Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Explorer Following Up on One of Last Year's Best Drill Holes Among Canadian Juniors
Contributed Opinion

Share on Stocktwits


Maurice Jackson Judson Culter, CEO of Rover Metals, talked with Maurice Jackson of Proven and Probable about what the company is doing to follow up on its drill hole that was ranked the 11th best among all juniors in Canada in 2020.

Maurice Jackson: Joining us for conversation is Judson Culter, the CEO of Rover Metals Corp. (ROVR:TSX.V; ROVMF:OTCQB).

It's a pleasure to speak with you today, sir, as Rover Metals has several updates to provide shareholders. Before we begin, please introduce us to Rover Metals and the opportunity the company presents to the market.

Judson Culter: We are a precious metals company, gold specifically, in geo-politically safe Canada. At least we hope we stay politically safe; so far so good. And we're at the exploration stage of a mining resource and one of the best stages really to get involved in a mining company as an investor.

Maurice Jackson: When we last spoke Rover metals was working on finalizing finance, road access and working on commencing a drill program targeting 12 areas. Let's begin with the finance that was conducted in early January. Mr. Culter, please provide the details of the finance and how the funds will be allocated.

Judson Culter: Rover Metals is coming off wonderful drill results and we'll get into that, but we were the 11th best drill hole in the country in 2020. So coming off of those screaming drill results we had two strategic investors, which I've known for a couple of years, come in. Early January I fired up my emails and there was a late Christmas present where there was an order for a million dollars at 10 cents. So we're happy to take that order off the board.

We closed that the third week in January for a total of $1.3 million at 10 cents. At the time we were trading at 12 cents. The use of proceeds are going to be earmarked for G&A, marketing and building out our internal team. Now that we know we've got a company maker in terms of the resource, I went ahead and hired our first full-time investor relations marketing communications professional with 15 years of experience. And also some of that use of proceeds is going towards infrastructure, upgrades and logistics for our core project. Some of the access trails are 30 years old so re-cutting the access roads on the property and opening up the drill targets that we finally get to here in the spring and summer.

Maurice Jackson: I see that you've reduced some of your costs on infrastructure and you've also received a new permit on the Cabin Lake; what can you share with us?

Judson Culter: That is correct. Obtaining that permit was a big win for Rover, as it is a First Nations permit. The permit was the result of two years of negotiating and working with the Tlicho First Nation up in northern Canada. They've given us a three-kilometer road across their land and what that does is it gives us road access to our project off of a major highway system. And that's a 35% decrease in expiration costs, it's a huge win.

Maurice Jackson: Absolutely. Now onto the fun stuff and that is drilling. Remind audience members of some of the highlights from the 2020 campaign.

Judson Culter: Well, I will just discuss our most exciting drill hole, I know we are limited on time, but our eighth hole was 32 meters 14 grams per ton gold. If you recall, Maurice, when you were preparing a video for Rover Metals before that drill program, the very first opening bullet on the video was "14 grams per ton historical," well, we sure hit the nail on that head, right?

Maurice Jackson: Absolutely.

Judson Culter: Our Q4 drill programwas one of many demonstrations of our proof of concept, and the hole that I am referring to was way longer than any of the historical intersects. All the historical high grade at the project was about 15 meters. We went in and doubled the length at 32 meters. After that we've been focused on regrouping, comparing ourselves to our competitors, and having more marketing research tools now in-house. We went and we ranked ourselves against all other Canadian mid-tiers or small-cap juniors. And that was the 11th best drill hole of all juniors in Canada for 2020, so not too shabby.

Maurice Jackson: Now you're on the second phase of the drill program per se and that's going to be I think Rovers defined 12 new areas, is that correct?

Judson Culter: That's correct. 12 targets may sound like a lot, perhaps, but another operational update is that aside from that access road, we've got enough street cred now to get a drilling company to build us a custom drill and essentially give us an annual lease standby rate. The drill will remain on the property. That is going to another approximate 35% reduction in exploration costs and allowing us to follow those 12 additional targets, two of which are what I would call brownfields targets that have got the sulfides in them, which is really what is the associated mineral with our gold.

Rover also completed a big geochemistry study in February and correlated the results with the historical drilling on the project, where there were high sulfides. And so we've got new drill targets 400 meters to the north of where we just drilled. That's where we've seen in the historicals that there's potential to show another ore shoot. And then another 500 meters northeast of where we just drilled, that's another highly sulphurized historical target. And so of the 12 targets, those are the two that we're going to go to first in terms of new targets.

Maurice Jackson: To confirm drilling begins next week, is that correct?

Judson Culter: No, nt at the present. Rover is getting the drill rig to site. We're going to have it to sit at the Beaver zone, which is the first target zone, and then we're going to raise another quick financing. The goal with this program is now that we've got the cost reduction is to get in there and bring more meters to market. The market wants to see results so when we start drilling again it's 2,000 to3,000-meter time. We're going for a bigger program and that may sound still like a small number to some, but we're only a CA$7 million market cap company; we're just getting started here. So on the high end, some companies that are backed by Sprott they're doing a hundred thousand meters. We'd like to be that company but you're not going to be able to get into those other deals at 12, 15 cents either.

Maurice Jackson: Absolutely, and in an ideal picture here when would you expect to have results?

Judson Culter: We are trying to get ahead of companies that drill in the summertime. Fortunately, we still have plenty of time to get there as long as we start drilling, start pulling our core around the May timeframe. We're still ahead of that summer rush. So the Golden Triangles of the world, the northern Ontarios, the northern Quebecs, Rover is still well ahead of that curve in terms of a bottleneck for drill results so we're still in really good shape.

Maurice Jackson: Leaving the Cabin Lake project, let's look at some numbers. Rover is looking to release an Inferred resource in 2021 where the current gold price is $1,700. How does that impact the share price market valuation?

Judson Culter: I believe that a $1,700 gold price is a pretty conservative benchmark but you can use that as a benchmark. I just encourage readers to look at the 12-month historical average of the gold price, as well as the five-year forecast, which is over $2,000 an ounce. Let's just say for an in-ground Inferred resource what we currently have, which is approximately 100,000 oz of gold, we'll just say the value of an in-ground ounce is $115 US convert that into Canadian dollars.

That would suggest that we are should be a $15 million market cap. Rover Metals is currently a $7 million Canadian market cap so that's roughly a 200% return if we were to take what we have put into a resource and publish that today at $1,700 bucks an ounce, we feel that we are an undervalued stock based on that analysis. Our goal is to get to the 200,000 ounces plus by the end of the summer and do better, hopefully, beat that goal by the end of the year. But just on a forecast of comparables, if we were to bring 165,000 ounces to an Inferred category here at the end of this next drill program that would suggest that we are a 30+ cent stock at that point. We have a lot of positive momentum, and a lot of tailwinds for us right now as we head fully intend to meet those objectives.

Maurice Jackson: Sticking with numbers, Mr. Culter, please provide us with an update on the capital structure for Rover Metals.

Judson Culter: Rover Metals has 90 million shares outstanding. Our new internal investor relations hire compensation is roughly structured around pushing our warrants that are at 12 cents into the money. And that'd be about $3 million in warrants exercises. That would self-finance the exploration here as well. So we're also attacking that financing strategy currently. So 90 million out pre warrants; with warrants, we have about 20 million warrants at 12 cents.

Maurice Jackson: I see that Rover has expanded into new capital markets as the company has a new listing on the Frankfurt stock exchange. What is the symbol and what would you like to say to current and prospective shareholders?

Judson Culter: The symbol on the Frankfurt is 4XO. The aforementioned finance conducted in January was comprised of strategic investors for $1 million were from Europe. I should say that was a million dollars hard, and their incentive is to help drive the awareness of Rover, in Europe, in the German market, through the Frankfurt listing.

Maurice Jackson: Any final words for shareholders, sir?

Judson Culter: I believe that February was the bottom for the gold stocks on their recent selloffs. Gold is inching its way back up and for this year. The U.S. approved $1.9 trillion in stimulus, that's got to be good for gold.

Maurice Jackson: I'm not a recipient of the checks, but I own gold and gold juniors as a hedge to government theft and financial ignorance. Sir, what keeps you up at night that we don't know about?

Judson Culter: Not right now. We're having fun, we're not stressed out. We're just really working hard every day. I got from our new IR guy here in the office with me, we've got great marketing strategy starting the next 30 days, some big programs kicking off and, yeah, I think also just the lifecycle of us as who we are as the management team and this company is, it's getting that just moving out of that startup stage and this is a real growth year for us and we're enjoying it so, nothing's keeping me up at night right now, Maurice, I'm sorry.

Maurice Jackson: Last question, sir, what did I forget to ask?

Judson Culter: I believe that we have covered it for today. Our near-term focus will be on determining the best time to conduct our next financing. It's always about timing. Right now we have some flexibility in terms of the exact date.

Maurice Jackson: Mr. Culter, if investors want to get more information about Rover Metals, please share the contact information.

Judson Culter:

Maurice Jackson: Looking forward to seeing that, sir. Mr. Culter, thank you for joining us today wishing you and Rover metals, the absolute best sir.

And as a reminder, I am licensed representative to buy and sell precious metals through Miles Franklin Precious Metals Investments, where have several options to expand your precious metals portfolio, from physical delivery of gold, silver, platinum palladium, and rhodium, to offshore depositories and precious metals IRAs. Give me a call at 855.505.1900 or you may email [email protected]. Finally, please subscribe to, where we provide Mining Insights and Bullion Sales, subscription is free.

Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.


1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Rover Metals. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Rover Metals is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures for Proven and Probable: Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

Images provided by the author.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe