Playfair: Norway Drilling and Opportunity

0:08 Hello everyone, welcome to Playfair Mining's live investment summit today, hosted by 6. I'm joined today by Don Moore, CEO and Director at Playfair Mining, as well as Neil Briggs, their director. Don and Neil are going to walk through a presentation and after we're going to be accepting questions live in the Q&A chat which you can find on the right hand side of your screen. As always today's summit is being recorded. It'll be available on Six.com in the coming days as an on-demand video. Without further ado Don, Neil, I want to pass things off to you and get us started. Well, good afternoon, everyone. Another full day. We're into the fall of 2022 already. We started working on this project in 2019. It's hard to believe there's that much time has gone by. What you're looking at here on the image is a drill. We have been drilling and we are waiting for assays. We have got more than 300 samples out for assay and we are looking forward to getting them here in the next month or 2. We just don't know when.

1:01 Most of the assays have got sulfides of some kind associated with them, most of the samples, and we can't help you any more than saying there's sulfides there and we're waiting for assays. Now how we ended up at this spot, You'll notice we have a small man portable drill that we've been using. This is how we approach this very first stage of exploration in Norway. We've had to learn how to get a buy in the country and how to operate there and it has been a challenge but we've come up with ways and means of being able to get our drilling done. This is sort of the opening round of what we see in Norway. Let's say this first round and we are looking for low-hanging fruit, we are looking at using artificial intelligence and MMI to designate near-surface potential that's covered mainly by overburden.

1:53 To date, we're pleased that we've zeroed in on all the areas that have had sulfides of some nature or another. So it gives us a feeling that our process is working and now how well it works is going to depend on what these assays are going to produce for us. The next stage of all of this, of course, is to look deeper than the shallow drilling that we've been doing and to do that we have to initiate some modern airborne surveys, deep penetrating surveys. All the work that's been done on this portion of Norway is very shallow, a 50-60 meter depth penetration. So there's a lot of unknown say results to be looked at and the way to get them is to find a deep penetrating geophysical system something like VTAM and we're looking at all of those aspects now.

2:49 I don't know if you recall but we started out with our property, the main part of our property was from EMX and then we have recently acquired another area called Falldoll to the south and completely separate from our property with EMX. So we now have over 200 square kilometers of prospective ground to look at. The majority has not had any modern geophysical work done on it and that would be the next logical step to look downwards below the 50-60 meter expressions that we work with to develop the first set of targets and to check out the numerous areas in the Falldoll area that hasn't had any work done on it since about 1980s and to look at the downward extension of all the known deposits that are on the ground. Some of these deposits have been mined back to the 1700s, 1800s, 1900s and there's been no, literally no work done on any of them since, let's say, the 1970s. So it's over 50 years that there's been very little work done.

3:56 We never know what you're going to get when you do these VTAM surveys, but Because there's numerous types of different geological terrains here, there could be a lot of surprises. We have a magmatic system up in the northwest with a drilled off nickel copper deposit. We have all the RKV deposits that you've heard us talking about, the Kivikni, the Rostevangen. Keep in mind that things like Kivikni and Rostevangen, they were never mined out, they were shut down for a variety of reasons. Kivikni was because they ran into a water problem back in the 1700s and Rostevangen collapsed in the copper market of the 1920s and it was never looked at again after that. This is Rostevangen mine here.

4:44 Right here. That's there. Oh, okay, I see a needle up the top right hand corner, the Rostevang and mine is in the background. We're drilling an MMI anomaly in this particular image here and Had we had a bigger drill that could penetrate deeper, we would have considered drilling in the vicinity of the mine looking for the downward extension of the deposit that was being mined at the time of the shutdown, remembering that the shutdown had nothing to do with geology, it was strictly a financial crisis in the copper market that shut it down. So this would be a priority target for us, but nonetheless we still like to see some airborne work done in this area, particularly in the vicinity of the mines to give us an idea of what we might want to expect down below.

5:37 So I guess at this stage of the game, everybody is just aware of the potential that's in these 3 geological terrains. We certainly are excited about the potential for the whole district and we well know that until we do these airbornes, we're not going to know anything deeper than the 50-60m depths that we've been concentrating on. The Fall Dall project is particularly interesting. One of the larger mines in the area was 2.5 million tons, sort of a Brunswick style VMS. Neal, can you come up with the name for that? Neal B. Ross Which 1? Robert R. Reilly The 2.5 million tons.

6:23 It's Nordre Gieterrugen. Neal B. Ross Nordre Gieterrugen, which means northern goat's back. Robert R. Reilly Okay, so that's one of the deposits that's there. And so these sizable deposits, the difference about the deposits down in that area, they were copper, zinc, lead, silver and gold. And in fact, one of the mines in that Faldal area had stopes up to 7 grams of gold. So it's a different type of an area than we're looking at up in the RKV and the Baclaran area. We'll be making announcements as we go through the winter about how we're making out with the Airborne and of course we are now waiting for our assays and to see where we're going to go next with the shallow stuff up at RKV.

7:16 I'm open to all kinds of questions. I guess one thing I just want to emphasize is that operating in Norway has been a challenge. We have had to learn a lot and Neil, if you might want to say, put up a little picture there for us to show us.

7:34 We've actually got the local hikers in the area holding a sign there, I don't know if you can see it, it says, I love Canadian mining. So we're making head roads in that regard. The country wants to open up its mineral industry. They've been very rich with oil and they're wanting to move towards mineral industry but they have to do a lot of things to make it really worthwhile. They're working on a new mining law and that will be in place probably in the next 3 or 4 years but right now they're going through the processes of trying to make it a lot smoother for us explorationists to operate in the country. Got anything to add, Neil? No, I think that's the summary of it. We've been drilling all summer, drilled about 19 holes and got sulphides in most places.

8:27 And now we have to wait and see what the lab kind of tells us, right? At the end of it, you can perhaps from here see some of the old mines, and you know, starting mining in like 1916-1929 and closed in 1789 when it was flooded. Rostvangen closed 19, It started 1908, closed 1920 when the copper price went down. Borschehol was never really mined, but they were getting it ready. But it was the same people who owned the Rostrang and mine, so that didn't go anywhere, you know.

9:16 So, it's kind of

9:20 interesting that most of these are kind of old things. This is the 1 Don was talking about, Nordre Gietrigen, 2.5 million tons here, and Negruvo, a new mine, is the one that had lenses with quite high gold. So these things are around, it's good hunting grounds, I think is what we can say about it.

9:54 But people are… we have a good relationship with the people there, and onward and upward, I think. And we're lucky to find projects like this, like Faldol, for example, with, you know, that we were just able to acquire by staking so that we own 100% of that without any NSRs or anything else. You know, it's a country that when they discovered oil and started making lots of money on it 50 years ago, have kind of stopped looking for everything else and all the geologists went to work on oil and nobody looked for other things. So that's really why we've got the opportunity

10:47 on these particular projects. Yeah, The other thing I would like to point out is that we do have really good connections now in Norway. We have an excellent Playfair representative over there. We're set up to operate in Norway, we're learning as we go, we're getting better and smoother as we go along and thanks a lot to say the people in Norway that have come to help us through all of these hurdles that we've had to jump over the last few years. So if there's any questions, we're happy to take any questions. I don't know if there's anything out there. Absolutely guys, thanks for the presentation. I'd like to remind everyone in the audience that if you do have any questions you'd like to ask, please do so in the Q&A chat found on the right-hand side of your screen.

11:33 Don, Neil, first question, how much total helicopter time was there this season? Oh, man. We used it to 2 locations. The first one, we used the tracked ATV, which you probably saw in that picture. We used the 2 locations probably to get in, to get out, and in one case to do 2 moves. So we had 123456 goes and each one of those would probably be an hour and a half because of the ferry time. The helicopter had to come down from Trondheim, so I would guess would be about 9 or 10 hours total.

12:32 I don't actually have the exact number but it's going to be around that. Unless you don't know anything. Yeah, no that's great on the money, Neil. Awesome. Next question, when does the next drilling campaign begin? Good question. It's going to depend of course on what we're seeing out of this round of drilling is whether we're going to be following up on the targets that we have now. We do have, we still have 1 target that's a starboard that we're going to have to get at, we'll likely not get at it before next spring. Then the rest of the property is going to depend on what we do with regard to the airborne and when we can get it done and when we can get at it and how we can get at it. So it's a rather vague answer but I'd say next spring is the most likely time for the next drill program and will likely get started at Storborn. We have targets laid out there, but we have to do some

13:32 permitting issues before we can actually get in there. We'd hope they have it done this year, but we just couldn't get it done for a variety of permitting issues. Right, okay. Another question, Is there still a nickel opportunity here? Yes, yes and that's one of the things that the – doing the airborne in that northwestern part there to go over the area around Vakulian and when we did the MMI, there was only very little nickel response from the MMI which indicates to us that whatever may be up there is likely buried because the MMI is only going to pick up stuff that makes it to surface. So Neil is more of the nickel expert than most of us so I'll let Neil take it from there. Well, the Vacadian Deposit, which I'm kind of zeroing in on here with these black circles roughly, there are other small occurrences that are known in 1 particular area which is different to where the copper occurs.

14:43 The copper really is more up and down all through this area on RKV, but the nickel is in here. Vakadien has had probably 100 drill holes in it since it was discovered in late 1974. It hasn't had any drilling since 1991. It's extended for 1,200 meters along the strike, which is kind of this way, and even at the end of it, it wasn't very deep, maybe 100 meters or so.

15:32 It's quite a shallow dipping thing. So there's opportunity in this area maybe to find something deeper, or to find other things in the area. There's been no modern geophysics done in here, And

15:50 so there's an opportunity to look for the extension of this or deeper things, just as there's an opportunity to look for the extension of Kvykny, Rostrvang and Borshchuhal deeper. Because the last... There's 1 airborne survey was done here in early 2000s. It would only see down about 50 to 60 meters.

16:24 The systems currently available will see down 300 up to 500 or 600 meters depending. At Faldal down here, that had an airborne survey in 1982, 40 years. Well, there's lots happened in that time, And who knows what we'd find out by doing another survey down there, you know? So, but yeah, there's definitely a nickel opportunity. A nickel price is holding up quite well. And it is one of the things definitely on our list in this area.

17:12 Absolutely and you just touched on it there Neil but other questions come in and maybe you guys can dive in, you know, explain and talk about, you know, what's going on with ground geophysics, for example, in Faldol? We think that, okay, the last ground geophysics of Faldol, I believe, was done in 1985. And as I say, the last airborne survey at Fall Knoll, or the only airborne survey at Fall Knoll really, was 1982. So what we would think would be the smart thing to do there would be to do an airborne survey first. It's about 80 square kilometers and then follow that up with ground surveys. We've been looking for very shallow things at the moment, like looking for low hanging fruit and not looking deep and as you saw from the picture of the drill, using a small drill which we can move around relatively easily, but doesn't drill very deep.

18:27 So I would expect from doing a deeper penetrating EM survey, airborne survey, will end up with deeper targets, and the logical follow-up on those will be initially some kind of surface geophysics that will look down deeply, the same kind of depths, followed by deeper drilling than we have been doing. Yeah. Just to get away from the nickel at Rostevang, and there are indications that there's areas to be drilled right now without doing any further geophysics based on the information that was available from the closed down mine. But the drill we had just wasn't big enough to test those particular targets.

19:15 So there's a couple of layers of exploration to be done there, just specifically at Rostebangen that are wide open and deep penetrating geophysics could have a lot of surprises for us. Great, okay. We did get a question about if you were considering airborne, but from your conversation today and even this Q&A session, I think the answer might be obvious, but wondering if you guys wanted to touch on that. Neil? We'd look at 2 areas really with airborne. One would be the whole of the Falun Ol project down here, and then up here in RKV it would be a more targeted thing looking for deeper extensions down plunge at Kvikne, Vakili, Rostvangen and Borshchuho at least. The Rostvangen, when they shut down, they said there was 100,000 tons of ore ahead of them, you know, like down deeper somewhere down around here. So, and who knows beyond that. Kviknie was shut down because it flooded, you know, so we don't know what's happening at depth there at all.

20:40 And these mines, some of them, 1 in particular, they shut down because they had a bigger mine somewhere else and they needed the workers and so they shut this mine and moved everybody to the other one. So we look at the whole of the fold-all area plus depth extensions kind of down plunge in these like more targeted if you like in these other areas. Oh absolutely. Another question, so what are next steps for you guys? First thing, wait for assays. That's the immediate thing that we're all waiting for and we all want to see that. And while we're doing that, continue with the planning and the budgeting of the next round of exploration which would include the airborne and presumably there's gonna be drilling at least at starboard to consider and who knows what might come out of the airborne.

21:45 And of course, as we go forward in time, the process of raising money for these programs. Store borrowing is in this area here. Oh, fair enough. Well, listen, gentlemen, that's all the questions we have for today at this point. So I want to thank you and of course the audience for joining us. Don, Neil, I want to pass things over to you before we wrap up the day though for some closing remarks. Don D'Amico, MD Well, my closing remarks are simple. My phone number is 604-377-9220. Just love to hear from all of you. So if there's any questions, don't be afraid to call and we'll go forward from there. Wish us all good luck on these assays and let's hope next year is going to have a lot of interesting things for us to talk about. Absolutely. All right. Well, gentlemen, with that, we'll wrap up for the day. I hope you and the audience have a good one. Cheers.

22:35 Cheers.