Monarca Minerals: Completion of Phase 1 Exploration Drilling at San Jose Project

0:08 Well, hello and welcome everyone to Monarcha Minerals Live Summit today hosted by 6. We're joined today by President, CEO and Director Carlos Espinosa and Michael Smith, Executive Vice President of Exploration and QP. Carlos and Michael will walk us through a company presentation and provide an update, and then after we will be opening up the floor for questions. So as a reminder, you can submit your questions at any time on the Q&A panel on the right hand side of the screen. And we'll try to get to them after the presentation.

0:39 And as always, the summit is being recorded and will be available to watch afterwards on SIX.com. But Without any further ado, I'm going to hand it over to you, Carlos, to kick things off. Thank you very much, Dasha, and thank you everybody for joining us on this presentation. The main reason of today's presentation is to share with you some of the recent results we have in the drilling program in San Jose project. For those of you who doesn't know much about Monarca, we wanna talk a little bit about the company, but most of the presentation is gonna be really focused on the recent results and the prior release we presented yesterday to the market. So, initially we're going to start with the forward-looking statements.

1:28 And also, I want to mention, you can download this presentation from the website in case you want to go in more details on any of this information, because some of the slides really go very, very quick. Just to start, I want to mention we have an exploration company listed on TSX Venture with 3 assets in Mexico, 2 in the state of Durango and 1 in the state of Chihuahua. We have a very good team, both in Canada and Mexico. The geological team is lead by Michael Smith, who joined us today on the presentation. And he has tremendous experience, more than 40 years experience, working in exploration companies, but also producing companies such as Barrick Gold or Continental Gold. So he has a tremendous experience in the whole spectrum from exploration to production and he's adding a lot of value to the company. We have our share price around $0.08 today. We have been around $0.10, $0.12 for the last few weeks.

2:33 We have about under $1 million of cash in the bank and we are doing well with that. We have some of the institutional investors such as Crescat, which is very, very supportive to Monarca and also insiders participating on the company. I don't want to spend much time on the board management. I just want to mention that we have a mix of skills between financial, legal and technical expertise and even social skills on the board and the management that help us even though we're still a small company help us to have a good balance in the different fields. And I really want to stop here and pass the microphone to Mike and let's go to really what is most important which is our projects.

3:25 Thank you very much and Mike over to you. Welcome everybody to our presentation today. As Carlos mentioned we're going to be focusing on some of the assay results having come in from our drilling program. We have 3 projects in Mexico, as Carlos mentioned. One is the Tahaman Project, which is in the state of Durango. It has an inferred resource of almost 29 million ounces of silver at 45 grams per ton. And we also have nearby the Tahaman project, the San Lucas project, which is also very close to the capital of the state of Durango. And it's very importantly, critically located very close to our Argonaut Gold San Agustin mine, which is now in production.

4:10 And then we have the San Jose project, which is in the northern portion of Chihuahua, Mexico. It's only about 35 kilometers south of the border with New Mexico. There's great infrastructure in the area, paved highways and the like. It's a large land position, about 5,900 hectares in total, and we were able to start drilling back in August and have completed that drilling. We completed 4,640 meters of RC drilling, primarily targeting the IP anomalies that were established in a geophysical survey that we did 2 years ago. The San Jose project is also located very close to an operating underground base metal and silver mine, the Bismarck Mine.

4:59 It's only about 50 kilometers northwest of the Bismarck mine. The area has excellent infrastructure. It's located about an hour and a half drive west of Juarez, Mexico, which is right across the river from El Paso, and very close to the project area is a small agricultural settlement of Guadalupe de Victoria. The property was acquired in 2019 to acquire a 100% interest in the project for a total price of $150,000. The previous owners retain a 2% NSR, of which we can buy half of that for $100,000 down the road once we were to get into production.

5:49 The mineralization we see there is polymetallic with base metals and precious metals and with a lot of mineralization associated with 4 different intrusive rocks, which are intruded into limestone giving us star mineralization. In one of the drill holes we drilled carbonate replacement mineralization in marbles. The area had very, very limited production back in the early 1970s. None of the mines were very big. The 2 largest mines are shafts that are about 10 meters deep only. The mineralization that was mined in those locations, There's also about a dozen small surface workings, small pits.

6:37 We saw that there was a lot of mineralization in the area. We looked at it as mineralization in the narrower veins that are at the surface that was leaking from something larger at depth. We did, ended up doing a geophysical survey that I'll get into the details of in just a moment. The exploration model that we have is based on the Bismarck mine that I already mentioned. It's a scar deposit associated with an intrusive and in the image on the right in color you can see a cross-section through that deposit. The initial inferred resource was about 13 million tons at 52 gram per ton silver with 11 percent zinc and lead and copper. We have similar style of mineralization at San Jose. You can see in the image that the mineralization at the surface was very sparse, just very thin zones of mineralization, very much like what we see at the San Jose project.

7:34 In the cross section on the right in purple is a mineralizing intrusive, and on the left in the blue and the green are the limestone. It's very similar to the geological environment that we have in San Jose. The work that was done there started in the early 1990s approximately, when Penuelos saw the potential based on surface mineralization. They did IP work and magnetics work. The IP indicated significant anomalies at depth, so they did a drilling program, eventually resulting in the resource that they started out with. They are down right now. They ran out of in the short term ore in front of them, so they're doing on standby right now, doing development work to continue mining there, but it was in production for about 25 years.

8:25 And so the mineralization that they have there gives us an idea of the potential that we have at San Jose. The mineralization we have at San Jose is associated with 4 different intrusive events. In early monzonite, later granodiorite, which now appears based on the drilling that we've done, responsible for most of the mineralization that we see at the location. We also have drilled a different intrusive that we don't see at the surface, which is a biotite porphyry, which has magnetite. That appears to explain one of the large magnetic anomalies we have in the southwest corner of the geophysical survey area. The excess scar mineralization that we see at the surface and now verified with the drilling is dominantly cross-sularite, plus or minus diopside, and we also see strong silicification associated with some of the mineralization that occurs there. In particular, the quartz painting that we see is related to gold mineralization that we now have 1 intercept through at the Guadalupe Ana mine. So this is a summary of the work that we did in terms of the geophysical work. On the right-hand side of the image, you can see the land position. It's a large land position.

9:41 The area where we did the geophysical survey is indicated with the oval over one of the particular mining concessions that are there. We see that there's a lot of strong geophysical indications of mineralization in the project area. We've only looked at a very small portion of the project area, and we now realize that based on work that was done this summer, that the mineralization in terms of alteration at the surface extends for at least 3 kilometers to the southeast. The work that we initially did In terms of geological mapping and sampling, we did 167 samples were taken at the property. They were all chip channel samples across the mineralization.

10:28 We had grades up to almost 10 grams per ton gold and 257 grams per ton silver. The geophysical survey covered a significant portion of the area, dominantly where the old mines are located. Under our drilling, no drilling had ever been done at the property. But we've drilled now 4,640 meters spread out amongst 15 different drill holes. The drill hole depths range from 140 meters to 408 meters deep, and they range from being vertical to angle holes, attempting to cut across the structures. All the sampling was done on 5 foot intervals, which is pretty standard for far seed drilling. We've received assays on 7 of the holes. We have another 8 holes we're expecting to get assays on soon, probably by the end of this month.

11:17 We see that in every one of the drill holes we drilled, we have very strong alteration with exoskarn mineralization, carbonate replacement mineralization, significant intercepts of endoskarn in the intrusives, as well as a very strong solicitation associated with the gold mineralization in the intrusive rocks, primarily in the granite diorite. We do see potassium alteration in some of the drill holes, which is indicating porphyry-style mineralization possibly in the area. We'll be doing additional drilling down the road to try to identify the extent of that. The mineralization that we see is very widespread from the very southern portion, southernmost drill hole that we put in, all the way to the most northerly drill holes. Every one of the drill holes had significant alteration, and we see that it's a very large hypothermal system right now at about approaching 3 kilometers in stripe length with multiple intrusives and mineralization posted in the limestones as well as in the intrusive rock. The geophysical survey that we did, it's indicated the results of that in the lower left, 2 colored images.

12:30 One is the magnetics that was done. You can see that there's a large magnetic anomaly in the southwest portion of the geophysical survey grid area. That's related probably to the biotite porphyry that we see in a few drill holes portion of that magnetic anomaly. And then there's a smaller anomaly to the north. Then if we take a look at the IP work, the very bright red and pink colors and the yellow colors is where we had a very strong chargeability response in the IP survey work that was done. You can see the clear association with the intrusive rocks. Related to the northern most magnetic anomaly, we have significant IP response in the geophysical work that was done.

13:16 We followed up on that with some of the drilling. We also have an IP response related to the lower magnetic anomaly. We're seeing in this the classic picture of buried intrusive rocks that are giving us a magnetic response, as well as above and around the margins of those stocks that are indicated by the magnetic survey. We have the strong IP response and the geophysics that was done. And so our drilling primarily focused on drilling the IP anomalies as a starting point. Next slide, please. This is the drilling that's been done. The drilling that's been done is superimposed on top of the IP anomalies that we have, and I've also indicated where the margins are of the magnetic anomalies. We've done drilling all the way from the south end of the property at the Guadalupe Bottom Mine where we have 3 drill holes, SJ01, 04, and 13.

14:10 SJ01 had significant gold mineralization towards the end of the hole. And I'll get into a bit more of the details on the mineralization that was drilled in a subsequent table that shows a summary of some of the highlights of some of the drilling that's been done. We also did some drilling in the easternmost large IP anomaly with drill holes 3, 10, and 15 and 14. All of that drilling hit strong filtration in the intrusive rocks as well as the exoskarn in the carbonate rocks. So we have a good success story there following up on the IP response. And then the largest IP anomaly is where the majority of the drilling that was done. We have drill holes number 2, 11, 12, 8, 7, and 5, and 6, as well as 9 further to the north.

15:03 The drilling was limited in terms of where we could drill. You can see the drill holes, SJ2, 11, 12, 8, 7, and 5 and 6 are drilled right at the western edge of the colonia, the surface that the surface owners where we have an agreement with them to do the drilling. And that drilling was dominantly angled to the west, cutting across the contract, trying to cut across the contract between the intrusive rocks to the east and the carbonate rocks to the west. What we saw in all of those drill holes was very strong mineralization in the intrusive rocks. And so the large IP anomaly with the bright colors, that's almost entirely underneath carbonate rocks that are exposed at the surface, where we have limestones that are very strongly dolomitized, very strong alteration.

15:54 The drill holes that we have there angled to the west are dominantly in the intrusive rock, where we saw lots of endoscarn, as well as some exoscarn, and then very strong alteration in the granite diorite to the west. So as soon as we finalize the agreement which is moving along well with the Yehiva, then we'll be able to drill and get right on top of those large Ikea anomalies. So the geological picture that we see there with all the very strong alteration and mineralization of the drill holes is we have an intrusive that is dipping to the west, and then above that we have the carbonate rocks. So where we have contact with those mineralizing intrusives, as well as then above that the limestones. We have an excellent environment for follow-up drilling to chase down the star mineralization, which will be at the contact between the intrusive rocks and the carbonate rocks.

16:46 This is the table summarizing the drilling. In SJ01, towards the end of the hole, we have an intercept of 3 meters of 4 grams per ton gold, and within that, there's 1.5 meters of 6.7 grams per ton gold, along with lead and zinc. So the vein that we drilled there, we're still not clear on the geometry of it. After that initial hole, SGL1, produced good results, we went back and put in a couple of more holes attempting to cross the same vein. It appears to be a vein that's hosted in the granite diorite with a high silica content. It's basically a quartz vein with about 5% total sulfide content. And then SJ03 was drilled to the north.

17:33 We have a 1.5 meter intercept of 0.1 gram per tonne gold with 1% zinc, so interesting and very strong mineralization. It's associated with exoskarns and endoskarns. SJ08, we drilled at a fairly shallow depth between 1.5 meters of 80 gram per tonne silver along with a third of a percent copper, a third of a percent lead, and 1.5% zinc. So we have excellent exoscar mineralization there. We also drilled 6.1 meters of 0.36 gram per ton gold along with 1% copper. And that's one of the things we're seeing now in the drilling to the north is that the copper and gold mineralization tend to come together.

18:27 We also drilled 1.5 meters of 0.84 gram per ton gold and then another intercept of 3 meters of 3.1 gram per ton gold, which includes 1.5 meters of 4.3 grams per ton gold, along with 53 grams per ton silver. We also have results from SJ10. It drilled 1.5 meters of 0.92 grams per ton gold. SJ11 drilled 3 meters of 0.86 gram per ton gold, very close to the surface. That mineralization is carbonate replacement mineralization, sulfide replacement of the carbonate rocks that's now been oxidized to a gossam. And then we also drilled another intercept that had 4.6 meters, 0.1 gram per ton, 1.3 gram per ton gold, along with about a third of a percent copper.

19:23 And then the drill number 15 was just

19:26 anomalous throughout its entire length, but no significant, very high grade assays that we're reporting in some of the other bowls. At this point, we don't really know because of the amount of drilling is limited what the true thicknesses are on any of this mineralization and we hope with follow-up drilling and the assays that are still pending to be able to nail down a bit more what the geometry is in particular of the vein we drilled in SGL1 where we can actually come up with an estimate of the true thickness. All of the drilling showed very strong alteration. We have very long intercepts of very anomalous gold mineralization. For example, in drill hole number 8, we have 279 meters of continuous anomalous gold mineralization with an average grade of about 7 grams per ton gold. Obviously, that's not economic, but the point here is that we have very long areas, intercepts in the drilling of anomalous gold mineralization and copper mineralization.

20:31 Also in drill hole 8, in the same area of the gold mineralization, we have 223 meters of anomalous copper mineralization, averaging 0.11% copper, and one of the intervals is as high as 1.16% copper. SJ10 also hit 91 meters of anomalous gold. SJ11 hit 250 meters of anomalous gold mineralization. SJ11 hit 127 meters of anomalous copper mineralization. And then SJ12 drilled 257 meters of anomalous gold mineralization with 1 grade up to .155 parts per million or grams per ton gold.

21:17 We also had a similar long intercepts of anomalous copper mineralization in SJ-12. So the point of this particular image is that there's an extensive area of mineralization on the property, striking almost 3 kilometers in strike length, then now verified by the drilling. We have significant anomalous gold and copper grades throughout the entire spread of drill holes from the south to the north, which gives us very excellent exploration potential. So we're dealing with a very large hydrothermal system, and it's a question of doing additional drilling to find out where the higher concentrations of the metals that we're chasing will be. Next slide, please. This is just a quick picture of the RC rig that was in the process of drilling. Most of the drilling was done dry.

22:09 We did hit significant water, depending on the hole, between 100 and 150 meters deep. In some cases, we had to go to wet drilling using a rotary splitter that you see on the right. Once all the samples were put together, we packaged them. The assay lab came from Chihuahua City, about a 5 hour south of the project, and they picked up and took custody of all the samples from the location where they were safeguarded to their prep facility in the city of Chihuahua, in Chihuahua City to the south. We did all the drilling, as I mentioned, on the Colonia land where we have an agreement, which has been ratified by the Mexican Republic, allowing us to put in drill roads as well as the drill pads, which were completed, obviously, in advance of the drilling. Along with that, we also have the permit for the drilling and environmental assessment was done, and we received a permit to do the drilling and to build the roads and the paths.

23:14 The drilling was done by Lane. They did a really great job for us drilling the 4,640 meters of drilling. The average penetration rate that they were getting with the RC rig was about 90 meters a day. The geophysics was done by Matrix out of Canada. I mentioned earlier, but to the south we found about a 3 kilometer extension of the alteration to the southeast in terms of being able to see altered intrusive rocks along with strongly dolomitized limestones and fractures that are mineralized with iron oxide. So we have just completed a stream sediment pan concentrate sampling program in that entire south area and basically throughout the mining concession just to give us bullseyes for additional geological mapping and sampling.

24:07 Next slide, please. This map shows the area where we have the agreement with the colonia. That's the outline in an orange color. You can see the roads that were already there are indicated in red and black, and then we added the roads that you can see in blue with a drilling pad for each one of the holes that were done. You can also see the distribution of the old mine workings that are in the area from the south end of the area where we have the agreement with the colonia all the way to the north end of the area. Next slide, please. This provides an example of the kind of targeting that we were doing with the drilling. You can see at the top is the location of the drill hole. It was collared in manzanites, which are in pink, and it was angled westerly into the limestones.

25:05 You can see then in the cross section with the IP work, the uppermost of the 2 colored images at the bottom, you can see that drill hole basically targeting the IP anomaly. Every one of the IP anomalies that we drilled have significant amounts of sulfite minerals, predominantly pyrite, but also stalerite and galena and chalcopyrite, and in some cases, molybdenite in areas to the north. Now I'll talk a bit about Tehamin for those who are not familiar with the project. It's very close to the capital city of Grango, Mexico. It's about 1700 hectares and it's got great access. There's a paved highway to the town of Nuevo Ideal and then the project area is about 10 kilometers southwest of the town of Waiwilea. There's great infrastructure in the area. It's an agricultural valley, so there's lots of labor in the area. Mines are operating in the area.

25:58 The drilling that was historically done there was done up through 2007. There are 2 portions to the deposit that have been identified. It's the only project that we have where we have a resource that was done several years ago where we have a total of approaching 20 million tons at 45 grams per ton silver, with a total contained silver content of approaching 29 million ounces. We also recognized recently that there are very high-grade feeder veins that are below the mineralization, which starts at the surface, which was historically drilled. We have grades in some of those feeder veins up to 6 meters of 1,400 gram per ton silver, along with 5% combined lead zinc.

26:47 This slide shows you several aspects of the project. One is the upper right-hand corner of the image. It shows the drilling that was done. There's 2 portions to the deposit. The southern portion is Los Montos and the northern

26:59 portion is Cerro Prieto. 215 drill holes were done, most of which were RC holes, and all of the drilling was very shallow, nothing over 200 meters deep, because at the time they were looking at this as having open pit mineable potential. Because of that, they also did metallurgical testing, which is summarized in the lower right-hand corner in the table. You can see the kind of recoveries that were obtained in both column bleach tests as well as bottle roll tests, generally in the 50 and 60 percent range, which is pretty typical. The mineralization there, the silver mineralization is all hosted in acanthite as well as native silver, and so The amenability to direct cyanidation is very positive.

27:49 What's going on there is that in many deposits, the silver is tied up with lead minerals, and in this particular project, it's not. The table on the lower left shows some of the intercepts that we have. We have intercepts like the third one from the top on the left, 89 meters of 620 grams per tonne silver. We hope to be able to get into that project and do additional drilling down the road once we advance additional relationship with the community there.

28:19 Next slide, please. The other project is San Lucas. It's a small concession package. We've been in contact with the owner of surrounding concessions to expand the land position beyond the 80 hectares. Very importantly, it's located only about 4 kilometers away from Argonaut Gold's Sun Augustine mine, which is now in production. It's an open pit gold mine. From the ridge line where we did some sampling a couple of years ago, you can see the mine off to the northwest. So we're an elephant country being in the area of operating silver mines and gold mines. One of the areas where we did some sampling a couple of years ago where we have about 270 meters of striped length on 2 parallel veins which are part of the main shear zone.

29:09 We did a sampling program where we collected 89 samples at the surface. One of those samples was at 110 grams per tonne gold, along with 168 grams per tonne silver of lead mineralization. The average of the samples that we took there, not counting the 110 gram very high-grade intercept, was 3.22 grams per tonne gold. So The mineralization is pretty strong at the surface and the area certainly warrants a follow-up drilling, especially with deeper drilling. Because again, like in Tahamin, the drilling had a maximum depth of about 200 meters. And so additional work is justified to go deeper than that, following the vein systems down dip. And very close to the south, we have limestone rocks outcropping.

29:59 So we may have significant potential for scarred and manto-style mineralization as we continue to do additional drilling down the road on that project. Thank you very much Mike. I always like to share this slide with the people because it's a comparable analysis between Monarca and some other explorer producer companies in the Americas. And basically what it shows is that Monarca is still undervalued company. In other words, it's a company that has a lot of room to grow in terms of value compared to its peers. And this is a great time to be part of Monarch. We are building a new story, especially with San Jose.

30:44 So we are expecting to have in the future, a greater value for the company, and of course, a reward for the investors. I just wanna touch base for a couple of minutes here on something regarding social management. We have been responsible as a company trying to build this social relationship with these communities where we are working. And we are doing different approach, depending on the project. In the case of San Jose, We have been working really hard with the community and for those of you who are not well familiar how we are now in the area where we are working it's 1 section is covered by a colonial agricultural colonia, and the other side is Ejido.

31:37 So we need to sign 2 agreements with the 2 groups in order to have access to the surface and continue drilling our program. We signed the agreement initially with the colonia. We had a great relationship with the colonia. We rent houses there. So when we go down there, we all stay there. The geologists, the rest of the team, myself, are staying in those houses. We are hiring local people to work with us and have been working really, really well so that the relationship with the communities is strong. And now we are in advanced conversation with the Ejido, which is the other part of the of the concession, to sign the agreement as well. And the relationship with the Colonia had been a very good example for the Ajido of the benefits they could have if they work together with us. So we're very happy with that.

32:32 And we continue developing this strategy with the whole community to continue growing together. Tehamin is a different story. We have implemented a social risk assessment and we are working on a new community engagement because we heritage some issues with the community. So we are working on that and we are expecting to have a good success, especially after having San Jose as a good example of how Monarca can work with the community. San Lucas is an early stage engagement because as you saw on the presentation, we have a current, currently we have a small concession. We are trying to expand.

33:20 So as soon as we can expand the land package in St. Lucas, we will be able to do more there in terms of the community relation, as well as in terms of exploration. And the question we always have, every company, every public company, from investors, why should I invest in your company instead of investing in other companies? And I think one of the key aspects is the drilling program we just completed, I'm still waiting for some of the essays, shows that we are finding a large mineralization. We need to work more to understand better how the body on the ground, but definitely it's a large mineralization. We are excited about it. We are talking about implementing a 10,000 meters drilling program for next year because really, really shows a great potential. So that's one of the main reasons investors should join us today.

34:24 We have a portfolio of high prospective gold and silver assets in Durango, of course, and Chihuahua. And as I mentioned before, we're still undervalued compared to some of our peers. So I'm gonna stop here and open the floor for any questions that you might have. Great, Thank you so much, Michael and Carlos. We're going to move on to the Q&A section, so if you do have a question, feel free to submit them. We have a few here already. So based on the drilling results so far, what do you see regarding the exploration potential? Well, I think the exploration potential is excellent. You know, we always learn a lot when you do an initial drilling program. You get a better handle on the geometry of the mineralization. I'd have to say that one of the things that I'm the most impressed with is just the large volume of alteration that we see in the rocks.

35:17 And in the northern area where we've now done enough drilling to see that there's a large area of very strongly altered intrusive rocks. And above that in our crop, we have dolomitized limestone. So when we can get in, when we have agreement with the adivo, we can move the drilling to the west, collar the holes further to the west, and drill those down to the contact between the mineralizing intrusive and the carbonate rocks above. And I think that there's excellent potential for significant scar mineralization there with both base metals as well as precious metals. Thank you. And what work will be done in the coming months to develop the Phase II drilling program? We, right now, we have preliminary geological mapping that was done a couple of years ago. Now with the drilling done, we've done more detailed mapping in the area where the drill holes are so we can get cross-sections built with a clear understanding of the distribution of metals that we see and the mineralization that we see. We're also doing some additional mapping to the west in the area of the limestones, trying to collect additional information.

36:24 The mapping that was historically done shows multilithic breccias to the west, presumably with intrusive rocks mixed with carbonates. So we see a lot of mineralization to the west in the dolomitized limestones and we're very excited about the potential at depth where those dolomitized limestones are in contact with the mineralizing intrusives, which could derive significant star mineralization. Thank you. We have a question here from Warren. I might just ask for both of you to take a look so I get the drill holes correct. But Warren is asking, when reviewing your most recent drill results, What important information have you gathered with respect to higher grade hole SJ01-3M meter of 4.07 gold and 1.5 meter 6.66 and SJ08-1.5 meter of 79.5 silver and the 1.5 meter of 4.29 gold and 63.4 silver respectively related to IP and magnetic signatures.

37:35 Hopefully that made sense. That mineralization that was just referred to is a mixture of mineralization in particular in drill hole number 1 where we drilled a quartz vein with lots of sulfides and significant gold grates, and that was hosted in intrusive rocks. So we followed up with a couple of more holes, trying to cut that structure in 3 additional locations where we can get the strike and the dip, which will give us an idea about where, which way the mineralization is projecting. It probably strikes northerly, but until we have the drilling data we won't know for sure. The drilling to the north, where we also had significant precious metal intercepts as well as some copper and zinc mineralization that occurs in those drill holes. The context is there is that we have mineralization both in the limestones and exoskarn as well as carbonate replacement deposit style mineralization which has now been oxidized to gossan.

38:31 And We also have mineralization in exoskarn and the mineralization in the intrusive rocks. The mineralization we see in intrusive rocks is a mixture, depending on where you look, of gold mineralization, almost always with strong copper mineralization. The geology picture we're in the process of finalizing, putting together in the next through the end of the year, detailed geological analysis associated with putting together cross-sections so we can understand the geometry and finalize the drilling program. Right now, based on the success that we've had, I'm planning 10,000 meters of drilling, a mixture of RC drilling and core drilling, and that would be work that we would plan on doing probably in the April time frame starting next year.

39:18 Great, thank you so much. Costera's question is how many meters can you drill before another PP? The program Mike is proposing 10,000 meters. The budget is around 2.5 million US dollars. We currently have just below $1 million in cash. But also on the private placement, we issue warrants for the equivalent of $4.5 million. Some people start exercising the warrants in the last 2 weeks But it still have probably 4.2 millions warrants available That will expire on August next year, So I mentioned all this story because we want to monitor how much money we want to get from the warrants in the next few months. Let's say from now until the end of the year, maybe early next year. And then we want to do a private placement probably early next year to complement enough money for the 10,000 meters drilling program. So I'm guessing at this point that probably we're going to raise something between 2 to 3 million dollars early next year.

40:38 Great, thank you so much. And that is all the time we do have for today. So I want to thank you, Carlos and Michael, for taking us through the presentation and providing that great update and going through the live Q&A with us. Thank you for everyone who tuned in. If you do have other questions following this summit, feel free to reach out to Menarche Minerals directly. Their contact information can be found in the slide, but You can also find more information on their website, monarchaminerals.com. And a copy of this presentation is available for download under the handouts tab here, but also on their website. And before we close out, I'll just pass it to you, Carlos, for any final comments. Well, thank you very much Darshan. I just want to thank you everybody for attending today to this presentation.

41:24 We are excited about the development in San Jose and the future of the property. So I just want to thank you for your interest and please stay tuned for more news.