Dear Readers
As we prepare for the reopening of Sertão in Q1 23, we are pleased to inform you that the results of the last five drill holes on Sertão’s Crew’s Reef have all encountered good mineralization over 300 meters west of the old open pit. The two best were SRSD51 with 2.1 m @ 36.4 g/t and SRSD53 with 1 m @ 17.6 g/t.
After 18 months of hard work by Paulo and the team, we now have 53 drill holes west of the Sertão pit averaging 1.3 m @ 38.2 g/t. We believe this is more than enough to start mining and are confident that this forgotten mine will once again be the highest-grade gold mine in 2023. On pages 30-34 of our presentation, you will find a detailed summary of all these drillings, which are at an average depth of only 21 meters below the current pit.
What I find interesting about Sertão is that it was an immediate success from day one under Troy Resources, with the first quarter of 2003 averaging 45 g/t. Most things take years to rise to world-class status. Cristiano Ronaldo took 7 years, during which he wasn’t selected for every game, before winning his first of 5 Ballon d’Ors, Andy Williams, arguably the best voice of all time, took 10 years until his breakthrough. Even the Fosterville mine took 124 years before the Swan Zone was discovered and made Kirkland Lake famous.
What makes Sertão so special is the 0.5-1.0 meter thick high-grade mineralization with grades between 50-500 g/t, which gave Troy an average grade of 29 g/t in their open pit for three years. Surprisingly, the drill core from Sertão is quite boring and has almost no visible gold or nugget effect. We like boring.
Following our announced acquisition of the Laiva Gold Mine in Finland last month, we are proud to show you a very nice video created by OldGold and Dave Bradburn of DMB Consulting. It has already been viewed over 10,000 times and will hopefully give you an impression of the scale of this project, which will make Pilar Gold a 200,000-ounce producer by the end of 2023.
We are keeping our $1 round with full warrant open until the end of this week, as Charles will be attending Red Cloud’s Fall Mining Showcase conference in Toronto on Wednesday and Thursday. We would like to thank Red Cloud for giving us this opportunity. If anyone will be in Toronto and would like to meet Charles, please let us know.
Finally, a comment on the apparent triple bottom of the gold price last week and the search for such signs. One thing is certain: The peak of Amazon’s stock price was reached when Amazon’s owner flew into space on July 20 last year and the Amazon stock reached $185. Since then, Amazon’s stock price has returned to earth, and Mr. Bezos is now learning what it’s like to run a high fixed-cost business in a bear market.
We gold mine operators know this all too well, as 9 of the last 11 years have been a bear market. Leverage works both ways, and I firmly believe that 2023 will be a good year for the gold industry.
Thank you once again for your support.
Best regards,
Jeremy Gray | CEO
jeremy.gray@pilargold.com
Richard Crew | Chief Operating Officer
richard@pilargold.com
Charles Chebry | President
charles.chebry@pilargold.com
Edward Balme | Head of Investor Relations
edward.balme@pilargold.com
