Interview with Kevin M. Keough, President & CEO of Evergold Corp. (TSX-V:EVER)

Evergold Corp. is a gold-silver-copper explorer and project developer with assets in British Colombia. The company has four projects: flagship projects, Snoball, and Golden Lion, and other projects, Spanish Lake and Holy Cross. The team is looking to replicate its previous success at GT Gold. Evergold was set up before GT Gold, but took a back seat while the team focussed on GT.

One thing is clear straight away: Evergold Corp. is not trying to be a producer. The company wants to locate promising gold projects, acquire them for a great price, then sell them for a significant profit. However, if the company has to, it will develop them. The company's mission is to deliver discoveries by packaging them in a de-risked, effectively marketed fashion. The team at Evergold Corp. has a track record in the gold discovery.

Why does Evergold stick to exploration rather than moving through the stages towards production? Keough states he really likes the excitement of discovery, but he states there is some science behind it; specifically, working at the "spiky" end of the business. He states most of the value gets added during the discovery phase of a project. During the more advanced phase, which involves permitting and construction, speculators get bored, and the project loses its excitement.

What will Evergold do at Snoball and Golden Lion? The company went public in October 2019, the intention was to use the c. US$3M to drill for the first time on geochemical anomaly targets identified on the two properties. Keough is confident because of previous geochemistry conducted at the site. The IPO was actually the largest in the mining space in Canada last year. The company was able to achieve this raise because of its reputation for achieving excellent results, combined with the potential of its assets.

What do the numbers look like? Evergold has c. US$2M cash having paid for the planning of a phase 1 drill program on the 2 flagship properties. This will result in around 2,400m on both projects. Keough is matter of fact. As an exploration company, the company has no cash flow, so will need to raise more capital to continue advancing the properties. The company is shooting for 10Moz.

What is the strategy? Keough is remunerated with an annual cash salary of US$150,000 with options, having previously invested US$250,000. He claims he would "do this work for nothing (equity)."

In terms of the timescale, Keough and his workforce will be on the ground setting up camp for phase one in just over a month. The initial air survey will be conducted on May 20th, while some serious elements of the drilling program will be launched on June 15th.  

Company page: https://www.evergoldcorp.ca/

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