Where Today’s Leading-Edge Technology Meets a Historical Gold Mine
Dave Jackson Dave Jackson, Stockhouse
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When Stockhouse Editorial last caught up with Ron Coombes, the President, Chief Executive Officer and Director of Providence Gold Mines Inc.(PHD) (TSX-V.PHD, OTC: PRRVF, Forum), he mentioned that a top geologist once told him the simple but wise words, “Gold is where gold is.” And he’s applied that mantra to every project he’s been involved with since. Now, he’s taking his 20-plus years experience in mineral exploration and applying that knowhow to his Company’s cornerstone gold project in California’s “Mother Lode” district – Tuolumne County.
The Vancouver BC-based company is currently engaged in the exploration and evaluation of its gold mineral property located in California’s historic and mining-friendly Summerville Mining District in Tuolumne County. The Tuolumne Property includes six parcels and thirteen 20-acre mining claims.
The Providence Group of Mines operates within the eastern belt of the Mother Lode District – a gold mining belt home to a number of well-known mines that are rich in production and from where many millions of ounces of gold have been claimed. Our claim Group’ consists of the Bonita, Consuelo, Mexican, Fair Play, and Goodenough Mines, Patented claims. The Company says that historical documentation shows that these mines were, for many years, profitably worked and were rightly regarded as one of the best mining camps within the eastern belt of the Mother Lode District. It has been historically reported that owing to differences between the former owners and their then-manager, “the property was shut down in the midst of active and profitable operations.”
And recently, Providence Gold announced that drilling of the stockpile of milled material has now been completed and drill samples have been sent to Bureau Veritas Minerals of Sparks Nevada to be assayed. The Company believes that the material represents all the historically milled material of the Providence mine production. Historical mining recovery methods in 1916 were poor when compared to today’s mining practice.
We reached out to CEO Ron Coombes to update us on the Company’s latest drill results and intercepts from its drill programs at its high-grade Tuolumne Gold Projects, the Company’s general strategy and business model, and all things Providence Gold Mines.
SH: Ron, to start off with, and for our audience that may be discovering your company for the first time, can you please give us a little background history about yourself and a brief overview of Providence Gold’s operations?
RC: I have been in the exploration and development of mineral properties for over 20 years. I have developed one significant deposit in northern British Columbia many shareholders of that Company made an excellent return the share price went from $0.20 to a high on significant volume to over $2.00.
SH: Can you update our investor audience and your PHD shareholders on any new company developments, especially in the wake of the California wildfires and the COVID-19 pandemic?
RC: I must say this has been quite a year for our world and especially California as it began with Covid-19 and then California was hit with monster wildfires engulfing huge tracts of both private and public lands.
SH: Now, to the big news we briefly touched upon in the introduction – the gold drilling update stockpile at your Tuolumne Property? What can you tell our metals & mining investors about this drill program and what to expect looking forward?
RC: We just completed percussion drilling of the 1916 Stockpile of previously milled material successfully we need to sit back and now await the assay results.
SH: Your investor deck states that the Tuolumne district’s “rich production history, untouched for over a 100 years, has left behind significant gold potential.” Why haven’t other exploration companies re-claimed this area and what is the blue sky potential really like here?
misconception about California the Sonora area is not resource adverse and the Motherlode which has produced some 120 million ounces of gold remains one of the most prolific gold systems in the world. California is a great place to explore if you stay to areas where you are welcomed like in any other mining jurisdiction.
SH: It’s no secret, your share price has ascended nicely since early November – up nearly 70%! What do attribute this big jump to?
RC: I believe we have been grossly under valued for some time and investors are now paying attention.
SH: Can you discuss the long-term strategy for the company and how do you see the gold exploration sector evolving, if not re-exploding, in this part of California?
RC: Our long-term strategy is very simple to give our shareholders an honest opportunity for significant investment return.
SH: The price of gold reached an all-time high of USD$2,069 per ounce on August 6th, rising by 35% since the start of 2020 and 40% from the March lows. While the market has softened a bit in recent months, can you tell our investor audience where you see the gold market heading in the next year or so?
RC: The old cliché “cash is king” is now “cash is diluted” I believe everyone should and will have some gold in their portfolio to protect against dilution of currencies.
SH: What can you tell us about the Company’s current stock valuation and what makes your business model attractive to investors?
RC: The Company has a significant historical high grade past producing mines all within patented claims we believe the best place to find a new deposit is where gold is our business model is concentrated exploring on these principles.
SH: And finally, Ron, if there’s anything else you’d like to talk about that I’ve overlooked, please feel free.
RC: We have the gold targets developed within the Providence group of Gold Mines are an excellent risk reward opportunity!
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