STLLR Gold Inc. is a Canadian gold development company focused on advancing two main projects: the Tower Gold Project in the Timmins Mining Camp, Ontario, and the Colomac Gold Project north of Yellowknife, Northwest Territories.
Kevin, could you first tell us a bit about yourself, and what led you to join STLLR Gold?
I am a mining engineer by background and graduated from the University of Toronto about 22 years ago. I also hold an MBA from the Kellogg School of Management. I have been in the mining industry for over 20 years, primarily focusing on gold in Canada. My career has been divided into two main phases: the first 12 years were in operations, covering technical roles, engineering, mine management, and mine building. In the last decade, I have been on Bay Street in Toronto, handling corporate roles, combining technical services with business and corporate development, including a lot of M&A activity. This experience led me to the CEO position at Nighthawk Gold in 2021.
STLLR (pronounced ‘stellar’), although a new company formed in February 2024, is a combination of two junior gold exploration and development stage companies, Nighthawk and Moneta. Both have rich histories in Canadian mining. Moneta, which owned the Tower Gold Project in Ontario, is one of the longest-listed companies on the Toronto Stock Exchange. Nighthawk, created in 2008-2009, also has a notable history. Despite some missteps along the way, the merger created STLLR, combining two undervalued yet promising projects with significant synergies.
Let’s talk about the Tower Gold Project. What is exciting about it?
The Tower Gold Project is significant not just for Canada but globally. Located in the Timmins Gold Camp, one of the best gold camps in the world, it has a rich history with about 80 million ounces of gold recovered. Currently, our MRE shows about 18 million ounces across all categories, with substantial exploration potential. Although the current preliminary assessment indicates production of about 250,000 ounces a year, I believe it has the potential to reach 450,000 to 500,000 ounces with further exploration and development over the next two to three years.
Let me put things in perspective. In the junior gold mining landscape, most projects average between 100,000 to 200,000 ounces a year. However, projects like ours, which can produce north of 250,000 to 300,000 ounces annually, are scarce. This is significant because junior mining companies often aim to partner with or be acquired by larger producers. While not our only strategy, it offers a profitable exit for shareholders. Major producers with their massive production profiles, look for projects that can significantly boost their output.
Generally, they seek projects that can produce around 300,000 ounces annually. Given the consolidation at the top of the industry, this number might increase. Both our projects, Tower and Colomac (in the Northwest Territories), can achieve 300,000 ounces a year, and with further development, could approach 500,000 ounces annually. This makes STLLR a company with not just one, but two significant projects that could greatly enhance any major company’s portfolio.
What are the timelines for these projects to go into production?
Both our projects are at the PEA (preliminary economic assessment) stage, meaning we have a conceptual mine plan confirming production profiles and other key metrics. Our goal over the next two and a half to three years is to advance both projects toward shovel-ready status. This involves developing a bankable feasibility study and completing necessary regulatory work, including environmental and baseline studies, to secure permits for construction.
If we secure the necessary resources and capital, we aim to advance both projects simultaneously and achieve shovel-ready status within three years. This timeline is ambitious but realistic, considering our current position and the work we have planned.
What is your strategy to attract capital? How easy has it been to get investment until now?
Despite gold being near all-time highs, the equity markets have not responded as favorably. It has been a challenging market not just for gold or juniors, but for everyone, including producers. Even with gold at an all-time high, many producers’ share prices are not reflecting this. This differs from what I experienced earlier in my career, where a rise in gold prices led to significant increases in equity prices.
Over the last 15 years, especially since the 2008-2009 financial crisis, there has been a divergence between mining equities and commodity prices. This has made attracting capital challenging, with a shrinking pool of available funds. Resource and precious metal funds have been supportive but selective due to limited inflows. However, we have been fortunate. Our strong team and undervalued projects have allowed us to attract investment from existing shareholders and new funds. Our balance sheet is strong, positioning us well to continue advancing our projects.
What, in your mind, is behind this disconnect between equity prices and the price of commodities in mining?
There are many reasons, but here is my perspective. When I started, mining was a go-to sector for investors, especially in Toronto. However, since gold hit all-time highs in 2009-2010, we have not seen a consistent bull cycle in commodities, particularly in mining. Mining is cyclical, traditionally with a six to eight-year peak-to-trough cycle. But in the last 15 years, we have missed sustained rallies, only having brief spikes in 2016 and 2020 where equities did not have a chance to catch up.
Younger generations entering the industry have not experienced these cycles, making it harder to understand the sector's dynamics. Additionally, we have seen unprecedented bull runs in sectors like the S&P 500, drawing liquidity and attention away from mining. Our industry lacks the size and liquidity of these sectors, which compounds the issue. Despite these challenges, I believe there is a light at the end of the tunnel. Sustained high gold prices, lower interest rates, and a devalued US dollar could revive market interest. Producers will show significantly higher profits, potentially waking up the broader market to our sector's value.
What do you do at STLLR Gold to change the bad reputation of mining when it comes to sustainability?
Mining often gets a bad rap as a polluting industry, but much of this is due to a lack of education. Mining is essential; everything we use either comes from mining or agriculture. The negative perception is something we need to overcome through education. Mining, like any industry, must adapt to sustainability challenges. We need greater collaboration within and beyond our sector to transition to sustainable energy sources.
At STLLR Gold, we think big about sustainability. For example, our remote project in the Northwest Territories traditionally would rely on diesel fuel, but we have identified wind and solar as viable alternatives to power 60-70% of our operations.
This ambitious plan was well-received and shows our commitment to sustainability. Additionally, we partnered with an indigenous nation to build a solar farm by the end of 2025, reducing our CO2 emissions by 60%. We are dedicated to executing sustainable practices within our means and expanding our efforts as we grow.
Tell us more about your efforts to attract young people to STLLR Gold. Have you been successful thus far?
We have not faced this issue directly, but it is a significant challenge in the industry. Finding talent is competitive because the pool of engineers and geologists is shrinking. We need a multi-pronged approach to marketing and raising awareness about mining’s importance to all aspects of life and sustainable energy transitions. Collaboration with larger companies and a unified industry effort is crucial to address this challenge.
At STLLR, we aim to engage the younger generation, who are highly active on social media. By adopting a youthful and innovative image, we hope to attract young talent. Our social media efforts have increased our followers and engagement, and we continue to work on raising awareness. It is not perfect, but it is necessary to ensure the future of our industry. We believe that by thinking creatively and staying active online, we can make mining appealing to the next generation.
Where do you picture STLLR Gold three years from now?
In three years, I believe STLLR Gold will have two significant projects ready for construction. We are already planning and budgeting for this goal, and we know the steps required to get there. Our regulatory framework, baseline environmental work, and partnerships with reputable consultants will help us achieve shovel-ready status within this timeframe.
This vision depends on market conditions and capital availability, but we are well-positioned. We have a solid resource base that does not require extensive additional drilling. By focusing on regulatory and environmental work, we aim to secure permits and complete engineering studies. I believe we are one of the largest and most undervalued junior gold resource companies. Our strong projects in prime jurisdictions present a valuable opportunity for investors looking to gain exposure to gold.
