Not only are macroeconomic conditions still positive for gold, but the scarcity of supply also runs in the metal’s favor, according to Rahul Paul, president of Radisson Mining Resources (TSXV: RDS.V).
Not only are macroeconomic conditions still positive for gold, but the scarcity of supply also runs in the metal’s favor, according to Rahul Paul, president of Radisson Mining Resources (TSXV: RDS.V).
“Because of the lack of spending over the last several years, we haven’t seen as many new discoveries, so we’re now beginning to see a scarcity premium. We’re essentially running out of gold reserves, which is why investors, for that matter large producers, are now looking at and paying more attention to exploration companies like Radisson,” Paul said.
Quebec was ranked the fourth best money jurisdiction in the world by the Fraser Institute in 2019, and here all the positive benefits of investing in this region. I'm joined today by Rahul Paul, president of Radisson mining resources, whole welcome to kiszko. It's a pleasure to speak with you today.
Thanks. David fiving me before we talk about your company and why investors should be interested. Let's talk about the investment landscape. What is your sentiment right now on the mining industry and in particular, the junior mining sector. Uh, extremely positive, but you can only for gold mining. And, uh, gold has come off from, uh, $2,000 an ounce, but 1900 is still extremely healthy, uh, with all of the government spending to avoid a recession.
And that's not just the us, but globally as well. I would say conditions that extremely favorable for gold than, and better than I've seen in the last 20 years. So. But several years, money was not available to exploration companies, but we're seeing that change now, uh, with investors becoming more positive on gold.
Um, and because of the, uh, the lack of spending on exploration and the last several years, we haven't seen as many new discoveries. So we're now beginning to see a. Scarcity premium. Uh, we're essentially running out of gold reserves and which is why I think investors. And for that matter, larger producers are now looking at paying more attention to exploration companies like, and so in general, I think this is a great time to be in the gold business and in gold exploration as well.
Well, and why the inflow in capital this year in particular, is it mainly due to the higher gold price or are miners doing something differently this year? I would say it's a combination of things. It's the higher gold price. And the fact that this remains one of the, uh, shining stars and what has been a pretty tough year for the, uh, the investment community.
And, uh, I guess it's the outlook in general for gold, right. And, you know, I've seen more people that are positive than gold, positive on gold that I've seen in the past. Of course now, do you think this positivity and this bullishness be sustained? We've already seen $2,000 announced that's the highest price ever recorded in nominal terms?
Where can we go from here? Rahul? I think so interest rates are close to zero where we are. So the opportunity cost of holding gold is, is low. And, uh, you know, when you talk about the government stimulus and when you try to think about when that might end, uh, it's really difficult to say and everything that has happened in the last year, um, It just, there's a feeling that, uh, this stimulus spending could go on for a long time and that's really positive on gold.
So, so I think what we have is the, uh, the beginning of what, uh, could be a sustained rally. Right. Okay. Let's talk about your company in particular Radison, give us an overview. What is your company all about? Tell us about your project and Quebec. Sure. Um, so we traded on the TSX or under the ticker RDS.
Our primary asset is the high grade O'Brien gold project in Quebec, Canada. So this is one of the highest grade undeveloped gold projects out there. Not already owned by a producer. Uh, the property is located on one of the richest and most coveted mining camps on the planet. The, uh, the Buscape Cadillac mining camp, uh, this camp is along the Cadillac break and that's a structure that has hosted the majority of gold deposits in the, uh, the world's largest gold belt.
So our property includes more than five kilometers of strike length along the break. Um, that includes more than two and a half kilometers to the East and two and a half kilometers to the West of the past producing O'Brian mine, which historically was the richest mine by create in Quebec. So this is a mine.
That was a consistent high-grade producer for 20 years producing almost 600,000 ounces at average grades. Yeah. Excess of 15 grams from 1926 to 1957. Okay. And so where we are right now, we've got a resource right next to that. That includes 289,000 ounces in the indicated category. 145,000 ounces in the inferred category.
And all of that, uh, 434,000 ounces are mostly within the upper 500 meters from surface. And keep in mind, this is a camp where mines typically go down to more than a kilometer in depth. Our defined resources are also within a one kilometer strike length to the East of the old O'Brian mine. And we have more than five times that strike extent of work with including, as I said, two and a half kilometers to the East and West at what used to be the richest, mine, bridges, goldmine in Quebec.
And we're dealing with the same rocks, the same structural setting. So you can see why we're so excited about the upside here. Yeah. So let's talk about, uh, you know, what makes you unique because there's close to 2000 junior mining companies around the world, publicly tradable. Why Radison. Sure. Um, a few things.
First of all, high grades, um, O'Bryan has an indicated grade of nine and a half grands that makes it one of the highest gold, highest grade gold deposits in North America. Not owned by a producer. Second, a great location. I don't think you could find a better place to build a mine. You have access to power infrastructure services, skilled labor, even spare milling capacity three.
They say the best place to find gold is next to a gold mine. In this case, we're exploring for gold right next to what was the highest grade gold mine in Quebec, and to make things better, we have 75 years of data to guide us. So we're not starting from scratch. And the fourth point I like to highlight is, is the team.
And we also have the money we've put together the right team. We have the money to execute on what I believe is the largest drill program in the history of the company. And, uh, Last, but not the least. Uh, our team is well aligned with shareholders with insider ownership at over 15%. Our largest shareholders include the chairman CEO, a strategic advisor and directors as well.
And, uh, we're, we've, we've participated in every financing if we continue to be buzzed in the open market as well. Okay. Now let's talk about the region as a whole. The Epic tipi region of Quebec is. Really rich with oars. Isn't it? Tell us about this region? Yes. So, so starting with, with Quebec, Quebec is a great place to be in, and it's a great place to operate as a mining company.
Geopolitical risk is as low as it is. Yes. Um, you know, this is, this is a province located in Canada and, uh, It's a democracy. So, so new geopolitical risk is something that you commonly see with a number of deposits in West Africa and other parts of the world. You have a government here that is very supportive of mining.
You have extremely straightforward permitting procedures. You've got government institutions such as Sedecki investment, Quebec FTQ and the case. All very supportive of gold mining and exploration to gold exploration company. That is a big deal. And the Abitibi region in Quebec is one of the most established mining districts out there.
So you have access to power infrastructure, skilled labor, and support services. So to give you an idea, we're located right off the TransCanada highway next to the town of Cadillac, less than a 45 minute drive from Rwanda Miranda and Valador, which are major cities in the region. So that means. People can drive into work every morning and drive home at night.
And that's unusual to see in the mining business and something I've rarely seen in the many, many minds I've been to over the last, uh, 10, 15. I think the government of Quebec has been supportive of infrastructure projects around the mining sector in general. I think yes they have. And, and more than that, I think what it boils down to is the conditions for companies to operate in.
I mean, it's, it's, it's, it's a government that has been open for business and supportive of mining companies and, and along the way, mining companies have stepped up as well. I mean, there's some of the biggest taxpayers in the, uh, in the province. And, uh, and they've done a good job in terms of, uh, partaking in infrastructure for infrastructure projects and, uh, you know, creating jobs in the region as well.
So it's a win, win situation. And, uh, you know, the government has done everything that it can to, to support, uh, what is a healthy mining industry in the province. That was about the risks then in investing in Quebec, because there are jurisdictional risks for every region, but the risks are different.
Depending on where you are, the risks for Quebec are not necessarily going to be the same as those in West Africa, for example, or South America. So tell us about what investors should be watching out for. Yes. And, and, and again, I think it's, it's a good problem to have, uh, you know, just because of the, uh, The conditions that we operate in the favorable, uh, conditions still operate.
And as a mining or gold exploration company, you've seen, we've seen a boom in activity in Quebec and in the Abitibi region. So, which means there's more competition for, for labor, um, you know, technical services and, um, You know, other support, uh, facilities. So that standpoint, uh, it gets a little difficult to, uh, to plan it ahead.
And, you know, we're, we tend to deal every day with what I would call it, capacity constraints, which I would say. You know, longer term, it's an easier, it's an easier problem to handle than geopolitical. Okay. Finally, let's talk about your recent transaction that you made with Renforth resources. Tell us about this deal and why you made this transaction.
Sure. So, so we've recently entered into a transaction with Brentford resources and that's our fr. Uh, the ticker on the Canadian securities exchange to acquire the new algebra project adjacent to us. So that increases our landholdings nine fold to 5,800 hectares, and one of the most coveted mining camps out there.
So in addition to five kilometers along the, uh, the prolific Cadillac break, we also control a sizable and position of the Pontiac sediments to the South of the break. And in this district, the Pontiac sediments have known to host some large. Both mineable deposits the best known example, being the Canadian Malartic mine, which is less than 50 kilometers to the East of LVR.
So ultimately this is a transaction that has significant synergies. It adds scale and it makes Radison and the O'Bryant project attractive to a broader range of investors and even better. Uh, I'm happy that we were able to complete the transaction using our balance sheet without having to go out there and raise more money.
Perfect whole. It was a pleasure to speak with you today. Thanks for coming on Kiko. And, uh, I wish you continued success. Thanks, David. Thanks for having me. And thank you for watching kiszko news. Stay tuned for much more coverage.