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TSXV: NGE - OTC NVDEF
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Vancouver: 604-601-2006 Reno: 775-359-7740
TOPICS IN THIS INTERVIEW:
00:05 Mining Correction & Re-Introduction to Nevada Exploration
03:30 What are the goals of NGE & Wade Hodges as a Geologist?
07:30 New Concept & Technology to Lower Cost of Exploration
12:50 More have Confirmed this Technique to be Valid
14:00 New Big Shareholder of Nevada Exploration
15:10 What the Future Holds for Nevada Exploration
(00:01) Daniel: Greetings, and thank you for joining us at FutureMoneyTrends.com. Look, we have a mining correction going on right now, and I want to use this as an opportunity to reintroduce you guys to some of these companies where they’ve pulled back. I think we’ve got a great entry point. The company I want to talk to you today about, and the man who I want to introduce you to – or reintroduce you to, if you’re a Future Money Trends subscriber – we first profiled his company and alerted his company to you in October of 2015, around $0.25 Canadian. Today, it’s around $0.45 to $0.50, but it has had a pullback from the mid-$0.60s just in the past week and a half here. But this is at a time when they’re—they’ve released some great news, they are actively looking to push their idea and concept and exploration forward. And I say that because this company is unique amongst all the companies we profile, and I actually have said on record that I believe that this is a potential lottery ticket. It’s a very unique company; I think it’s a game changer for the mining sector—potential game changer. If anybody studies or researches gold mining, you will know that exploration—the cost of exploration has gone up dramatically and the actual discoveries has absolutely collapsed. And that is the problem that our next guest is going to likely provide the solution with his company, Nevada Exploration, which trades on the TSX under NGE and on the OTC under NVDEF. Our guest today is Wade Hodges. Wade, thank you for joining us.
(01:38) Wade: Thank you, Daniel, and yes, I think you set it up very nicely. I presume that your listeners are looking at this with a problem that they have, which is to try to understand, from the number of companies out there, which ones should they be looking at. I mean, I feel like I spent most of my life down here in the trenches, and now when I stick my head out above that trench, I look around and I see that macro-wise, the world is still a messy place. There’s still a lot of uncertainty out there. And yes, I think that the trench that I happen to be in is definitely digging in the right direction, so I get back to work and go back down.
(02:24) Daniel: No pun intended on digging into the right direction. So, for most people, this is a unique exploration play. Wade, and I’ll have to put the link up, because you can actually see him featured on the History Channel, where he’s using a technology, and he’s got the research, that he’s a mile ahead of everybody on this. And so if this concept is proven, which, if you back-tested on the other projects that they’ve looked at, it’s got a 94% success rate, it’s going to be a real game changer, because roughly half of Nevada has been underexplored, to say the least. Yet as Wade will tell you, and he’s been a geologist for many decades, he’s discovered about 30 million ounces of gold, there’s no reason why gold’s not on the other side. So, Wade, first off, for everyone who’s listening, Nevada Exploration… can you let us know how do you introduce the company? How do you define the company’s objective?
(03:29) Wade: Well, I’ve been, as you said, a geologist looking for gold mines for my entire career, having enjoyed some very phenomenal success, and wanted to continue it. The problem is that the places, the tools that I had to use weren’t producing the results anymore, and it’s basically because you have to be able to see the rocks, and most of the rocks that can be seen have been looked at, picked over, explored on with good eyes of my peers, all good people, working very hard, with a lot of money. And it’s pretty well been picked over, which is part of the reason that the drop in success rate has happened. And then we see an increase in cost because people still believe there’s gold out there and they want to repeat the success of the past, and so investors have been opening their checkbooks, giving explorers more money, but then they see that they’re not getting the results, so there’s a big gap. There’s a mislatch. So people have to go back and decide “Well, what’s going on? Are we done? Should we, you know, give up?” Well, from my perspective, 60% of the state of Nevada, which has the highest concentration of multi-million gold deposits of any place in the planet, is sitting there covered by sand and gravel. There’s no doubt there are more gold deposits to be discovered. The problem is they’re going to be located where you can’t see the rocks. So you have to focus on the root cause here of being able to move forward here with confidence and figure out a way to see beneath this ground cover. And the one medium that everyone else is aware of but nobody has really paid any attention to is groundwater. Groundwater everywhere in this state of Nevada. Even though it’s a desert, there’s plenty of water in all the basins. It’s just underneath the gravel, and it’s in contact with the bedrock. And so chemically, it’s a medium which can transmit a scent from the gold deposit that’s hidden by the sand and gravel into the groundwater. If you can pick that scent up using chemistry, you can then potentially follow it back to its bedrock source. That’s what we’ve been focused on, and that’s what makes me very excited, because it’s a technique that, like you say, that has worked. It’ll work in a huge way.
(05:49) Daniel: Yeah, I mean, dramatically lowering cost of exploration and being able to find properties or find discovery where no one else is even trying to look, because they see that it’s difficult. Now, just so people understand, if you went to a gold deposit right now, or a discovery drill hole, and you did basically what you’re doing to discover, to make a new discovery with this technology, what are the results when you reverse engineer it, when you work it backwards? Is there evidence that this could find gold?
(06:27) Wade: Yes, this started with a lot of other good people, lot of good researchers in not just the U.S., but Australia, as well as Canada. They also have a similar problem of a large area of covered rock that they believe is still hiding not just gold deposits, but a lot of other kinds of mineral deposits. And water chemistry has been on everyone’s hit list as “How do we make this work?” And so reverse engineering, as you put it, is always the first place to start. You start with a known deposit, and then you see patterns around that that you didn’t expect away from other areas. You find those same patterns, and you’ve got increased odds that you’re eventually going to find the source of those patterns, which is a new gold deposit. So David Grimes, for example, you mentioned, that had a geological survey, 1995, came to me. I was in a position at Santa Fe where I was able to interface with a researcher third-party that wanted to come to our new discovery at Twin Creeks and apply what he thought was a good potential new tool – water chemistry. And so he was able to document that yeah, in a 20-million ounce deposit, that there is a signature in the water chemistry that, if we had used it, we could have found the deposit for less money and in less time. And with that notion, we started looking for other deposits to confirm that that would work. And yes, there are other deposits that have—I mean, if you look at our Website, there’s a number of technical articles that go into the details of how this concept was developed, other people that are using it. And so what we’ve done is actually worked out some of the technical bugs of lowering the costs associated with the technology. Initially, it all sounds like a good idea, but the costs were high because things were set up to be done in a kind of a research lab, and what had to happen was we had to lower those costs. And that’s what we’ve been able to do, is consistently, routinely collect these water samples, look at that data. And then we’ve taken our process and applied it to 30-odd gold deposits that are known here in the States. And sure enough, in each one of these, you do see gold -- and the trace metals associated with gold deposits -- in the groundwater. So you have a very good basis for comparison. This is what the fingerprint, if you will, looks like in water chemistry. So the next step is to now go out into the state and to test unknown areas. Now you’re searching. On any kind of a hunt, you never know how long is it going to take for you to get on the trail, you know, to find your next target. So that’s the big unknown here. Now, what we do is everyday go out, we continue this hunt, we find these places that look very promising, and then we pick them up, in terms of staking claims and acquiring the mineral rights. We currently have five of those projects. We’ve developed a number of others that are sitting in the wings. And so in my mind, I think of these things as like a domino that I can’t control when we’re going to actually tip them all over. In other words, drill that hole that connects gold in the groundwater with gold in the bedrock. But in the meantime, I can go out and find more of those kind of projects, okay, so that when we do have the resources, the financing to actually drill the holes, then we can see that we have a very large area to leverage what we’ve developed over. Which means the target, as you mentioned, the lottery ticket, the prize at the end, is that much bigger.
(10:19) Daniel: Well, what’s incredible, the way I see it, is if and when you have success on one of them, it essentially verifies the rest of them.
(10:29) Wade: Yes, precisely.
(10:30) Daniel: It’s an incredible, you know, opportunity for investors. Again, a very unique company. I would not put this in the rest of the category of our exploration plays or gold plays. This is a game-changing stock, and if you’re listening to Wade, Wade has not just jumped on the story, he is the pioneer. He’s been on this for over a decade, and we have the luxury of being able to partner with him on a publicly-traded company when he’s been working at this for a very long time, and now here we are, very close to finding out what’s going to happen here with this small company.
(11:08) Wade: Well, this is the important point that needs to be made. I could easily have focused entirely on just the first project that had gold and groundwater chemistry, that looked like a potential gold mine, stop everything that’s in my life, just focused on that one project to be able to drill, to prove the concept. And if I was totally successful and that one place is a big economic gold deposit, what would happen? “That’d be great, Wade! You found a gold mine.” And the game changer, everybody else would say “new technique,” they’d all come running, okay, and it’d be a stampede. And in my mind, the shareholders, the people that’ve believed in me for all this time, that’ve put their hard-earned dollars at risk, would not get nearly as much as they should have gotten, because we would not have the time to go out now and to find all of the other places in the state. And I guess maybe part of the answer to “Why does it take so long?” is maybe I’m just… I don’t know, call it greedy, because I do see that there’s something here that is going to work and I actually do take my fiduciary responsibility to shareholders seriously, and I want to see them reap the full benefit. And so to that end, what I can do is taken in as many of these projects that are going to be on our side of the sheet, and that also addresses the issue that “Come on, Mr. Hodges. Just because you found gold in groundwater doesn’t mean that that is necessarily going to be an economic gold deposit.” It could be a technical success, could be too low grade, it could be all of the other issues. The metallurgy could be wrong, you know, be in the wrong place, environmental conditions… so yes, there’s risk associated with that that no one can control. Everybody else is dealing with the same sort of issues. What we have is the ability to have a whole bunch of projects that have the right chemistry, and so the odds go up that the law of averages basically turns in our favor. So it’s very important to have whatever your good idea is, a large statistical basis where you can apply these concepts. And that’s what we’ve created here.
(13:21) Daniel: Yeah, you guys recently had news this week, and also, I got an email from you guys, I want to say a week or two ago, there’s been a development… is it in Australia, with the major mining company?
(13:34) Wade: Well, there’s another group in Australia that is working along the same sort of concept, using groundwater chemistry, developing techniques. What it does is addresses the issue that people have is “Well, you know, you’re a pioneer, and pioneers get all the arrows, and I’d feel better if I knew somebody else was actually out there, you know, beating the bushes with this, too.” And that’s what this article does, is show that there’s other people that actually believe what we’re doing is also the right direction in which to dig the trenches. And it just, it turns out that when you read the article in details and then look up what we’ve done, we’re decades ahead… well, not decades, but certainly years ahead of what they’re doing. We’re certainly thousands of samples ahead of them. We certainly have focused those thousands of samples in the best place on the planet – the smallest area that has the highest concentration per area, so the odds are in our favor there. And so compared to what they’re doing, they think it’s good. We’ve done it even further to maintain our leadership position in that space.
(14:43) Daniel: Yeah, and I would also note to anybody listening to this, Nevada Exploration recently received a notable, strategic shareholder, one of the most successful resource investors in all of Asia. Wade, I just want to close this out here with the expectations people can have going for the next, let’s say 12 months for Nevada Exploration. Let’s say they own shares or they’re going to buy shares. What are your plans?
(15:09) Wade: Well, yes. Mr. Tao Feng has come on board. He definitely also is an investor in the same category as a lot of your listeners. He may have more resources to invest, but he’s got the same concerns and issues. And he is also trying to basically sniff out opportunities ahead of the game. It does no good to wait for proof; soon as we get proof, like I said, it’s a game changer. Everybody’s going to be clamoring, and it doesn’t bother me if people don’t want to wait and don’t want to get on board until then. But for those people that are interested in finding the early opportunities, sniffing out the clues to try to piece together the story to give them an understanding of the direction of the future, the clues are here. My job is to do the best I can to make sure everyone hears what those clues are and see them, and to that end, please, everybody, go to our Website, go to the presentations, figure out where the South Grass Valley one is, and go through it. Especially pay attention to slide 14. It’s an excellent example of exactly the things I’ve been talking about, and you can see more clues. You can see the pieces for yourself. This is not complicated stuff. And get very comfortable about what the future is going to be holding, and to that end, we’ve had to lower the cost to be able to effectively be able to get a drill rig out on these targets. It’s the highest-cost element of all exploration. Every other company does it. So once again, we’ve had to do things that no other company is doing and focus on getting our own pieces of drilling equipment that allows us to be free of the scheduling issues associated with dealing with vendors that provide these services and dealing with making them lots of money at our expense. We need to own. We need to capture that means of our production. We can do it; we’ve done it. We’ve got a very unique piece of equipment we’re calling “The Scorpion.” It’s basically a drill rig that allows us to keep a very small footprint, coming under the environmental permitting issues associated with this business, which all translate into much higher costs. In our case, lower costs, so that we have the flexibility to use that piece of equipment. With that small footprint, we’re still able to get down to 400+ feet. All of our projects are within that kind of depth range. In other words, bedrock can be expected to be within that kind of 400-foot depth range. In places, it might be a little deeper, but that’s still okay, because what we’re able to do is get many more water samples in the 3rd-dimension, for a lower cost, which gives us a better way to track exactly what the water chemistry is doing in a particular place, for targeting purposes. It gives us the ability to actually sample the alluvium now, because there’s also clues in the alluvium that can help us follow back, track back to the bedrock source, and then when we do hit bedrock, we can see is it altered, is it mineralized. It is entirely possible that the small piece of equipment could, in effect, make a discovery. And so the question people have to ask is “Well, you know, what else can you do? I mean, I’d rather know exactly when you’re going to make the announcement, then let me know, and then I’ll get on board.” Well, okay, you can play that game. Or you can say “Well, you know, 10 years, they’ve got a lot of momentum behind this thing. Maybe now is the time. You know, let’s not bet the bank, okay, but to take a shot.” Take a, as you say, a lottery ticket.
(18:46) Daniel: Wade Hodges, of Nevada Exploration. You can buy shares on the TSX Venture, under NGE, and on the OTC, under NVDEF. You can also learn more about them at FutureMoneyTrends.com/Gold. Wade, thanks again for your time.
(19:03) Wade: Sure, Daniel. Thank you.