Deep Dive on Moray

0:04 Hello everyone and thank you for joining us today for this live New Break Resources event. I'm pleased to welcome Bill Love, CEO and Director, who will provide a brief presentation following those new to the story. Following his remarks, we'll open the floor to your questions. So you can submit your questions using the chat box in the bottom right corner of your screen. Please note that this event is being recorded, so you'll be able to watch the replay at your convenience afterwards. With that, I'll turn it over to you, Bill.

0:28 Well, good afternoon. I first of all apologize for my absence last Monday and all to say that, you know, getting old isn't necessarily graceful. So anyway, I'm back. And so I hope everybody sees the arc model. That's the Moray land position and Matachewan is here, which of course is Young Davidson, which is the Alamos mine, Timmins to the north and Croakland Lake just over here. We're up now over 20,000 hectares and the company's history with this project goes back.

1:16 I've had a long history of this project going back probably 2005. I was a shareholder of a company that held the project and the fellow who ran the company, Dr. Osh Kreshmar, was a very famous geo And I did a lot of work, Woolrich worked for me and I worked with Woolrich anyway. So I had familiarity with the project from that previous experience.

1:47 The target was Gold. There's a very large cyanide intrusive on Moray, which is known as Facet Cyanide. I was aware of the history of Gold veins in the cyanide and Gold on the margins of the cyanide. I've had a lot of background with this project. When New Break was looking for gold project when we were starting up, this became available. So Kyle, do you wanna ask me questions or I should just go ahead?

2:28 You can just keep plugging away. We can address some questions at the end. Is everyone seeing the leapfrog model? Yeah, I'm seeing the transitions just fine. And if people have questions in the chat that are relevant to what's on the screen, I'll pipe up and address them. All right, so this is our most recent, this is a leapfrog scene, which comes from the leapfrog and main leapfrog software. We've now coded in all of the lithologies, the surface lithologies. I just very quickly want to point out a few things. There's been a long history on Moray, a fair amount of historical drilling, but really very, very few historical gold intercepts.

3:22 One of which is right here is Niranda 65-1. And this intercept, The logs are redacted, the assays are redacted, but somehow a number of, you know, just over 6 grams, over 3 meters appears in the mineral deposits files.

3:46 And this intercept was tested by Newmont in 1980, in a 380-3, and their assays were also redacted. Now, the significance of this is that there is a fault called the Galar Lake fault, which is a splay off the main Cadillac Larder Lake break. And for those that are familiar with the Western side of the Cadillac Larder Lake break, Young Davidson is on the Cadillac Lower Lake break. And then there's a controversy as to whether the break runs south down into Southman Township, where Torque Metals, previously Astor Minerals has the Edelstone project, which is now a Gold and Nickel resource, or whether it goes north Through what's you know, no one is the gallery fault And this fault runs through the Moray Project, coincident with this intersection, and runs up to the south end of the cyanide, and runs up, we postulated, to where we've had our recent discovery.

5:03 Let me just take some of this off. Now, this is an assumption regarding the contact of the cyanide. OK. So what we've announced is quite good gold numbers from hole number 4, which is this one, and hole number 5. And when we did the press release, as you can see, you know, these holes are close to the presumed contact with the cyanide. And we first felt, having looked at the cyanide mafic volcanic contact in the field, that this may have been, you know, the deposit or the occurrence, the discovery, may be related to a contact metamorphic effect from the cyanide. The cyanide comes up.

6:08 It's younger than the mafic volcanics. And you end up with contact mineralization related to the heat of the intrusive. What we have since found since we have run our second program is that does not appear to be the case. And what we did before we ran the second program is run, these are Mies a la masse contours and Mies a la masse is a way of measuring voltage in, you know, in rock as a result of a conductive, i.e. Sulfide-bearing zone. And This line of blue is the Voyager massive sulfide trend. And there's been a long history of companies trying to trace a massive sulfide, VMS trend, you know, volcanogenic massive sulfide, to find the core. And what you normally do is at the very margins of a VMS deposit, in what's referred to as the distal, i.e.

7:33 Far away section, you get large amounts of pyrite and pyrite. As you get closer, you end up usually with a copper stringer zone, which is beneath your lead zinc core of your massive sulfide. So this massive sulfide trend is very well known, is very evident in the field. Many parties, including NuBreak, have stripped it. And what you notice is that there is an abundance of massive, semi-massive pyrite and pyrite and very minor chalcopyrite. So what that tells you is you're far away from the core of the VMS.

8:24 And also, when you test this zone for gold, you don't get any gold. And what we noticed is this blue is our trench 12, which we was discovered by AST-X Resources in 2012 and consisted of a less than a meter wide sheer branch of vein that had very good gold values. And we had grabs up to 70 grams per ton. And What we noticed is the difference in the texture between the massive sulfite pyrite and pyrite, which just looks like massive pyrite and pyrite, and what appears to be recrystallized pyrite in Trench 12, again discovered on surface.

9:18 And that recrystallized pyrite appears as fine, in many cases, euhedral, full crystals of pyrite. And that's where the gold is. So, SGX resources discovered it on surface, we expanded, we did more sampling, etc, etc. And, you know, we found this relatively narrow breccia being, you know, probably 3 or 400 meters long, kind of north, south, northeast, southwest. So this target, the trench 12 target had to be drilled, it was an obvious target. So when we drilled with hole number 4, we noticed large sections of the core, sections that had the massive pyrite and pyrite.

10:13 But when you looked at that massive pyrite, You could see the recrystallized pyrite crystals, and also in other sections you can see just the recrystallized pyrite in what we refer to as hematized ultramafic volcanic. And that's where the gold started showing up. And then in hole 5, we noticed less of the massive pyrite and pyrite, and more of the recrystallized pyrite and pyrite and more, you know, more classic looking sericide quartz, again with, you know, with up to 25% of this recrystallized pyrite.

11:00 And all of that ran for gold. So when we approached the current program, the natural thing to do is drill what we would refer to in the industry as an undercut, i.e. Drill holes below your discovery holes. And we did that with 7 and 8, 7 under 5 and 8 under 4, and we found this, the top of an ultramafic unit. And this ultramafic unit, when you tilt it,

11:37 cuts off the mineralization and represents what we're interpreting. It's very flat-lying, slightly dipping to the northeast, is a thrust fault. And that thrust fault, we believe, is the structure that is driving the remobilization of pyrite from this massive sulfide unit, the remobilization and recrystallization of that pyrite. And where that's happening is in that whole structural sort of high temperature environment, that's where the goal comes through.

12:27 So in 7 and 8 we noticed, you know, this ultramafic, again, very flat line, typified by fault structures. And we believe that's the structural engine for the shear system that we've now identified. So when we discovered this, we drilled a hole number 9 above the ultramafic. We're currently in hole number 10, which is down here, again, above the ultramafic. And in both cases, more so in 9 than in 10, we're seeing a lot of this recrystallized pyrite within what we refer to as a hematized ultramafic volcanic.

13:18 So what does this mean? It means that we have, well, the other thing I wanted to dwell on without getting too much into geochronology, but

13:34 the VMS system in Timmins, Kirkland Lake, Metatuan, typically the rock or the stratigraphic denotation is this is Upper Tisdale so it's probably the VMS is probably like 2.7 billion years old and the structural event you know this crustal shortening, compression, is likely 2.64 to 2.66. Now, what does that mean? Well, the interesting thing is the young Davidson cyanide has been dated and it's in about the same date time frame as this,

14:28 you know, this thrust fault, this crustal shortening. So the question is exactly what is the cyanide doing in terms of the system? We're not dealing with a classic, you know, Young-Davidson style cyanide intrusive system where the, you know, in the Young-Davidson context, you have a structure that's younger than the cyanide. In this case, our mineralized zone and our structure is roughly concurrent with the intrusive. And we haven't completely figured that out, except to wonder, is the intrusive shaping – the intrusive obviously is brittle, and whereas the mafic volcanics are highly ductile, they can be, you know, they can be reworked.

15:32 And we suspect that this contact, the cyanide contact, is in fact reworking the contact with the maple volcanics. Because the other thing we've noticed is there's this, again, very shallow

15:54 thrust plane. But also we see rolls. And rolls is a very common thing in Timmins, Kirkland Lake, Val d'Or, Red Lake, structural systems where the stratigraphy will roll over and you get plunging ore chutes. And we've noticed that in the sort of immediate area. And that may be the impact of, again, the intrusive, which date-wise is roughly the same time. I mean, people laugh at geologists because they say, well, it's a few billion years here or there. But that's true. That's about as good as we could do.

16:43 So the cyanide's playing a role. It may be in changing the mafic volcanic's very ductile, apt to be moved around. Because we have noticed, And they're known as flats in mines because it's very common. I have quite a bit of experience with the Clavos mine, which is east of Timmins. But any mine, classic mine in Timmins, you'll have these rollovers with flats on the veins, and we're seeing that here.

17:27 So we're just about finished hole number 10. We're then going to run a hole. These contours are the Miesselaer mass contours and they represent the, you know, the density of contours represents the sort of highest conductivity and the, you know, therefore likely the highest sulfide percentage. Now, what we're looking for is not necessarily the highest sulfide percentage because it's the recrystallization of that sulfide that's key to the gold mineralization. So we're going to run a hole roughly like this,

18:12 which will be our next hole. Now this hole, this historical hole, 80-6, is really interesting because the government in Timmins in the government core storage library, the core for 80-6 is present. And I've looked at that core. And at the time that I looked at it with colleagues, you know, we didn't know anything about, you know, the between massive sulfides and recrystallized pyrite. But I remember quite distinctly that that core exhibits that recrystallization texture. Now, the assays were redacted, but

18:57 this hole mirrors Here's the stratigraphy, i.e. Well-mineralized mafic volcanics down. And then it hits the ultramafic, and the sulfides are gone. So again, when you look at it, there's 80-6. So it hits the ultramafic. Once you're in the ultramafic, the sulfides are gone. So to the northwest, we have a lot of rock that's above this thrust plane contact.

19:48 And clearly with the meso mass contours, and again we know from the log from 80-6, that you know there is there's a lot of sulfide present. What we don't know is how much room we have down here above the ultramafic contact, because this is a presumed contact of the cyanide.

20:50 And there's

20:53 no drilling to establish whether that's true or not. So we know to the Northwest there is significant room. Remember, what is a very flat line may, in fact, be strata bound, meaning like a sheet, a layer, of this hematized altered maybe volcanic. But to the Southeast, we don't know yet how much room we're gonna have. So that's really, that's really it, Kyle. No, I love this, This is great.

21:41 Besides the truth machine, what other methods can you use to find recrystallized pyrite? It's really tricky You know anything that you do You know whether it's IP or you know surface EM It's the the large mass of sulfide pods are going to mask out

22:11 any of this much finer recrystallized pyrite. Now, I do know that 80-6, there was a surface exposure of the sulfides. Someone probably well before Newmont, opened the ground, stripped it, and there was, there was exposure. So that's something that we, you know, we should look at. You should always strip, you know, before drilling because it's cheap. So we know that that is, that's possible up in here. Well, there's the line right there So you can strip to and the overburden is not that bad You know, it wasn't bad here.

23:04 It won't be bad up there So you're currently stripping right now there. No we're drilling okay. We're drilling so You could strip you should always strip as much as you can because, you know, again, it's the least expensive way to get exposure to the, you know, to your mineralization and your lithologies. But geophysics wise, you know, we, underneath, like we already have IP all over this. We've got meso mass. And again, these these subtle contours just tell you that you've got a density of sulfides, but don't tell you how much is recrystallized.

24:00 And the ultimate way of figuring that out is drilling. But go ahead. For people watching, what is the scale of what we're looking at right now? What is the scale of this? Well, we previously, I would refer people to the press release that was done, I think it was November 7th, on the announcement of the resumption of drilling. There's a picture in there, which is in essence this picture. And you know, there's about 450 meters sort of along this line that needs to be investigated. And they're up here, you know, you don't see it so much like these contours are not You know in the actual maps that you know the JPEGs that the Supplier produced there's a significant amount of sulfide up here, which we don't think anyone's looked at.

25:12 There's the VMS thing here, There's a lot of sulfide up here But again, it's all about this Like if this if this orange Was you know a normal vertical? Fault system you just see a vertical line because you're looking down. But because it's so flat, it appears in a plan view how you're looking know, just to be extremely flat. Thrust fault. And Peter Habachek, who's New Briggs QP, has done some really interesting work as to why it's a thrust fault and what it means.

26:06 That's sort of beyond the scope of this discussion. But he's tied into a lot of research about, call it, paleo rifting. And he's not the only one. Like he's tacked in a lot of academic work in the Abitibi. In the Abitibi being, Timmons, Kirkland Lake, Metatron, Val d'Or. So there is a reason for it. And we also believe it relates to the Gallard Lake fault, you know, which is that splay off Cadillac Water Lake, or maybe Cadillac Water Lake.

26:52 I mean, the problem is that as you go west from Young Davidson, there's an embayment of proterozoic sediments that obscures the Archean rocks. You can't really tell. So we have a lot of scope to the Northwest. We're not sure about to the South. Will that ultramafic cut it off completely? I don't think so. But It's very evident to the Northwest that there's a lot of rock above this structure, this shear.

27:41 And the question is, is every single drill hole that's above the ultramafic going to be gold bearing? That's probably wishful thinking, but we don't know. In the immediate area of the discovery, we've noticed in 9 and 10 that both holes are well mineralized, 9 more than 10. But it's all about the percentage of the recrystallized pyrite. And there's a linear, you know, I say linear without we haven't done any statistics, but from an, you know, from a observational point of view, it's, There's no question, the higher the percentage of recrystallized pyrite, the higher the Gold number.

28:41 Now, when preparing for this interview, There's significant historical drilling on the property from Naranda, Newmont, SGX resources, including some holes with redacted assays. How are you incorporating this historical work into your exploration model? All the historical holes have their, you know, their geology types. So that goes in the model. I've already touched on the Naranda Hole 65.1, which had redacted assays, but somehow, and I've tried several subsequent residents in Timmins and Crooked Lake, And no one knows why that 6 grams plus over 3 metres plus ended up.

29:40 But when you look at the log for 65.1, it's a well-piratized, you know, felsic breccia slash tooth, which is a really ideal environment for maybe Goldridge VMS. So the rock, that target is one that we will test in our winter program. We have an existing permanent pad. It's very easy to find. There was another question you'd asked me in your list of questions about the gradient IP and there is a target on the eastern side of the cyanide where there's quite a bit of historical sulfide.

30:30 There was an airborne EM conductor and we wanted to test and see, you know, do we have a similar interaction as we see here? So that's another target. So there's 2 other target areas outside of this, you know, the Zabbits gold zone that we will test. Now, in terms of this as a, you know, in terms of this immediate program, 80-06 is I think completely relevant because you can go and look at the core for free sitting in the government core storage library. And I know when we looked at it without, in 2022, when we didn't know all this, we tried to resample, it was quartered.

31:21 And we tried to resample and the residents said no, for obvious reasons, because once you take away the quarter there's nothing left. Right. So there had been resampling obviously to get down to a quarter and but I remember that and I took a picture of it which I've showed to the team now and I'm that looks it looks like recrystallized pyrite. So That particular hole we're focused on now because it's directly relevant to what we're working on. Speaking of the current drill program, an individual in the chat is wondering when do you expect to finish this drill program and possibly the results?

32:08 Yeah, we expect to finish 10 today and then we expect to do one more hole, say 250 meters, another 3 days. So results for the entire program, we're sort of hoping before we break for Christmas. It's about a 3 week turnaround. For us? Yeah. Well, that's great. I've heard some a lot longer in different parts of Canada right now. No, that collapse in Timmins has been pretty good to us. So, but there, you know, there, you know, Discovery Silver's, you know, doing a lot of drilling. Yeah.

32:55 So, but we've But we've had 3 weeks consistently in the first program, and even 2 to 3 weeks now in the current program. So we should be finished in a week. And of course, we're getting assays in from earlier holes that we've already put in. But we'll want to put it all out as 1 disclosure. Let's talk about what happens if you make an economic discovery here in the end game. Moray is situated 32km from Alamos Gold's Young Davidson mine. It's an established mining infrastructure all around.

33:41 How does this proximity influence your development strategy and what advantages does this location provide as you advance the project? We started the company with another project in Timmins and then didn't find a goal, then we got this project and projects in Nunavut. We believe our projects in Nunavut have huge merit. And we now have another junior guardian that's taken them on. But, you know, we picked Moray especially because of the proximity to a producer and What it means economically is that you know your economics If you're not going to put a mill on site, you've got Young Davidson as road kilometres. Why? Because they have kilometre tags on the road.

34:48 As a craft flyer, I'm talking road kilometres, tags on the Tatuan roads. I'm not talking, you know, as a qualifier, I'm talking road kilometers is 45 kilometers, which is inconsequential for trucking. You know, they truck from queueing trucks from, you know, as a grey fox to stock, that's a long way. So 45km is really nothing. And even to go up to the dome mill, Timmins, 45km, the Matatchewan Road intersects Pine Street South at just, I think it's 61 kilometers. So less than 20 kilometers there, and then 50 kilometers to the boundary, you know, the south part of Timmins and the dome mill is right, you know, is right there. So, you know, 75 kilometres again, that's nothing.

35:53 So, you know, we did this deliberately because of the proximity, not only of Alamos, but, you know, then Goldcorp, now Discovery. Even to go up the Langmuir Road to go to the stock mill a bit further, but not … it's thick and truck. Alamos bought the Golden Arrow, which is outside of Matheson. That's over 100 kilometers. And, you know, the resources like just over a gram. And they could, you know, they think they can make money at that, particularly these gold prices.

36:44 So We're well within allowable trucking distances from multiple mills. I don't think we're going to have to develop this out. It's going to take a few rounds of drilling, but the economics are completely different than having to be in an isolated area and having to put up your own mill. It's completely different. That's why we picked the project in the first place. While you talked about the strengthening of the board and technical team, you have some notable new additions. How did their specific experience shape New Break's approach to advancing Moray? I've known Phil Walford since he was at LAC, early mid-90s.

37:38 Phil is incredibly experienced. He was the senior geo with Pam Moore and Tim is he knows Tim is really well. And, you know, he, he grew a Valentine Lake significantly in terms of resource ounces. He's just highly, highly knowledgeable. So I know Phil historically. And he's been invaluable on our technical team. Mark Fadosevich, I've met before. He's had a lot of experience in the industry, is very connected in terms of financing.

38:24 Andrew Thompson, similar thing. Andrew is a very useful, as is Joel, when it comes to producing copy and pictures. He's very useful at guiding our disclosure and he's brought significant funding into Newbrick. We've really strengthened the team. We have a really good technical team now. Peter Colbeck, we've announced. He's a Geo in Timmins that I've known for quite a while. Raw Ontario, I've worked with since the 2007, extremely good modeling guy, Peter Abuchaka.

39:12 We've worked together for decades. So, you know, We have a really good team. We've got a very good crew of local guys. We're well-equipped to undertake and manage this level of drill program. Yeah, good crew and good treasury. What's your 12 to 18-month vision for Moray? What would define success for the project? The first, you know, as we go along, and it's been pointed, this has been pointed out to me by, you know, a number of the guys in the technical team, we need to go from trying to figure out what's going on to a systematic drill grid where we're cutting the structure and stratigraphy and that leads to resource development.

40:22 So we're going to get to that point of you know a more systematic approach on the drilling. I was suspect in our next round of drilling. So, you know, how long will it take to get to a resource? It's way too early to tell. This is a different, it's not sort of individual veins. It's a vein breccia. So it's, you know, it's, I kind of say it's, It's easier to identify in your core, and you know, we know from what the discovery holds, you can get quite good wids.

41:13 So it's something that's, you know, would be easier over time to, you know, to work towards a resource than trying to trace vein systems that, you know, that stop, start, move. This is a bit different. So over the 12-month period, 12 to 18 months, our goal would be to get to a resource. How long is that going to take? It's too early to tell, but that would be the goal. Excellent. Bill, great presentation. Really enjoyed you walking us through this. And thank you, everyone, for submitting questions. And we look forward to the next update with you.

42:00 Thank you.