Investor Update and Deep Dive on Fenn-Gib Gold Project

0:03 Say good morning, good afternoon, or good evening, depending on where in the world you're signing in from. I see a bit of an international audience today, which I always appreciate. So especially for, it looks like the person signing in from Singapore, especially, Thank you so much for making time at an odd time in the day for you. I'm lucky enough to have today Nick Campbell, CEO of Mayfair Gold. Nick, how are you today? Awesome. So here's how today's going to go just for the folks in the room. Nick, you're actually on mute. Just throw on turn on to you just before we get into the first question. So there you go. I'm doing excellent. I hope you can hear that. So perfect. My computer was broken, so this makes it a lot easier. Here's how today's going to work. So I've got some questions I'm going to grill Nick, just to give us a quick investor update, but also let people know what's going on with the FendGibb project, Mayfair's flagship project.

0:53 But this is an interactive event. So I know that there were already some questions that were sent in on email. Please feel free to enter them live. You can DM me directly in the chat today. I'll ask as many as I can, but if I don't get your question for whatever reason, it's dramatically off topic, it doesn't quite fit, it's too late, we ran out of time. I'll make sure that Nick and the team still gets them, but I think we'll be able to get to as many as possible today. The only other piece of housekeeping is this event is being recorded and will be available for replay. You'll probably have it at about 4 o'clock p.m. Eastern time. It'll come right in your inbox if you're here in the room, but otherwise you'll find it on Six's YouTube channel. So enough out of me, the boring stuff. I didn't want to get into the protein as quickly as possible, Nick. So I know that you have, you know, in presentations and elsewhere, emphasized the potential permitting pathway as a key de-risking factor. So I'd love if you could walk us through the specific design constraints you're implementing to stay under that 5,000 ton per day threshold and what trade-offs that makes between production scale and permitting timeline.

1:51 Yeah, that's a great point. So first of all, the permitting landscape in Canada is interesting And it really does depend on which jurisdiction you're in. Different provinces have

2:08 a better permitting process. If more informed bureaucrats that are working through the permitting process say Quebec is probably the best permitting jurisdiction maybe in the world. Ontario is also pretty good. And so when I started at the company, we were looking at a large scale mine, something like 25,000 tons per day. That you need, if you can get a project that's a sub-ground water body, you need scale to be able to exploit most of the deposit, right? So, however, if you want to go through that permitting timeline, that's a federal permitting process. There's not a single company, not 1, that has successfully gotten an environmental assessment approved since IAC 2019 was passed. There have been a few environmental assessments that have been approved, but they were done under the 2012 Environmental Assessment Act.

3:05 There's a lot of uncertainty around that, some ambiguity about it. And quite frankly, we estimated there's gonna be something in the range of 5 to 7 years to get your environmental assessment approved, plus another 2 years to get mine permitting. It's a long period of time to be sitting here and talking to you about permitting. And so that's not very interesting to me. That's not why I got involved with Mayfair Gold. Why I got involved is because I want to build a new Canadian gold producer and that's why I brought in Duranwal, who's the CEO of the company, a serial mine builder. And the way we've been able to do that is by structuring this under the provincial permitting process in Ontario. So the threshold between there's a few things that will trigger a federal environmental assessment. One is throughput in size, so both your mining and your process plant need to be under 5,000 tonnes per day. That's a pretty small open pit. That would be a big underground mine, but it's a pretty small pit.

4:03 The way we've designed it is essentially, we have an area in our pit, it's a high-grade starter zone that we can focus on. The overall average grade for the project is close to 0.8g per tonne, But there's a high-grade zone that comes right to surface where we can push around 1.5 gram per tonne material through to the mill. And you can only do that if you're producing at a lower throughput rate. So if we wanted to produce it at a higher throughput rate, your cut-off's going to be lower. The grade that you're pushing through the mill is going to be lower. You're not going to get the same margins that you're going to have at the beginning of the mine life. We wanted to front load the highest margin material, get that into production, generate the free cash flow. So if you design your throughput rate that way, you also have to have, you can't build in excess capacity.

4:56 And we are connecting to a power grid that has sufficient capacity to support the initial operation. The other thing that you have to do is if you are affecting fish habitat, that will get you into a federal permitting process. We're not affecting any fish habitat as part of our development here. And Also, if there's any caribou migration patterns that go through your property, that's going to be a federal permitting process. There are things that are outside of control that happen to work for Fingit for us to go through a provincial permitting process. There are other things that really lend itself to a small-scale mine. If you have a very remote mine, it's hard to start small because you have to pay so much to get access and infrastructure.

5:45 Our power substation is 10km from us. That's a very short power line you have to build. We have highway access straight to site. Literally, you drive off the highway onto the plaza to the point that we are gonna be relocating the highway in order to exploit the initial pit that we're gonna be exploiting at the asset.

6:05 These are real advantages for starting small because if you're a remote location, you might have to spend $100 million just to get access, build up your onsite camp. You know, we can have people, we can have a camp housed in Matheson, which is 20 kilometers away. There are so many advantages to have being able to build a camp in town you get to take advantage of the on-site power you get to take advantage of the on-site sanitation And if you have a camp that's built in a town, it's not considered to be part of your mine camp, which it is a mine camp, but it's not part of that mine camp. Every mine camp in Canada is dry mine camp, can't have any alcohol on site. So If you have a camp built in town, people can go after work. They can actually kind of have a little bit of a social life. You know, they can go to the movies, they can go to a restaurant, they can go to the bar.

6:54 If you have it on site, you're basically going to the canteen and you're getting your food and then you're going to your room and you're going to bed. There's just a different quality of life if you have a camp that's built offsite versus a camp that's built onsite. These are things that we have advantages at Mayfair Gold. So everything that we're doing right now is designed to be under that provincial permitting process. Part of the rationale for that is, you know, we're a small company. It's, you know, we're under $300 million market cap. But, and if you wanted to build a big mine, like there is a big mine that could be built here, it's gonna cost you a billion dollars in CapEx or more. It's gonna be 10-year permitting timelines. That's a pretty tough thing to do if you're a single asset developer, right?

7:40 But for us, what we're looking at doing, we're putting out a pre-feasibility study. It's on track to be put out this year, so before sometime by, let's say the latest we're gonna put it out will be the first week of December. If it looks like it's going to be coming out after that, we'll put it out in January because we actually want people to take a look at our PFS. We're looking to design something that's around $400 million in CapEx. We should be able to get $250 million of debt in order to fund that. There's not a lot of incremental equity for us to build, to turn this into a producer. And that's something we feel like we can handle. We've got great shareholders that are supporting us. They've told us that they're going to fund us through to production, which means that they're going to be on whatever equity we need. That's powerful. That's the same situation I had at Artemis. Artemis was 42% in Siderone,

8:31 Mayfair were 34% in Siderone. We just did a financing and we brought in Oak Tree. I think we're one of the only junior gold developers in Canada, maybe in the world that has an equity investment from Oak Tree. Those guys are big fun. They're there to support us through to production. These are real big assets and big advantages that we have as we move this from basically an exploration project into development and then into production. Actually, I wanted to get on while we're on that topic. I did want to talk about your fairly unique shareholder registry, because it is pretty interesting to me. As you said, you may be the only mining company to have Oak Tree as a main holder.

9:16 As generalists, people always been talking about when

9:19 are generalists gonna get into mining? They are with Mayfair. And I'm curious, how do you think that is going to change over the next few months, years? People have been talking about generalists getting into mining since I've been in mining. What do you think actually happens next as far as that interest? Yeah, so I mean, I will say that we do have a very unique registry. We don't really have any or many specialist funds that are invested in Mayfair. Our largest shareholder is Muddy Waters. Our second largest is Heaney Capital, the founders of Mayfair. And then after that, you get down to Oak Tree. It's mostly generalist funds that are invested in Mayfair and a lot of those guys have come in recently. And So those are different kinds of investors. They're not as familiar working in gold. And I think that's actually going to be a big theme over the next 12 months. Last 12 months, gold prices have been going higher and there's been a lot of retail interest flying into gold. Bitcoin and crypto has started to underperform while gold has been outperforming.

10:20 And gold has become a real asset class. And over the last 15 years, gold was always a bit of a joke. And a lot of guys were paid to not invest in gold mining Because if they weren't invested and the gold sector was underperforming, that led to structural outperformance.

10:41 And so those guys for 15 years said, we don't have to invest in gold, we're not gonna invest in gold. And because gold is a part of an index, they would end up outperforming. Now gold has been massively outperforming. The gold equities have been massively outperforming. And that has resulted in anybody who has a fund that is structured to sort of mimic the index, but has been not investing in gold, they're not underperforming. And so a lot of these generalist funds, and I know I have a lot of anecdotal evidence around this, I have a lot of friends that end up that are fund managers that have never invested in the sector that I've been involved in. And now they're coming to the point where they're being told they have to invest in it. And they have to learn the sector and that is going to gradually turn into more funds flowing into gold, I think physical gold.

11:31 So a lot of the physical gold demand has been driven by central bankers. You're going to start to see some funds that are getting involved in that. And then you're going to see the larger cap guys producing that. And then there's going to be the GDX and the GDXJs. And for us, you know, again, this is a key deliverable and I think that'll be a key part of our catch-up trade and the revaluation that happens next year, is if we can be successful at getting our liquidity up to get into the GDXJ, That is going to be hugely important for capturing that flow of funds from those generalist investors. What's unique about Mayfair is we've been able to get these generalist investors to buy equity in Mayfair. It's harder to get those guys across the line because you need to have a base of technical knowledge about mining to understand the risk profile associated with buying a development asset and also with understanding the management teams that are behind it. But generally, broadly, not a lot of guys are gonna be able to do that. So if they wanna invest in gold and they wanna invest in the junior side of the space, they're gonna be buying the GDXJ.

12:39 So for us to get it, when I was at Silvercrest, we had to battle through liquidity, we had to get in there. Once we got in there, it massively increased the flow of trade into Silvercrest Metals. It gave us a valuation bump. At Artemis, it was a very similar situation. Low liquidity, very tightly held. It took us 2 years to grind our way up to get into that trading liquidity that allowed us to get into the GDXJ. And as soon as we got in there, trading liquidity blew up. The valuation started, it helped us get start that revaluation process. And it really, really propelled us into that tier that were a lot, a lot more investors could actually take a look at us. And so that was a different time period. It was a more challenging time period. This is a great time period to be investing and to be buying into a gold equity.

13:28 And so we think as we get this PFS out, we're gonna get this up this year, we're finally gonna have some economics. You're gonna see what production profile we have. You're gonna see what free cashflow we can generate from this asset. And that's a big difference maker. And you know, 12 months ago, even even 12 months ago, or even 3 years ago, The free cash was generated from the small mine would have been very different. Today, you're looking at a small mine that can potentially produce north of $200 million of free cash per year for a company that's trading at a $270 million market cap that doesn't need that much incremental capital to pay equity to get in there. That's a compelling revaluation story. Sure. And I just saw mood changing. I've been at mining conference for 2 weeks. There's 2 things that I say I haven't seen before smiles and new faces.

14:15 I've seen both of those in the last 2 weeks, so it is a different time for sure. Yeah, I mean, I was here during the last cycle. So

14:25 from basically 2002 to 2011, there were lots of times when there were smiles on people's faces. And there were some good times involved in that. But it's been a while. It's really been almost 15 years. There's been a couple of blips, 2016 was pretty good. But the broad participation in the gold equities, this is the best market I've seen since last cycle. Yeah, it's really, really a change in sentiment. You can just feel it. One thing I wanted to get into just specifically, I know you mentioned potential for hub and spoke strategy, and I always love to see that, to process additional regional deposits. I'm curious, and this is just a perspective thing, how advanced is your thinking on that? Are there specific satellite deposits you're already evaluating?

15:10 Where are you sitting? Well, I mean, so We're in an area where there's a lot of underground mines. And one of the questions we always get asked is, can you use some of the mills in the area to process your material?

15:24 Because it doesn't make sense to build your own mill if there's excess capacity, right? The issue for us is that we have a very specific process flow sheet we need to build in order to exploit our deposit. It's the same process flow sheet they have at Young Davidson. Young Davidson is I think around 90km to Grow Flies but it's much further if you're talking about hauling material.

15:49 There are no mills that are set up with that process in our area. Also, we have a large-scale open pit Gold deposit, which is unique in an area where there are a lot of underground mines. We need scale to be able to support the entire deposit, but even the small deposit, there's going to be opportunities for us to find satellites, potentially, that can sweeten our grade profile. Our high grade is 1.5g. There's probably underground mines in the area that might have 3 grams, 4 grams. And how advanced have we been in looking at these opportunities? We look at them, but those opportunities also, there's more opportunity to work with those once you get better cost of capital, meaning a higher share price.

16:37 And if you can do that, then sure, there's some opportunities. There are people around us that have made some discoveries on our advancing properties. In our opinion, there's some, what we'd say is there's been maybe a little more too much promotion going on with some of those stories and so the value proposition isn't there for us. We've got a 4.3Moz deposit that we can move forward on and they're maybe earlier and they're getting pretty good value for some of the discovery work that's happened. What I would say is if we build it and we have that mill in the area, for us, it's not necessary. We can fill that mill ourselves, but we can create excess capacity by displacing lower grade material and feeding and feeding in higher grade material.

17:26 And that's how we can potentially sweeten our grade profile and turn something that might be start off with 75,000 ounces per year, you might be able to displace some of our low-grade material and sweeten a good proposal, get that sort of off that above 100,000 ounces, just by looking at some regional opportunity. Cool. Hey, I appreciate the extra context there. One thing, if you don't mind me getting into tech stuff for a bit your met testing has showed a Significant recovery variance that 80% low grades and 90% plus that that's a high grade How are you planning the mining sequence and blending strategy to optimize mill feed? So it's not so much a blending strategy. I mean, usually when you're, if you're blending it, you're blending it to have some continuity and some consistency with what you're feeding into the mill. We're gonna have a pretty consistent mill feed at the beginning of the mill life. What we're doing is we're going to be processing material above a certain cutoff. And what that means is that if it's below a cutoff, it's not going to be processed through the mill.

18:28 We're going to be processing that, we're going to be pushing the higher-grade material through the mill. That will allow us to achieve an

18:33 average grade of close to 1.5g. It's normal to have a correlation between grade and recovery. Based on our interpretation of the deposit, there are probably about 4 phases of Gold mineralization that have been deposited at Fingip Project and one of them deposited very fine Gold. That's why you need our specific process flow sheet to liberate that Gold. That process flow sheet, again, it's the same process. If you look at the technical report for Young Davidson, it's almost identical to what we're doing here. So you do three-stage crushing, you get it down to 106 microns, and then you float a concentrate. And so because there's a very good mass pull to the concentrate.

19:18 Sorry, there's a very good gold recovery to concentrate. You're getting about 96 to 98% of the gold reporting to the con, but you're only getting about a 20 to 25% mass pull. That's key for us because that means you're not, you have to process that with a HIG mill high intensity high intensity grinding mill which gets your crushing rate you're crushing down to around 13 to 15 microns and so after you do that you get enough surface area by crushing it down to that smaller size and then you put it through a CIL and you do standard cyanidation. It's all conventional, there's no autoclave or prep-dosculpation associated with it. But what you do get is you get pretty good recovery on higher-grade material, and then, yeah, it drops down from 90% to around 83% if you're processing 20% per ton.

20:05 That isn't the best recovery that you have in the market, but it can make a great asset in the context of the current gold price environment. So When we first looked at this, the bigger mine, like the larger grade, sort of the lower grade material, it was gonna work, but it was gonna be a pretty, it wasn't gonna be a particularly interesting asset. But now in the context of we're almost at $6,000 gold, Canadian, right? That lower grade, low recovery can generate a very significant mining operation in Canada. Yeah, no, I appreciate that, I agree with you. To stay on tech, I know a 3 phase starter pit shows strip ratios increasing from 3.2 to 6 as you go deeper. At what gold prices phase 3 become economically marginal? Have you modeled scenarios where you might stop after 2 and reassess or is the full starter pit really essential to the base?

21:04 No, I mean, the full circuit works and you have to understand there's a, you have to understand there is a, you know, a 6 to 1 strip ratio seems high and It is relatively high, but in the context of the current Gold Horse Breyer, you have to relate it to what it costs you to produce, to actually move a ton of material, and what your inherent value per ton is. A gram of Gold today is around US$180, give or take, depending on what day you're calculating that at, Canadian. And you're getting around 90% recoveries on that. If you have to move, if it's $5 a ton for us to move, and let's say it's a 6 to 1 strip ratio, you're basically at 35 bucks in your mining cost per ton.

21:50 So you're incremental, your mining cost plus your processing, $20 for processing, let's say it's 10 bucks for the end, it should be closer to 5. You're looking at something like 65 bucks, or 70 maybe, for your operating cost per ton. 1 gram will give you 180. A gram and a half after you apply, 90% recovery is closer to $240 a ton. So your revenue ton, 240, your cost per ton is 70. So even at 6 to 1, there's huge margins associated with this because the grade is pretty good for this open pit, right? And you're gonna see, and this is something you're gonna see in the sector, right? High gold prices are gonna result in companies changing their production profiles. Because if you have an asset, you have a process plan that's already been paid for, that CapEx has sunk.

22:44 Instead of shutting it down because your reserves are calculated based on a $2,300 gold price. You recalculate reserves, you drop a cutoff grade, which means your grade drops and your strip ratio goes up. And they're gonna still process that material. So you're gonna see over the next couple of years, you're going to see strips go up, you're going to see grades drop because the economics have changed. So our asset, when you first looked at it, the small mine actually had, if you were to use a 0.3 cutoff, which is probably what you would use to build a big mine here. The strip ratio is like 2 to 1 in the starter zone. And maybe it's 3 and a half to 1 if you're looking at designing a big mine. That's really good today. That would be really good in the context of today's market. But because of the fact that we're only going to be exploiting 0.7g per tonne or higher, your strip ratio is going to be higher, but you're getting so much of a benefit in terms of your revenue per tonne that it's really expanding the margin. So we're looking at something even at a 6 to 1 trip ratio, that's probably in a range of 65 to 70% margins.

23:52 That's a huge amount of margin, a huge amount of free cash flow that you can generate. The reason why we're designing it this way is because we know that we can get through that permitting process quicker than anybody else that's going through a federal permitting process, unless they get onto Mark Carney's magic fast track list. And quite frankly, you're not as likely to get in there if you're a Gold company. Gold may be a strategic asset. It's not a strategic metal when it comes to the new economy and things like that. A $1Bn capital project might seem like a lot. It is a lot. But a $400M project like ours, you're not going to get fast-tracked on that. We don't need that. We're going through the fringe process. We're doing that so we can get this into production quickly. We can get it into production for a low cost.

24:38 And it's much less riskier than if you're looking at building that big mine.

24:43 There's not many companies that are good at building big-scale Gold mines. Agnico is one of them, B2 is one of them, Artemis has done a great job at the Blackwater mine, but it's few and far between. Most of the companies that have tried to build big mines over the last 10-years have had trouble. The only guys that have really knocked it out of the park are those guys. And I would say Orla is another example of a company that's done well. Sure. Yeah, I mean, Agnico's always gonna make everybody's list of folks that are doing it right. I don't think they've ever missed the top spot. They do it right. Yeah, yep. I know your flow sheet includes both gravity recovery and a rougher flotation circuit with intensive regrind before CIL. What percentage of recovery comes from the flotation circuit versus gravity? And have you evaluated other flow sheets or what drove the decision to include flotation here? I mean, so actually the MAT test work that we've done has not included gravity. The process flow sheet we're going to be feeding into the pre-feasibility study does include a gravity circuit and it also uses CIL versus CIP.

25:53 We suspect there could be some frag robbing going on, which means that the sign that it's getting is not actually being used to recover the gold. We may be able to see a bump up in recovery. I wouldn't assume that. I would just assume that what we have is a pretty good base case, and there could be opportunities for us to incrementally improve recoveries. Now, there's free gold in the system, so you put a gravity circuit in if there's free gold, because you get that right at the front end of your, of your circuit. And it's you can't, I don't think you I mean, as it is right now, we're not assuming any recovery in the in the gravity circuit. So you might get you might get a boost on that. It could slightly change it. But all the basically, we're assuming that 100% of the recovery, that the end recovery is being driven by floating a concentrate, doing the intensity regrind, and then doing a CIL at the back end.

26:48 Okay, now I do, I want to zoom out a bit. Thanks for letting me grill you a bit on some of the tech stuff, but I know your market cap, like we talked about early today, sits at what, roughly 2, 2 60 or so, somewhere around there. 2 60, 2 70 Canadian. Yep, spends the day. Compared to, let's say, Probe Gold at $545k or Newfound at $710k, despite having, you know, comparable... Probe is getting acquired by Fresnio for $708k. So that in itself is actually a great talking point. So this has been a transitional year for Mayfair. We've had to do a lot of work to get ready, to get this project ready to start permitting. We've had to make sure that our business plan makes sense.

27:35 That needs to be driven by technical people, not a person like myself who's a more of a finance guy. And so that's why I need to bring Juranwil in. So Juranwil is the CEO. He came in in March. We had to do an environmental audit to make sure that we'd done enough baseline work in order to start the permitting process. We had to do detailed metallurgical test work to make sure that we could properly recover the Gold through a conventional circuit. We've done all that work. We've brought in new consultants, new engineering groups to help us do the work because it's not just about us putting out a pre-feasibility study. We're going straight into a pre-feasibility study and then we're going right into detailed engineering. So detailed engineering is what you do to try and sort of refine and get your costs a little more certain before you get into construction. So you know how much you're going to have to outlay in order to build a mine. And so we want to be at around 70 percent detailed engineering before we start construction. We're looking at starting construction and at the end of 2028, we may end up doing early works before that if we can get the permits in time for that.

28:41 And there's just a whole lot of work that goes into that. And quite frankly, the work that was done by previous management team wasn't supportive of starting permitting and it wasn't supportive of starting, of getting ready for construction. So that required us to take some time and get to know the asset. And We also had this period of time when we were dealing with an option proxy battle. Anytime you have an option proxy battle, it's going to be a bit messy. And it was. There was a, well, we removed the previous management team. I didn't remove them, but the previous shareholders removed the previous management team and, and, you know, those guys are, aren't going to hold on to their stock. They're going to sell their stock and they're going to redeploy it and do something else with it. That's their prerogative. Of course, you're allowed to do that. We had to kind of grind our way through that. This company was also a pseudo-private company for years.

29:32 They haven't really engaged with the brokerage community. There's no coverage on the company. And we had to sort of establish that relationship with the street. And so we started to do that. We don't, we still don't have any coverage, But I think you'll probably see some coverage that comes out on the company in the next 3 to 6 months. I think you're going to see the PFS come out that finally shows people what the economics are here. And so It's tough for people to believe something like, believe a guy like me. They don't, most people don't know me. There's a lot of different promotional guys in the mining space that will tell you, oh, this is what it's gonna be like. And how do you tell the difference between whether or not I'm someone you should believe or whether or not I'm someone you should be sceptical of. I'm very sceptical of what other people say in the mining sector.

30:23 So we'll finally have a pre-feasibility study. We can finally show you the economics of what we're trying to build here to get this into production, to generate the free cash flow. And for me, it's, it's, it's compelling. If I can, if I can generate a company, if I can turn this company into something that can generate north of $200 million in free cash flow and potentially generate north of a billion dollars in free cash flow over the first 5 or 6 years, that gives me all kinds of flexibility to grow this into a larger company, a larger producer. Like that's more free cash flow than Orlo was started out. That's way more free cash flow than Wesdome started out. That's the opportunity we have in the current gold price environment. Gold companies tend to be fairly backward looking. You can't start it up that small. Nobody can effectively do a bootstrap.

31:10 Now, I would agree with them. Most of the time you're doing a bootstrap, you're talking about building like 25 or 30 or 40,000 ounces. It's hard to generate free cash flow. It's about free cash flow. This has enough scale and enough margin to generate huge amounts of free cash flow. That's what allows you to potentially look at eventually growing this asset, looking at regional opportunities, or you look at getting together with another producer and you turn this into a much larger, more liquid, diversified Canadian gold producer. And that's how you can get a lot of torque and a lot more marketability when you're trying to go and you get different kinds of investors. Great. Now I know there's a couple of great questions from investors that have popped in during this event but one I wanted to ask you just before I get to those, we've tackled a lot and you've gotten through some of the stuff I was going to ask already. But I'll give you just a broad question here, which is how are we, how are you advancing Fengib in the sense of what's next for investors who are watching? What should they be watching for next is the next big step for how to advance this project. Where do we go from here? So we're putting out a pre-feasibility study.

32:21 That's a big catalyst and that's a key catalyst that's coming. Hopefully, the next couple of weeks, if it takes longer than that, we'll put it out in early January. Just because if you put something out mid-December, no one's gonna pay attention to it, and we actually want people to pay attention to this pre-feasibility study. Sure. That will tie in with us doing our permitting process. There's also community engagement. We're actively talking to the Abitibi Initiative Actors Nation, which is located very near the Fangiv Gold Project. This is a nation that we would really like to establish effectively a partnership with. We're working with Black Diamond Drilling, very excellent drilling contractor that works in the area. That's an Abitibi and Eshebek drilling contractor. So we wanna work with these guys. We have to establish a formal relationship with them. We are going to be consulting with them as we move through our permitting process and try to advance the company. So you could see something along the lines of that.

33:23 That'll be a random walk. I can't give you any guidance as to when that'll happen. But these are the things we're working on. We are doing an active drill program right now. This won't sound like a very sexy drill program because it's confidence drilling. It's important for de-risking the asset but the thing that I think will be interesting on this confidence drilling program, and we did this kind of program when I was at Artemis Gold, When Artemis bought Blackwater, people said there can't be this high grade zone there. New Gold would have noticed it. They would have done something about it. We did a drill program, an infill drill program. It's basically an advanced grade control drilling program. There are benefits in terms of when it gets you better defined to restore boundaries. It gives you a much higher confidence in what your grade profile is going to be at the beginning of the mine life.

34:13 But it also provides drill data that investors will look at and say, okay, is this better than what you see in average for the overall project? We've got a 4.3Moz resource that's around 0.75Moz. If we can show that this high-grade zone, which is based on historical drilling, if we can show that there is this high-grade zone there, people will start to buy in to this concept that we're gonna start small and we're gonna focus on the zone. So our current drill program is all focused on the high-grade zone. The results should be out in January. You never know what these results are going to be. I would love them to be better than the average grade, but I don't know if they're going to be better than the block bubble. But what's most important is that it's higher grade than the overall average project. So if we can show that there's higher grade zones that we can focus on early on, you're going to start to win people over and show them that there's a high grade zone we can focus on at the beginning of my life.

35:14 So that should be coming out in January. We haven't ever done full marketing on this. We've started to do that. We started to have engagement with the street. We should have some analyst coverage that comes out, I expect, in Q1 next year. We also will be making announcements on permitting timelines. Permitting will start formally in January next year and we're looking at opportunities to significantly increase our exposure in the US for US retail investors. So We'll talk about that when we can. But like every company out there does, you have to spend money on marketing. And we've never had a budget for that before. So I can tell you now, we're gonna have a budget for that. We're gonna be telling our story and we're going to be getting new eyes on Mayfair as we drive this project forward.

36:07 Awesome. Well, certainly looking forward to talking to you about the PFS when it pops up. But there's a number of questions from investors I want to go through. I know I've already kept you longer than half hour. I said I would. So I'll move. I'll consolidate some questions together. But one person asks, if you had preliminary discussions with provincial regulators and what's their general reception been to projects in the region and to Mayfair specifically? Yes, we started talking to them in December last year. So there's a process to how you engage with the province. And so the first thing you need to do formally is you formally give them a project description. So we met with them last year to explain what our strategy was. And you sort of get that in there that that's part of their engagement. They tell you who you need to talk to in different communities.

36:57 And so we're now at the point in time where we're going to be submitting our project description for the Fingit project. And so that kicks off your permitting process. Yeah, we've had discussions with them. They're comfortable with our approach. Again, it also helps to have people that have been engaged with these provincial regulators before. There's different regional offices. Timmins is a great regional office to be engaged with. And generally speaking, they're supportive. What I would say is, you know, there's competition in terms of attention from regional groups, sorry, the regional offices as well as just at the provincial level. So there's a lot of activity, there's a lot of interest in driving investment in Ontario right now. And that of course can complicate your ability to get the attention of the right people to move things forward.

37:54 You know, Tony McCooch coming back into the Timmins area and that's like to me actually, that might sound like it complicates things for us, but actually I think it's more like it reinvigorates everyone that there's going to be activity coming back to Timmins and that that creates competition but it also creates attention. So there is actually going to be more attention on what's happening in the Timmons area. And we are one of the groups that's actively going to be moving forward on and starting construction sometime in the next 3 or 4 years. And and we're going to be ahead of a lot of people that have projects that require federal permitting process, require a lot more detailed engineering, that don't have management teams in place, that know how to effectively build mines. We're going to be able to get around that a little bit faster. And we have a team that has recently gone through the permitting process in Ontario. So knowing the people that are involved in the permitting and within the bureaucracy, it helps to get their attention.

38:57 And you generally try to get some feedback from the regulators before you start the formal process to make sure that you're including everything that you need to, to make sure that it is a streamlined process. If you don't do that, it's going to take you longer. Sure. One quick 1 from T in the chat asks, what's your current cash position? How much runway do you have to complete the PFS? We have plenty of runway to complete PFS. We raised $40 million in September, which I think people were surprised at the scale of what we raised. And there was a definite reason why we wanted to do that. I always think that if you just try to raise just enough, you're always financing. You're always in a financing cycle.

39:53 I want to be able to unlock and de-risk the asset. Unlocking the value and de-risking the asset should allow us to get better cost of capital. And so by raising 40 million bucks, we got 42 million in the bank. As it is right now, we basically feel like we're funded through to Q1, 2028. Now that can change depending on the sequence of how you're investing in the asset. It could change if we get early works, we decided to do early works early in 2027. You can accelerate your spending program to de-risk the asset. But We're in a very strong position. I mean, we don't need to raise money to put out our PFS. We don't need that much capital to put out our PFS.

40:40 We are probably, at the minimum, we're very well-funded to mid to late 2027, even if we decided to start spending a little more money to accelerate the construction decision at Fengip. So most definitely through to the PFS. Yeah, if we blow through 42 million bucks in the next 2 months, then I won't have a job. I can tell you that that's not going to be the case. We're very diligent about how we spend our money. I don't spend money unnecessarily. We could do an exploration program, but we're not going to drill for the sake of drilling. We're going to drill if we think we can enhance the economics of the project. We have a scale Gold asset here.

41:31 We don't need to find anything else in order to move forward and unlock a lot of value here. But we'll probably look at spending a little bit of money on exploration. And where I would say that is interesting for us is the Southern Block. Southern Block is 4 kilometres south of our project area. And It's on trend for Grey Fox and it's on trend for Black Fox. It's on trend from Stellar's Assets and the Holt Mill. If you go further to the west, it's even on trend with the Porcupine at Coplex. Same structure, same general rocks, the kind of things that you want to see that tend to host those big deposits and those interesting deposits in the Timmins area and the Eptivity Belt. We have those in the Southern Block And there's been very limited drilling there. So we do wanna do some work to make sure it makes sense to spend the money to do the targeting on that so that you can effectively drill it. And so I'm a big believer in effective drilling programs, not drilling for the sake of trying to create a news poll.

42:31 Sure, no, I appreciate it. I'm gonna close with an interesting question that just came in an email a few seconds ago. This is kind of big picture, broad crystal ball gazing for Mayfair. But the question is, if you advance the production as a small operator, What's your vision for the company in 5, 10 years? You're going to grow organically, become a regional consolidator or position for eventual acquisitions? Those are big questions. Those are big questions. So my philosophy around acquisition is, If you do it well, and if you execute well, you're going to get a revaluation and you want to create pressure for someone to acquire you. We're not doing this to be acquired. That's not how that's not why we're here. However, if I, the reason why I, the reason how I invest in the companies that I work with is I always buy big positions in the company so that if there is an acquisition scenario, I'm going to make more money because of my share ownership than I'm going to be because I get paid a salary. So that's my own management philosophy. I always have lots of skin in the game. I bought 2 million bucks in the last 12 months. I put half a million dollars into the company with the last financing we did.

43:45 However, what I want to do is I want to get us into production and I think we'll get a revaluation that gives us better cost of capital, which then allows us to grow this into a significant producer. And so, yeah, there could be reasonable opportunities that you can do. You can build this up and look at other opportunities, getting that better cost of capital, there could be some organic growth opportunities you can look at. It's not something we can look at right now, because it's just not it'd be too much for us to potentially finance on our own, might be different down the road. But really, there's going to be other opportunities that we will be able to take advantage of, and that we have a team that has the technical expertise to take advantage of to turn this into a very interesting mining company. So production in 5 years, and hopefully, you create a company that allows you to have production growth to something in the range of 150,000oz to 200,000oz of Gold over the next 10-years. And if you get together with other companies, you can accelerate that program and start to attract a lot of new capital. Who's going to want to buy us?

44:50 I think ultimately, you're going to see, like we mentioned Probe. Fresnillo buying Probe was really interesting because Fresnillo has no, there's 0 synergies associated with buying Probe. Probe is largely viewed as an asset that can feed into Canadian Malartic, which is a hungry mill, which is owned by Kniek Weigel, and you can rail that material over there. So it's a totally different value proposition if you don't have to build a mill where they're located and the amount of power you need is much less than if you have to actually operate your own facilities there. For Fresnia to come in and do that, I think that's pretty interesting. For Cura to go and buy a new gold, it's interesting. What it shows is Canadian gold assets are very attractive, very valuable.

45:41 And as we execute on this, someone will likely be interested in taking our asset and adding it to their own portfolio. It's not gonna be a Barrick, not gonna be a Manumont, and it's not gonna be a Neko. We're too small to fit in with those guys. But there's a litany of other assets and companies out there that have very good cost of capital. And they're going to be really challenged to find uses for that free cash flow. Awesome. Well, Nick, I've grilled you on technical. I've made you go into finance. I've sent you all around with these questions and audience put you through the ringer, but to appreciate very much your time. I think it's really helpful as an update. For those in the room, that replay is gonna be available very shortly, please do share it around. But Nick, thanks so much, this is great. Hope you have a great weekend.

46:28 Thank you, thanks a lot guys, cheers.