Al Korelin of Korelin Economics Report interviews Providence Gold Mines Inc. CEO Ronald Coombes and Richard Ellers LLP.
[Al Korelin] Hey, Big Al is going off in a little bit of a different direction, right now. I have found a business that I have somewhat interested in at this moment in time.
The business is called the Providence Gold Mine Inc., is found in Tuolumne County, in California.
The mine itself is currently owned by Richard (“Dick”) Ellers and the Ellers Family Trust. Dick is an attorney. And basically, these mines has been in serious production in the past. Tuolumne County, it’s called the Providence Mines.
The Providence Group of Mines was not taken over, but it has an interest from an old friend of mine. His name is Ron Coombes, and Ron is the President of a company, known as the Providence Gold Mines Inc.. It’s on the TSX Venture Exchange, under the symbol PHD.
As you guys probably don’t know at this point, but up until I retired about 10 years ago, I was incredibly interested in very, very initial start-up companies. This one seems to fit the bill, in the sense that the mine was in serious production and today through, which is Ron Coombes’ Company. They’ve done a bit of a drill program, they’ve done soil sampling, and they have done 3D laser work at the 600 level of the mine. Ron, I’d like you to tell me very quickly, if you would, exactly what the program has come up with so far.
[Ron Coombes] Well, the program started out with an option agreement with Richard late 2017, and we basically started the program with a longitudinal cross-section from 1931. We had little data on the project. We’ve moved the project forward, by basically sampling the underground, doing a 3D-LIDAR survey in the underground, which have created precision modelling. We’ve completed an airborne 3D-LIDAR survey from an aircraft above the surface. We’ve mapped all the veins; We’ve completes surface soil geo chem; Identified all the pre-existing historical mines on the property; sampled and verified each one of them. These mines reported in the ounces when they were in historical production. So this is a high-grade type deposit.
[Al Korelin] Yeah.
[Ron Coombes] Modelling identified potential for one-to-four million ounces.
[Al Korelin] Yeah. OK. On Mr Ellis, going over to you. I want to talk a little bit about the history of the mine. I know when the real serious history was before your time, but you were involved with your dad, you were just kid. And as you are also now controlling pretty much the purse strings for the family trust. Tell me a little bit about historical production of the Providence mines.
[Richard Ellers] Well, I’d like to start with the fact that my father Chief Engineer for AMCO, Fred Ellers, not Ellis, but Ellers, gold mining was his hobby and he pickup these mines up in 1960 and studied them, extensively. And so, I always picked up a lot of information as we went along. But the history of the mines is there were two Mexican mines there, the Consuela and the Bonita. and I actually found the arista where the donkey should go around the circle, you know, to crush the ore. And these two guys found an out cropping as they hiked, they followed it out 50 ft out the ground. And low and behold discovered a stope with 22,000 ounces, about the size of your house.
[Al Korelin] Right.
[Richard Ellers] So this, I’ve seen it. I haven’t seen the size of your house, of course. The 22,000 ounces funded a major mining operation, they ran a double compartment. A shaft down 14150 feet, they developed 12 levels. They found about five or six other stopes, in similar sizes. And then of course, there was a problem, because the mines were owned the Boston mining company and as they thought the owner was high-grading. So, there was a lawsuit filed, for the mining to stop. This would be 1914-15, and finally that was settled. And as they tried to get back in operation but a fire, like the present fires we had here in California, not that long ago, burnt down the entire town Tuolumne City across canyon, left across the canyon and burnt down everything. So the owner, the operator at that time, as a matter of caution, blew up the portal. I mean, they really blew it up, really good. To fill it with rock for the first 50 ft. So it hasn’t been mined since 1916. But it wasn’t because they ran out of ore.
[Al Korelin] Yeah, but that’s about it. Okay now, but Mr. Ellis (Ellers). Basically, the mine right now, Providence Mines, there’s six of them and they are totally controlled by the Ellis (Ellers) Family trust.
[Richard Ellers] Yes, correct.
[Al Korelin] And you guys are locks, stalk, and barrel. Now Ron, if I’m not mistaken, I’ve known you since my previous life, which was basically working in the Mining industry as a consultant to the Securities and Exchange Commission, which is when I met Ron.
Ron is a pretty good guys, very interesting guy and basically the business plan here would be to do as much prove up work which includes soil sampling, drilling, etc, etc. And then take the project and sell it to a major mining company, correct?
[Ron Coombes] That’s correct, Al.
[Al Korelin] OK. And the mining company would, the opportunity available to the shareholders is obviously the price that came to Providence Mines from a potential buyer would all be turned over, would all eventually end up in the hands of the current shareholders.
An interesting opportunity. Very typical opportunity in the mining industry. The appeal that I have in this thing is I really, really, enjoy working with grassroots plays. Now I want to say, I am not currently working at all with Providence Gold Mines Inc. or the Providence Mines. I am doing this as basically out of personal interest. I have a lot of interest in a mining company that’s at this particular stage, because the odds are not necessarily 100% that something will happen here, but the odds are really fun, fun to watch, and if you have a little bit of a stake and something like this, then obviously becomes a little more fun, so to speak.
I continue to be very optimistic on the price of gold. We’re at around 1800 bucks right now. And if the price of gold happens to take off, which is, you know, Cory and Doc are pretty optimistic about that. No guarantees. But if they happens to take off, I think they will, but if they do, Providence Mines, the Providence Mines and Providence mining could be a real winner here. The responsibility of Providence Mining, which trades on the TSX Venture Exchange, is purely and simply to prove up an asset here.
Ron, if you have anything, in summary to say about that, please do it now.
[Ron Coombes] Well, we, in summary, we did do have a full filing in the US, so we actually trade in the OTCQB.
[Al Korelin] OK.
[Ron Coombes] As well, so that actually makes it a lot easier for US investors.
[Al Korelin] OK.
[Ron Coombes] To purchase, to be a part of our deal. So, I’ve been at this along time and, you know, I see a lot of projects, but I have yet to ever have my hands on something that’s been previously developed, that is under-developed, this definitely could be a significant reward to our shareholders. So that’s really how I would summarize it.
[Al Korelin] That’s a good summary. What I want to say at this moment in time, ladies and gentlemen, is there are no guarantees on my part. I am in no way financially associated with this company at this moment in time. I just have an interest because of my history.
If you want any hard documentation on this company, just let me know through the blog, or the on the, on the, website. Things like this can be an awful lot of fun to watch, as I watched literally hundreds of them in the past.
Well Richard Ellis, LLB and Ron Coombes. Thank you so much for your time.