to be drilling in Sonora with uh Quest Corp. Uh 1500 m over six holes average depth, 250 m testing the CRD potential of the system. But what is it that you want to see in the core there in Mexico? What would you consider success? >> So for we're looking for gold and base metals. We've know that there's been up to ounce gold on the surface and we know that there's been up to 10 and 15% zinc and and a high-grade silver and other elements. So looking for grade looking for intercepts of mineralization in the carbonate replacement and some of the quartz sites that have hit with gold as well. So we're looking for gold mineralization. It's shallow. The mining in the past is only down to 100 m vertical true depth. So, we're drilling interval holes that are 200 m holes at a 50° angle. So, they're hitting down at 140 150° right below the old workings to see where it would go. We've completed the first hole. We're now on to the second hole. I was going to put the backdrop picture today. I just got from the drilling and we'll have that up here uh uh going forward with the drilling. It's going very well. We are just making a new video as well about the drilling that's going on. I just spent last week out at site. loved being out there. It was great to be on the rocks. What I hope to see is carbonates, mineralization, quartzes with mineralization, oxides, and then going into sulfides that would be pyite that would be rated gold around it. And last length, looking for geochemical indicators, arsenic, and other elements that maybe are zoned around that would show we're vectoring into a nice deposit. the deposits to the north in Arizona, the things like the Taylor deposit where South 32 has spent over $200 million and it bought it out for $300 million and big big projects there with good potential and there's good systems and of course in the Canona district as well the Buenav Ventura mine and Buen a Vista mine and and definitely what we see that can group Mexico is done and cana are giant carbonate replacement systems. Carlos Slim with La Pazos as well with the company Monero Frisco as well having large carbonate replacement deposits. Carbonate replacement deposits are the some of the best uh precious and base metal deposits around and we're glad to have them in Mexico and at our project. You are going for economic mineralization in the core here though you're not looking for geological success like this is that you you want to see um economic intercepts already. No, this this first round we're testing one or two holes into a number of targets. We have five targets and we're only doing six holes. So right now we're simply getting a sense that we're into the system. We we're testing the concept. Are these carbonate replacements? Are there quartz site with gold mineralization? So, we'd like to see mineralization. We don't expect to see economic at this time. We're simply trying to see that are we into a system with these few holes. 1,500 m is the beginning. You really need about a 5,000 meter program. So, we're 1/3 into a real program that you need for discovery. And then you'd want to do a 10,000 meter program after that to really grow and try to see what's there with scale. So when you're doing a,500 meters, it's barely an appetizer. It's a it's a it's a drink in a in a in a in a few, you know, in a guacamole chips right now. So it's the start, but it's definitely not the main main event. It's just part of it. So that's what we're just trying to see is make sure that we're getting the right tastes to use that metaphor uh kind of to start off with here. And so we're, you know, it's giving us a good taste. to taste like a good margarita and some good chips and salsa. And we know we're waiting for the next next big uh trunch of capital. Quest Corp needs to spend 5.5 million. This is only the first million into the project to earn in interest. So this is just the start. This would be only 20% of the earn spending. So this is just the beginning in the program. >> Uh and there that's actually a good point on on the topic of how much they're spending. That's something that I wanted to bring up as well. Where would you place this project on a scale of uh importance to the Riverside story as a whole though? >> In the short term is it's important because it gives us our catalyst for discovery and success. So right now it'll be on the deck cover and it would have been the back here. So in the short term it's really exciting something we're doing. The reason the deck the picture behind me is British Columbia because in the medium term British Columbia right now we're acquiring projects. We're in the field this summer and I'm certain that by come uh spring we'll have results from our British Columbia work that'll be uh front and center and quite interesting for Riverside as Riverside has transitioned last year in Ontario and and then getting Blue Jay spun out and now British Columbia for 2026. But in the short term, the results that we see from this project and overall exploration on this is is a lead catalyst in the next three months for Riverside to have a really nice trajectory with the discovery if that happens. But as you said, this is kind of the beginning. And so I'm not counting on that. Just simply seeing mineralization and and testing these ideas and targets. The system is a past mine and so we're excited by the possibilities at Union. you are going to hold a 9.9% um ownership in Quest Corp if I understand correctly if it's approved of course and all that but what's the plan for that equity would you would you use it to um finance Riverside by selling it down the road or what are you planning on doing with it >> so right now we'll hold it because it gives us ownership into the project and it would convert as well we'll get another 5% in a year and then we'll get upon when they earn in we'll get another 5% owning 20 or 19.9% % overall. So, we haven't sold any, we're glad to be owners. And so, it allows the Riverside shareholders to get a free ride for Discovery as well. So, should it go up in value or something, that's great for with Discovery. And so, yeah, no, we're it's a way that we're participating. We love the project. We like the potential there. It's a very good project and doing this deal where we're operating and doing the exploration work. So, yeah. So, in the short term, we're holding that equity and glad to do that. Should the project no longer fit and should we no longer be working with Quest Corp as we've done in the past, then we'll have to see what we do with that equity at that time. But right now, we're glad to be owners in Quest Corp and and have it move ahead. And we're not looking this as a equity play. This is all about the asset and the potential to have a big discovery at the Union Project. >> When are you going to know if it works though? I mean, in terms of timeline, talk to me about assays. When do you want to have those out? >> So, right now we're doing the drilling. The drilling usually takes about two months to do and we we're now on to second hole progressing. Then it takes about a month or so to get the assays back. And so from now you could see 3 months. So if now we're here in in August, September, October, November would be a time frame to kind of see that uh you're getting results out potentially. Uh that'd be a good, you know, kind of a natural flow of uh of getting the results out. >> All the work is permitted though, locals, everybody happy. Nothing that could come in between that. I really look forward to having people go and look at the videos. I've the video is not yet launched, but it will be uh in, you know, in a number of days here and it'll be with the news release that we'll have coming out in early September. So, we've put together the video and you'll see there's no locals. It's just desert. The only locals out there are cactus and bushes. There's no people. It's great on private ranch. Secondly, you'll see the scale. It's a really big project, wide open. You'll see how small it is. These little drill sites we're doing are just just a beginning. I can't say the iceberg cuz it's over 100° Fahrenheit there. So, there wouldn't be any iceberg and it's pretty dry and hot, but just under the rock, you know, so if you don't have a scorpion under the rock there, you might find uh find some nice gold. So, it's a big scale. So, I think that yeah, we're we're definitely on the right track to find big things there. And we have all the permits. It's all working. We're drilling in the videos. Uh if you follow our social media, you'll see that we're putting on little clips of the work daily of what we're doing there. So, it's all going quite well and and and and progressing every day, 24/7 we're on we're we're progressing the drilling right now. >> How are the logistics in that part of Mexico? I mean, sourcing water, power, contractors, because you said there's no locals, etc. How's that been? >> So, I say no locals on the project, but in fact, we have a nice city to the north of us at Kaborca. It's great. We have a great relationships with people. There's good infrastructure. We have water on the branch and then we have water down the way. We're actually in an agricultural region, just not at the property, but we actually are in where they grow asparagus. And the asparagus that you get throughout most of uh much of North America comes from Kaborca region. It's kind of the uh the asparagus growing capital. And so there's a lot of agriculture that comes not from our property, but from the area. Local people are keen. There's big mines. Fresno operates the Aradura mine which has operated since the early 1990s is the largest gold mine in Mexico a large open pit gold mining and in that region in Fresno being the world's largest silver producer in the planet there a big mining company and also we have Groupo Mexico operating in Cananaa so there's a lot of activity near us paved highway to the north of us power lines actually a power station at Porto the Lobos just to the west of us on the sea of Cortez. So, there's lots of good infrastructure there. It's just right at sight. It's nice and and sufficiently remote that we don't have problems, but sufficiently close that you can build a mine very cheaply and efficiently. It's very flat, not tough topography or anything like that. Uh, it's really good place to work. >> It's also not you spending money on the project that is Quest Corp spending their own money. So, they're not spending your money. Uh, I think you have about 4 million in cash if I'm not mistaken. What is it that you're spending Riverside money on? >> We're spending our money on royalties and on British Columbia. So, we're looking at different royalties to grow our royalty portfolio with the transaction of Blue J that helped to beef out our royalty portfolio with royalties there plus the Capitan royalty where Capitan has now done very well. The stock has gone up quite a bit. I am the chairman there as well and all of the Riverside shareholders that have stuck in there have had a four or 5x gain on top of getting those shares for free. So those shares are been up over 90 cents Canadian and so that's great and and so that's good. So we have a royalty there plus the royalties that we have with Fresno at the Tahits project. So for us the royalties are good. So, where we're spending our money is in British Columbia and on looking at other potential near-term royalties that we could add to get more royalty cash flow and the ability to kind of build out the royalty business and the British Columbia and Mexico. So, we have the three prongs of Riverside, British Columbia, royalties and Mexico. And now we'll look at transactions during 2026 to unlock those. So, being a shareholder now is good. you get shares and you get a chance to have the participation in union and I think it's a good valuation where we are right now and then as we do that with the royalties you get just it's an amazing upside win plus British Columbia is a really good win and then also owning that Mexican portfolio. >> Have your plans for BC changed your expectations for needing to tap the market for capital though? Do you think you're going to have to raise money sometime soon for Riverside specifically? Right now, Riverside has over three and a half million in the bank. We're in a good position. We haven't had to do any substantial financings since prior to CO. We did a little financing in 2022 with the drilling at Oaks using a flowth through structure that we've now recovered with the Blue Jay transaction. So, Riverside's in a good position. And yeah, I don't think we'll go a full decade without financing or anything like that. That would be uh you know, we're not there and we're not trying to we're trying to make good growth and things like that. So no, I don't see us we need to tap the market. I do like the sense that you in Canada one can use a structure of government subsidy through the flow through doing that and if you do this as a charity flow through where you place it uh with existing shareholders then it's not simply going out to the market. It's a way to use the government support and that's good. So if we do substantial work in British Columbia it's the most wise thing to add capital. We don't need the capital. we have enough capital, but it makes sense to get the 40% premium in Canada when you're doing work in Canada. I don't see us doing that in the near term right here. I think we're able to work with where we are, but we are making nice progress at the Deer Park project and some other projects. So, I think that there's good chance and we'll look forward to seeing how we do with deals in British Columbia. I would also expect because of how flowth through works and giving you two calendar years to spend it. But so within within the two years, I would also expect you to do that early next year as opposed to late this year. Exactly. So people always tell me how bad I am and like you should do it. Why? Why are you waiting? But you're actually totally right. the flow through becomes available at the end of the year because people are doing their tax planning and so there's this real push and so people can more easily raise flow through at the end of a year but then you only have that shorter time to use it. So, Riverside has consistently raised it early in the following year and and the way we structure it is is where it's a charity where we're we're doing it with existing to ex to shareholders that we know or shareholders that want to be part of it. And you're correct doing it early in a calendar year gives you the two years. So, that's what we've done in the past. >> Worth the update on on the royalties portfolio as well. I think you just touched upon it there, but let's maybe uh take them one by one. So, Sugarloaf, last time I heard something about it was a while back. What's going on with Sugarloaf? >> Yeah. So, that's inside of Arizona Metals Corp. And Arizona Metals has been working at the K project, but also the Sugarloaf Peak has the really big resource. It's over 1.2 million ounces in a 43101 historic non-compliant resource that they've worked with. And that's only down to 60 m depth. So, it's very shallow, wide open at depth. So, we like that. And we like the potential as well below the gold. It's a gold I think on t cap of a of a copper system. So it's a very nice project and so that with Arizona Metals is a nice resource. It's a good location right along Interstate 10 in Arizona and western Arizona. You're over 100 kilometers from any golf course. So that's what I like. You know, no golfing, no people, you know, it's just it's a good place to have mining. And the southern boundary has a bombing range. That's even better. I like bombing ranges as your boundary cuz you know, no one's going to be there. It's just the US government. and they're not going to change the bombing range boundary. So, it's a good location kind of nestled in there, the Sugarloaf Peak. So, again, I'm always looking for places that make sense, places that should be a mine, places that if you find something or when you do find something, it makes a lot of sense to build it. Not that you're going to have to change and move and and and kind of fight with people, but places that are easy. And this is a very easy, great place there at Sugarloaf Peak. >> You don't like golf. What do you what do you like doing for fun? >> So, for me, I like bicycling. I'm really enjoying bicycling and hiking and hiking gets me in shape for being ready in the field. So, that's really good. And if you have to drive a long way from my project to golf, that's all the better because I don't want to have a golf course on my project. That's for sure. >> You're a PhD geologist. I thought all you guys did for fun was licking rocks. >> Oh, well, here I'll show you a book. See, I got my book right here. So, there you go. So, I got my economic geology book right there for me. So, there you go. What's uh what's going to be the next material piece of news though from um Arizona from Sugarloaf? >> I think the would be the activation of more work going on there by Arizona Metals and I think also Arizona Metals had toyed with the idea of putting it into a company called Sugarloaf Gold. I hope that'll happen. I think it should happen. I think that'd be great because the project is quite robust. It was the lead asset for what became copper bank. it was the lead asset that kind of moved on and now that's called Faraday Copper. It's a really good project with good copper as well as gold and I think that that project would be great. So a neat news release would be that they are going ahead and going to separate and do it or secondly that Arizona metals decides yeah we will actually move ahead on exploration and and progressing and it's very low risk. We know there's gold mineralization there. We know we have that there and we have some very nice geohysical targets as well. So I think it's a really great uh exploration project. It's something that we liked a lot. I myself was really excited when uh Johnny Kvachevich took it on with Choice Gold which became copper bank and and and worked on it and I think that it's got really neat potential. So news would be the announcement of progressing exploration moving forward with drilling. Western Arizona is a great place to work and we see lots of success and I think that things are happening in Arizona. Many different projects and so it really makes this project a good one there at Sugarloaf Peak. >> We'll keep going south from Arizona though and then we'll end up in Mexico for Neo and Titos. What's happening there? What are they doing right now? >> I'm looking forward to meeting them at Beaver Creek here in at the precious metals conference here in September and we get the updates from them. We were able to visit site which was great and it was really great to go and visit the location, be out there in the field, see all the core, see the active team, see the multiple drill rigs. Things have really been going well. They've been drilling with multiple different uh rigs on different targets and growing and we have a 2% net smelter royalty on the internal key claims and also on the very large area round for the brownfields upside. So for us, we're glad to see the project moving ahead. And I think a lot of it ties to the politics of Mexico. We hear that Mexico was saying, "Oh, it's okay for open pits. We will allow open pits. It's not such a big issue." And also, we hear Mexico saying, you know, we want you to work with community, work with the environment, work with the social. This is all on private ranch land. It's outside of Kaborca, very close to our union project. Very good support for mining in that area. So, I think all the green lights for moving ahead. So I think it's actually just a matter of Fresno deciding, okay, we think we can work with the current administration and push this ahead. >> Are they telling you anything about timelines though? You know, I I guess it is hard to to commit to a time to any type of timeline really given given that uncertainty that you just brought up, but yeah, what's what's a reasonable timeline on on moving that moving Titos forward? >> I think that it's important to look at what Fresno puts out in news releases and things like that. So, we're simply a royalty holder and so we can only talk about what's put out in news releases and Fresno doesn't put out a lot of news releases. We do get confidential information being a partner, but that's we cannot share. Uh, but what we can say is what they put out in news releases and what they put out in their annual reports and they've put it on their triangle of development near the top and they've put it on their triangle of development as one of the projects that they have moving ahead toward a toward a a future production scenario. So we don't have a timeline in in that they've formally said, but it's nice to see that the project has moved from being in the lower part of their pyramid towards the top of their pyramid in terms of some of the more significant projects that they're looking to develop and progress. And so that's that's a very good sign. >> Staying on the topic of Mexico, Capitan has been doing well as you mentioned 100 million market cap now and uh you have a royalty on their cruise plat project. Any any updates on that? any changes in the timeline or anything like that there? >> It's booming and I think it's actually got a lot of good growth to go and it's really awesome and I think that what's amazing there is that they're getting deals now with Fresno. They've announced that they're moving ahead on getting different deals done and consolidating making it a much bigger picture much bigger project. That's great and I think that's helping to make it good. Secondly is they're now able to go for the silver that they couldn't go for before because they didn't have the key ground and we have that ground coming right on ours on the H sus Maria vein system and on the uh other vein system coming as well. So so it's very good that we have a couple of vein systems and the gully fault zone that have very good silver and so now the silver is good. So very excited to have the silver as well as gold and I think that they'll uh come out maybe even with an updated resource including on our royalty ground the resource on the royalty ground. So for us that'll be another way to better appraise the value of that royalty. So it's exciting to see. >> When are they going to have some news out to market? What are they doing right now? >> So right now they're working and they're drilling. They've announced uh I think a 10,000 meter program and so that's progressing on the drilling and I think there'll be news coming out here in in the next few weeks uh ahead of the uh Beaver Creek uh precious metal summit and and getting deals done. So very exciting. They've been drilling and and progressing and so that's really good to see uh with Capiton Silver. >> I got to reach out to Alberto and and um schedule an interview with him as well on the back of the on the back of that drilling. That'll be interesting to see what they have going on. >> I think that'd be great to do. And he will be at Beaver Creek as well. >> Oh, that's good. Um, you also have some royalties in Ontario, four of them actually, if I'm not mistaken. Any they're earlier stage if I'm not mistaken too. What's going on there? >> Yeah, they're earlier stage. There's exploration. You know, I'm really excited by Blue Jay's Cl Pette project. I love it. It's great. And it was our lead project for Riverside. And so I'm delighted and it's a really exciting exploration play and I think that uh here we'll get listed with Blue Jay and then have drilling there uh in the spring will be great. The winter drilling program will be wonderful there. You can work there all year round and so I think that'll be really good for work there at Oaks as well as is at Duck and and that's good. And then over in the High Lake uh uh Greenstone belt over there in Canora as well we have royalty. So, it's nice to have that royalty portfolio and uh it's longer term but good quality projects and a good jurisdiction. So, it's really good for to back just be another start a strong part of a royalty portfolio. With the way the royalty landscape has been evolving here as a whole and and on top of what we've talked about previously about the market, has anyone approached you in in an effort to try and take those royalties off of your hands either as a whole or someone, you know, calling in for a specific asset where where because you said you want to be buying royalties, but are you being called about potentially selling some of the royalties you already have? >> Exactly. So if we can make our royalty portfolio that much more robust and do some work that even makes it more of a transactional value. So I think in the medium long-term 100% that's uh that makes a lot of sense of where to go. So right now if we can uh get some uh some additional cash flowing royalty into it, then it just really adds a cherry to the top of what's already a very good portfolio of royalties. And so yeah, so there's interest and uh and that's good. We don't need the capital right now. We're delighted to have that. And I think for the Riverside shareholders right now, buying Riverside right now, you get that royalty portfolio. And you could see that in the medium-term, some type of transaction would be a rerating on the royalty portfolio. It's pretty impressive. You know, we spun out Blue J and we're trading at the same valuation before and after the spinout. That's that's phenomenal. You know, that's really unlocking value and you got a complete double for free with no risk. And with the royalty, I could see that happening again or a triple or quadruple. So, I really am bullish on it and continue to buy more shares of Riverside and hold shares. And yeah, I think that that's a good step to go. And you're right. Yeah, there'd be a lot of interest in the royalty portfolio and royalties, they get better over time as the projects progress and they get closer to production. So should Fresno make a decision or an announcement or if Sugarloaf Peak if Arizona Metals makes an announcement or things like that that really just helps that portfolio be be that much more valuable. So yeah, I think there's interest and we are contacted. Yes. >> On the topic of of spinning out, why don't you spit out the royalty portfolio as well though? I mean, wouldn't it be more competitive if it could raise its own money and do its own deals and kind of operate it as its own company? also because I'm sorry for continuing on but I've got this been thinking about the royalty space and I think large periods of consolidation will come along. So, all those small royalty companies will have to get bought out because I think they're a big competitor to some of the big guys and and while they maybe don't really uh ruin any of the bigger deals, they're still in the market and maybe raising the prices of otherwise easily available royalties. And so, so I do think that there's going to be a period where a lot of consolidation happens in the royalty space. So, why don't you just spin it out and and kind of build its own value proposition there? So the people ask what's your producing royalty or what's your nearest producing royalty and so we're working on answering that question. >> Okay. Right. Uh that's uh I feel like there's not much you can tell me about uh about that there now. But >> no this that would make sense, right? So if we have that then it would be a complete rerating and so working on on you know answering the unanswered question and making sure then when the people ask we have that done. So it's good. And uh we have a major milestone with Fresno coming up in in a year. So in one year from now, Fresno has to decide what they're going to do with the royalty. And after that, it's game on. So we're kind of just sitting on it right now and working and adding value. and uh you know when we'll sit down uh next uh next November it'll be uh we'll see but there'll be a interesting uh situation with Fresno and you know and they they themselves also maybe will just see but we're in a good position on this and and you're right that uh it would make sense in the medium term to do that and so owning Riverside now you get the upside from the union drilling right now you get in a good position right now and there should be you know should move up from here quite well and we've consolidated from the spin out. So anyone that was waiting to see how low the shares would drop post spin out, post dividend, it happened. We trickled down to 13 and 14 cents a little bit and 15 cents, but we didn't go down that much. And now we have really strong strength. Uh and uh I think you know myself too, I'll start to continue to accumulate shares as I'm delighted to own more Riverside. >> Well, come to think of it, Capitan, you spun out in 2020, Blue J 2025. That's a 5year gap. Is that intentional or do you wanna Yeah, >> no, it's just the market. It's not so you know I'm trying to work on it right now and uh are if we can have things together by November December of this year such that we could then go to our AGM for a vote as we did last year in March and then we were able to have Blue Jay spun out as of May. So potentially we could do something, you know, and so every year I'm trying to figure out if I've got to do it. Got to have a good CEO. Need to have a lead person. Need to have a really good project. We have good projects in Riverside that can do that. We're working on updating our 43101 technical reports on a number of our projects so they're ready to go. And so if we can get the right CEO person that wants to do it, we could then have uh something happen much more quickly. So, no, I don't think uh uh 5 years is nothing magical and it doesn't uh we don't want to wait that long and right now we're we're unlocking the value to Riverside. So, it's a really good time to buy the stock. >> All right. Well, John, Mark, I know you're on the clock here a little bit, so I'm going to try and be respectful of your time. I I normally ask you, what keeps you up at 9 uh right now? What do you think is the biggest risk to the company specifically? Let me maybe turn that question around a little bit. What do you think is the most fair criticism that you've heard of the Riverside story recently? >> It's so boring that we're not doing enough, you know, and and and that we should be doing more and Riverside's not drilling enough. And I'm like, okay, you know, but we are D. So that's those are the criticisms I receive and I accept those criticisms. Boring isn't bad if we make you money. Secondly, if we're running a business, the business is doing and you know, we're not here to be excitement. We're here to make shareholder return. We've had a 90% gain when you look at the spinout of Blue J plus the Riverside escalation this last year, which is amazing and that's great. That's not boring. It's simply being a dividend receiving company and shareholder. And so I think, you know, we're not saying that we're going to do that all the time, but when we do that, and I think we're drilling, Riverside has drilled and Riverside has hit, we drilled in Ontario, we hit that we now dividended that to shareholders. We drilled in in Mexico at the Cruz de Plat project. It was at that time called the Capy Ton and Blue and Polises project, but the Cruz de Plat. And we've given that to shareholders. So, we've actually drilled and hit and turned it over to shareholders. So, I think our speed is a little slower in in value, but we actually don't crater as much and don't have to go back. We've had no roll backs. We've been going 18 years and only have 75 million shares out. So some one of the criticisms is you're not growing enough. You're not spending enough money. On the other hand, we're like, yeah, we're not diluting or cons, you know, having to go through bad things. So that's good. We're not sitting on our cash. We're using our cash. We're actively in the field. The photo behind me, a photo of our team out there all working in British Columbia. But those would be some criticisms and I think they're, you know, fine to say, and I think we have good reasons and explanations for what we're doing. And I think the proof is that we've been able to deliver good value and upside. Right now, we're drilling with with Quest Corp. And so, by owning shares in Riverside, you're getting the upside, as you said, the 9.9% in the in the company. But more importantly, Riverside still owns 100% of that project. If Quest Corp does not complete all the requirements of the option earning, they don't get anything. There's no intermediary step, and we'll have it 100%. So, it's a great time to own the upside for Discovery right now in Riverside. Well, I'm looking forward to having update conversations over time on these things. When do you think is the next time we're going to be speaking? When when are you going to have something interesting to see? >> Well, looking forward to seeing you there here at Beaver Creek and things like that. We may have some results from the drilling that we're doing. We'll see. And also then I think in definitely in October we will have made progress on the Mexico assets. We're really working hard on that. And so if we can have a Mexico transaction, that would be amazing. That's something we have on. And then in November maybe something about royalties. So we have three different catalysts coming. September would be some of the drilling. October would be stuff about Mexico. In November would be something about royalties. So we definitely have some good news and we love being with you on your show. >> Well, thank you so much for doing this. What do you think I'm forgetting to ask you? Anything else that you came here hoping to talk about that I failed to bring up? >> No, I think you did really well. I think it's we are working at British Columbia on gold and that's excellent. I think we will continue to add and rare earth elements. we will be progressing on that. We don't need to dive into that now. It's something that we're just kind of progressing quietly along as a generator and we really appreciate that you've brought up so many different things today. >> Thank you so much for your time today, John Mark. >> Thank you. >> And as always, thanks to everyone for watching Resource Talks. I have a couple of more things to say though. The fact that this company was interviewed here today does not mean that they're necessarily a good or a bad company. I'm not here to endorse nor attack anyone. I am simply here to ask some questions. If you find that I have failed in asking a question that you would have liked to hear an answer to, which will happen as I'm not an experienced interviewer, please let me know and I will try to correct that mistake in a future interview. As mentioned at the beginning, please understand that mineral exploration and development is an extremely risky business. Losing money is the norm and should be the expectation. 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