Cascadia Drills High Grades at Zone 2000S Extension

0:00 As folks are filtering the room, I will say good morning, good afternoon, or good evening, depending on where in the world you're signing in from. As always, really appreciate it. I see we've got a bit of an international audience today, so I really appreciate you taking time at various points of the day to join me for this update. Very excited to have with me today, Graham Downs, President and CEO of Cascadia Minerals, to talk about a recent news release. Graham, how are you today? Doing great, thank you. Awesome. So today should be a relatively short event. So I encourage you, if you do have questions for Graham, enter them as early as you can during today's presentation. There's a chat button at the bottom of the screen. You can press it any time and ask questions. I've got a number, so I might cover your contents. And if for whatever reason I don't get to your question, either I run out of time or it's a bit too technical for today's event, I'm still going to get it to the Cascadia team, and they'll be able to get back to you over email or phone. So don't worry if I don't get to your question, it will still be will still be tackled. Only other 2 pieces of housekeeping is your request meeting button at the bottom of your screen. If you would like to meet with the Cascadia team and I recommend it, they're great guys.

1:00 Please do hit the request meeting button at the bottom, and I'll try to connect you with the team following today's event. Again, I'll give them both your email and the phone number that you gave at registration. Today's event is being recorded and will be available for replay before end of day Eastern time for sure. It'll pop in your inbox, but it'll also be on Six's YouTube channel. That is the end of the boring parts. I want to get into the protein. And Graham, let's start with the headline. Hole 56 hit 82.69 meters of 1.78% copper equivalent. One of the strongest intersections ever drilled in the property, as I understand it. But here's the part I want people to sit with in this first question. It came from an area, the 2022 Resource Model treated as barren. So walk us through the moment your team realized that assumption was wrong. And what's in the geology that that whole model missed?

1:45 It kind of goes back to really when we looked at this project and it was previously with a company called Granite Creek Copper. Almost exactly a year ago, we merged with them. When we did our due diligence, we thought there's just a lot of low-hanging fruit still there, who we believe there was. And also going back to the fact that historically, a lot of the previous operators were just going after the oxide so they would stop at the, once they hit the Sulphide, they'd stop, which is pretty crazy, but that's the way they were looking at it at the time. And really, the fact is, it's not so much that maybe others didn't think it was there. It's just because markets, 1, it was going after people, going after oxide, and then markets were just bad for so long. So, I've got to give a bit of credit to Granite Creek Copper, the previous operators. They found the 2000S zone as the newest zone that's been found. We just really believed that it couldn't just stop where it was.

2:43 And we wanted to test it. And frankly, we are just met our expectations way over our expectations. I mean, the amount of copper in that hole is just spectacular. It's almost a football field long. Like it's just it's, it's, it's great. So Yeah, I mean, we're just super excited about it. Yeah. Awesome. No, it's always exciting to be the next station and find something that a model found there. And I don't know that to me is always one of the more exciting things you can do. So took place. The second one I had is

3:13 zone 2000 S is now doubled in strike length and your sulfides sit within 300 meters of the southern edge of 1, 4, 7 sulfide mineralization. You've got 6 step out holes, as I understand, depending in that gap. If those assays connect the 2 zones, what does CarMax become? Are we potentially talking about 1 continuous system instead of separate zones? Don't mean to make you crystal ball gaze, but I'm curious your perspective. I mean, that's our goal. Like, you know, I really think viewers should go take a look at our news release and the figures there, because you bring up a really good point. We are looking to try to connect. The Carmack Copper Boils are made up of 3 zones. They all come to surface. Right now, we're working on that middle zone, the 2000s, and we're just marching our way over 50m at a time, roughly trying to link it up with the 147 zone to the north.

4:06 And, and, you know, we've, 2000ft was recently found, but it was when, before we got there, it was 300 meters. Now it's 600 meters. Like we're doubling the size of this or the strike length. I should say it's not the size because we really only just kind of extended along a long strike. It kind of roughly a 1 vertical level. Like there's room

4:28 to go up dip and below dip on this thing. So There's a lot of real estate in that area between 2000S and 147. Our goal is to double this resource if we can. A really important piece here though, that a lot of viewers might not know is that that 2000S is in the mineral resource, but it was never put in the PEA that was done in 2023. We didn't do that, but it was not in the PEA. So now we're looking at a zone that we are hoping to double the size of, that when we do another economic study, that should very likely go into that model. So, and with those grades, and yeah, I suspect you'll probably have a question about this too, but the Gold grade is picking up. So it's just, we couldn't be more excited about it. Awesome.

5:23 And I do want to get into the math you guys used because the Copper equivalent math in release uses $4 Copper, which feels outdated at this point, And $2,500 Gold. Copper closed, at least when I was writing these questions, at $660. Gold is heading back over $4,300 now. So that 1.78% Copper equivalent headline is actually quite a conservative number at the spot. So how do you want the investors in the room today to think about the grades you're reporting versus what the market is actually paying for all those metals today?

5:57 We've been around a long time. We've done these studies. We've made discoveries, done PEAs. We're typically a more conservative company. We don't want to inflate the numbers. If your viewers take a look at the PEA sensitivity tables in our PowerPoint presentation, they're super low. I've never done that 375 Copper and 800 Gold, I think it was. You have to take all these PAs of the grain and salt, but go look at the sensitivity tables. Pick the number that you are comfortable with. But the numbers, they're not even in the sensitivity table. Same with the equivalent numbers. We could probably bump those up a little bit. But I think that's where the opportunity is for a lot of the investors to be like, holy smokes, If they double the size of that, they bring us in, just even do a conservative bump in the numbers, this could be worth X.

6:54 Just because of disclosure, I can't tell you what that looks like. We've run our internal models, but we're optimistic what we're finding now. And when we do, I mean, we're pushing as hard as we can to get towards a pre feasibility maybe in 2028. But if we keep finding mineralization, where do you draw the line in the sand to go do that? So we're just we're in a very fortunate situation where we're continuing to find really

7:15 nice grade mineralization. So yeah, to answer your question, we're just a little bit more conservative and that will come out. The market will always realize that value. No, appreciate that. Yeah, it's true of almost any sensitivity table drawn 2 years ago. If you put 4,500 Gold at the top end, people would have called you nuts. That was a bizarre topic. What are you doing? You get roasted in the comments. It's a very different. Oh, you get roasted all the time. I got one, The Northern Extension. And like you said, we want to talk about Gold for a second. It is carrying noticeably more Gold than the rest of the deposit with the included interval in the whole 56 running 0.95g per ton. In a Gold market like the one where you and I just talked about, What does a Gold enriched zone do to the value proposition of what has historically been talked about as a Copper project?

8:08 Well, it's really massive. Like 147 does the zone to the North has a little bit higher grades here and there of Gold. But we haven't really seen these long intervals of plus 0.5g Gold. Getting 0.95g or even 0.6g or 0.7g, those are numbers that most Gold companies will put out. And I think that really goes back to our last question. We have 651Mlbs of Copper right now. This was a resource that was done before we got there. And just over 300,000oz of Gold. But what does this look like when we're over 1Bln pounds of Copper and over 500, closer to 1Moz of Gold? That's another thing that people can think about and put into how people want to value this.

9:00 But That's our goal. We want to get this resource if we can. Mother Nature will be the ultimate decision maker on that. But we are looking to get this well over 1 million, 1 billion pounds of copper. And I really want to get this somewhere closer to 1 million ounces of Gold. And again, remember this is road accessible and 10k from power.

9:21 So it's just a very good situation to be in. I love road accessible. I think it's a quote I often use the platform. Byron King from Paradigm once told me on a webinar, visible Gold is sexy, but a road is way sexier. And I tend to agree with him. It is. And having worked with helicopters most of my 30 years in Yukon, it's expensive and it's not any cheaper. So yeah, those costs will add up. One thing I wanted to note, you expanded the drill program mid-season from 15,000m to 18,000m. In my experience, boards don't usually sign off on 20% more metres in August, unless the core coming out of the ground really demands it. So what tipped that decision and where are those extra meters gonna go this fall?

10:08 Clearly what we're seeing, the fact that this is getting bigger, because, And we've said this in our news release, we've actually hit further to the North towards 147. I'm not going to characterize that mineralization, but because we've only really hit it on roughly a vertical strike length, there's just so much real estate. There's so much drilling that if we can continue building on that resource that we just need to get after as soon as we can.

10:39 And that's the decision to bump up the meterage this year. We're drilling out at zone A right now. We really wanted to learn a little bit more about that. That's 11km because our property is 180 square kilometres. It's huge. There's targets everywhere, but we really wanted to that as a historical area. But when that comes back, we're going to park it around 2000 S and just start stepping out from all these type of holes. If we can keep doing that, that should add pounds and ounces pretty quickly. Awesome. 1 specific, I want to talk about Hole 54. Is it the deepest test ever at the 2000s? 467 vertical metres and the zone is still open below it, if I'm not mistaken. Historical operators drilled this deposit for oxide and famously stopped holes once they hit Sulfides.

11:24 So from your perspective, how much of the Sulfide potential at Carmex has just never been tested?

11:31 We don't know. I don't mean to be flippant, but To the very North of 147, we think it's pinching out a little bit. We need to figure that out. That's one area that's a little bit questionable. But 147 and 2000S, we don't know. 1213, which we've been meaning to get to, but because we keep finding mineralization, 2,000S, 1,213 is to the south. That's the other third area or zone. It was shallow. That's where a lot of the holes were just, when they hit sulfide, they stopped. And again, because they wanted open pittable oxide, that's what they were looking for. So we're, the other drill, when it comes back is gonna go to the 2000, that's the other drill, is starting up soon, is gonna be at 1213.

12:21 And we're gonna just, That's all open to depth as well. Those are shallower holes too. That'd be a nice open pit. It is a nice open pit target as well. There's just so much room just in the deposit area itself.

12:37 We've made a really nice new surface discovery. Soil's down about 8k to the south of what they call Zone 10. We've got Zone A. We're doing regional work all over the property. We flew the entire property with MAG, which is a really nice indicator for us along the property. Just for any of your viewers that aren't familiar with the area, you've got Selkirk Copper to the North of us. They're looking to put the Minto mine back into production. They're only 30-40km to the North of us. Same style of mineralization. We're just to the South. So between ourselves, we pretty much own most of the entire Minto Copper Belt, which is kind of the primary Copper area in Yukon. Great. I know drilling just started at Zone A, as we've kind of talked about already, which is 11km Northwest of the deposit.

13:28 The historical holes there from 1980 include 13.72m of 3.18% Copper with 2g Gold, which is pretty good numbers obviously. How does ground like that sit untouched for 45 years? And what's the plan to answer those questions that those holes asked. Exactly. Going back, just as a reminder for many of your viewers, for decades, the Carmack's Copper Project, the claim position was small and just around the claims. It wasn't until recent years that Granite Creek did a great job of consolidating the entire area to make it up to 180 square kilometers. That was in a prospector's hands for years. That's why I probably didn't get a lot of work because for them to do a drill program, that's a lot of money.

14:19 Once we put those together, obviously there are some really great grades out there and your viewers can look at them. We just need to get out there. There had never been any orientated core used out there. It's structurally complex and quite variable in the holes. There's not a lot of holes, but it's just very variable. Unlike our Carmack's deposit, it's very predictable. It's nice, deeply dipping, just could march along. There it is. They had some challenges up there. Oh, we're in the zone. And they go up 50 meters, and they're like, oh, it's nothing. But we're going to, it deserves, so the grade up there is great. The gold grade is amazing. So we're just going up there to figure it out, get orientated core there, do whatever we can to figure out the structures there and probably get, depending what we see out there and the way we think about it, get back out there a bit more earnest

15:10 in 2027. Awesome. Appreciate it. Now, one question came in from the live chat, so I'll ask that, But as I ask it, I'll let people have an opportunity to have one more chance. I know there's quite a few of you in the room to ask the last question or to hit the request meeting button at the bottom of the screen. Unless I don't mention that. But Wes from the chat wants to know how long is drill season on site? We're going to go roughly to end of October. That's the plan. You can push it. We'll see how it goes. Sometimes you just get frozen out, and then it just costs start going up. End of October, to answer your question, we probably go a bit longer. We have a water well there now that we're looking to get into use so that could extend it. We'll see. Okay, great.

15:55 And while I ask that, somebody did come in with a final question. Noah says, great results, keep up the good work to start. But it says the mental copper belt is so massive. I know you're trying to de-risk multiple areas at once. He wants to know if you've considered doing shallow scout holes in 2027, 10 of the untested areas closer to the road, like zone B, zone 2 or zone 10. Great question. You know, sometimes I've kind of hit and miss using RC drill rigs, which is my personal opinion. Sometimes it's more of a trouble. What we are going to do is we've got permits, 10-year permits, so we can get out there and do a lot of trenching. And that's really, really helpful. So between the mag data that we have, the soil sampling, the trenching, those 3 things alone, and then he's completely right. We can go out there and just drag a drill around, do a bunch of short holes. So yes, we definitely want to do that. It's probably not going to happen this year. We need some work to get those to a stage that we want to drill them. He said 27. So I think you're right on target with the question asking.

16:53 Robin had one. What is your current cash balance and what's current cost of drilling per meter if you've got a napkin mask? Yeah, we're just under 10 million right now. You know, just, you know, we're cashed up with the Agnico actually took a big position with us a couple of months ago, so that was nice. And then we've had quite a few warrants get exercised. We're around just under 10M. We're looking to be in and around plus or minus $7 million going into the beginning of next year.

17:23 And yeah, I want a current cost of drilling per meter as well if you've got it. If you've got it. With Yeah, absolutely. We did a lot of the geophysics. We did a lot of extra things. And even with all of those extra things included, it's around 400 all in a meter. And take those out, it's closer to 360. Great. Well, as I'm saying goodbye, you've got one last question, time to sneak in a question, but Graham, thanks so much for running through the news, always appreciate giving some extra context and flavor to some of the news, I think this is very exciting results, I hope everybody shares this video around when the replay pops into your inbox in a couple hours, but Graham, thanks so much, This was fun. Thank you. Everybody have a great day. Cheers.