Kuya Silver: Bethania Update

0:04 Good morning, good afternoon, good evening, depending on where in the world you're signing in from today. I've got with me David Stein, CEO of Kuya Silver. David, how are you today?

0:11 I'm good. Thanks, Romeo. How are you? Well, thank you. So folks in the room, here's how today's going to work. David's going to give a presentation regarding the company's most recent press releases, then I've got some questions for him. But this is an interactive event, so please use the chat button on the bottom right of your screen to ask questions at any time during today's event. We'll try to get to as many as we can, but if for whatever reason we don't, I'll make sure those questions get to the Kuya team along with your email or phone number and they'll get back to you as soon as possible. Today's event is also being recorded and will be available for replay probably in the mid-afternoon Eastern time, certainly before the end of

0:41 the day. It'll be on the same link that you're accessing this room with, but it'll also be available on Six's YouTube page. But that's enough out of me. I'll throw it to David for the protein of today's event. Thank you. Well, we've had a big week in terms of news. So we've put out 2 press releases this week. Tuesday was the operational update from the Bethania mine. And then today we put out some really exciting exploration results also from Bethania. So this is really a well-timed

1:15 webinar and I'm gonna try and focus mostly on those those 2 news items. You know if you don't if you haven't heard from us before you don't follow KUYA that closely. I'm going to whip through the sort of the other parts of the corporate presentation so I can focus more on the on the on the new stuff, but We do have other YouTube videos on our YouTube Kuya silver YouTube you can go and watch some of our other older presentations and where I might spend a bit more time on the Some of the history and strategy and all that kind of stuff about the company, but let's get into it I do want to leave, you know a good amount of time for questions. So I'll try and whip through this fairly quickly.

2:04 Important notices, please take a look at this. By the way, you can get our corporate presentation off of our website. This presentation is gonna be slightly different just because I've got some extra maps and stuff and detail from the press releases, but our general corporate presentation is always available on our website, koojisilver.com. Please go there and you can read this in more detail. And let's get on with it. So we've got 3 projects, but our flagship and what we're mostly known for is the Bethania Silver Mine in Peru. It's what we're gonna mainly focus on today.

2:51 And our other projects are the Silver Kings exploration project in northern Ontario, Canada, and in the JV on the Umm Hadid project in Saudi Arabia. Project in Saudi Arabia. So I think this gap is starting to close between the silver price in pink and the silver equities in blue. But we still have a long way to go. The silver price has been performing reasonably well in a solid uptrend since middle of 2022 now. So you're going on 3 years but without without much of movement in the equities. And that's probably just because because the the broader markets you know I don't know how many of you on the call are sort of mining junior mining specialists who own a portfolio of 30 or 40 stocks. And I mean we love you guys.

3:48 Obviously you're important to our sector. But it's really the generalists the people who don't own mining stocks when they start moving in. They're the ones who are going to move up the stock prices of these of these companies. And we're maybe starting to see that but it's still very early days so lots of lots of good upside plus I think the silver price is going to continue to go higher but that's a whole other conversation. Have been some pretty high profile takeovers in our sector that's good If you know for companies who are who are remaining like Kuya and you know this this chart's focused on the producers here. 3 of the producers all over 1 billion dollars have been taken over in the last less than a year now. Going back to the fall, there were a couple of deals announced that closed early in 2025. And then the most recent one is MagSilver being acquired by Pan American.

4:46 Here's where Bethania is located in central Peru. So you can see Lima here. Peru's a big country, bigger than a lot of people think, diverse, north, south, east, and west. The middle of the country is your traditional mining belts. And that's exactly where we are. So we're in a good area. There's decent road access. We've got a big city of 500,000 people, not that far away from the mine as well, good for you know labor and infrastructure, equipment, repairs, all that kind of stuff. So we're not in the middle of nowhere and that that's helpful.

5:29 So longer term we're looking at you know transforming the Bethania project into a very very big project and obviously we're just getting started so this is you know this is how we we in turn we Kuya look at the project and the potential in the longer run And I think it's important sometimes to step back and we do get focused on what's happening this quarter, what's happening next quarter. And that is important. But the bigger picture here is that we've got a big project that's got potential for, in our view, more than 100 million ounces of silver. And if we can get the production up to 5 million ounces a year or more, we'd be producing something in the neighborhood of 100 million a year in free cash flow.

6:16 So that's our goal to do with the Bethany project. You know, it's going to take us several years, but that's the potential we have here. We don't have to acquire any more land. We've got the the projects, we've got the the mineralization already, we know where it is, so now it's just a matter of executing it over the next several years. All right here's where we're located in in terms of our property. Where I'm pointing to right now, just this kind of 500 meter east to west block.

6:59 This is 15 hectares of land. This area covers that I'm circling with my pointer right now. That's our entire mine. That's our entire resource. It's almost a pin prick on this whole bigger property that we have. And you can see we actually, this map is not updated. We've got some more updated maps coming up, which show our new zones of mineralization as well. Resource, we have not updated this in several years. We've gone into mining and focused on that instead of just keep on drilling and drilling like many of our peers do and doing more reports. So we, you know, the reports that we want to do are the ones, our financial reports, making money. So that's, that's what we're focused on getting there.

7:46 But we are very proud of our resource, what we have today, and we know we can make this a lot bigger. Okay, now to the more recent results here. This is what we did in Q2. So We did our first operations report in May for Q1. And at the time we said to investors and to the market that we're going to, just like much like what a bigger company would do, we're gonna report after the quarter ends, we're gonna tell you what we did on the mining side. And so here it is. So you've got the increase in the mined, mineralized material mined, almost double from the quarter over quarter. And again, we're still at a pretty small scale here we can do a lot better than this and and we're expecting you know much better much bigger numbers in in q3 and q4 but still good progress and we again we had a big big progress on the meters advance and opening up new working faces, which I'll talk about shortly, that are gonna be mined in Q3 and beyond.

9:00 Very good grades. We had a big lift in grades in the quarter as well, which is nice. We're getting towards, you know, probably the, you know, the grades that we want to see going forward on a regular basis, you know, kind of 10 ounces per tonne silver plus, you know, plus the byproducts. And then we didn't process any material in Q2, although we are processing now. So that means we didn't have any recovery or processing numbers to report. And then the silver concentrates and the silver that we sold refers to the Silver Kings project, which was, you know, a 1 off.

9:47 But we sold some historical silver concentrate there that was you know very profitable to do and netted us is going to net us you know quite a bit of cash here in q3 because we're the we we we we transported and sold it from an accounting point of view in Q2, but we're still receiving some of those payments now.

10:15 Okay, now, we'll get into some detailed mining engineering here because some of you will be interested in this. And we're very happy and excited to share what we're doing with the market. So we use a method called ascending cut and fill, which is a really good, really well established mining method for mining, you know, narrow veins that are high grade. And it's very commonly used in Peru, both in polymetallic silver mines, silver lead zinc mines like what we have. And then also there's some gold silver mines as well, slightly different geology. But you can use the same mining method if the veins are within a certain size range. So that's what we do. And what we're showing here is that we had a big jump in the meters of development starting in May. And that was subsequent to the last financing that we closed. So we were able to put a bit more working capital to work and we immediately got a payoff on that.

11:26 So that was really important. Now, if we look at the, this is kind of an example of looking top-down at one of our mining levels. This happens to be where all the activity is right now at the 640 level and specifically on the Española vein, vein system, which is on the northern half of our property. So we do have the Victoria and Dos Hidemayo veins, which are off the map to the south. So you can't see them here, but, and those will be added into the mine plan, you know, in the coming quarter, as we go towards 350 tons per day. So right now we have just with, just with at this one level and just on the Espanola vein, we have enough working faces open to produce 100 tons per day, which is obviously our big sort of near term goal that we're working towards.

12:26 We're only mining right now from 4 of them or when we made this diagram about a week ago, which are the green circles. So those are in production right now. And then the red ones are prepared and just We need to add them. We need more ventilation, more people, more to drill, et cetera, et cetera. So we're adding the back end, but the front end is getting the faces open, and that's obviously going very, very well. Just to kind of walk you through some of the terminology here, because it's kind of interesting. You know, in a smaller tonnage, high grade operation like this, Obviously most of the tonnage is going to come from the stopes here, which are ST. So there's 2 stopes on this map that are ready to be mined.

13:29 However, there's a lot of other places where during just the course of development you can actually recover ore from and that is part of our mine plan. So for example the the drift, the first place you go is essentially you do the horizontal drift all the way across the vein and wherever you intersect vein on the drift, that's mineable material, so you're gonna take that. So that's one area. Then before you set up the stope, you do the sub-level. That's where you're gonna drop the material down from the stope so that's also going to be or material or mineralized material that you're going to take out of the mine and stockpile and then so that's SL here on the map, on this map, sub-level.

14:23 The raises essentially go in between the levels and also help with ventilation. So those are important vertical parts that go up through the vein. Those are small vertical developments that go through the vein between levels. And those also often contain vein material and become part of the mine plan. So they're noted here where it says R and then you know the stope I've got ST here. So This is all translated into English because of course our miners are speak Spanish and so the terms in Peru are all different but that is

15:12 Those are all the working area now the one little Unusual 1 here is also the crosscut. So we're doing a crosscut over here on the southern end of this map towards Dosida Mayo and Victoria to the south and on the way we hit one of our other minor veins And of course that is that is mineable material. So we're gonna take that and that's

15:36 That's noted here as well. So in all you've got 5 different types of mining activities all which can produce mineralized material and that can be payable stuff that we're going to take out of the mine and it's going to become our part of our our stockpile that we then process. So that's walking you through this and just to show you where all the working phases are right now. This will change if I were to do this map, you know, another month from now, some of those working phases will have been completely mined, they'll be all developed

16:18 and there'll be different ones. So as long as there's you know 09:10 or so of these we can produce 100 tons per day Obviously we need to get to you know, 20 25 of these depending on where they are and which type they are because they are, some of these do produce, stokes do produce more than the other ones, the other developments, so depending on which ones you need a certain number of working phase but it's going to be probably more than 20 to get to 350 tons per day somewhere 20 25 and that in that range

16:56 okay now looking at the same map on the long section so you can't see the cross cut because that would be off the map, but all the other points here are on here on the 640 level, which is our lowest level right now. And then remember, we do a drift across there and then we mine up from there. So you can see the stopes that are developed there. There's 2 that are ready to be mined. And yeah, just this gives you the other, the third dimension that you can't see from the plan view. Then just to show another activity that we do as we do these developments is obviously sampling along the drifts and along the sub-levels.

17:47 We sample so that we can get a better idea of what the vein material should be and confirm the drilling that we've done in the past. So this is the whole espanola long section here and then we'll zoom in on some of the areas that we're mining

18:08 right now. So here we go. You can see the the purple dots are above 13 ounces per ton and this is only silver. So these are samples that we've taken recently,

18:24 some of them recently, some of them older, but this helps us to predict what the exact grade is going to be. And of course you end up getting an average of, you know, all this material, but the yellow is 8 ounces or less.

18:43 The pink is 13 ounces or more and the orange is in the middle. So you can see we actually have quite a lot of high grade material that we're expecting in the near term here in these stopes that are ready to be developed and mined.

19:04 Okay, so our timeline now, we're into Q3. As we said, we've got the developments ready for a minimum of 100 tons per day. And as we kind of talked about in the press release, some of the other tasks that need to happen now are there's some underground infrastructure storage area that we need. We need to complete more ventilation, we need to hire more miners, and

19:39 And oh and we're installing a 2nd Shovel machine under underground so Those 4 things those 4 tasks are all happening right now in July and August and once they're done we should be able to produce 100 tons per day on a basically day-in day-out basis and then get ready for you know for the next phase of the mine.

20:06 All right, now let's talk about the exploration. So here is a new map showing updated vein mineralization that we have mapped and sampled at surface, our understanding of the veins as of now, as of today. And there is a whole new zone that we discovered down here

20:32 called Miyakocha area. And it's again, like everything else that we've found to date, it's associated with historical mining activity, artisanal or small scale mining that's left a footprint that we can then use as an exploration guide.

20:53 So it's a very exciting new area for us. It's essentially giving us 0.25 area for exploration and ultimately resource development and likely mining. So Bethania is number 1, we've got Carmelita is 2, Tito 3, and now Miacocha 4. So it's a big jump in terms of what we've done in the last year and more recently, especially May and June with this recent field program that we did.

21:26 You know, we added about 40 percent to the known strike length of mineralized veins that we've mapped and sampled now at surface. So a big, big jump in terms of the, again, the potential. And it was already big before with just Carmelitos and Tito, but, and Carmelitos and Tito are still getting bigger as well. So we'll go through these 4 zones and show you what we're really excited about here. But starting at the mine now, remember all of the resource is in this block. It goes about 200 meters deep on average from the flat part of the hill here. And that includes the 3 main vein systems that would be sort of stacked in and out of the page here, because you're looking at the side view.

22:13 We know we've got the Continuation of this vein system on the other side of the hill. That's what we call the hilltop zone That we've actually expanded with this recent program as well

22:26 so there's There's lots of there's lots to do without even leaving the original mine concession where we're mining right now. The obvious place to go is to go deeper, you know, because we're essentially mining close to the bottom of this already, and you know, we still got very strong vein material. There's no structures that would suggest there's going to be any any change at depth, at least for the time being.

22:53 So the lowest of the low-hanging fruit for exploration is this area here just below the current resource. The next lowest would be the extension off to the east here, the hilltop zone, and these are areas that will be a focus for us as we start to do more drilling and exploration in the future.

23:14 Now, zooming in on the regional stuff here, Mia coaches the new discovery, so we've got kind of a swarm of veins that runs onto our property from a, there's actually a hill here. We don't have the top, the topography here, but there's a hill right in the middle here. And so these veins sort of run off this hill into this valley.

23:37 We got some of our best samples in the whole program on all 4 zones were in this new Miyakocha West Bay area. So I think our highest grade sample in the whole program was this one here, the almost 2,700 grams per ton equivalent, and that one is almost pure gold, or sorry, pure silver. Very little byproducts, you know, lead, zinc, copper, gold in that one. Some of them are more polymetallic, some of them are, some of these are very silver rich.

24:10 So that's very exciting. If anything, Miacocha seems, based on the sampling that we've done to be more silvery than some of the other zones we have. So that's good for the silver bulls out there.

24:26 Now this actually before I move off from from from from this you know you've got almost from from the edge of the property here to this, to these veins that go into the valley, we've got almost 500 meters of strike length, and you know, a swarm of dense veins that are very close together, that looks a lot like Bethania to us. So you know, you know and as we've said before we think Bethania has you know much much bigger potential than what's currently in the resource because of the depth potential

25:04 and as well and so this could be another Bethania. We also do have this other area here off to the north. It may be geologically more related to Carmelitis, which is just off the page to the north here, but we call it Miacocha Norte.

25:21 And some good samples there, not as good as Miacocha, but there's not as much exposure here as well. All right, a couple things on the Bethania mine area itself that we're very excited about from this program. First of all, I think we finally have found some, you know, indications of where this Capri, calling it Capri 98, but there's several historical observations from reports that we had that there is another vein or vein system up just north of Bethania which is called Capri or Capri 98 was one of the zones. So we think we've found it and taken some samples and some of them approaching in the high hundreds of grams per ton, which is very good.

26:16 And so that's a nice area that is just very close to the mine to look at in the future. And then the other area that we're very excited about is just some of these extensions to the hilltop zone, both to the north and south, were again some of our best samples in the whole program.

26:37 So you can see here, now we're getting off the actual Bethania mine property, which is this rectangle here I'm kind of drawing with my pointer, and these veins continue to extend off to the north and south of the of the Bethania original Bethania mine concession onto this with this property which wraps around is is called trace bender is 5 And then the other zones which we didn't focus too much on the press release but they're also pretty exciting. There's a whole new area which we've identified in the Carmelitis properties called which was Carmelitis Estae. So this is a new discovery as well.

27:25 So similar to Miacocha just not as we didn't get as many zingers over 1000 grams per ton here but definitely highly anomalous and you know I mean the fact that we're cutting

27:38 our our mineralization at 200 grams when many silver mining companies would be killing for those types of grades and for us that's low grade So that but definitely there's veins here.

27:51 It's an area that we hadn't been to before and so very exciting to see you know if this all connects up together or it's just a completely separate zone we don't know yet. But some you know pretty decent results there again into the hundreds of grams per ton, almost 1000.

28:09 And then Tito, again, we didn't take too many samples here. We did a lot of work on Tito in 2024, but we did find some potential extensions to Tito down here. I believe the sampling in 2024 stopped around here

28:27 or maybe where the road is. So we've got quite a big potential extension. This is a ridge as well that runs basically right along the vein or the vein runs along the ridge. So very interesting. And then there's a parallel vein that we identified previously and had some samples down here, some good ones actually over here. So we've got a potential northern extension to that as well. So Tito's getting bigger, Carmelitis is getting bigger, Miyakoch is new and looks pretty substantial with very, very high grades and Bethania is getting bigger. So fantastic exploration results, very, very exciting.

29:12 All right, well, we've got 2 projects in the sweet spot of the Lausanne curve, especially Bethania. I think when we look at some of our peers, they've had huge, huge, some of them have, when they transition from being losing money to making money, to being profitable or cashflow positive, You know, some of our peers, you see huge jumps in valuation on the order of hundreds of millions of dollars that get added to their market cap. And you know, our market cap is still 60 million. So I mean, there's huge potential there just to get revalued as a producer. And I don't think

29:50 we're there yet, not even close. That's just my opinion. Here's our capitalization structure here. It's not really changed since the last presentation except for the share price.

30:05 And that is the end of the presentation. Romeo, if you wanna ask me any questions, go ahead. Awesome, I do have some questions. I covered a lot of the material and there are some great questions in the chat. So I'm going to try to not take too much of your time with my questions. But I'll jump right in. I know Q2 didn't see any processing due to the toll mill unavailability. What are you doing to mitigate that risk during the ramp up phase?

30:29 So partly it was our scheduling on us and partly, you know, there partly it was on the mill in this particular quarter. I mean it's something that that can happen although it's probably it was more of a risk earlier on because we were we were not processing very much So we sort of had to sometimes get in line behind other batches that were

30:54 already ordered. So however, we're gonna be pretty close to, maybe not this quarter, but Q4, completely filling the Camilla mill. So we'll have you know we should have high priority there and should be less of an issue going forward.

31:13 But you know our working capital was sufficient. It was not an issue. And in effect in you know as it turned out we're you know we're we're selling our silver at you know 5 dollars an ounce higher than sure then it would have been if we for the material that we would have processed early on Q2 in April and May. So it actually worked out in our favor and

31:44 we're making more money now as a result of it. Well, there you go. I do know you have 10 working faces, but only 4 actively operating. What the bottlenecks, if any, are preventing full activation and how confident are you in that sustained 100 tons per day?

32:00 Yeah. So again, it's just part of the ramp up process that you, you know, developing the working faces is one part of it, but you also, what I call the back end is essentially the whole materials handling process for you to not just mine that material, but then also move it out of the mine and then get it on the stockpile so it can be transported to the mill. So that it's really the back end that needs to catch up and that's what's happening in July and August here and you know I talked about 4 specific tasks underground tasks that are happening in order to help us get that. One is the installation of another shovel machine, a pneumatic shovel underground. Hiring, which is sort of an ongoing process.

32:46 We hired more people in Q2. That helped us to jump our production by 87% and we're continuing to hire people now.

32:59 There's some underground development that we need to do to basically create a storage area that we need for our equipment. That's happening. And then the fourth thing is ventilation. So those are the, basically, those are the 4 things that happen to de-bottleneck that. And then once we get that, we should be able to consistently produce 100 tons plus or minus.

33:31 And then keep developing more working phases so that we can essentially go to the next level. Great, that makes sense. I did notice head grades improved significantly in Q2. Is that sustainable as you scale to higher volumes or is it just because you're mining the kind of best material first? It looks like it is gonna be sustainable at least for the time being. If you look at some of the working areas that we have developed, it looks like we have quite a bit of high-grade material. It was more, I would say, a factor that the material that we mined in the first 6 months, because it's really just stuff that we're hitting by accident almost as we're doing development. I mean, accident's the wrong word, but we basically have to mine that to get the development done so we don't have much choice.

34:23 And so it's more a case of now what you're seeing is more of what we would expect from the mine going forward whereas the first quarter and the second quarter was more, you know, just happened to be where the development was. So almost more random. And it happened to be a little lower grade. It could have been higher grade, but it happened to be lower grade. Sure. Now, you mentioned the 1 point 18I think, million from Silver Kings, that historical concentrate. So nice surprise. But you mentioned it as a 1 off. Are there more piles of monetized or is this truly just a helpful one off? So specifically that that that that sort of higher grade concentrate that we sold is a 1 off like we sold it. We and.

35:13 And but I think it really shows it shows us and it shows others how you can monetize the sort of the secondary as a secondary product at the Silver Kings project. So it's metallurgically very different from what we do in Peru. Silver Kings, you have this, basically most of your silver comes from native silver, so basically metallic silver that's in the rock and of course it's heavier and denser than all the other minerals around it so you can separate that with gravity methods and that is what previous operators did and previous operators who owned our project so we think but we don't know for sure because there aren't good records you know prior to 2017 there's little information, but we think that they produced silver bars and sold them and used that to kind of fund their operation for a while. But you know but still you know I guess ran out of money or whatever happened to these previous operators. No we're not really sure.

36:29 And they left this secondary silver that either was not economic or they just couldn't find a market for it at the time and we were able to solve that problem and you know it shows you that if or whoever puts this project back into production hopefully us we get the silver bars from the native silver, and then we could produce a similar silver concentrate that we can find a market for it now. Great. With current development focused on that 640 level of the Espanola vein, how many years of production does that represent before you got to make some new development decisions? So, You know, we don't just mine at 1 level, you know, for forever and then shut it down and then go to another level.

37:27 There will be mining at multiple levels eventually. So that's a tough question to answer. Definitely the plan is, would be, and this may happen later this year, early in 2026, to start developing the next level down, which would be the 610 level. We continue every 30 meters. So we'll start working on that soon. And then we'll end up with production from 2 levels. There's potential that we can produce from some of the higher kind of residual levels as well at the same time and that's something that we just continue to review and and modify our our mind plan depending on market conditions depending on what we're seeing underground etc. But you know the plan is to go deeper and in the, you know, in pretty soon we'll be we'll be working on that development to get down to the to the next level. And then remember there's also 2 other vein systems that have similar size potential or similar size in terms of their resource to Espanola. So that's Victoria and Dositomayo. So in that sense, it's almost like we're only mining a third of the mine right now and and we need to add those on as well at the 640 level and then eventually go down deeper as well on those

38:57 as well so all of that's happening all at the same time and and therefore you know I'm not sure when the last stope in the 640 level will be mined. It could be 5 years from now. We're not sure yet. That makes sense. Now I wanna get into today's news just for a couple of questions, then I will jump to those questions in the chat. I think we've tackled about half of them, but the ones that are left, I think we have time to get to all of them today. But I know now that your team's identified that mineralization across the 4 separate prospects with that 7 kilometers of strike length, with Miyakocha appearing to have similar size and scale to Bethania, how are you prioritizing which of those satellite targets to advance? And what's the timeline from going from surface sampling to that more systematic exploration? Well, we're going to prioritize the Bethania mine area first for a couple of reasons. Number 1 is that stuff that we find in either directly below the mine areas or even in the hilltop zone is, you know, it's economic a lot faster.

40:02 And essentially it immediately goes into the mine plan. Second of all, it's essentially easier to permit those versus more of the grassroots exploration from surface. Not hard to permit anything, but it's more of timing. We can do it a lot quicker at Bethania, where the mine is. So Bethania is definitely number 1, strong, strong number 1. And then I think, you know, we're starting to look at where we would drill next beyond Bethania. I mean, Bethania, we could be there for several years, depending on how much drill budget we want to spend there right now versus going to one of the other areas.

40:59 But I would have said Tito would be a priority, just because we got very high grades in the original Tito, the 1st Tito program last year and it's also very close to the mine. But you know Miyakocha is looking really good as well. I mean and Karmelitas has its pluses as well because there's already quite a bit of infrastructure there from relatively recent past mining in the Carmelitas main zone. That was in production up until 2020. So to go in there, there's less development required. So all 3 of them have their pluses and minuses, I would say, in terms of what's gonna be number 2 on our strategic list to develop and explore.

41:47 And hopefully we can do them all at the same time. But if we have to choose one, we'll have to go through the analysis and decide where we go next. No, it makes sense. Appreciate that extra context. I'm going to jump into audience questions here for a bit, just because I want to make sure I get to as many as possible. Somebody asked right at the top of the hour, I know you kind of went over it, but just thought you could reiterate here. They just want a realistic projection for Q3 2025 in terms of tons per day and growth. Well, I don't know what the average is gonna be but we're you know, we're we've guided that we're we we plan to get to The hundred tons per day and in q3 and we're on track to do that. So Given that the working faces are already developed So that is that is that would be the plan and you know, obviously the average will be some kind of probably something between 30 and 100 but but But I think getting to 100 will you know, we'll obviously make a big deal out of that when that happens.

42:50 That's a big milestone for us. And we're very, very close, tantalizingly close now. Great. Jake from the chat asks, if not processing Q2 but mine, will you be able to capture an increase in silver price in Q3? The answer is yes, Jake. We get paid on the silver price for when we actually sell the concentrate. So because we are processing now in July, we'll be getting July silver prices. Great. Great answer. MFK from the chat asks, when do you reach 350 tons per day? We haven't updated guidance on that. It'll definitely be sometime in 2026. And, you know, we're looking at ways to essentially accelerate that and get get get there as fast as possible.

43:43 But yeah, that's, That's what we're, you know, so that's I think the best answer I can give right now. Great. Somebody in the chat asks, is there a plan for a mill? Yes, good question. For those of you who haven't followed us in the past, we actually permitted a mill to go just south, to put it just south of the Bethania Mine, right about here. We have, so it's fully permitted, it's designed, it's the details of which are in our PEA that we put out a few years ago. And we do plan to build it. If I go back to the 100-100 plan here, it's phase 1B.

44:30 So phase 1 is to ramp up to 350 tons. That's just at the mining. Phase 1B would be to do 350 tons at our own plant, which would eliminate our toll milling costs. And more importantly, it gives us a platform to grow to something bigger than that. If we continue to toll mill forever, we will be capped at how much we can produce. You know, it might be, we might be able to squeeze more than 350 tons per day, but, you know, it might be 500. There's definitely going to be a cap where just logistically It will be too difficult to find the spare capacity close enough, but close enough to the mine so it's really important in the longer run that we build this mill and because we permitted a 350 ton per day mill, the most economic thing to do is to build that first as designed, as permitted, and then expand on to it.

45:29 So We do, you know, based on all the silver vein mineralization that we can see right now, and, you know, even more today than 2 months ago, you know, I think 1200, 1000 to 1200 tons per day is probably where we need, where we need to take our mill ultimately. But obviously 350 is a good start. We make a lot of money mining 350 tons per day, and then we can upsize it from there. And whatever permits we need to expand the mill, we can get while we're making money, which is a huge advantage versus having to basically shut everything down and wait for a permit. That's the exact situation we didn't want, is to have to wait for a permit.

46:19 So the good thing is, again, we can continue to earn cash flow from mining at a lower rate while we're getting whatever permits we need to expand. Great. Somebody in the chat ME notes, says, Miocotcha property has to be expanded as it seems you only own a small part of it. I love if you could expand on that. Let's look at the map. Let's zoom in here. So, I mean, there's, we have a kilometer east to west here in this direction. And the veins continue here. So, I mean, we have a resource of, you know, 14 million ounces inferred and indicated at Bethania in basically the same footprint that you're looking at here without having to go off to the west.

47:21 Obviously that would be nice. These veins may continue off to the west and there is artisanal mining activity over here as well but we don't have this we don't own this property. So we but my point is that there's at least 5 million ounces mined out of Bethania that we know about, plus the 14 or so that we have in resource. So Bethania, geologically speaking, is a 20 plus ounce block, just the upper 200 meters of it 20 million ounce silver silver equivalent, so We could have the same thing here Without having to get the other side of this Yeah, right on There's 2 questions about warrants that I just wanted to jump through. Man Crash from the chat asks, the 37 cent warrants are exercised, he asks if they have been. Would you still follow through with the SCRI deal?

48:20 Well the expiry on those is December. So we'll have to see what happens. Yeah, makes sense. 2 questions about funding in here from Rock. He asks, are you funded for the mining and exploration plan for 2025-26? And then as a addendum, do you have to raise to build the mill and what's the projected cost of the mill? Yeah, so, yeah, I mean, look, we're fully funded to get up to into positive cash flow. And then the idea would be as we make more and more, as we continue to ramp up Bethania and, you know, we get more and more sort of monthly cash flow from that. We should get to a point you know and it might be later this year might be early 2026 where we have enough monthly cash flow that we can start allocating some of that to exploration and that would be that would be the that would sort of be the the plan right now to basically fund exploration just from cash flow from the mine.

49:25 Likely spam. Happens to everyone I know. So that answers the exploration funding question. And then on the mill, I mean, we probably don't, you know, want to wait that long to build the mill. So, you know, I mean, if we waited several years and we just we just collected cash from Bethania, we could eventually build the mill with with free cash, but free cash flow. However, we might we definitely want to build it sooner than that. So I think the idea would be to get to a certain position where we could provide an equity portion on a project finance type loan arrangement, whether that's, you know, 5 million or 10 million from Kuya and then the rest from a lender.

50:24 That's a very common way to finance a big project, big CapEx project like that. I mean, it's not big as the scale of mines go but it's big for us. So for example if if if we find that the total cash requirement for the mill is 20 million let's say just to use round numbers. You know we'd probably have to put up 5 or 10 million of that against a loan for the remainder. Great. Go for it. And so you know we would be in a position to start looking at that equity portion from CUIA potentially later next year, depending also on what we want to do on exploration. So those are all balls in the air that we need to juggle and prioritize.

51:13 Great. I got one quick question. Just any update on utilization of the Nova Mira surgical mining? We're working on the permitting of that, which is, You know, it's a brand new thing for Peru, so we have to, you know, kind of educate the regulators what we want to do and show them that it's actually a superior way to mine some of these near surface veins. I think, you know, we can make the case that it's actually much more environmentally friendly, certainly more so than doing an open pit or, you know, and even underground, you know, you can't mine some of this stuff because it's too close to surface, right?

52:11 So you either have to mine it from an open pit or you just have to leave it there. And the Nova Mira technology solves that problem. So, and it's, you know, it's, they've put a lot of thought into the environmental aspects of it. It's very low footprint. It leaves you with actually more stable rock than you start with because you can fill the holes with some kind of solid material, cement or whatever, that will actually add to the strength of the mine. So it's a great idea. We're still really, really excited about it, but difficult to predict the timing just because of the permitting aspects of it need to happen. And then once we're the guinea pigs, and once we make the big breakthrough on that, I'm sure there'll be others that will be doing the same thing.

53:15 Perfect. I'm going to ask you one question I always like to ask at the end of these, just wrapping up today. And if I missed any of the questions in the chat, please yell at me while he's doing that so I can sneak 1 in at the end. But what are you most excited about in the second half of 2025? I'm really excited to that we're, you know, we're, we're so close now to basically free cash flow positive from the mine. And I think we can see that happening sometime in the next few months. So that's what I'm most excited about. You know it's been obviously the exploration is super exciting and you know the long-term growth potential is super exciting but just that's a huge milestone for us and we're so close and the team's doing a great job in Peru and and so that's what I'm most excited about.

54:12 Awesome, one last question snuck in there right at the end. Anything happening with the Saudi Arabian project? Yes, we are drilling right now. We started a 5,000 meter drill program with our partners there. It's basically, I would describe it as a scout program. So we, based on historical mining activity that we know about and historical sampling and drilling from decades ago that we had access to the data, that gave us a couple of targets. We also developed some other targets from satellite imagery. So there's quite a few targets. So the drill holes are really spread out. So I guess what I'm saying is, you know, this is a drill program to test targets, to learn more about the geology at depth, what's below what we can't see at surface.

55:05 And, you know, it's going to help us to lead into a bigger drill program in the second half of the year that our partners already geared up to fund. So we're excited about that. But yeah, let's see how these first 5,000 meters go. And obviously anything material we will let people know one way or another. Probably in another 2 months or so we need to get finished the drilling and then get all the data. Awesome, well David thanks so much for bearing with me with all these questions and for running through a presentation. For the tons of folks who are in the room, thanks so much for participating and adding your questions. There were just a couple that I think I wasn't quite able to get to, but I'll make sure that David and the team get those and I'll get back to you as soon as possible. But anyway, thanks so much. I hope you have a wonderful rest of your day. David, thanks so much for running through the presentation. Thanks everyone for being online and listening. And yeah, obviously let us know if you have any other questions.