Kuya Silver: Silver Kings Discovery and Bethania Production

0:03 I'm going to say good morning, good afternoon, good evening, depending on where in the world you're signing in from today. I did see we crossed at least 8 time zones today, so I really appreciate everybody joining me. I have today with me, Chris Silver, CEO, President and Director of David Stein. David, how are you today? I am well, thank you. Romeo, how are you? Good, thanks. So here's how today is going to work. First, David's going to run through a presentation that will encompass both an overview of the company, but also some content really specific to recent news. Then I've got some questions for David based on that presentation. Then I'll be going directly to questions

0:34 from the live audience and those that came in over email. So this is an interactive event, that chat button on the bottom right of your screen, you can use at any time during today's event. Hello, Thomas, speaking up in the chat. And we'll try to get to as many questions as we can today. If for whatever reason I don't get to one of your questions, just we run out of time, it's covered somewhere else, et cetera, I'll still make sure the transcript gets to the Clio team so they're able to answer those questions afterwards. One last piece of housekeeping, today's event is being recorded and will be available for replay probably this afternoon, Eastern time. It'll come right into your inbox but it'll be available on both six.com but also on our YouTube page. Without further ado though, I'll let David take it away with the protein of today's event. Thank you. Thanks everyone for for calling in. You know we've had some some couple of recent news items so it's a good opportunity to give people an update as well as introduce them to our very exciting silver growth story if you have you know never heard of us before.

1:32 The presentation or a version similar to this will be on the web page. So please take a look at the important notices when you can. And otherwise, let's get started. So we've got our 2 projects that we've both we've had news on recently. So Bethania is our flagship. It's our operating silver mine in Peru. I'll talk quite a bit about that today. Spend quite a bit of time on that. And we also have our Silver Kings exploration project, which we announced some drill results on as well in the last week or 2. So that's an earlier stage project, discovery phase, whereas Bethania Silver is the production phase, part of our story. So it's much more advanced.

2:26 But both are really exciting. Both are very silver focused assets, which give investors kind of unique exposure to both growth and also the silver price. I've got some kind of stock commentary to talk about before I go into the sort of the Bethania part of the presentation. You know I think this is really important just to take into account of where we are with the silver price and with silver equities. So you know the the pink line above is the silver price

3:10 and you know it's up it's more than doubled I guess since this chart started which was in 2020. Was in 2020, so 5 years. And the silver index, I'm using SILJ as a proxy for silver stocks, is barely up at all, up 20% in 5 years. So you divide that by 5 it's only 4 percent per annum. It's not very good. And you know there's been a widening gap between the 2. I think at the end of the day various reasons for this. But the bottom line is there just has not been the investor intention in the stocks yet. The silver price, I think, is taking a backseat to gold and the mining in general, including gold, has taken a backseat to big tech and even potentially crypto. So there's been a lack of focus on our sector that will change.

4:08 You know, all these things are cyclical. There's a huge opportunity here, regardless of, you know, of whether you want to own Kuya or something else. These these These 2 lines will converge again and likely when it'll happen when silver goes even higher. That will bring the intention to the space that will drive people into the equities. And there are so few real true silver companies like Kuya that I believe the valuations will just go crazy to the upside. And it's a it's a very very we've seen it before and it's a very very exciting opportunity for investors here who are still paying relatively kind of close to rock bottom prices for for stocks in general. Now in terms of how Kuya's done, you know, I think it is worth kind of stacking ourselves up against our peers out there. And so I do this fairly regularly.

5:03 And the recent high that I think is just a good goalpost to look at was back right before the U.S. Election. Silver was close to 35 dollars. Many of the silver stocks both Explore Co. And the miners were at 52 week highs back then in that week between the 22nd and the 29th, including us. We are down 38% since then, as of yesterday, up a little bit today. But if we look at, you know, our category would be the small silver miners. So these are kind of the less than a billion dollar market cap miners. There's only 6 of them that.

5:51 And we're basically right in the average for the group. 1 company that's done extremely well and in fact at times has been above its October 2024 high has been GoGold. And I think that's a real good one to look at because what's changed in GoGold versus the rest of the sector that's sort of just doing the same thing just you know exposed to silver. But you know GoGold has really had a great 6 months because, in my opinion, because they went from sort of being a cash flow negative junior, like where Kuya is at today, to being a cash flow positive company and getting that recognized in their financials. So they actually had positive EBITDA for 2024 when their year-end numbers came out. And you've sort of seen throughout this year that stock outperformed most of the other companies.

6:46 And again, I feel like that's a good thing for you know to look at here because we are, you know, a little earlier than Google, but we've got the same kind of trajectory with our operations. So, so that's That's a really good one. I won't go any more. And then this is the opportunity. The opportunity is if you get into this

7:10 sort of cashflow positive, EBITDA positive group, you either get taken over or you get a massive multiple and that's there's really no other way about it here. There's you know I don't think any of the real true silver companies and when I say true silver I mean you're producing more than 50 percent of your revenue in silver. So not zinc not gold not something else. When you get it, if you're a true silver company and you get into that, you know, sort of EBITDA positive thing, there's not 1 company out there that I can find that is really cheap, you know, compared to gold and base metals. Silver really does trade at a premium. And again, that's a great opportunity. If you can pick a company like Kuya before we get recognized by the rest of the market and get included in indexes, etc., etc., then there's there's huge upside there. So that's my you know I'm a former equities analyst way way back. That's my that's my my research report on for you on the sector. And we'll move on to Kuya specific stuff now. So here's where we're located. Central Peru. Great area.

8:18 Great mining district close to the city of 1. Clio with with good access infrastructure, roads right to site. So, you know, within Peru, which is a really strong mining company, mining country, I think we're in one of the best locations, if not the best location within Peru. Now, this is not a forecast, but I want to talk about what we see, what management is looking for, not only in Bethania, but all the silver projects that we might look at in the future is we want to see the potential for a 100-100 plan which is 100 million ounces of resources and 100 million a year free cash flow.

9:04 In order to do that at Bethania, you know, for example, first of all, we need to get into production, which we're there. We're ramping up production now. And eventually we need to build our own mill. So we're starting off toll milling. There is a little bit of a we give up some operating costs but we don't have to spend that capex. At some point we'll have enough cash flow that we can do put the capex in. It's really not that much. It's just we're such a small company that we've decided to defer that big expenditure into the future maybe next year or something like that. And then from that from there once we build our own plant we can start to expand on that. And you know that's how you have the potential to get from 20-ish million a year, which would be sort of our projected run rate based on our PEA, to over 100 million ounces by just essentially doing more silver production.

10:04 And with a discovery cost historically of 20 cents per ounce. We think again, by reinvesting in exploration, we have all, we know where the veins are. We know where many veins are. We, we have the drill targets. We feel very strongly that we can continue to deliver on something like that. We just we haven't spent much money almost 0 on exploration the last few years because we've been focused on production. But you know again as the mine starts ramping up as we get more and more cash flow we will have money to apply to exploration we will start drilling more a lot more perhaps later this year if not early early next year and then we can start to you know grow towards that target of 100 million ounces or more.

10:52 And here's where we're going to do it. This is our land package today, 4,300 hectares. The mine itself is located just in this little kind of corner of the of the original original mining concession.

11:09 And that's where our resources today. We've got we've mapped and sampled veins essentially extending the strike length by more than double. We've got the potential at depth, and I'll show you all this on some more zoomed in maps in a second, but we've got the Tito prospect we discovered last year,

11:29 and Carmelita's, we kind of discovered or we went and sampled and mapped the year before. Both of these are former artisanal mines that are on our property and that we, you know, we've taken control of in the last few years. So we know there's veins there. There's been production up in some cases up until pretty recently.

11:49 Here's our resource. Hasn't changed in a while for those of you who know the company. So you've got the indicated and inferred which combined is about 14 million ounces of silver equivalent of which is about 10 million is is pure silver. This is the real silver deposit. You know you're looking at kind of 70 percent by resource value is silver. And then when you look at actually payables, it's getting closer to 80% 76 in the last quarter, because we get paid more for the silver as well than the other metals. So, so it's really a silver rich deposit. It does give you exposure to the silver price, which again, very few companies do. There's a lot of purported silver companies out there that are really only giving you 30% silver exposure or maybe 50 if you're lucky. Again, we give you much more than that. So if you're bullish on silver, Kuya should be a great company

12:48 to own in the long run here. On May 5th, which was yesterday, we announced an operational update on Q1.

13:00 So Q1 was really the first quarter where we had kind of consistent daily operations at the mine. And so before that, it was pretty difficult to, you know, figure out, you know, what was material. We did give some some updates at the end of the year last year. But this is really the first real operational update that we've given with kind of consistent results. And although the production is you know it's pretty small to start off with it's going to grow. And this sort of gives now investors the benchmark of which to kind of judge us going forward, which I think is important. Here's what the numbers show you again, you know, broken down. This runs you through the whole process from mining at site at Bethania, doing all the development to get to the to get to the stopes.

13:54 The head grades that's basically exact what we're pulling out of the mine. Then you've got the recoveries of those the metallurgical recoveries that's at the toll mill and those did improve since the end of the quarter we've gotten our silver recovery up to over 94% in our last batch that we ran in April. So so the recoveries are are pretty are you know very very high now which is great. You know, metal processed,

14:26 the concentrates, the amount of tonnage of concentrates that we're producing, the metal that we sell from that because that's sort of how our offtake is calculated.

14:43 So we get paid about 95% of the silver which is really industry standard for example and you know it's a slightly different depending on the metal and and then finally the realized price and the revenue again we know the production was very small in Q1 but that being said it's very nice to be getting revenue back and not just spending money which most of our exploration peers are doing.

15:09 And so even getting 200,000 back in revenue is a major, major accomplishment and really helps slow our burn rate. Going forward, we've made a lot of improvements to the mine. We were able to sort of take Q1 as we were ramping up slowly and do a lot of the infrastructure improvements underground that are going to be needed to get up to 100 and eventually 350 tons per day. So we started you know we did disproportionately a lot of real good sort of underground projects that that needed to be done anyway.

15:50 And, you know, now we're ramping up, you know, as the previous slide said, you know, the last 10 days in April, our production more than doubled. What happened in April? Well, it was really we closed that financing, you know, to be honest.

16:06 It's really a situation of, you know, in order to ramp up, you need working capital. We now have that we're able to put more money into the mine. There's no technical issues per se. It's really just been a money issue. And now we have enough we feel we can ramp up. And of course once you get up to a certain level then the mine starts paying for itself. And we just weren't quite there yet in Q1. But you know we feel very strongly that we can get there over the next few quarters and certainly before the end of the year. Now, when we look at, Again, not a forecast, not promising anything, but we do see the potential to more than 10X our resources just based on what we're seeing geologically, samples, the veins. It's very easy to explore in the Bethania district relative to other places that we've been because the veins come right to surface and

17:08 and there's you know there's been relatively little mining here considering how huge the exploration potential is here. The Bethania sort of district that we control is relatively unexplored. So it's a very, very exciting, unique

17:28 property package that we have, you know, of course, centered around the Bethania mine itself, which has a lot of upside without even leaving that original 45 hectare property of which only 15 hectares or about a third of it is actually been is part of our resource right now. And that's just because We haven't done enough drilling outside of that yet. And

17:49 then we've got Tito to the south, very close to the mine. And then we've got Carmelitas off to the west. There's potential for other zones as well on this bigger land package. We just haven't done any real significant regional exploration yet. We focused on going after the artisanal mines, which are very obvious targets.

18:13 Bethania, the mine itself, So the entire resource is located on the western third of the property in that red triangle Even in that area, we've actually made new discoveries since the resource came out including that Carmen Goldrich Carmen vein We also know that there's been several million ounces mined out of there before we got there. So you're looking at a block that probably geologically was closer to 20 plus million ounces

18:39 when you include them what's mined out and then it's open at depth and open along strike. No indication so far that we're you know the structures are closing off the depth. We've got all of our deepest drill holes are very good, wider, higher grade,

18:57 generalizing but in general, and then off to the east you've got the other set of veins on the other side of the hill which we believe connect up with the you know to make 1 bigger kind of vein system and that gives us sort of the potential for to double the whole thing again off to the east. And it could continue going even further. We just, we haven't when you go down into this valley, you kind of lose the outcropping veins. So, so it's quite possible. There's, there's even more there.

19:34 Tito, very similar to Bethania, frankly. It's these big mineralized structures. In this case, this one vein has been mapped and sampled for 640 meters, which is actually more than the strike length of the Bethania mine. Then you've got these sort of related structures, which are also mineralized. We're only able to sample what was outcropping. We've not done any drilling or trenching in this area yet.

20:02 But what we like about Teal, which maybe puts it a little bit higher priority than than Carmelita at the moment is that it's more consistently higher grade. So, you know, we always if you take enough samples, you'll very likely get a thousand, 2000 gram per ton sample.

20:27 And we do at Carmelitis, we do at Bethania, But here we were getting them pretty frequently, almost every third sample. And that, you know, that's definitely a good sign. Possibly this is a higher grade system. It's at least as big as Bethania in terms of the footprint. You're looking at a kilometer east to west with good strike length of the veins.

20:52 And so we're very, very excited about Tito to be potentially another Bethania. And then, you know, the third Bethania could be Carmelitis. It's slightly different in the sense that the vein orientation is different. It's 2 parallel structures so that they're not likely connected but they're parallel and if you do stack them back-to-back you got another more than a kilometer of strike length of essentially vein swarm

21:21 silver rich veins form which we've done you know pretty intensive sampling of to date so we really like this area as well it's still not that far from Bethania only about 3 kilometers And so everything that we have is sort of trucking distance. When we eventually do build a mill, everything is trucking distance to that mill.

21:41 All right, let's move on to Silver Kings now before we wrap up for questions. So

21:56 we've got this project, we've had it for 4 years now, more than 13,000 hectares of land in Northern Ontario. And we have been, we've been drilling this, you know, a little bit every year and very successful making new discoveries in this area that was, I think, you know, most people thought it was completely mined out. And we've made new grassroots discoveries here, really kind of turned the whole district on its head in terms of the exploration potential.

22:30 And so it's been very exciting to be a part of that. Frankly I don't think we get much value for it as Kuya shareholders unfortunately. But you know it is sort of a freebie. You get this really exciting silver exploration project and you're not really paying anything for it.

22:49 When we made our first, our big discovery in 2023, we were testing this sort of idea that these, that these barren structures at surface could be cluing us into mineralized structures at depth. And so we followed this barren vein at surface all the way down 200 meters, drilled it at the contact between this orange dye base unit and the lower green Archean rocks. We thought that's the place where we want to be. That's where most of the mineralization historically is hosted. And sure enough, we were right. We hit, you know, a 15,000 gram per ton over 3.34 meters. We followed that up with a number of other very good high-grade holes since then.

23:35 We started this year now with our drilling, and this was from our January announcement, to put together sort of a bigger system of these parallel veins, these ladder veins, which are close enough together, it could be potentially sort of all grouped in 1, you know, to 1 resource. Especially if you when you drill through a bunch of these and you get 11.5 meters over at 380 grams per tonne silver equivalent, which by the way, it's mostly silver in this case. We do have a little bit of cobalt sometimes. You get a pretty wide intercept that has the potential to build meaningful tonnage. Whereas a lot of the historical mining here was chasing very narrow veins, but where you could essentially visually see the silver in the rock.

24:38 But, you know, we do know some of the later mines were more bulkier and mined lower grade. And, you know, lower grade here is still higher grade for the rest of the world, by the way. And so this is potentially something here where we could be on to something like that, which is very, very exciting.

24:59 The press release that just came out was, you know, was the third batch from the sort of 2024-25 program. So these were all the drills we've drilled in early 25. And I guess it accomplished a couple of things. First of all, this geophysics drone survey that we put out a few months ago, we're starting to be able to track these magnetic lows here and show that they indeed are the best place to host these silver veins at depth. You know remember we're drilling a target that's 200 meters deep it's not easy to do from surface so any help we can get is is obviously beneficial and there does seem to be a correlation between these lows and the silver veins at depth and we're able to sort of prove that with some drilling into now this sort of middle 1 here We haven't drilled this western one yet.

26:04 And the original Angus Fane discovery was on this one here. So yeah, so that's looking pretty significant. The other thing that was, I think, really exciting in this particular last batch of drill results was that we hit a pretty important mineralized structure that's the new style of mineralization for us. So there are these black kind of carbonaceous shales that are found as part of the stratigraphy in here and do host mineralization sometimes. Some of the historical mines, they did mine this black shale material with you know rich and silver and I mean in in our case we had 11.4 percent 11.6 percent copper as well as silver so very very high grades you know if you go to the historical mining, there was copper and nickel sometimes reported as in the sales figures with the cobalt and of course the silver. So very, very interesting to get that that that intercept.

27:20 And it's again, potentially a brand new style of mineralization, like I would call it a third style for us, so the first one would be the regular, you know, high grade veins that we know and love from the cobalt camp and they tend to be cobalt and silver but sort of a bit of a zoning between the 2 more some are more cobalt rich some are more silver rich then you get the stringers into the wall rock which are you know usually perpendicular to the veins those are usually only silver And then this third style of mineralization, which is the hosted in the shell, you get this more massive kind of silver rich base metal mineralization. So Very, very interesting. We're super excited about this. Again, you're getting it for free as a shareholder.

28:08 So to wrap up, we've got 2 projects, both increasing value on the Lassonde curve, Bethania going into production, still ramping up, still in the startup phase, Silver King still in the discovery phase. So these are the times when most of the values created the quickest in the mining industry. And so we're very fortunate to be able to be in that position. After the last financing, here's sort of where our capitalization sits at about 30-ish million market cap, 120 million shares outstanding, still very, very high management ownership. We're very proud of that. Certainly, we've been diluted a little bit, but I bought more shares this year, as has some of the rest, some of the management team, and we're still over 10%.

28:59 And That is the end of the presentation. I'll just leave this slide on, and then, Romeo, you can ask me questions. And if they need visual aid, I'll go to a slide, and otherwise, I'll just answer them. Works perfectly. I know we got a whole bunch of questions in the chat. I believe we should be able to get to all of them, but I do have a couple of questions on my own first, if you don't mind. What I want to jump into is, I want to talk about the district scale potential of Bethania. Because, I mean, from what you've indicated, it's only 0.3% of the pretty large 4,300 hectare land package that contains the current resource. So overall, I'd love if you could explain to the folks in the room, what exploration strategy in the future are you employing to really evaluate that 99.7% of the package? Well, the strategy is we need to drill and we could keep finding more veins, which there's value to do that. But at some point, we just we need to drill. Drilling is expensive. So we've kind of again, pushed that off to focus on getting the mine into production. We felt like that was, you know, for us, a more important thing to do it in the near term, because it differentiates us from the oodles and oodles of other Explorer co's out there which you know are I'm sure some of them are great. But frankly we just don't want to be in that morass. We want to be different and we want we want to attract a different investor base. And I think we've been able to do that and we're we're still doing that. So

30:30 we've got a great production growth story with the exploration upside. And getting back to your question, we need to drill. So then the question is really, how do you prioritize that drilling? And to that, I would answer, all of the targets that I showed you, or I would consider low-hanging fruit, because again, compared to what we do in Ontario and, you know, elsewhere, even in the Saudi Arabia project, this is relatively easy. We know where the veins are, we can see, we can map them, sample them at surface, and then you just need to kind of drill them and start blocking them out, see how big they are, and you know, confirm the structures are continuing at depth. So what do we do first? Well, the lowest of the low-hanging fruit is the depth potential at the mine itself.

31:20 This is where we have the most data. Again, we've got very high degree of certainty, not 100%, but always high degree certainty that it continues at depth. And the comparable intermediate sulfidation vein mines like this can go hundreds and hundreds of meters deep and and so for us to you know drill another 200 meters deeper here that would be immediately you know part of our mine plan and you we could essentially double the resource or more just by essentially doubling the the depth And then the next priority would be the strike length potential. So essentially extending it to the east here, we know we've got these veins on the other side of the hill.

32:09 So connecting all this up together and drilling this is kind of a no brainer as well. And again, this upper part's never been mined. So, well, tiny little bit, a little small added here, but for the most part, it's not mined. So there could be millions of ounces up here, and of course the depth potential as well. The next priorities would be Tito and Carmelitas and again you know depending on what additional work we do etc. As I said right now you know we like Tito but we like Carmelitas as well we really like them both And I think either or both of those would be sort of our tier, you know, tier 3 priority, I guess, if the depth potential of the mine is tier 1, the strike length would be tier 2.

32:58 And then the regional satellite deposits would be our tier 3 targets. And they all need and deserve drilling. And realistically, we're talking about tens of thousands of meters of drilling over the next several years. But it's something we wanna be able to do from cashflow. No, no, makes sense. There's a couple of questions in the chat that are right on topics. I'm going to jump into those before I get into my next one. Todd asks, do you think the Bethania property has been covered with sufficient geophysical surveys so far to identify new targets, prioritize exploration, et cetera? No, because the veins, you know, come right to surface and we've had these essentially artisanal mines to follow up on, which we either knew about them from from activity in the you know there's no activity today on any artisanal mines important to know so we don't have any like legal mining or anything going on our property but we do but you know there was some mining up until 2020.

34:04 So obviously we know where they were mining, we know where to go there. And if not, there's government reports that show where there was some artisanal mining in the past. So essentially, we've been able to go to all those or some of those places to date and lo and behold yeah there's veins there they're exposed to surface they're usually bigger than anyone expected you know in the in the case of Tito it essentially was a point geo geographical coordinates There's a point here where somebody took a sample and we went there and lo and behold there's you know more than a kilometer of mineralized veins at surface, you know, kind of east to west and 1 very, you know, big vein. So that it's been relatively so easy. We didn't need to do the geophysics.

34:56 With that being said, to cover the rest of the property at some point, it may be something we're doing. We're doing some remote satellite remote sensing right now. We're very excited about that. It's something we tried first in Saudi Arabia with our partners there. We're trying it now in Bithania, where you can actually pick up individual alteration minerals from space. And then where there's, I guess, where there's sort of a mass of them or a cluster of them, you have a strong likelihood that there's something anomalous there that's worth checking out. So that's something we're using right now, as an example. Yeah, no, no, appreciate that. And Sean, the question asks, would growing the Bethania resource affect the mining and operations at all? I mean, I guess it will, it will allow us the, it will allow us to start looking at some kind of scale of expansion of the mine.

35:53 That's really important. We don't want to get too far ahead of ourselves with looking at a thousand or 1200 ton per day mine rate, although again, internally, we do feel like that's the ultimate potential of this area, but we need the resources to kind of catch up to our dreams of mining at a bigger scale. So it is it is very important to to do that exploration first and that's what we're we're gonna be doing now in the coming years. But you know other than that it it won't affect the mining unless we find something that is, let's say, thicker, significantly thicker, like a bigger, thicker vein, then we could potentially change the mining method in that area.

36:44 But if it's the same as Bethania, then it's really not going to affect us. It's just going to be more. We're just going to do more of it. Okay, helpful. One thing I really want to talk about is, I saw there was a recent doubling of production in those last 10 days of April. So I got 2 questions about that. What operational changes allowed that acceleration and kind of more importantly is that new rate sustainable. So look as a you know as I kind of alluded to in the presentation the real sea change that happened in April was we had access to more money. So we were kind of getting stuck in the first quarter just with mining at a low rate but with lack of working capital to continue development. And of course, you know, in order to ramp up production, you need to have more working faces and you need to have all the infrastructure to move the material out of the mine.

37:43 And so in the earlier stages of a ramp up, there's disproportionately more development happening than there is going to be mining, actual mining of mineralized material or payable material. So we we're sort of in that in that zone right now and you know really we've been able to develop more working areas and that will just continue. So I hope that the rate that we were doing at the end of April was more like 15 tons per day. I hope that is not sustainable because we should be much, much higher than that very soon. And and so, you know, leave that with us and we will we will report, you know, the milestones as we go here.

38:32 But we're very confident that with, again, the additional investments that we're making, not just in April, but here in May and June, we're gonna be able to continue to ramp up pretty aggressively, at least for the next few months and get the mind to a level where it can start to grow on its own. I appreciate that. So with the kind of promise and growth across a couple of metrics, we're gazing into a crystal ball here. What production level do you expect to reach by year end? And are there any catalysts that could kind of accelerate that timeline? Yeah, good question. So look, we deliberately didn't give specific guidance to work on sort of beyond the next 2 quarters, but I think we should be by the end of the year, you know, over 200 tons per day, closing in on 350 at some point, you know, exactly what month and when, you know, remains to be seen.

39:36 And I mean, at that level, we'll be, you know, the mine will be, we think, you know, based on our internal numbers, we think it'll be pretty profitable. And, and that, you know, we'd be very, very happy with that, frankly. With that being said, if we do get, you know, positive things happening in the market, we could accelerate that even faster, certainly. And you know, something like, for example, the warrants, which is more towards the end of the year, those, those, those, we've got a big chunk of our warrants, almost half of the warrants that we have outstanding come due at the end of this year.

40:23 And if we get those exercised, that would inject another roughly 6 million Canadian into the company and that would allow us to potentially ramp up even faster. So it's stuff like that. Again, it's really about money at this stage. And we are very, very much of the camp that We try to be very good stewards of the, you know, of the shares outstanding and the dilution. Obviously, sometimes you, you know, you have to issue shares. And but we we we've really tried to limit limit it only when it when it's absolutely necessary and when it's the right time. And so that's something we take very carefully. And again, we're not planning to do anything more this year, but it is always possible with the warrants and stuff like that, that we could have more money coming at us And that would be great. We have great uses of proceeds for any money that we are able to raise from warrants or anything else.

41:24 We have, you know, we've got exploration, we've got the ramp up. So I think no matter what happens, we can we can show our shareholders and our investors that we generate a really, really high return. Great, thank you. I know you're not a technical guy, so just best of your ability. I know that it says here that silver recovery has improved to 94% by the end of April. Curious, just any insight you can give on how that happened. Yeah, I look at the, we have people, KUYA people at the mill whenever we are processing a batch. And they are constantly kind of playing with the various sort of metrics that you can control in a flotation plant. So things like, you know, the time that each process takes, you can make it longer and recover more oxygen levels, stuff like that.

42:27 And so we, you know, we continue to play around with that and optimize that. And so we had very, very good results in the last batch in early April with especially the silver recovery. So, yeah, it's just, I think, having a little bit of control, it's not our own mill. That would be the optimal thing, would be to have our own mill, designed especially for our ore. But the second best thing is what we've got, which is, you know, a very cooperative partner with our tool mill, Camilla, and the ability for our, you know, our Kuya metallurgical team and professionals to modify and play around with things as the process is happening in order to get better and better recoveries.

43:22 Cool. That's very helpful. Appreciate it. I got 2 questions on Silver Kings now, 1 on broad strategy and then 1 into the specifics of the project. So with those impressive draw results there, the 15,000 grand per tonne silver, how do you balance resource allocation generally between Bethania and the potential at Silver Kings? You know, it's, you know, you phrased the question in the past tense. It has been really you know a situation where we've reacted to the market. Of course almost every dollar we put into Silver King since we acquired it has been through the flow through financing system here in Canada. And you know I think as we go forward I think this year we're compared to previous years, we're much more focused on Bethania.

44:20 We really wanna get that right. We really wanna have the corporate resources going into Bethania because, I think if we can get the production up to, not even necessarily 350 tons per day by the end of the year, but anything even close to that, even approaching that where we're profitable, the upside in the stock is huge. And it's much greater than doing another drill program at Silver Kings. So we really like the project but you know I think Bethany is the focus right now. Appreciate it. Last question on Silver Kings and I'm gonna get to the questions we haven't touched yet from the audience and a couple came in on our email. But I know the Campbell Crawford discovery shows that widening mineralized zones in recent drilling results. How does that new structural understanding of the deposit affect the exploration model? And what implications does it have for the research potential generally?

45:19 Yeah. So I think, I think it's this, you know, this is the best way to kind of show that. So we discovered the, the Angus vein first, which, you know, we, we think is sort of running, Northeast, Southwest, and then the parallel map McNamara vein. And then in the, the January results, what we were able to show was that if we sort of drill through the middle of that, there's actually these veins that connect between the 2, which we call the ladder veins. And they're close enough together that even though you might get some waste rock or low grade in between, the high grades kind of carry a much wider zone there and You know, so you a couple of instances of that just to you know demonstrate You know 11 point that our best intercept was 11.5 meters at You know 379 now within that, you know, we we had, you know, 236 of Over over a thousand grams, you know similar a little wider but lower grade on this whole 24.

46:30 So we're kind of showing that there's a potentially a bigger zone of course much like gold mining and you know in the Abitibi you can get you know if you have veins that are maybe narrow but if they're close enough together you can kind of mine them all as 1 block. And you know the high grade carries the low grade and you end up with a kind of a bulk average of the whole thing. And if that average is high enough, it's economic to mine. So obviously, 380 is really good. I mean, we'd take that at Bethania, even if it was only 2 or 3 meters, we'd be very happy. So to have that over 12, almost 12 meters, 11 and a half meters is outstanding So well obviously a lot more drilling required here but you know this is good in terms of building up tonnage because it is very you got to do a lot of drilling to build up tonnage if you're only hitting a meter 50 centimeters 2 meters at a time so this this is certainly something where there's a lot more tonnage potential here than perhaps some of the other zones that are just maybe just a single narrow vein or something.

47:44 Great. Thank you. Jake from the chat asks, what reason do investors have to have confidence in the timeline to 100 and 350 tons per day? I mean, I think the fact that we're now funded for it is, is really the the, the issue or that's been the issue. And so, you know, other than that, I think we just need to execute and prove it. But, you know, as I said before, the it's, there's really been at least, you know, since the beginning of this year, there's been no real operational issues with the mine. You know other than just you know lack of capital. I mean if we were a big company and this was our you know our third or fourth mine.

48:32 You know It would be a different story. We'd be at 350 already. We could have put millions and millions of dollars into development. And then in that case you can ramp this up very very quickly. But you know we're not in that position. We're a small company. We didn't want to go to 3 or 400 million shares outstanding just to raise all the money we needed. So I guess time will tell if that was the right strategy or not. But I think it leaves a lot more upside for the for the investors the way that we've done it. Appreciate that insight. There are a number of questions came in over email and in the chat. So I'll just summarize them into one because you did reference it already in your presentation. And that's you indicated a $15 per ounce all-in costs. Really, is this gonna be consistent throughout?

49:22 What can people expect that number to do? Well, let me just go back and explain where that number comes from. So when we did our PEA, which was a few years ago now, the life of mine average was around $12 all in sustaining. Lower sometimes when the grade is higher, and, but it averaged out to about $12. Now, we, again, we've given some guidance, although this is all internal numbers. We think that the whole milling will cost us about another $3 an ounce once we're in kind of full phase 1 production of 350. So it's more right now, obviously, because we're doing less scale. But as we scale up, it'll go down to about $3 an ounce. So that's where that number comes from.

50:19 You know we so far we we're pretty happy with our our mining costs. You know They're already reasonable and coming down as we continue to expand. And then at the end of the day, there's sort of some fixed costs to running a mine. And once we get enough tonnage going, it essentially dilutes it over more ounces and more tons and you get to where you want to be. I appreciate that. Summarizing a bunch of questions that are in the chat and a couple that came in on email, To the best of your ability, what are the odds of another raise required or finance required this year?

51:08 Well, we, you know, I'll go to a slide that I have. So this is something I've presented on online before. In fact, we might call this the Stein curve because I invented it. I'm very proud of that. But Look, I think as you get towards, you know, being in this could be for any mining company, but as you go from being, you know, kind of a junior where you're really just drilling and you're sort of just supporting overheads and your exploration and Feasibility costs, you know you do that for some period of time and then once you get into production and you get you know Into free cash flow, you know, the dilution doesn't go to 0, but it goes pretty close to 0 because there's always going to be some dilution because of warrants options and stuff like that.

52:10 And Kuya is no different. So I think where the important thing on that is to say that we're on, you know, we're on the starting to get on the on the low slope of this asymptotic curve here, where it starts off very high. And there's a lot of dilution early on. And, and then, you know, now we're getting into this area where there's not going to be very much dilution percentage wise going forward is what we expect. And so we're not at this point planning on doing any other equity issues this year. We obviously want to push the get the operations going with what we have. We want to get credit for that in the market. That means we need to execute. And it also means we need to tell the story. If we do that, I think we'll be way over the warrant strike price and we'll have quite a bit of cash coming in at the end of the year, which we can then do whatever we want with, including put that into expanding the mine quicker.

53:20 We could also potentially do more exploration with that, more drilling, which again, either of which is going to add a lot of value to the project. Perfect. I appreciate that. I know we got only 7 minutes left for the end of the hour, so I'm gonna shoot some rapid fire questions at you from the chat. Thomas asked, might Bethania and Chido connect into one system or are they separate? I would say they're, oops. I would say they're likely separate but related and the reason is just they're parallel the veins seem to be parallel to each other you know Bethania is is going running in more or less the same orientation the Bethania vein swarm as Tito. So I think more than they might you know if they connected a depth it would be way too deep.

54:12 So right so it's more likely that we'll just treat them as 2 separate areas. And great. Sean asks, is Bethania implementing mechanical mining yet? Right now, no, where we're at, but obviously, that's something we are investing in right now and we'll start to incorporate that into the into the operations in the coming months. Great. Walter asked has the explosives issue been resolved. Yes. Awesome. Do a rapid fire right at the end. Peter asks I think you likely heard about the Saudi Arabia project the first time on this call. He's curious what the company's doing there and what stake Glia has in it. So I'd ask people to stay tuned on that. We're going to make an announcement on that very soon.

55:02 You know, there is activity going on there and we're pretty excited about it. So, so yeah, just we'll, we'll have an announcement on that very, very shortly. And that should answer most of the questions on Saudi Arabia. And obviously after that comes out, I'm happy to answer other questions by email or whatever, if you're interested. Perfect. Shana says 350 tons per day the upper limit of the mill? So, no. 350 is what we're permitted to do right now, both mining and the mill construction. And the idea would be, get there first as a phase 1, and then look at sort of amending the permits to expand from there.

55:57 And you know, I've been looking at development mining projects for 25 years now, and it's always, almost always easier to expand an existing mine or mill than it is to build it in the first place and permit it in the first place. So we feel that's a really that's a much better strategy than, you know, trying to start from square 1 and go, you know, 0 to 1000 tons per day. If we get to 350, that's a nice line. That's a nice size mine. It's worth way more than the company is valued today. And then we, but with that being said, we do think we can expand from there and we'll do the amended permits and all that.

56:43 And if they take a year, 2 years to get those, the good thing about being in operation is you're making money the whole time. And so you're sort of getting paid to wait. Whereas again, if you're a pre-construction or pre-production company, then any delay on permits costs you millions and millions of dollars. So we'll be in a much better position. Understood. I got time for 2 more questions and both people started with any chance. So these are 2 any chance questions. Todd asks, any chance for Silver King spin out? There is a chance. There you go. And Todd, but nothing, you know, we're not, we're not, we're not, it's not nothing imminent, but you know, again, anything, you know, remember I'm, I'm a big shareholder of this company.

57:31 Anything we can do that, you know, that creates value for shareholders, including myself, I'm open to it. Great. And Todd asks any chance the Carmelitas are the same veins offset by a fracture or fault? That I would say possibly. There could possibly be, for example, one of these in the middle here, we haven't really done much exploration in between. There's about a kilometer in between the 2 zones that we haven't done any exploration on. So it's possible there could be some kind of vein or structure fault that connects these 2 together. And yeah, we'll have to see.

58:17 Awesome. Well, David, appreciate your time today. Going through a presentation, also dealing with some really rapid fire questions. So absolutely, thank you for the hour. And for the tons of people who are in the chat, really do appreciate all of your thoughtful questions. If for whatever reason I didn't get to you today, I think I was pretty close to everybody, but I will be sending the transcript through to David and the Kuya team, so they'll get back to you hopefully as soon as possible. I really appreciate everybody joining us today. I think this was a great event, David, and hope to talk to you soon. Thanks, everyone. Appreciate your interest in Kuya, and Happy to answer any other questions you have. ♪