Q&A With Trillium Gold Mines CEO Russell Starr

Let’s Start With a Riddle

Successful speculation in junior resources starts with asking the right questions. Rick Rule, founder and chairman of Sprott Global Resource Investments, Ltd. has well over 30 years of successful resource investing to validate his process. Here we turn to him for insights.

“Successful speculation in junior resource stocks involves solving a fundamental riddle – how do you anticipate exploration success before the financial community reacts to the success?”  

Rick posited at least a partial solution to this riddle when, in 2014, Sprott Global published “A Guide to Natural Resource Investing” covering the key questions investors should be asking of Junior Resource Exploration management teams.

Trillium Gold Mines’ (TSX.V : TGM) (OTC : TGLDF) CEO Russell Starr candidly answers those questions below.

Q&A With Russell Starr

1. What are the company’s goals and what strategies will it use to reach them?
 
Trillium’s goal is to get a minimum of 1mm, if not 2mm, ounces out of Newman Todd. How will we get there? By drilling and redefining the work done by predecessors and by having a much better understanding of the structural and mineralized controls on our projects, therefore targeting holes more efficiently and using capital more wisely.

We need to hit and discover gold at Gold Centre. The big question is whether or not Evolution’s Red Lake Mine extends onto the Gold Centre property. If we hit at Gold Centre, we could potentially be unlocking another 2mm+ ounces. 

We need to create value with our greenfield properties, and we will do that with extremely smart execution and our exceptional technical team, along with the drill bit.
 
2. How are you going to make me money on this deal, and when will I make it?
 
We are going to make money by continuing to drill intersections like we just hit (Trillium Gold Intersects 15.41 g/t gold over 7.05 at Newman Todd) and by showing the market what the historical value of Newman Todd was compared to where it sits now. In 2013, the Newman Todd asset was a 50/50 JV [joint venture.] Both companies had a market cap of $100mm, giving the Newman Todd asset a total market cap of $200mm. We now own 84% of Newman Todd, along with Gold Centre, Leo, and more, and are only sitting at a $50mm market cap. Finally, hitting at Gold Centre and proving the extension of Evolution’s Red Lake Mine could significantly change our company’s market cap.
 

3. What can go wrong, how will I know what is going wrong and what will you do if it goes wrong?
 
We could miss at Gold Centre. This is exploration, there is always risk. But our risk is significantly mitigated by a systematic exploration approach overseen by a great technical team and focusing on the geology as opposed to using the techniques of our predecessors. As I mentioned before, we will focus on the structural and minerazlized controls as we plan our drill holes. Just recently we confirmed high-grade gold mineralization in the west Red Lake area, a region historically under-explored and ignored. The geology here is favourable with the Red Lake-style of gold mineralization that we are looking for. 

Also, the amount of drilling that has occurred historically at Newman Todd will serve as a library of data and give us a very good understanding of the geology. We are not starting out “blind” here and have a great data base of historical work which we will use as we continue to advance our projects. This knowledge puts us at an advantage and is less risky than a junior exploration company having no knowledge at all.

4 What is the current liquidation value of your company versus the market capitalization?

Liquidation value would probably be about where we are trading at, plus $14mm.
 
5. Who else will you tell this story to, how will you tell them, and when?
 
Everyone, every way. We have marketing partners engaged and roadshows booked. Unfortunately, by zoom right now, but I plan on being “on the road” every day of every week. 

6. Tell me about your management team and directors, especially their past success in mining and markets.
 
I was a part of the Cayden team that sold Cayden to Agnico, for $205mm and a senior member of the team that created Auryn. I’m bringing the exact same mentality and model to Trillium. Krisztian Toth is a world class lawyer, and Bob, his bio speaks for itself. 

Bob Schafer, Chairman/Director – is a Registered Professional Geologist with +35 years international experience exploring for and discovering mineral deposits, four were producing mines including the Briggs (+1 million ounce) and Griffon gold mines in the western US and Birkachan (+1 million ounce) gold mine in Far East Russia, and identifying, evaluating and structuring business transactions globally having worked in more than 80 countries. Bob is the 2020 – 2021 President of the Society for Mining, Metallurgy and Exploration (SME). He is also Past-President and Board member of the PDAC, Past-President of the CIM and Past President of the Mining and Metallurgical Society of America. He was a member of the Board of Governors for the US National Mining Hall of Fame and the Board of Directors of the Canadian Mining Hall of Fame. He is the first person to hold all of these leadership roles in both the USA and Canada.

Bill Paterson, VP of Exploration – is a Professional Geologist in Ontario and has extensive experience in both surface and underground exploration in Red Lake, including managing the ultra-deep surface drilling program at the Cochenour Mine that progressed to underground development, bulk sampling and starter mine status. Bill started in Red Lake as the Senior Regional Geologist for Goldcorp Inc. and was promoted to Exploration Superintendent with extensive knowledge of all parts of the Red Lake and Confederation Greenstone Belts. While working for Placer Dome’s Asia Pacific Division in the 1990’s, Mr. Paterson worked extensively in Australia, Papua New Guinea and West Africa. Bill’s people skills, project management ability and geological expertise will allow Trillium’s exploration team to quickly and efficiently progress as exploration activities accelerate.

Krisztian Toth, Director – is an experienced mining, capital markets and M&A lawyer. His experience in mining finance and M&A stretches across all jurisdictions and minerals. Krisztian has been recognized by a number of legal publications as a leading lawyer in mining, capital markets, private equity and M&A.
 
7. Who owns this company? How much did they, or will they, pay for it, and when can they sell it?
 
Management & Insiders – 40%
Friendly Parties – 20%
Retail – 20%
Institutions – 20%
 
We have a very tight float and have a strong foundation of shareholders that have been supportive since day 1. Now that we have the money, and the recent success of our drilling, I imagine they’ll sell when the company is sold.
 
8. How much money do you have, how much money do you need to succeed, and how are you going to get it?

 $14mm. We have all that we need to succeed. 

-Russell Starr, President, CEO, Director – held senior positions and advisory roles with financial institutions including RBC Capital Markets, Scotia Capital, Orion Securities, Blackmont, Lawrence and Company, where Russell helped raise over a billion dollars for junior and mid-tier companies. Russell Starr is also a co-founder and part owner of Echelon Wealth Partners, a large Canadian investment dealer. After leaving Bay Street, Russell held executive positions at Cayden Resources and Auryn resources. Russell Starr has also held board positions at Canada Nickel, Gold Terra and Cayden Resources (acquired by Agnico Eagle in 2014). As Senior Vice President with Cayden Resources, and board member, Russell was integral in the marketing, financing, development and ultimate sale of Cayden for CAD$205 million to Agnico Eagle. 

What About the Other Two Questions?!?

Ok, so the astute fact checkers among us will have noted that Rick actually had TEN questions and not eight. I think we can handle answering the other two not-so-serious questions ourselves.

9. Who’s buying the beer?

Trillium shareholders will be increasing the fanciness of their beer offerings with each new positive news release.

10. Where can I learn more?

Here, there and everywhere.  

November Update: News and Presentations Pouring Out From Russell and Trillium Gold Mines

Russell is executing as promised in his response to question 5 above. Since our initial publication Russell has presented at the Precious Metals Summit – Europe, mobilized more drills to Newman Todd, interviewed with SNN Network and Departures Capital. And he hosted Pinnacle Digest on site at Rivard and Newman Todd where they produced this stunning and informative video: