Orosur Mining (TSXV:OMI) — Investor Q&A session

0:02 Good morning, ladies and gentlemen, and welcome to the OROSUR MINING INvestor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the Q and A tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all of the questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I'd now like to hand you over to chairman, Louis Castro. Good morning, sir. Good morning. Good morning, everybody, and and welcome to the company's webinar. I am Louis Castro, chairman of the company, and the other person on the screen is is Brad George, CEO.

0:53 We held the company's AGM on Friday, just this last Friday. All all the resolutions were were passed. And in previous years, what we're doing today is effectively extending on that AGM and and having a q and a session with with shareholders and and other potential investors. We've we've had a busy year. Brad will go into more detail on this in his presentation, which he's about to kick off. There is a bit of a hiatus at the moment. We're getting into discussions with MINERO Monteagila. And, again, we'll cover this in more detail during the presentation. But those discussions are ahead of signing a new joint venture to cover phase two of our project in ANSA. We also have other activities ongoing in Argentina and Brazil. So things aren't moving along.

1:40 There will be a bit of a slowdown in Colombia. We will go into detail in in a few minutes. Thank you for your questions. We'll we will address those as well at the at the end of the presentation. And so before any more further ado, Brad, I'll I'll hand over to you. Alright. Thanks, Louis. I will I will also make note to to shareholders that Louis is currently in Bogota. It's, what, 04:30AM. Louis, you flew overnight and and missed the England game. So we've taken one for the team. So lucky you you won. Won. Otherwise, it'd be a pretty depressing depressing line. So

2:16 what I'll do today is just run through a quick presentation. Many of you probably would have seen much of this before. We've added a few things that have that are that are relevant to what happened in the last few days, and there's obviously a range of questions that have been presubmitted, and some are coming after we speak. So we can then have a bit of a bit a q and a. We have we have no time time limit here, so I do tend to to join all of it. So I'll try to keep this, you know, as painless as I can for most of you. So so the usual disclaimer with nobody ever reads. A snapshot, this is this hasn't changed while, obviously, we had a bit of a share price fall on Friday for for for reasons largely related to the latest drilling results out of Columbia, and I'll I'll speak to those in more detail in in a couple of slides time to sort of add a bit of meat to that.

3:09 What What what is perhaps not known to many shareholders is that the that all announcements that we make that are related to the Colombian joint venture need to go through Agnico and Newmont first for their editorial oversight. And they tend to be a bit brutal in their in in in their editorial oversight, and they beat them to death. So most of what is is, you know, most of what we might say is interesting is removed. So we tend to use these these presentations to to add a bit of meat. The the one change here is that the so the roughly 10,800,000 warrants are going to expire very soon. They're obviously somewhat out of money now, so they will they will fall away. So our and our shared capital will actually reduce in in a couple of weeks' time.

3:59 To give some history for those who've been here for a long time, OROSUR MINING or under its previous name, Uruguay Mineral Exploration, has been around for twenty odd years, probably more. It's it was originally a gold miner in Uruguay. We had a reasonably reasonably sized little project down there called San Rodrigo. It ran for just shy of twenty years, produced about 1,500,000 ounces, and and ultimately came to a sort of a rather messy end in that 2017, 2018 as as most mines do. And that that put the company in a difficult position financially for a few years that ultimately led to the joint venture with Newmont on the Colombian project in September 2018. Lou and I then joined the company in two thousand two thousand twenty to try to sort of lift the company back to a position where it was investable.

4:53 I think from memory, the share price at the time was about 1.7 p, and we had little cash in the bank. So we did we did we have achieved a few things, you know, we are we are, as a company, quite quite proud that we've made the company to a the current position, albeit it's it's often a complicated story to tell. So we have we have three projects. Now that in Uruguay is, by and large, round back and off the books now. So Ansar Gold project in Colombia is our flagship project that is under joint venture originally to Newmont, but now to Newmont and Agnico. They they formed their own little joint venture fifty fifty. So they they jointly run that project, although Agnico is the is operator the of the project. So, you know, Newmont is the world's largest gold miner.

5:43 Agnico now post the merger with Kirkland Lake is now the third largest gold mine in the world. So it's nice to have companies running the project that have very deep pockets because Colombia, particularly in in the rugged terrain, is a place that needs deep pockets. We also have the the El Pantano gold project in Southern Argentina, which is a very early stage project, but recent work is beginning to tries to promise, and I'll talk to that. And the Araquemas Tin project in Western Brazil, which is is equally we we call it an early stage project, but it's it's surrounded by existing mining operations. So it's kind of a muddy waters of greeny, brownie fields project, which is a which, again, is showing some interesting promise.

6:29 So back to back to ANSAR. That that project has been been run now for we've been been drilling there since about 2013, 2000 12013. So with the previous owners with us and with Agnico and Newmont, we are now something like 45,000 meters has been drilled, mostly in the one spot. And it's the movement out of that central location to the to the northern project, which has sort of created the excitement and when we see the ultimate potential. And El Pantano, as I talked about, is interesting, and Arakimas also showing some results. So I'm off to Ansar. So we're in North Northwestern Colombia. We're just we're just about 50 kilometers due west of of Medellin. Without getting too esoteric in in the geology, we're in what is referred to as the Mid Calker Belt. It's it's a roughly north south striking zone of late Miocene rocks. For for nongeologists, Miocene is quite young. It's it's varies from about 10 to 70,000,000 years. It's at the young geological time.

7:32 Mostly volcanics, intrusions, some sediments that that sit just to the east of of the Andes Mountain Range, and they're sort of part of that part of that same volcanic system that is that that creates the Andes. And the the Mid Calcutta Belt, it it it plays host to most of the big gold projects in Colombia. There's a range of projects there that they range from underlying porphyry systems to what we've got, which is an over an overlying epithermal system. An epithermal system is to have have a a porphyry. Porphyry. So depending on the the elevation, the gold projects in the region vary from those two extremes. Probably the key project in the region is just north of us at Brutica. That was a project that was run by by Continental Gold, who actually casting back were the original owners of ANSA.

8:21 They had to make a decision on the two projects due to lack of money back in the old days. They chose Bruditika, and ANSA went to us. And Bruditika is now owned by Chinese firm Zijin, currently sitting at probably 10 to 12,000,000 ounces at quite high grade. So that's that that's an operating mine now. So we we're in the right area. Yeah. We're in the right area geologically, and we're quite comfortable that we're seeing we're seeing similar things happening at at ANSAR, which we're seeing at. So we have confidence, but it's obviously a a difficult place. Our landholding is reasonably reasonably substantial for this region. We've got a range of of granted titles, so the ones in green, and the applications in red totaling about 200 square kilometers, which is a which is a nice a nice parcel. We don't want too big. Holding land in Colombia is moderately expensive in in compared to to neighboring countries. So having a large land or having everything converted to application to granted titles can be quite expensive. So most of the applications were left as such over many years, largely as a cost saving measure.

9:24 It's probably the the eastern side of this that's most interesting. You know, we the the more work we've done, the more we realize where where the best structures are, and that runs up from the along the eastern margin. So we've got about 20 kilometers strike of of two two key structures, the Aragon Fault and the Telusko Faults, which we're finding that these are the these are the main controlling structures. As we go further to the west, we're getting into some more complicated porphyry systems, and there's a to the west of us called Royal Road who was who was sitting on some some interesting porphyry things. But the porphyries tend to be a bit lower grade, so and and grade can make a difference to this terrain. So we're we're quite comfortable on the eastern side where we've got some some better rocks. There will probably be a reduction in this.

10:11 As part of the normal process of exploration, we we have to drop land off. This is this is what happened all over the world. You know, we understand where we want to be, and we reduce our land holdings. So this will reduce as we we work our way around forest reserves, and we drop land off as a cost saving measure. And we've got a couple of applications just to the south that may be added to this. So we'll try to balance up with what we drop off with with new new ground being added. So that that will that will become clear in in coming weeks and months as we as we move forward. But we obviously are going to maintain the the the what what we think now is the key ground.

10:46 Those of you who follow the story would also notice that we've changed or not we, Agnico, have changed all the prospect names. This this is a, essentially, a security issue to remove any kind of geographical content content from the names. Previously, the the prospect names were named after the local villages, but now they've become somewhat agnostic to villages so that we can we're not giving away too much information that might attract artisanal miners. You'll also note that all of the maps on our presentations announcements lack coordinates for for for the same reason. In the middle here, we see the Aptar prospect. And Aptar was the original the original gold prospect that was drilled from about 2012, and that was the only place we drilled really up until beginning of this year.

11:32 That was gold was found there because it was part of a it was that part of an old gypsum mine. There were tracks and and and tracks and access pads in place, so it it was an easy place to drill. And so drilling was focused there, and there were some very, very high grade, very thick inspections there over the years. It's a little more complicated. It's it's sort of a hybrid VMS epithermal system, but shows promise and, you know, some very nice numbers in there. We didn't go north, however, or various company didn't go north or south largely due to one lack of money when we were when we were on the project and then COVID, of course. So Agnico and Newmont joined joined the joint venture in the middle of COVID. We kept operating, but we had to operate in bubbles. And so moving north and south was quite a quite a risky thing to do during COVID. So we did mapping and sampling in north and south, but drilling only commenced in in some mid early to middle of this year at the at the Pepepas project to the north. So it's been a long time getting getting to the point where we could drill those highly prospective prospects. That was it was nice to get up there.

12:41 At the moment, we're also mapping and sampling to the south of El Cedro and El Roble, showing some very promising results down there, which we've talked about in previous announcements, and, you know, they're moving to the point of perhaps being drilled prospects quite soon, but there's obviously a permitting a permitting issue. I'll jump forward now. You know, people can go back to previous announcements at at at at TAR, but it it was Pepas to the north that that sort of created a high level of excitement when drilling began there early in the year and, obviously, some disappointment on Friday with latest results. Pepas was a prospect that's been known for some time. We we identified some very high grade rock chips and and veins on surface running many tens of grams. And the first hole there was drilled a little earlier, and, of course, came back with some, you know, what can only be described as quite spectacular result, a 150 meters at three grams from surface, I might point out. So that was that was quite got everybody very excited quite justifiably. Those sorts of things happen very rarely.

13:44 And a couple of subsequent holes from the same location gave numbers that were, you know, of the same sort of magnitude. Now the issue here is and this is where it gets to be as a token. I do apologize. It's hard for me to show in three dimensions when you can't see me. But it it it's an inherent fact that the first hole into a new prospect, while it can give very nice numbers like these, it doesn't give information related to the orientation or the shape of of the target. In our particular case, it was made worse by the fact that the drill hole was located on top of the the mineralized body and mineralization started from surface. So, yes, it was a very nice intersection, but there are multiple interpretations of those intersections, and we really don't understand the the dip the strike the the the the shape of this thing. For that to to happen, we have to step back and drill from the sides. We we ideally want drill holes to be starting from outside, coming in one side, drilling through the ore body, and coming out other side. So we had to make a decision as to as to how we were going to to do that.

14:50 Two problems, however. One is that we had no idea which way to go. There were some maybe very small hints in in the drilling to suggest east or west, but, really, it was a bit of a coin toss. And, ultimately, we we we tossed well, Agnico tossed the coin to go west largely because that was an easier place to go. And then in this country, the the second issue is that moving the jewelry here is not a not a trivial task. In in Australia, we just moved the truck a couple of meters here. Putting in a new pad is a is is a monumental task of identifying where to put it, sending guys in with axes and shovel to build it, and then moving the rig itself is just a horrifying task with helicopters, and that it's it's not something you do lightly. So the rigs were moved to the west and drilled into and from the western side on the basis of thinking that the ore body or the the the noise mineralized body dipped toward the west.

15:43 Now as the the last drilling showed on on Friday, maybe that was the wrong call. Now I don't necessarily have have an issue with that. It was a bit of a line ball call anyway, a one and two chance of it being wrong. But there was a there were some other issues in where those holes were positioned that that I am slightly cautious of not being too critical of our JV partners. They're by and large that had done an amazing job, but I would have drilled those holes differently. If I'm if I have if I know that there is uncertainty about the direction of dip with this wall of of of this body, then I would I would have drilled the hole from the west and made sure it hit the target by drilling it into the middle of the old intersections and then stepped stepped out in small increments.

16:31 But to drill from the west and then also drill over 200 meters below the system ran the risk that if the interpretation of dip was incorrect, then the hole would have would entirely miss the target. And that's that, in what my view is, is what's happened here is that the the the target looks like it's now dipping probably more to the Southeast. And by drilling from the West and by drilling deep, we essentially stood no chance of hitting it. So these holes, to my mind, at least, have been maybe they're positive, and they've they've shown us that it was from the wrong direction, but it's it to my mind, is is a reasonably expensive way to have done it. So while these on paper are obviously quite disappointing holes compared to the previous holes, you understand how drilling works and how structural geology works. Actually, they didn't address any questions at all. So they've not in any way, to my mind, reduced the prospectivity of this.

17:25 In fact, they've increased it by now telling us where to go. It's just that it was a very expensive exercise to do that. So that's that was the primary reason for Agnico wishing to slow down drilling because, clearly, again, they have to move the pads. And that's not something that they can do overnight. It will be it will be weeks many weeks and months to get those locations permitted, new pads built, so on and so forth. So it's it's a complicated process. And they would also like to do some more surface work now just to just just to confirm. I mean, these these holes are not cheap. Drilling diamond drilling here is about $2,250 a meter. So, you know, these holes are not are not cheap, and they wanna make sure this time that they they get it right. So that's being underway, and we we we hope that we can get those sort of things resolved in the reasonably near term.

18:15 Which then leads us, I guess, to the main question of what happens next. And and this this comes to the to to the point of the the work going on and the the the the joint venture. So yesterday, it's suspended by and large for technical technical reasons, but also a few political reasons that that relate somewhat to to the joint venture and where it currently stands. Mapping and sampling continues in the South. So we still have ground crews down there firming up those targets, and and they'll be turning those into drill targets for as and when drilling recommences. The the the major point, however, is that we're in a bit of a limbo time wise with the joint venture. So the joint venture was designed to run for twelve years in three phases, and we've just come to the end of the first phase in early September this this year.

19:04 So during those first four years, 10,000,000 was spent and 2,000,000 was given to us as option option fees. Agnico and Newmont, by completing phase one, the right to earn 51%, and they have the right to move into phase two. Now phase two is 20,000,000,000 over four years, but probably more importantly, it actually requires the development of a new joint venture. So phase one was an exploration agreement. They just basically had the right the right to work. Phase two now is we form a formal joint venture, and that that requires the creation of a new company, the creation of your documentation that that outlines all of the all of the terms and agreements in that in in that JV. And that's where things get a bit complicated is that there are there are two primary issues that we need to resolve, and this this, I guess, explains why things are taking a bit longer than we would have liked.

19:59 The first point is that the the rules have changed. So when when these these structures were created back in 2014 going forward, everything was run through a holding company in Colombia, MINING INC, which then fit into a BVI company and then through to Canada on on the rationale that any transaction with Agnico and you want would be done in in BVI and therefore be be taxed in a in a in a fairly favorable way. That no longer works. Yeah. The Colombian government has changed the rules, and they would now look through that that that BVI structure, and they would want to see or wanted to see tax levied on any transaction that that involved Colombian assets. So the original plan no longer works, so we need to be very careful to develop a new a new trans a new transaction structure not only reduces or hopefully eliminates any kind of tax we levied, but also gives us the flexibility to deal with whatever might happen in three, four, five years time.

21:00 And that's that's a reasonably complicated process. I'm not a I'm not a lawyer, so I'm I do I I step back and leave it to Louis and Louis and the team. It's not easy. Even though we're not getting any cash for the asset, the fact that so much of it is spent to this point means that there is essentially a sale taking place. And so we we're very conscious of making sure we understand exactly what that process of or what that structure

21:27 looks like. And we we are quite comfortable now with with how that works, and we think we've got that nailed down as how to as to how to move forward. The other problem or now the other question, however, is that AGNICO and Newmont have requested to make some changes to the joint venture, and that this is where things are becoming a little bit a little bit slower. The even though phase two requires a new joint venture, the understanding of the original agreement is that the terms of that joint venture were agreed to at the beginning. And so we have we have generally the right to say, well, no. We're gonna we're gonna stick with the terms as they were laid out in 2018. Our partners are wanting to make some some changes to that. Not unsurprisingly, those changes are entirely in their own favor, which which I understand.

22:16 But we, you know, we are very conscious of, one, not giving away something for free, and two, we have some concerns that some of those requests might create potential risks for us in in a couple of years' time. So I won't go to the details, but but we certainly are, at this stage, holding firm and and and making quite sure that we don't give away potentially long term value simply to try and get some short term gain. There are some issues with what's being requested in phase three that we would see as as quite problematic going forward in in four to five years time. So we're at that point now where we are just bouncing bouncing ideas and and things across. That's sadly a little bit slow.

23:03 OROSUR, being a small company, is quite able to respond quickly. AGNICO and Newmont, because they're two major companies, seem to be a bit slower. So every time we bounce around with an idea, it takes a week or two to come back. So we, you know, we are we are progressing. We're we're we're we're not stalled, but we are coming now down to a couple of major points that that we that we need to resolve. And, hopefully, we'll do those in the next in the next coming days and weeks.

23:32 Importantly, once that's resolved, that triggers a a payment to an option payment to OROSUR of $2,000,000. So as things currently stand, the we were given notification of of Agnico and Newmont's intention to move to phase two at the beginning of September. We are now in that process of of of putting it together, and that that triggers a payment in in January at this stage of of $2,000,000. But that's still on the table. Where that happens, it still remains to be seen, but that's still the plan. And if that changes, obviously, we would we will know. But but that at this stage, there's been no no change to that schedule. But, clearly, we this is this has dragged on to where we're getting near the the the the allowed ninety days to resolve the issues, and I think we're all we're all at the point now where we we know what the final options are and we're we're just having a little bit of a haggle now. So so that's a complicated process, and I won't apologize for how long it takes because I would rather I'd rather do it right than do it fast. Because doing it fast and making a mistake has the potential to really come back and and bite us quite severely in a couple of years' time. So it's a it might sound easy on paper, but need to think that every possible outcome or or how things might play out in four to five years' time. So it's actually you know, it's gonna be a sixty, seventy page document.

24:55 It it's quite a complicated piece. So these things there's no prizes for doing them fast.

25:04 Moving into to other projects. Now we've, you know, we've spoken in the past about other projects. Clearly, for quite some years, the company was not in a position to look at new projects due to to lack of finances. But once once Agnico new one came into Colombia and we we were able to raise some money at the end of two thousand twenty, we had the funds, we had the time to look at new projects. The question was, well, how do we do it? And our strategy was that we would yeah. Given given our balance sheet was strong but not not ironclad, we didn't want to go and buy our way into projects at huge cost. So we looked at projects that that were were in the right parts of the world, that were in in in in very much well endowed regions, new operating mines, had the right geology, had very large land holdings, which which I thought was very important, and that we could negotiate entry for free and very low burn rates for the first couple of years so that we had time and flexibility to do the background work.

26:05 And we were not committing ourselves to to to to big upfront payments in the first couple of years. You know, we we really like to have flexibility and options just just to see how things pan out. The first of these was the Ada Chemis project in Western Brazil in Vondonia province. It's a tin project. And you might ask, well, why tin? And I said, well, why not? Tin's a it's a pretty exciting metal, albeit not as well known perhaps as as lithium and and nickel and cobalt and and more mature metals. But it's it's regarded as being I think it's it's it's the

26:37 it's the glue for everything. Everything we do in the electrification space ultimately requires solder, and solder is tin. So it's a it it it's an absolutely vital metal. It it's quite a small global market. And most importantly, it's it's becoming very difficult to to source supplies that we might see as ESG compliant, given that the mostly coming out of artisanal workings in Asia, coming out of China, coming out of parts of Africa that that maybe don't play by the ESG rules to the to the degree that we might. And so it's becoming quite a fragile market. Now we looked at these projects in a couple of years ago. The tin price, as you may have noted, went a bit crazy beginning of this year, went from its historical levels of about $1,820,000 dollar ton to $45,000 ton. It it's come back, fortunately, to to more sensible levels.

27:26 But the region of Rondonia in the West is is really one of the major provinces of the world in production. It's produced something like 400,000 tons over the years from a couple of hard rock mines and alluvial mines. Understand exactly where the geology is. It's very mining friendly. We we have three tin furnaces in the main town at Achimas, meaning that we can sell sell material just locally. It's very developed, lots of roads. This is the Amazon Basin that's all been cleared for farming. So, environmentally, it's quite quite safe, very mining friendly, cheap power, cheap water. It's it's good transport. It's got a lot going for it. And we had the opportunity through a Canadian company, Meridian Mining, to take up a JV for a very, very large land holding 3,000 square kilometers. So

28:15 that's that's a very difficult, very rare thing to get. So we had a lot of free government data as well. So that was a good project. We've been working on that now for a couple of months, largely in a in a in a fairly slow burn regional sampling way, just taking extreme settlement samples across the entire project. Given the size of project, that's taken some months. It's just a it's a slow process moving around over such large areas takes time, and that's that's largely completed now. We know what we're looking for. We know the geology.

28:45 We've carried out sampling across as as these as these things show across the entire the entire region. We're just waiting on the assays to come back now. We're getting we're getting a few in from the South. We've worked our way south to north, and and the preliminary results are looking quite positive. So that'll be probably complete, we would hope, before Christmas, but, obviously, December's a fairly hard month to get things done. So so we'll see how we go. So the objective in there is to really use the regional data to focus down the key areas, not only to focus, but also to begin to drop land off. 3,000 kilometers is great, but it's also it can become expensive if we have to maintain the licenses. So we part of exploration is is as quickly as you can prune off the ground you've got and focus because it's just you can't hold land of this size. So we'll, you know, we'll begin the process in January of of of beginning to isolate and chop off bits and and and come back down to the key areas and work in more detail. So

29:44 it's a very it's it's a very attractive area. There's also the potential for some deals with some of the local players who are who may be lacking lacking capital to to to mine more in a more advanced way. Most of the mining in the area is very, very artisanal, very low quality, very low recoveries. In a lot of cases, only the tin is is produced when actually there's also probably equal value in niobium or columbite, as as minerals call. So there are there are some issues there that we can

30:15 we can potentially substantially enhance the recoveries and the the revenue from existing mines by bringing in, you know, what we might refer to as modern technology, model modern sampling techniques. So that's that's a slow burn, and that was potentially the place. But it looks to us to be a potential to build a a fairly major industry there if if things go well. So that'll be begin to work again in in in the new year. The other project, again, along the same lines, large land holding, low entry cost was was in the South Of Argentina in in Santa Cruz province. Argentina is a a federation, federation of states, and so the states themselves control mining. So whether or not mining is welcome is a state by state issue.

31:01 And Cruz province is absolutely pro mining, so it's one of the great places to go. It's also fortunately a place that's very, very well endowed with gold. There's a couple of major projects in the region. Just to the Southeast of us is Cerro Van Guardia, which is run by Anglo Anglo Gold. It's probably four to 5,000,000 ounces. Just off to the East is is Cerro Moro, which is Yamana, which is about 3,000,000 ounces. And up to the Northwest is Cerro Negro, which is Newmont, which they inherited through through Barrick. They inherited it through Goldcorp. That's currently running at about, I think, six or 7,000,000 ounces. So it does have the right rocks. It does have the right things going on. And, obviously, being close to those mines gives us a bit of a consolidation play. It's extremely mining friendly because it's very desolate.

31:47 Essentially, no one lives here. It's just very dry, musically cold, but good power, good water, good infrastructure. We can work quite happily. Again, we looked at projects that were very early stage, and we liked the idea that we could get in to an area which is essentially unexplored with a very low cost JV on a very large piece of land. And that was done done last year, which we I think we that was a good deal. And, unusually, we have the the mechanism on that joint venture to earn a 100%, which is really quite rare. I mean, most most joint ventures, the partner coming in can get to maybe seventy, seventy five, but we have the right to come all the way to a 100%, which which gives us, again, the options that should this be should this prove to be attractive, we have options to to do it ourselves or bring in other partners. So it's again, the the optionality is key.

32:40 And we've subsequently found that Argentina is becoming a very attractive place, and everybody suddenly is coming to look down there because it's it's mining friendly. Politically, it has its its color, but it's it's it's actually very mining friendly. And while it has

32:56 economic challenges locally, those challenges actually work to make make exploration there extremely cheap. It's like it's actually a combination of the finances, the very flat terrain makes it a very cheap place to explore. And for a junior company, we can work here, whereas Colombia, you know, by the end of its terrain, it is quite challenging. So it's a very good place to work, and and we we're quite happy to be there. Adesseada Massif is the main thing. We're looking at tertiary or quite old volcanics, but the mineralization is tertiary. It's just about a 150,000,000 years old. It's quite well known. We look for sort of these North South or or Northwest structures. The the the area we've got, there was no drilling, but certainly, was a lot of groundwork to suggest that there was some major alteration systems suggest to evolve a low sulfur and epithermal system.

33:49 That was interesting. We've gone in beginning of this year and done a couple of phases of of geochemistry, which came back with with extremely positive results that we announced previously. Excuse me. We then have to have a winter recess. This place is pretty grim. So from about May to September, it's it's only for the brave given the Arctic winds. So we've gone back in September, and we're doing a few more phases of of geochemistry plus ground magnetics and just general mapping. And, again,

34:20 the the ground mag is is really giving us some very fine detail of of the major controlling structures. We're extending our geochemistry beyond the anomalous area we mapped. And then the thing is wandering around. It's an old fashioned way of wandering around looking for things, and we're finding we're finding veins here and there. And so we're getting to find things that were previously unknown undiscovered, which is which is again quite rare in in these major mining districts to be able to go out and find previously unknown mineralized systems. So we yeah. We're moving forward there. The teams are still there mapping and sampling, and we have assays in the lab now. So, again, Christmas permitting, we hope to have some assays coming out of there in at at the end of the year, but if not beginning of next year. So this is this is becoming interesting project. We this this this project was very meant very much meant to be slow burn slow burn, low cast burn.

35:12 But if these numbers from the the current sampling campaign come back positively, we might we might reassess that. If we find some interesting drill targets, that that that might change in the new year. Having said that, we can't drill on the current permit. We need to submit some some reports to to move to a drilling permit. So there wouldn't be any drilling here, and therefore, there wouldn't be any major cash burn here until the second half of next year after the winter, so wouldn't be September. So it's it's quite exciting geologically, but, you know, we'll see how that one plays out at the end of this month. So bringing us to the end. So I, you know, I think the company is in a in a good position or certainly in a better position than when we found it 2020. You know, ANSARD, despite, you know, the two steps forward, one step back situation, is still very exciting.

36:04 You know, we're not we're not gonna walk away from those recent drill holes at Pepas. Even though there's a bit of thought required, they, you know, they are nothing so spectacular. The move to phase two of the joint venture is taking time. It's taking time for a good reason. And I'm not we're not gonna apologize for for the time it takes. There'll be no prizes for getting it wrong, so we have to really be careful with that. So we hope to get back to to joining an ANSAR soon, but that's obviously out of our hands depending upon how the things pan out. Brazil tinvention looking good, and El Patano is, as I said, looking quite exciting. So it's we've got the company in what I think is a good position, albeit in a market where things are very difficult out there and but, we have the cash in the bank, and we have, hopefully, more coming in January. So I think we're in quite a strong position.

36:49 So I'll I'll leave it there, and I thank you for for listening to me joining on. But I'm happy now to move into a range of questions and take as long as you like. Brad, Lou, if I may just jump back in there, and thank you very much indeed for your presentation this morning. If I may, I will just bring back up your cameras there. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the right hand corner of your screen. But just while the team take a few moments to review those questions that were submitted already, I would like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. Louis, Brad, we did receive a number of pre submitted questions ahead of today's event. And as you can see in the Q and A tab there, we have also received a number of questions during your presentation this morning too.

37:37 So firstly, thank you to everyone on the call for taking the time to submit their questions. Louie, if I could just hand back to you to address those where it's appropriate to do so, and then I'll pick up from you at the end. Thank you. Okay. What I think we'll do is that I'll I might I might try Louie on the bottom, some of more difficult ones, such as the Colombian political ones. I'll stick with I'll stick with the geology. So Louis is in Colombia, and and Louis Louis, god blessings, speaks fluent Spanish. So the I I suppose the main well, one question, of course, is that's that's coming up. I'm looking at the screen is the the applications, applications, OMI. Do we do we talk about Yes. Where they stand? Yeah. So yeah. Absolutely. I know. I mean, I don't think there's any secret there. The applications are are are are also taking a bit more time than anticipated.

38:26 In large part, that's due to a change in government. So Colombia had a change an election, and there was a change in government regime some two months ago. As is usual, when new governments come in, decisions tend to tend to get frozen, and that's common in in less as as well well as as in in more developing countries. And so there has been a a hiatus in the in the consideration of the applications. We are still pushing hard. We do that not just here in Bogota with the central mining agency, locally in Korantiokia, which is the local authority that deals with mining matters in in which is where ANSA ANSA is situated. The point to make here is that we don't we don't have any reason to think that these will not be granted. We've done everything that needs to be done.

39:12 We've filled in everything that needs to be done. But more importantly, the license areas we have are vast. There's an is a surface of targets to to look look at at and to to go for before we do much work on those license applications. So, yes, it's it would be better had we received them, but would it actually change the amount of work and and the nature and the location of that work? The answer is is highly unlikely. Brad might like to comment, but I I believe that slowdown in the applications coming through would not impact the company. Brad, do you wanna add anything on that? Yeah. Look. It's it's disappointing. We we had done a lot of work moving those applications forward, and the the main event needs to happen is the public audience. We we we well, not we, but the and the local secretariat arrange a series of public meetings with the local communities to not vote. There's no there's no veto, but just to explain the process and and, generally speaking, they're quite happy. You know, we we our our our leases cross, what, four different municipalities, mostly ANSA.

40:20 ANSA is extremely friendly to to mining, by and large, as a result of the the good work done by our team over the years and and to to just, yeah, carry social programs. Surrounding areas are not so friendly, but they just get behind the corners here and there. So and that would all be planned, then as Lou said, a new government came in. Colombia is slightly odd. Well, not odd, but it's it's it's a South American issue is that a lot of the key bureaucratic jobs are political, not not like The UK where they're civil servant for life. Is it so the head of this and the head of that and the head of so and forth are become appointed in it and and the new ones. And these new appointees decided that they wanted to put anything on hold until they began to get a bit of feel for things.

41:10 So there was a bit of a few I won't say missteps, but there were a few new government comes in full of tried ideas. They get pushed back. And a lot of companies, not just in fact, most, Julian, most exploration companies have essentially stopped work in Colombia. Just just requesting greater greater communication, greater guidance, greater greater understanding of what exactly is going on. I think that message has been received, and from what we understand is that they're, you know, they're now becoming a little bit more communicative than they had in the past. So it's just a little bit about I went to that protest, but a little bit of saying, on, guys. We need to know what the hell is going on. And so one of Louis' jobs these few days is to talk to the vice minister and just, again, just to express our our interest in going forward, describe who we are, and and so just let them know that what's you know, what the impacts are of of the bureaucratic machine becoming a bit clogged up. So it's just that, you know, just presenting our case in a very polite way. So so as we said, yeah, there we have no no knowledge of that not going ahead.

42:20 It's just, you know, it has to be that sort of feeling of finding their feet as it were, which is sadly the politics way works in in South America. So but as Louis said, I think, you know, we we understand the applications we can work. We we can do mapping and sampling, and we've got all all over those things. We just can't drill. So we've mapped and sampled everything. And as a result of that, have got a pretty good idea of of where the key areas are and the key areas are on the Eastern Side, which which have been granted. Yes, we would love to have them had them granted, but it hadn't happened. And but that's not at this time causing any great slowdown in in in drilling. It's it's there are other issues at play that that Yeah. Pushing the slowdown. No. And and just to add from my point of view, we are totally in in bed with the right partners here. Have got got a great record in delivering projects in these somewhat difficult jurisdictions as these things become.

43:17 The JV venture is still gonna have potentially fourteen years to come. So there's a lot of time to to claw back stuff that that may get delayed a bit. And I would say the concerns of the government are are those you would expect, you know, environmental concerns, community formalization. All those sorts of things, we're already addressing, and Nico already addressed. So in part, I'm going to see the the minds to say, look. This is this is this is the the effect they're gonna have if if if you don't listen to what we're saying, but but we are expecting them to listen. And so we're gonna tell them we're gonna tell them what it is. So, you know, it is responsible mining that we're we're carrying out and responsible exploration. So and as Brad says, they are they are very much listening. They did reverse something they had intended to bring in by way of tax changes that hasn't now happened.

44:02 And so we're expecting we're expecting some movement certainly on the applications in the next few weeks and months. So we will we will obviously let you know if things change. In the meantime, they'll do work to do on on on the licenses themselves. Now I've got another question here, Brad. And I think you've addressed it part of the presentation, which is is is playing on people's minds, which is how long are these negotiators gonna go on? And is there a deadline to those? Well, the ninety days that we did have in the original agreement was was something that everybody was intending to keep to under the previous rules that were in place because that's changed as Brad explained. He's gonna take a bit longer. There's two sets of things happening here in parallel. One is actually setting up the joint venture company, and the other one is agreeing the constituent documents of that company.

44:54 Setting up the company will take a few months. And the reason for that, to make it a tax efficient of of visits. And secondly, to ensure that we don't fall foul of having to go to ask for permissions, if you like, from from government to get these things transferred, which which would delay things. Both both routes sorry. The the route to be followed is is well understood, but it will take a few months to do. It involves setting up a new co in a new company in in Colombia and then spinning off the assets that we have currently in in the existing company here in Colombia. So that will take several months few months to do. But we are negotiations will will carry on on the constituent documents that I've mentioned earlier. Those are progressing. We have made some proposals as Brad said.

45:42 Not surprisingly, we're wanting to change some of the specifics here, I guess, in part to address some of the uncertainty that's being caused currently by the political scenario. But the political scenario is is relatively short term. These things will settle down. So we're pushing back, and we will come to an agreement. When that agreement does come through, that is when the 2,000,000 payment will be triggered. So we're not gonna have to wait months and months. We're still on schedule, potentially. We're getting this to the end of January. It may slip. The important thing to note is we're sitting on $2,500,000 of cash in the balance sheet with a partner that has to pay for all the exploration in Colombia, and we control the rate of expenditure in Brazil and Argentina. So to that to to the extent that, you know, we rely and do Nico and you won't have much leverage.

46:30 Well, the reality is that we can, you know, we can stay it out a few weeks if we have to. But they wanna get on. They wanna get the agreement done. They're very keen on these assets. These assets don't come about very often, and that that are relatively good stage in terms of results. Although these immediate results just have been a bit more disappointing, but that's part of exploration. We will get back to having strong results, and I expect there'll also be weaker results in the future. But it's just part and parcel of trying to identify precisely where these ball ball bodies are. And we're in bed with the right guys for for all of this. If I could, maybe yeah, just expand at at at one or two things is that there there are two separate things. There is agreeing to the structure, and then there's doing the structure. And even though it might take months to do the structure, once you've agreed it, we carry carry on on working. So technically speaking, September the seventh phase one agreement ceased to ceased to exist. Now we were entirely within our rights. Okay, boys.

47:31 Vacate the premises. You know, you no longer have right of access. Go away until until this is resolved. And we said, no. No. We we want you to carry on, so we've given them dispensation to keep working, and we keep rolling it forward. But that's that's entirely within our gift. So in terms of what what leverage we have, yeah, we have some. I mean, we could say to market, bugger off. I mean, you know, until you sign sign the agreement, you we don't want you on-site. So that's not helpful, but it's you know, we do have some some ammunition, some some negotiating clout here. The yeah. And and the issues are we have an agreement that that Newmont Agnico signed back in 2018. And if they want to make changes, then they have to, one, explain what's changed their mind, why they suddenly want to change, and two, what's new for us. So we're very cognizant of not of not giving away things in the longer term that could be quite substantial.

48:28 And there was just I'll just address another question that was there also earlier about what phase three is quite a complicated. Phase two is reasonably straightforward. So they own 51% now. If they don't proceed to phase two or we don't come to agreement, that flips back till we become majority majority shareholder. Shareholder. If they progress through phase two, then they've earned 65%, and they have the right or the or the right to move to to to phase three, which they earn another another 10% by doing a by doing a DFS. Now the question there is what what happens then is that and there was some wording in in in in the agreement that how do we then protect our interest on that file or 25%?

49:13 And that that to us is the key point is that, you know, hope that this is successful and move forward, and we get 25, and then we want to be able to protect our position. It's it's it's the wording of phase three and some issues there. So, yeah, no. I think we're very we're we're negotiating. We're not we're not calling each other names or pointing fingers or or squabbling. We're, you know, we're just doing doing it in grown up fashion, but it's it's complicated. And, like, as Luis said, we don't don't want to make a mistake in every every clause or every modification modification proposed can have all number of unintended consequences. We think, you know, we gotta go and think about all these things, and you just can't react quickly. Otherwise, you know, you could be bitten in the bum quite quite severely. So all in good faith, and we're all we're all carrying on, but it's just business, and we can't we can't rush.

50:06 Okay. This is Spencer's a little more Spencer's a more question. I'll just jump to a to a technical one that that someone's here noticed about what's happened to some of the the reassays or high grade results. There's probably up to just just bit a bit of a rock story. There is we've made mention in the past about why some of the drilling results over the last couple of years have been delayed, and and that's that's due to the need to reassay. They all get reassayed, and the results are issued. What happens is that for gold assays, we use what we call fire assay. And what explain what that means. You can go and Google it. The the the normal fire assay has a top limit of 10 grams per ton. So we put everything into assay, Takes weeks to get the numbers back, and then, you know, a lot will come back over assay. You know? And, obviously, that that that's a good thing. We like high grade.

51:01 But that means they're gonna be put back in again for just a slightly different to the assay. And they come back, and they could be 11. They could be a 100. So but that's why, you know, these you know, we we had a lot of these high grade thing, which is good, but it means that when they come back and we see anything, you here we go. We've gotta put them back in and and get them reassigned. So when we finally do announce the assays, they they do include the high grade reassigned. That but that's why they take a bit longer. It's just it is just part of geochemistry, and it's not a problem that most companies face, but we do because we've got lots of holes over 10 grams. So it's just the the nature of the beast. And I got a comment here on the phase two, how long that could take. Well, phase two is is, as we said, Brad said, 20,000,000 to be spent over over four years.

51:50 The reality is that once these guys start to drill, they do tend to get through it a lot more quickly. And we have expecting MMA and I mean, I want to be spending well in excess of, what would it be, 5,000,000,005 billion dollars a year. One would expect to, you know, to easily they could expend twice that much. So do I think it's gonna take four years once we once we kick off? I think it'll be a lot quicker than that once we once we resume operations. But they can they can speed that up significantly if that's the if that's what's needed depending on the results. A question for me, and could the company be set up a long time ago? Yeah. The answer is no. One, the the devising a new structure is not simple.

52:39 Actual the discussion, the examination, the research to determine the structure is not a simple task. Not a cheap task. It it you know, lots of lawyer time involved. The lawyers aren't cheap. So we were not prepared to invest tens of thousands of your dollars in legal fees determining structure until, you know, Nick and anyone had said, yeah, we're gonna do this. So until we got the official word in our hand in September saying they're gonna go, you know, internal chat amongst ourselves, but, ultimately, you know, you need external expert advice, and that doesn't come cheap. So, yeah, we're not we're not we're not going to we're not not gonna bite the bullet and go to the lawyers until we had confirmation that they are moving forward.

53:25 And now that we know what's going on, we're not gonna bite the bullet and form the company until we've agreed. So every step costs money, and we're not gonna spend that money until we're absolutely sure it's being spent for, you know, legitimate reasons. So it's a so, yes, it would be nice to do it easy over. That's not the way that things actually work. There's a short question here. Are either of the current players interested in Argentina? Well well, the answer is they they they could be. It's probably still too early for them, so they'll let us do the work, which is common in these things. The junior miners go out and do the greenfield, and then we go from there. But, yeah, totally. Newmont is is in there to the northwest of us. It's at. And there are other other big players there. And and, yeah, I mean, they do respect the work that Brad does on on the ground there, and we've got a pretty good team down there. So we have had discussions with them in the past.

54:19 Indeed, before we even yeah. I I got involved, you know, we were being seen by one of these as as effectively doing the the pilot work ahead of potential involvement. So it is possible. There's nothing there for the moment, but it's good to have a seat at the table with these big players who can move when they need to. One question there. What import of any do we have in locating the drill rigs at Pepe's? That's easy. None. But we're trying to change that, and that that's one of the things that we might toss into the bucket for negotiation. And will we? It's it's it's their money. So, you know, they ultimately get the right of the the right to decide. We've up to this point, there was no provision in the agreement for us to have any input at all. We just get told after the fact where it's going. Now I've you know, I talked about my view of some of the drilling. And, you know, while I'm not saying that they did it badly, they did it differently to what I would do. And and part of that is is just the imperative of being a big company.

55:17 I mean, I would do things differently because, you know, OROSUR has no money and, you know, we don't we don't need to find 10,000,000 ounces. So my view would be we would have drilled in a far more conservative way, drilled off to the side, but into the previous hole, made sure we hit it, and then stepped out. Where they've just gone, bang, big step out. Now that in part is because they can afford to, which is a nice problem to have. And I suppose we could argue that they're trying to test whether this is, you know, 10,000,000 answer. Now that's probably legitimate argument, I think, but I don't I'm not overly convinced. I I I think in when every time you drill a hole, particularly in this situation where there's you're trying to address uncertainty, you design a hole to to give you to ask to ask a specific question and then make sure that the hole answers the question, either positively hits what you want and says, okay. That's good. Or by missing or by hitting a negative answer, it then tells you where to go.

56:24 I think in this case, by attempting to address more than one variable, by trying to address two things, you know, the depth and the depth, they've been effect address none of them. So, yeah, I I think we we certainly would have have put it forward on the table now that we want to now be involved in these discussions as a technical committee. And I don't imagine that they're gonna you know, we have the right of veto, but certainly, we'll put out you know, stamp the table and say, look. We think it's right or wrong or or going forward. So, yeah, that that was we had no right to do that. That wasn't in the agreement. We we had no ability to force that, but it's something we would like to to have written in now. So I think going forward, we're gonna be a little bit if if we can, we'll be a little bit more vocal in in just the same, what the hell are you doing? So, yeah, watch this post.

57:15 There's another one here on drilling results. Are you releasing drilling results to the market when you receive them? Well, the answer is, you know, there is an issue of information out that we are on obligation to to release those. There have been extensive delays, as everybody knows, certainly during COVID, being caused at the labs in ALS in Lima where these things are flown to. And when we do have an RNS as to to release as Brad says, it does need to go through with that. That's just a three day that's a three day process. So, again, not not not significant. So the answer is yes. When we do have significant results, we we do release those to the market. Should Should Brad or Louie base themselves in South America? Well, I'm yeah. Sure. If you wanna pay for it.

58:01 Louie, that'd be lovely, but it's it's not helpful. I mean, it it yes. It's it it would be nice to be there, but the decisions that are being made on the joint venture are not being made in in South America. I mean, they're being made in North America. They're being made in in in Denver and Toronto. So, yes, it it would be it it would would be be therapeutic to be able to be there and yell at everybody, but it actually wouldn't be that useful. So, you know, these decisions at this level and these sorts of projects are made at several rungs above the the South American level. So and we, you know, we we we certainly have some contacts there, and and and we'll, you know, we'll continue to have contacts there. But actually being on the ground, it's it's it's more visual. It doesn't actually achieve a great deal. So I think at the moment, we'll just we'll stay where we are and and and yell from a distance. But, yeah, we are we are comfortable. As I said, yeah, big, big companies move at their own pace, and that pace is not what we would do. And there are are complications. Having two big partners makes it even worse, and and AGNICO have also had some issues recently. They've they've gone through a couple of major mergers. They moved with Kirkland Lake, which is a massive merger that's being bedded down.

59:17 They're currently involved in a another merger of Yamana with another company. So there's, again, things to bed down. So I don't know where we stand on the to do on on the to do list. Probably not page one, but hopefully top of page two. So things yeah. But we're not and and, you know, I saw another comment earlier. Well, another another question about we don't see ourselves mentioned on Agnico or Newmont's news flow, and that's yeah. Sorry. That that's never gonna happen, and not until they find something huge because exploration results are almost never published by major companies. They're just not material to the share price. These are these are massive producers of gold. Drilling a hole in the middle of Colombia is exciting, but it's not gonna move the share price.

1:00:05 So they apart from a one paragraph line in the a in in the in the annual report, you're you're never gonna see comments about about us or about our drilling by those big companies. So I think if they had if they had their way, they would like to have no announcements. And I think they find our announcements quite annoying because it's giving away information that they would rather not give in in a competitive sense and also potentially for attracting artisanal minors. So they see us our need to announce as a bit of a necessary evil, which they'd rather do away with. But, you know, we do what we can, but you'll never see them talking about it. Two short questions here. Will the new JV company be floated on the LSE, and how worried are you about future funding in the current environment?

1:00:50 So the first question, the joint venture company, no. I don't expect that to be floated to the LSE. The it won't float principally for for well, profile as well, but principally funding. But the funding of that JV is gonna be through and and Newmont. So, no, I expect they will that will not be floated on the other sea. That wouldn't be one of the plans. In relation to future funding, we we do do have have cash on the balance sheet, and and these two big players are funding Colombia. So, really, it's deciding how much we want for Brazil and and Argentina. We're not gonna have any major activity in those two places, as Brad said. Certainly in Argentina until the back end of the year because if we do wanna drill, we need we need environmental impact assessment, and we need some permitting to happen. So that's gonna take quite a few months.

1:01:35 So if there is any any need for funding, it'll be stuff to go into the ground, and it won't be the earliest until the end of next year. And, frankly, when we receive this 2,000,000 from from our partners in Colombia, that also will take off the pressure. So we're in a relatively stable situation if you like. But the environment is undoubtedly difficult, and I wouldn't like to be facing a you know, go out to the market in the next, you know, three to four months. It's not something we need to do. So I think we're done there. But we'll put Because we've got cover of this kind of thing. I think we've covered all the ones that aren't rude. So we're Brad Brad Lou, if I may just jump back in there. Thank you very much indeed indeed for for being being so generous of your time and addressing every single question that came in from investment. Of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended for you to review to then add any additional responses, of course, where it's appropriate to do so.

1:02:35 Louis, perhaps before redirecting those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, if I could please just ask you ask you for a few closing comments to wrap up with, that'd be great. Well, first of all, just to say thank you to everybody to coming to participating and then coming on. We do like to have these questions. We do like to communicate with shareholders, and this is quite an effective way of doing it. Secondly, just say thanks to Brad because he always takes the brunt of all these presentations. I just sit in the background. So I pre know there's a lot of work going into this beforehand, so thank you, Brad. Look. We're definitely going through a a a difficult phase with the company right now, but it's it's difficult for the right reasons. This is an exciting asset. People wanna grab as much of it as they can and negotiate as hard as they can on it. We have got some protections in there already from the existing agreement.

1:03:21 There will be renegotiation on some parts, but I'm confident that we'll come out with the right results at the end of that time. Precisely when that will be is hard to say. But, again, here I am in Colombia today. Let's see what we can progress. But they're big companies. They do take a bit longer than we do. And there are two sets of lawyers here. There's and there's Canadian council involved as well. But things are moving in the right direction. It's a very good asset to go for and to get the right result on. We're sitting on cash. We don't absolutely have to rush this. We'll do it in in the right in the right time frame. And as soon as we have results of movement and anything material, we will obviously be be coming out with with information to you and to the market generally. So thank you very much for attending. I think that's it for me. Again, yeah, we will we will keep you updated as and when things develop.

1:04:10 Louis, that's great. And Brad as well, thank you once again for updating investors this morning. Now could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order the management team can better understand your views and expectations? This will only take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of OROSUR MINING INC, we would like to thank you for attending today's presentation. That now concludes today's session. So good morning to you all.