Transcript
Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:04 Okay, as folks are filtering into the room, I'll say good morning, good afternoon or good evening, depending on where in the world you're signing in from. I see at least a handful of time zones, so I appreciate you guys joining us from all over today. I'm lucky enough to have with me today, Matthew Schwab, CEO of Stallion Uranium. Matthew, how are you today? I'm doing great. Thanks a lot for having me again today, Romeo. Awesome. So here's how today's going to work just for the folks in the room. I've got some questions been asked based on recent news and where the company's at for the summer. Just to get a quick update for investors. But then I'm going to open it up to questions from the audience. Some of our have been submitted in advance over email, so we'll get to those first. But there's a chat button at the bottom, so please use that at any point during today's call to ask questions to Matthew. If we don't get to it for whatever reason, I imagine we will. I'll make sure that the team at Stallion gets them so they'll be able to get back to you. The only other thing I'll say before we get into the protein of today's event is that this is being recorded and will be available for replay before end of day Eastern time. It'll pop into the same link but also be available on Six's YouTube channel. But okay, enough of the boring stuff. Matthew, I'd love to get into the details. I'll say I know there's at least some in the room for our listeners who are new to the story. Can you set the stage for us here on the Moonlight Project and where the Stone Island target fits within the broader footprints in the Southwestern Athabasca?
1:20 Absolutely, Romeo. Since I started at Stallion, a large part of our focus has been to reprioritize targeting, to spend our money and our time exploring shallower targets to make sure that we use our budget more effectively. That's part of how we came across the Coyote target to begin with. Stone Island in particular is Stallion's shallowest target area, ranging from the base and edge, so 0mt stunt conformity, down to roughly 250mt stunt conformity.
1:45 And as a part of our broader exploration strategy, it's important that we continue to build a pipeline of strong tier 1 targets moving forward as new drilling opportunities. And this is honestly a great addition to our portfolio. Awesome, no, appreciate that very much. And I know the recent VTEM plus survey identified 4 priority target areas at Stone Island.
2:08 I love asking people this, can you walk us through what stood out to you most in that data set? Is there anything that really, really struck your attention? Oh, for sure. Yeah, With the new VTEM data now in hand, we've identified 4 strong conductive areas with discrete conductors, and those are coincident with our structural interpretation of the area. On top of that, these 4 areas also align with target areas that were highlighted by our previously completed Haystack Intelligent Targeting Survey. So with that combination, we're really excited to see what comes of this area as we progress.
2:40 Awesome. And I know the release mentions the most recent one that these conductive trends are consistent with the graphitic basement structures tied to uranium systems in the Athabasca Basin. Why is that association really important for a company at your stage of exploration?
2:57 Well, as with anywhere, you can have fertile alteration systems and you can have barren alteration systems. Now that we've confirmed elevated radioactivity at Coyote in multiple drill holes and we have historic mineralization to the south and east of Stone Island, it's a great indicator for additional potential mineralization on the project.
3:17 Okay, great. I was like seeing what stands out most. That's interesting to get your perspective on it. And I know your VPX noted that the first hole at Coyote intersected graphitic faulting and significant alteration. How does that result shape your confidence in the geophysical targeting approach that you're now applying at Stone Island?
3:39 We've just completed now the fourth hole at Coyote, and we've intersected significant faulting, alteration, graphitic conductors in all 4 of the holes on the main target at Coyote. We've essentially seen everything that was expected from our geophysical datasets. And beyond that, we've seen increasing radioactivity with every drill hole so far. So our team is very confident that our exploration approach is proven and it's effective and that we're on the right path.
4:08 Awesome. And speaking of Coyote, I know you expanded that program to 5,500 meters back in May. How much of that has been drilled so far and when do you expect the program to wrap up?
4:21 We're currently about 3,800 meters into that 5,500 meter program and progressing nicely since the early early season hurdles that we had at this point we expect to wrap up around the end of August. Awesome. What's the overall budget for this drill program? We really focused on only spending
4:43 flow-through dollars on this current exploration season. Our original budget was around US$10M. We're about halfway through that. As I mentioned, we should have enough to continue drilling right through the end of August if we're released. Great. Somebody from the chat asked, is this drill program fully funded? Absolutely.
5:04 We'll still probably have about $10M in the Treasury after we finish this drilling program. We're fully funded. We're moving forward as steadily as possible and we're in very good shape. Awesome. I Love an easy answer to those kind of questions. Just a reminder for folks in the room, especially the dozen or so that came in late, there is a meeting request button at the bottom. You can request a meeting with the Stallion team at any point during today. You can also ask questions using the chat button at the bottom. Next one I got from Matt, plate modelling
5:32 and inversion work is currently underway, as I understand it, at Stone Island. What should investors expect from that process? So what should they be looking for and how does it feed into your drill targeting decisions?
5:45 With the ongoing drilling program we have at Coyote and the results we've seen so far, our technical team decided that more information, of course, would be useful in precisely targeting our upcoming drill holes. That's why we decided to do more ground-based EM and modeling at both Coyote and Stone Island, just to better understand the orientation of the basement conductors and then fine tune our path to a discovery.
6:08 Great. And Cole from the chat asked, I said there's 4 holes completed at Coyote. Would you say there's 2 or 3 more? I'm hoping for 3 more at very least. We'll see where the budget gets us.
6:20 As everybody knows, we had some troubles at the start of our program with the unfortunate safety incident, etc. So that really ate into our budget. But now that we fine-tuned things and everything's running a lot more smoothly. I'm hoping for 3, maybe 4, if we can manage that into the next couple of months here. Great.
6:39 And just zooming out a bit, I know Stallion holds roughly 1700 square kilometers in the basin alongside your JV with Atha Energy. How do you think about prioritizing targets just on a land package that big? How are you zooming in the microscope on where to go?
6:54 You know, it always comes back to the same ranking criteria, the same process that we've used time and time again. While it's an extensive process of stacking geophysical datasets, we really do focus on 4 key criteria. We focus on lithology, so rock type, structural pathways, graphitic conductors, and alteration. By prioritizing those features, we have much better chance of narrowing down the search radius as we continue to explore and that's what we'll keep doing. Okay, great. And once this program is complete, what does the follow-up look like? Is it
7:25 more drilling at Coyote or do targets like Stone Island move up the queue?
7:31 That's still to be decided, but for now we have 4 very exciting options between Coyote, Lynx, Fish Hook and Stone Island. So once we finish up this drilling program and have all the data analyzed from this season, we'll make the best decision for the company as always. Okay, great. And just to follow up on that $10M that you'll still have in the Treasury following this drill program, is that enough runway to fund the next phase from here? How does that look? Certainly. And that was the idea of trying to raise so much hard capital in our
8:03 mid-summer raise last year. Once we wrap this up, as I said, we should have $10 million in the Treasury still. That gives us plenty of time to, again, analyze the results and decide where we want to move forward as the best path. So. Great. And this is my looking forward question. So look into the second half of 2026.
8:24 What are the key milestones that you're excited about and the folks in the room, those are investors or prospective investors, what should they be watching for from Stallion moving forward?
8:34 I'm still really, honestly excited about the continued drilling at Coyote. Every hole has been more exciting than the last, and we're seeing everything that we expected. With increasing radioactivity over every single drill hole that we've completed.
8:48 We're going to keep chasing that alteration system, looking for higher-grade mineralization, and we're going to keep pushing ahead and hopefully I can release more progressively better news results with every drill hole. Awesome. And that actually leads into one of the questions that came in just now over email which is when can next drill results be expected? Obviously, time frame generally, not an exact date.
9:12 Well, we're going to have another news release next week. It's going to be a mixed news release between geophysical results and drill hole results. So you can expect something next Tuesday, hopefully And then we'll just keep going from there. So yeah, awesome one person wrote over email Said he would have thought 2 rigs through the summer be better than 1 Can you clarify why the plan was to go down to 1 as stated in the May update?
9:34 That was unfortunately due to, well first off budget constraints. We didn't want to have 2 rigs in there for the entire summer and have a helicopter assisted program, but also It was forced on us by the unfortunate incident where we had a drill rig fire and explosion and we were left with 1 rig on site. So it was kind of a combined decision to make sure that we could just do this sustainably and not waste our budget unnecessarily.
10:00 Great. I appreciate that. One person's asking, I think tough to put an exact answer on question, but I'll throw it to you anyway. And that's generally, what's the thinking on timeline to production? And obviously there's 1 million steps in the way, but I'll let you give your thinking on what that process looks like. That's a very forward looking question. Of course, we have to make a discovery first. We have to have a high-grade discovery first and then we'll take the necessary steps to move forward. I can't really give you a timeline on that. Of course, optimistically, I'd like to make a discovery in this drilling program, But until we do, I can't give you a timeline. I'm sorry.
10:36 All good. I'll give the folks in the room 1 last chance to ask a question while I throw you an open-ended one, which is, after this drill program is done, so once you've got the results, what are you most excited about for the end of the year?
10:53 Looking forward all the way to Christmas, what are you most excited about?
10:57 I would love to come back strong in January and drill off multiple of these targets, not just 1, but put some holes into Stone Island, into Fish Hook. Again, as I said, they're matching up very well with the Haystack survey that we did, the intelligent targeting survey. So I want to explore those and see how they match up with our targeting process. And again, move forward to discovery.
11:20 Awesome. Well, Matthew, thank you so much. For everybody in the room, thanks so much for joining us. If you think of the perfect question to ask as soon as the event ends, as I often do, please do still send it in. I'll make sure that the Stelion team gets it. Matthew, thanks so much for your time. Appreciate the update and looking forward to seeing those results come soon. Thanks for having me. Appreciate it. Cheers.
