Resource Capital Gold Corp GDPEF

A few quick updates

[lmcbain]

Did a little digging and had a chat with Jack:

• the company had access to a QP thru Sprott who prepared some documents that we are all waiting on; however, although a little odd, they realized after completion, but before submission that the fellow was not appropriately registered in Nova Scotia and as such could not be the acting QP for the submissions.
• the company spent some time interviewing and discussing the project and the requirements with a few other QP options, without success, but have now contracted a QP for the purposes of reviewing the work already done and signing off on the submissions. The company does NOT have a permanent staff QP back on board.
• it sounds like they expect the work by the QP to be complete in about 10-14 days (not a guarantee) and then will require signoff by the board on the end result - I expect a news release or 2 to come out of this. 
• the company is currently working the Dufferin, but with minimal staffing; as such, production numbers for Q2 2018 should not be expected to be very substantial - although I am told production is much improved over Q1 - I believe that statement is more about efficiencies and equipment reapir status and such, than actual production volume.
  • I have been told the majority of the necessary work on the mill, the stopes, etc has been completed and the project is more or less ready to be spooled back up, but they need cash to do so.
  • the information about staffing does not come as a huge surprise 
• for all intents and purposes the company is currently broke, even though they have a project that can produce and generate cash flow, right now they don't have the finances to truly get it rolling again - a financing, property sale or some form of merger / acquisition WILL BE REQUIRED in order to change this.
  • I am told they are looking at refinancing options
  • I am told there have been preliminiary / rudimentary merger discussions - NOTHING concrete
  • the sale of Forrest Hill is a possibility, but has not been actively pursued - FH is more removed than Tangier from the mill at Dufferin, so it is more costly to produce from than Tangier, but it does have near term production potential just the same. The possibility of selling it is there and would hopefully mean retaining an NSR, as well as possibly contracting for the mill work - this would help maximize the return on the property, while at the same generating a much needed cash infusion.
  • I am told that projected operating costs for Dufferin are right around $1.5m CDN per month for full production (that would cover staffing, equipment, utilities, mining, milling, pouring, etc)
  • I have been told that thus far, there has been no consideration given to bankruptcy and with Sprott being into it for this much $$, hopefully he ensures that it stays alive, but that is no guarantee.
• I did also discuss the potential for a share consolidation before a financing, effectively allowing sub 5 cent equivalent financing and it was acknowledged that the idea has merit, but there was no confirmation of intent.
• a couple of people have asked about work being done on Tangier - there has been some work taking place on Tangier, but as I understand it, nothing really more than what is necessary to maintain the licenses in good status with the Ministry of Mining in NS.
• a friend has indicated that he has confirmed, through contacting the Ministry of Mining, that an exploration permit has been granted for Tangier - this would allow for exploration, as well as bulk sampling - including recovery and transport of old mine waste rock and also limited "mining" under the guise of that being bulk sampling in lieu of drilling. 

Other than the possibility of news from the work being done by the QP, I am not expecting much news out of the company between now and labour day.

Jack indicated that the majority of the people whpo would potentially be involved in a financing, a merger or a Forrest Hill transaction are essentially inhibited by vacations (principals, staff, financiers, etc) during August. He also indicated that the sale of Forrest Hill, while it potentially makes sense, has not yet been seriously pursued. He may have been telling me just enough to not have me push too much on the topic, but I didn't get that impression.

I hope this helps.

Salut - Leigh McBain