Quebec Panel

0:10 Hello everyone and welcome to the Quebec panel hosted by 6. Today we're joined by Terry Lynch, CEO of Chilean Metals, Mars Cord, CEO of Wallbridge Mining, and Blair Zyrzycki, CFO of Asisco Mining. This discussion will be going over what our panelists think about the current state and future of mining in Quebec. You can submit your questions to the panel at any time using the Q&A panel found on the right-hand side of your screen. As always, this summit is being recorded and will be available to watch afterwards on six.com. And without further ado, let's go around the table. Let's meet our panelists. Terry, I'd love to start with you. Well, thanks to SixX for organizing this. Great opportunity to talk about our interest in Quebec. And Chilian Meadows doesn't exactly bring up the concept of Quebec, but we actually made a big acquisition of a major project in the James Bay area.

1:02 It's going to be the forefront of our company. In fact, we'll be changing our name to Power Nickel to reflect that. We're excited to do some business in Quebec and hopefully create a mine there. Wonderful. Thank you. Marius, I'll pass it over to you. Thanks Cam and thank you to 6 for inviting us to be able to present. I'll be a little longer than Terry in terms of giving an intro to the company. We're an exploration development company that purchased a gold property in Quebec called Fanelon And we did that in late 2016 from Balmoral Resources. Early 2017, we started doing exploration on it. During 17 and 18, we successfully identified that that original mineralization continued to grow, but it wasn't really till the late 2018, early 2019, when we followed up on one of the targets that we had when we did the due diligence.

1:56 Past owners had poked a few holes here and there, but we realized that there is a potential, more potential than what we purchased the property for $3.5 million for that 10 square kilometer property. And we discovered the area of 51. Following up on that, we also had a new discovery called Tabasco Zone. And since then, obviously, the exploration has continued to expand that mineralization. But mid-2019, we realized the mineralization was going outside of that original 10 square kilometer property, and we knew Balmoral Resources, when we purchased the original small postage stamp, owned the majority of the property. So we approached them. Unfortunately, we weren't successful in mid 2019, but as we continued to do the more exploration on the property, we had a better currency in terms of our shares and we managed to be successful in 2020 and we acquired Balmoral Resources as a whole. Today, we own about 900 square kilometers of this Detour-Fanelon gold trend, which is pretty prospective in terms of gold systems, has been identified on the Ontario border by Detour Lake Mine, and as well as ourselves at Fanelon, and Balmoral already had the Martigny which was somewhere in between.

3:03 So today is our main asset, but Along with that, we also have other properties that we acquired from Balmoral, but also our Copper, Nickel, PGM assets in Sudbury, Ontario. From that respect, not only do we have the multi-million ounce potential at Fenelon, we also have the organic growth on the D2 Fenelon gold trend, and also the possibility of being able to get some value for our Copernico PGM assets in Ontario and Quebec. Wonderful. Thank you for the introduction. And Blair, over to you. Perfect. I'm Blair Zeritsky. I'm the CFO of Osisko Mining. I'm also the CFO of O3 Mining. Both companies are based in Quebec. Head office is in Toronto. I've been one of the employee number 1 out of Cisco, I've been there for, it'll be 10 years in June.

3:49 I started the company way back with Jose Vizcara. He's a CEO of O3 Mining right now.

3:58 We were actually started off in South America and Columbia and Peru and Mexico, Honduras. Unfortunately, 20 days after we took the company public, way back 10 years ago, we had a kidnapping in Colombia that lasted 8 months. We resolved that successfully, had 6 people kidnapped, got them all back safe, took a long, tremendous amount of time. We ended up leaving South America, rebranding the company. John Brzezinski came over from Osisko Mining 1, that was the company that they discovered a Canadian malarctic with that sold it to Agnico and Yamana. He came over, became the CEO. We did a five-way transaction merger and that's when we discovered we took over Eagle Hill, which had the windfall deposit.

4:45 We're now Quebec-based. We've been drilling windfalls very, very successfully. We've had new discoveries on the deposit, links and triple links. We've grown it from basically 700oz to over 6Moz now. We've gone from a US$10M market cap to a US$1.5Bn market cap. We spun out O3 Mining 2-years ago. It was supposed to be a temporary position for me, but I've been holding onto it and helping the team out. We use our back office as well for the synergies on both companies. It's been quite successful for us. We continue to advance the property. We're underground drilling right now as well. We have around 33 drill rigs on the property.

5:30 We're going into Feasibility Study in late 2022. Our ramp is advanced. We're 6km in depth and it's just been great. And we're going towards our third bulk sample in 2022 as well on the tripling zone and we're excited about that. So we're basically going into the development stages now, sort of the, as people would think for an investor, more of the boring stages that you see in Lausanne curve, but however, We need to get through this in order to go into production and raising the capital right now to have a fully funded mine. So it's different stages of the mining life cycle. Wonderful, thank you. Well, now that we're all introduced, let's start the conversation on why we're all here, Quebec.

6:20 And to start, I think I'll just leave it to the panel, whoever wishes to speak up first. But what do you think the most attractive aspect of mining in Quebec is? To you, what makes it earn the 6th place in the Fraser Institute's 2020 rankings? I can start. Having been an operator and a consultant in both Ontario and Quebec, I've been familiar with a lot of projects, including Osisko's, for example, in the Arctic, and some of the larger projects in Ontario. When you really compare even Ontario to Quebec, never mind Quebec, to other jurisdictions, there's quite a marked difference between the 2 provinces in terms of infrastructure, particularly when it comes to the northern portions. I mean, I think Cochrane is the last northern frontier, if you may, in Ontario, whereas

7:06 you see the same type of infrastructure going all the way to the Rupert Bay, where the Wascagonese community is. So that's the kind of infrastructure that Quebec has offered, Perhaps because of the Hydro-Quebec initiatives in the past, but certainly Plan North has helped. And those are the reasons why you see projects like even the Osiscos or Walbridges and other projects that have developed over the past few years in Quebec. One of the other things that is good in Quebec, and outside of the fact that there is also incentives for exploration

7:36 companies to spend money, is actually the First Nation communities that are around in Quebec are very friendly. They really want the economic development within their jurisdictions. And as a result, they're not necessarily looking for the royalties or whatnot in order to really stop the projects, but in fact, they want to be partners with you as to how you're going to be able to develop that and create the employment and the longevity of these projects.

8:00 I agree with Marius. When we looked at acquiring the project in Quebec in the fall. We focused on 3 things, the infrastructure that was in place and advanced in terms of being able to work 365, 24-7, the treaties that they already have with the First Nations and the very positive attitude they have towards development. And then, of course, the financing incentives, you know, the super pull-through that's there, that's certainly for an exploration company, makes it a lot less dilutive to our shareholders if we can take advantage of that in terms of developing things. So those are the 3 off the top that really warmed up to investing in Quebec.

8:42 Yeah I reiterate both Terry and Marz on all their points. I'd also like to add the rocks. It's just a great jurisdiction to find gold in. A lot of world-class deposits have been found there, Canadian Millarctic, Sigma LaMac, Luron, lots of them. And it's just a world-class area in that Abitibi belt there, that we have a tremendous amount of gold. There's still a tremendous amount of upside along there. You have all the big companies involved in that area and all over Quebec. The tax incentives are great. Non-flow-through, you get 39.75%

9:23 back if you're in the plan Nord on all your non-flow-through expenditures as well. So that's great. The super flow-through is excellent. It's probably the best in any province in all of Ontario, sorry, all of Canada, especially compared to Ontario. You can raise your tax premiums, you can raise your shares at a premium, which is great for shareholders and you're not diluting them as much. The First Nations engagements are exceptional. They wanna do business with you. I'd like to reiterate that as well. We have 25% of our workforce is First Nations. They wanna see the project succeed. They wanna see the development in Northern Quebec, which is great. You don't see that in other provinces. Like if you look at the, you know, the Ring of Fire in Ontario, it's just been an absolute disaster compared to the Northern part of Quebec, where you see the government being proactive and wanting you to engage and wanting you to develop, create jobs, create employment, put money back into the ground

10:22 and see the development there. And I think they've nailed it in Quebec. So I can just add another thing is obviously Blair was talking about gold, but I think really when we discount sometimes even the base metals and nickel and copper and other PGM type assets in the air. I mean, obviously we have our Grasset deposit that's just attached to it, but it really was a VMS country. And that's when the South Bay mine was and the Batogames. And really that whole area, entire Quebec, including even in Rouen with some of the, some of the, you know, FALCO resources and whatnot, that these guys are also still finding base metal assets in Quebec. So it's abundance of minerals, perfect environment in terms of infrastructure, perfect environment in terms of government support and perfect environment in terms of First Nations support.

11:09 I mean, what else would you want to be?

11:14 Absolutely. And you don't have the security, like, no wonder it's ranked and it's moved up in the Fraser Institute of Mining right now, because you don't have the political risk that you're seeing in all these other jurisdictions around the world. Like if you look right now in Peru, like I'm sure the mining companies in Peru are quite nervous going into an election right now with the far left and the far right and nationalizing the industry. Look at Sentara, what happened to them a few weeks ago as well. It's becoming more and more difficult. Burkina Faso with the security issues, Columbia, same thing right now. So, you know, being in Canada, being in a safe political jurisdiction, good stability, good government organization, tax incentives.

12:02 You know, You also have the pension funds that like to invest in Quebec companies as well, which is quite unique. You don't really see that around the world, but they really want to see, they invest in mining. You have the Caisse de l'Epo, Investors Quebec, FDQ, all of them are very, they all like to see the mining companies grow and they're all very, very supportive of these companies. So there's a lot of capital to be taken from or be risen from these pension funds as well. Absolutely, thank you. That was awesome. Blair, you actually brought it up, I think, initially. But we're talking about Quebec. What separates Quebec from other jurisdictions in Canada, North America?

12:49 I'd love it if, Blair, you could take point on this and maybe just delve a little bit more into that. 1, what I really think is really the political risk and the political stability Being in Canada, in Canada overall, but Quebec is great. It's very mining friendly. It's great relationships with the First Nations. There's virtually no security risk that you have. They're willing to advance mines going forward. It's easy to explore in Quebec, relatively easy, you know, up in the far northern part, but it's not extreme mountainous that you have in BC on the West Coast, where you're having to fly in drill rigs and everything else where your costs go through the roof compared to Quebec, which is relatively cheap overall compared to other jurisdictions.

13:40 You're also dealing with Canadian currency, which I like to see compared to all the other jurisdictions in the world. If you're in South America, you're dealing with political risk, you're dealing with a whole bunch of, I mean, sorry, with political risk and with currency risk as well, right? You know, changing your US dollars into the local currencies, you don't know where that's going to end up at the end of the year. So you have a tremendous amount of exposure on your foreign currency as well that could fluctuate your statement.

14:11 Most people are willing to, it's easy to obtain drillers and also employment in Quebec. There's a lot of people are basically born into mining, especially in that Val d'Or area and everything else. There's been a lot of mines that have been producing for years and years and years, so It's in their blood. It's not like you're having to fly in people from all over the world to work in your mines or work on your exploration projects.

14:39 Plus, Val d'Or is the Valley of Gold, right? That's always a good thing. We're in Chile and BC and Quebec, so 3 good jurisdictions. But right now, I'd say risk for return potential. Quebec's probably the best, just because it's got Great Rock, which is obviously a first and fundamental if you're in mining. It's got to start there. But then, the ability to, as you say, get early stage capital because of either the tax incentives or the fact that the government funds and the SDQ and people like that are more predisposed. Plus, even beyond that, the brokerage community inside Quebec is much more knowledgeable about early-stage investing.

15:28 I find

15:31 that the smaller brokers are more forthcoming. So they're attracted to invest in both types of projects. And I think when you roll it all together, that's a pretty good combination. If you can get a project that's got some teeth, then you can really turn it into something. So that's what certainly motivated us to invest in there.

15:52 When you're investing something or when you're trying to figure out what projects you need to put your resources in, you have a checklist of things and you start talking about the property itself. We talked, all of us talked about the fact that in Quebec obviously there is still a lot of good properties to be continuing to develop and also to be found. The next one would be perhaps the jurisdiction, which is probably very important, and especially when it comes to the political environment, you know, the infrastructure and whatnot. Again, we touched upon that. When you really go through the checklist of everything that is there, including incentives for exploration, you just can't beat it in terms of making sure, If you're comparing 3 projects, and 1 is in Quebec and the other in other parts of the world, you definitely gonna see, as long as the environment, the geological environment is the same, you're gonna pick Quebec as being the best place to be in.

16:44 I mean, just doesn't change my mind in terms of what we did and what Cisco has done or what Terry has picked up recently. It's just that those are the reasons. Wonderful, thank you. So we've talked about the positives and not necessarily going to the negatives, but what are challenges that are faced by companies operating in Quebec?

17:06 Terry, would you mind taking part in this? You know what, I mean, obviously, I'm mostly Anglophone, obviously, So you took French up through grade 12, whatever. So I'm actually better at reading it than I'm speaking it. I needed to have a French girlfriend at some point in my life, never did that, my mistake. But, you know, so language is something we work with, but again, we have French partners and we feel like that's really not a big issue, but it'd be something that you would say consider. But, I mean, I'm in Chile too, and Spanish is not my first language either. So, I mean, language is just, you know, you just have to have people that can navigate that if you're not fully fluent. And certainly the lawyers and professionals that we use in Quebec are fluently bilingual and can assist us in that. So that's not been a problem.

18:00 Yeah, so that would be the only flag that I would have had that just was a, you know, something never really, you know, wasn't a barrier at all. But I guess that would be something that you would work through and if you weren't comfortable with it, but it wasn't an issue for us. Yeah, also to add to that point, I also think that infrastructure is a little bit lagging behind, especially in the farther north northern province. I think that's what they're trying to do right now is incentivize companies to work up in the farther northern part, like in that James Bay trough area. It's quite tough. It's actually tough exploration to work in. 1, it's cold. 2, it's quite tough. Your seasonality of your drilling is quite short compared to some other jurisdictions where you can drill all year round.

18:54 That would be really the only challenge. I also, I guess I don't want to talk about the elephant in the room, but COVID has been a challenge in the past year. Obviously it doesn't have to do with a normal, under the normal circumstances would it be tough but you know they've suspended operations which we had at the very beginning of COVID which was I'm sure a challenge for

19:18 all of us here, especially for the mining companies that actually need to generate revenue. But they were able to get it back as quickly as possible. I think we've managed to do a pretty good job. We were one of the first companies in Quebec to actually have our own COVID lab where we were testing our employees coming in and out. In the First Nations, they were very reluctant, rightfully so, when you have remote communities and everything, Like the last thing you would need would be an outbreak in one of the communities up there. So out of obviously out of respect and being respectful, we had our, and with our employees, we had a COVID lab built. We were testing employees going in and out and then on their shifts a couple of times, we only had a couple of cases, but they were stopped at the gate and we had to knock on wood we had no outbreaks in the camp. So that's been a pro for us as well.

20:12 To me a challenge

20:15 is something you can overcome And what we realized in Quebec or any other country that you go to or any other parts that you're not familiar with, there are certain challenges that go with it. But what you really need to do is make sure that you become local. And that is what, when we came from Ontario to Quebec was our very first time, very first project. One of the things we realized that if we want to be successful, we need to be local. So we adopted that immediately. We in fact, we started discussing the project with the First Nations before the government. We met with the with the First Nation group and the communities around and continue to do that and even up to today we're meeting on a weekly basis with the First Nation communities of you know Korea as well as the Ojibwe just talking about our project Because the last thing you want when you go somewhere to someone else's backyard is to only go there when you want their signature, rather than trying to be with them and be partners with them. And that's what we decided to do 4 years ago.

21:15 And we continue to do that. So I guess I don't call it a challenge. I'm just sort of encouraging others who are going into a different area that they're not familiar with. Get all the stakeholders involved right from the beginning, not when you need them. I agree. I'm excited. Today we have more than, as Blair mentioned, we also have more than 25% of our workforce from the First Nation communities. That speaks a lot for a company because it just tells you that you're local. Absolutely. And engaging and also engaging with the mayors of the towns is very, very key. The local politicians, hiring locals as much as you can, and being respectful of the place that in the community that you're working in. We have to remember as mining companies, we're the foreigners, really. We're going into these jurisdictions.

22:06 We're on other people's land. We're trying to build a business. So engaging in local communities, engaging with the mayors, and engaging and using local, even local suppliers as much as you can is really really key.

22:24 Absolutely, thank you guys. Terry did you have something? No, I was just going to say you know I started to follow the Montreal Canadiens so I could be more friendly to the locals. I'll still be a Toronto fan, but I'm allowed. I just did the cheering for Toronto during my first round of the playoffs.

22:48 There's a line. Wonderful. I hear you. I hear you. How does the panel see Quebec and interest in Quebec as well evolve in the future? And what should investors be excited about in Quebec? What's happening for the jurisdiction in general? Well, I think first of all, COVID was something that we didn't wanna talk about, but certainly is, I see that they've taken a pretty proactive approach in Quebec in terms of dealing with the COVID. And I think that's one of the good signs of a good group governing and really meeting with the stakeholders. Again, we live in the First Nation areas and to deal

23:33 with them the proper way is what the Quebec government has done. And I think that's a key thing. Secondly is, again, as Blair mentioned, they are investing in some infrastructure in the North, which is really where I believe the future of mining, particularly the majority of the lower Abitibi, the southern Abitibi, is pretty well saturated with various projects and various companies. And if you want economic development or additional economic development in Quebec, you need to go further north. And as a result, you need that infrastructure. But I think the Quebec government has identified that as a need, and they're continuing to work on that with the First Nations. So those are some of the things that excite me, the fact that there's more opportunities. Yeah, I agree. And You're also seeing a lot of foreign investment being put into Quebec as well.

24:30 You're seeing new investors that are key on mining. They know that it's a great jurisdiction. So you know, some of the Australian companies and things like that, they're looking at Canadian projects as you've seen in the news and everything else coming over as the political risk and as certain jurisdictions that have become more and more unstable and we are in a jurisdiction like Canada

24:55 that's quite stable, you'll see more investment come in. It'll be interesting to see. I'm finding, we'll see what happens when we come out of this COVID situation and people realize how much each country this really costs them and where the investments need to be. And we're just so lucky to be in Canada to have such natural resources and we're so enriched in them. So I think it's a great place to be.

25:25 Yeah, I mean, I've dropped off the screen, you know, from a visual perspective, I'm not sure what happened there. But I'm not here because I'm a movie star, it looks like, so it's probably better for the audience just to listen. I think the big thing that we felt with Quebec was

25:46 It had the right mix of the rocks, the people, and the infrastructure. You could actually move things forward without serious political risk. At the end of the day, it's a super risky business, as you guys all know. And so you don't need any more risks than you have to take. And you want to try and minimize that as much as possible. So I think Quebec kicks the box on a lot of levels in that respect. And that's certainly, certainly made sense for us, you know, to switch, you know, gears really, and, and, and focus on, you know, an asset that we thought we could have a real shot of bringing it to. We won't build the mine because that's not our skill set, but we'll take it to what we hope will be a mine development stage where somebody could come in and build it and go from there.

26:32 And that's that will hopefully create some value for our shareholders. So, so we thought that was, you know, more doable in Quebec than anywhere else in the world at this moment in time. Exactly. And, and realistically, the future of mining, if you look at it, you know, that these countries have some of these other countries and including us are going to need to pay for this pandemic. And what are they going to do if mining makes up such a big portion of their GDP? What I would think that there would be a high incentive for them to increase taxes and increase the taxes in mining, increase royalty, increase net potential nationalizing in certain jurisdictions in order to sort of recuperate what they've lost during the last 2 years.

27:19 And you know, it's going to be, it's going to be, it could be a scary situation in certain countries going forward on how they can plan this. We're just lucky because we have a wide, vast of industries within Canada that, you know, it just can't just go after mining or just can't go after a certain industry.

27:40 We have foreign investment, we have movies, we have oil and gas, there's just a tremendous amount of industries here, banking, everything, right? So we're fortunate in that sense. But, you know, if you look at the future and if I had a crystal ball, you know, I don't know how these countries are going to survive realistically coming out of this on how much money they've dumped into trying to rectify this pandemic. No, absolutely. Go ahead, Terry. No, I mean, I think this whole money dumping thing is one of the interesting aspects of, in a weird way, all this pumping of the money is going to drive inflation and drive commodities, which ultimately is our business.

28:37 So, obviously, fiscally, at some point, the rubber is going to come home to roost at some point. But in the interim, the positive side of things, and we're already starting to see it in the price curves and most of the metals that we're working in, is that the price curves are looking forward, price curves are looking very attractive.

28:58 And one of the things, when I talk to investors, and I still think it's still early days in the mining and we haven't really come into favor. I have this ratio, if you look at the TSXV over the S&P, when mining is in a commodity bull cycle, that's sort of 2.5 to 3. Right now it's 0.25. So it's still early, early days. And you know, where, where things are getting frothier and, you know, in the markets and reaching all time highs, it's hard to find bargains out there. And I think mining is one of the great bargains. The companies that are on this call are various stages of cycles in terms of these things, but I would say all are arguably very undervalued relative to the real value that they have and the potential they have to grow that many folds. So I think that's exciting. And you know, there's, you know, obviously this COVID has been a nightmare for everyone all over the world. And there's, there's a, there's a lot of trauma that we still have to deal with that. But, but there, there is some good news coming from it. I think, you know, and this, this could be, you know, mining could be one of the good news stories.

30:09 Awesome, thank you guys. And with that, you know, I'd like to wrap back around to maybe focus, but Myers, maybe you can start us off. But what are upcoming milestones that you're looking forward to this year that you'd like to share with potential investors, especially before we move on to the Q&A session, which I will remind everyone in attendance that You can submit questions at any time on the right hand side of your panel. But, Marius, what's coming up that you're excited for? We're excited about a lot of things, obviously. I've made 2 discoveries since 2019 and the 3rd one purchased from Balmoral in the Reaper Ripley zone. We certainly are excited about coming up with our first initial resource on those discoveries by the third quarter of this year. And that's, you know, from a share price point of view, I think Blair mentioned it sometimes, it's one of those Lassonde curve locations. You don't know where you are on it, but certainly, anticipation of a resource certainly doesn't get people excited.

31:08 And that's probably one of the reasons, also as well as being a victim of the mining cycle or the commodity cycle. But we certainly are excited about the fact that we know that this is a multi-million ounce potential on this fennel lawn itself. We do plan this year to also put drills on the regional site at Martinier, at Mossette, as well as at Cassau that we optioned from Midland. And as well, Kirkland Lake Gold, who's also our 9.9% shareholder, have a program on the detour east, which we optioned the property to. This is a neighboring property on the Ontario side. So We have a lot of excitement on the Gold front, but we just released a technical report at the end of March on our entire D2 Phanelon property.

31:54 We also restated and reviewed the Glesette. It's close to about 5Mt of about 1.6% nickel, as well as the projects that we have in Sudbury. We certainly are looking at either a spin-out joint venture partnership or even an outright sale on that. So certainly our shareholders are gonna get some value for it because today Our market cap of a little over 500 million probably has a little over 500 million for gold assets Not necessarily on Nickham PGM assets. So we certainly are looking forward to data as well this year Those are all milestones that we're hoping that we can achieve and we're certain to date. We don't see any reason why we couldn't. Wonderful. Blair, maybe you could follow in after Marius. Sure.

32:40 So we're quite excited about the next year and the upcoming years going forward. We're just finishing up our drilling program. It'll probably end at the beginning of November. We've raised as much capital as we needed to complete that drilling program. As we put out our feasibility study, we would be cap it off. So our drilling will go down, our advancement of our underground ramp will continue. We're going into the permitting stages right now, IBAs, like I said, feasibility study. It's quite exciting. We put out a PEA in February, which we had it was valued at after tax of over 1.5 billion net present value or net asset value and our IRR after-taxes was 39.4%.

33:26 It's an exciting project. It will continue to grow. Like I said, we have over 6Moz. We feel that we're in a great jurisdiction, actually a belt that will continue to produce Gold for years to come. We do have to end the drilling at some point and move on. Luckily, we discovered Lynx. It's been a great payback for us. The Gold, the grade is exceptional over 9g a ton on that and just continues as we do our infill drilling. The grade and the deposit just keeps getting better and better for us, which is great to see because usually it's the reverse when you do the infill. So it's nice to see our grade continue to improve. We feel that this is going to be a world-class asset and we're excited about that.

34:14 We're excited to produce gold out of it. And for me as a CFO, it's nice to go into the development stages. This is where the fun begins. You know, raising the money and dealing with more exciting numbers as per se, right, that we're going to see. So we're cashed up, you know, we have over almost $300M in cash investments right now to finish funding our exploration, our feasibility and take us to the next level. So we are excited about that. Awesome. And Terry, onto you. Well, you know, Chilean is quite a different animal relative to my brothers here at Walbridge and Osisko, where I've done amazing jobs in developing their company. We're at the very early stage. The good news for us is we think we've acquired this great project that's got a historical 3Mt high-grade nickel, copper, cobalt, and Palladium resource.

35:20 We think that we need to get it to 10Mt to make that a mineable project, but we think that's eminently doable. We'll be rolling drills there, probably drilling 3,000-4,000m starting in early Q3 and look to get an updated 43-101 out in the fall. Then we're going to be changing our name from Chilean to Power nickel so that people can focus on our nickel asset. As part of that, we're going to be moving out our very attractive copper-gold exploration plays in the Golden Triangle and in Chile into another public company. That'll be happening through a plan of reorg that we're in the midst of finalizing.

36:10 That'll happen in Q3 as well. It's going to be an action-packed year for Chile. It's a smaller company and it's got a different set of issues to address, but the most exciting part will probably be the advancement of drilling on NISQ and the updated 43-101 report. And hopefully that will start to show that this is trending towards getting scaled necessary to become a mine. And that's what we're focused on this year. Great. Thank you all for sharing that. And with that, we'll move on to the Q&A. We've already had questions come in, so we'll just be moving through those. And again, to all attendees, please feel free to contribute and participate if you have questions. So with that, Mario Drola asks, what do you think of the workforce challenge amongst the mining community?

37:03 I'll take this on because obviously, when you have a large exploration program, much similar to a Cisco and some of the other teams that are in the camp, it's a mining cycle that you're in. But what's the advantage of us is that Quebec still has a lot of skilled workforce that we can draw upon. Projects are typically accessed still, the majority of them are still accessed by road, so there's not a whole lot of fly-in fly-outs. So those are all the, you know, challenges that we have this year in terms of the mining cycle. Everybody's too busy. Perhaps one of the areas that is really difficult these days is the actual exploration drilling. The number of drills available is becoming less and less.

37:51 And the fact that even the drillers might be a difficulty to find because they're all picking and choosing where they'd like to be. And so if someone can sleep at home every night as opposed to sleeping at the camp for a period of time. Those are all the difficulties that you face when the cycle of the commodities are at its high. And we've seen that many, at least In my 37 years of experience, I've seen that happen flow in 06, 07, in the mid 2000s. We're going through that. But the good thing about us is that We're still only about an hour and a half away from nearby communities. We have road access. We drill 365 days a year, 24-7.

38:38 So, we don't have that kind of a challenge as much, but it's still there. Yeah, I can add to that as well. It is a challenge. I think it's a challenge overall across the industry. Mining is one of these industries it's hard to attract young talent to, especially with the new industry, like new sexy cryptocurrencies and cannabis sectors and everything else that we didn't have 10 years ago. You know, I don't want to judge people, but like the millennials of the world and things like that, and the younger generation, they kind of, they want to go and work for Tesla or Amazon or FedEx or, you know, a big sexy company. They don't know, they don't really have necessarily have heard of, you know, some of these mining companies like Osisko or, and it's really branding, right? It comes down to that.

39:27 And the industry as a whole, it's, you know, it's, It's basically like a construction industry really at the end of the day. So that's becoming a challenge. However, we're trying to like, you know, donate money, put money into these mining schools, these geological schools. We have sort of, what do you call them, scholarship programs that we do as well, which we fund some of the younger generation to try to get them into mining, which you know, you need to give some of the incentives and try to attract some of the younger generation here because they are the future. Really, mining is never going away. It's going to be here forever. People want to use phones and they want to use goods and they want to live in homes and they want to drive cars, whether they're electrical or not, they're still going to be mining and it's the future of mining, but attracting that young generation and attracting people to the industry, I think is key for us. And we need to, I think we need to do a better job. And right now, like we're finding it tough to like, as everyone I'm sure is seeing is assays. That's been probably the biggest challenge, is trying to get our assays back. It's just because the increase in the activity due to the commodity prices, every company is drilling right now. Every company has a drill program.

40:44 The assays are backlogged. Finding people to work in the assays because we need to increase the pay. And also the other thing, the other challenge is attracting women to the sector realistically, and putting women on boards and trying to bring the women up to, like a CEO and everything. It's just been such a male-dominated industry for so long. So, I think that women feel that they're reluctant to come into the industry because it's so male dominated. So if we can see and attract that's 50% of the population, that can come. And they're just as capable as we find as men. And they're probably better on certain aspects than they are with men on safety and everything else.

41:42 It's nice to see that, nice to see women going on boards and things like that. Attracting women will be key for the sector. Those are all good points. For a smaller company like ourselves, the exploration programs – Luckily, we have Critical Elements as a partner in the project. That's who we bought the site from. When you're talking 3,000 or 4,000 meters, I'm sure those are 0.1 or 0.05 of the drilling that Cisco and Walbridge is doing. So obviously, the scale and magnitude of workers and whatever is quite different. So you can be a little bit more nimble as a small company and get that done. But of course, the blockage is going to be there for us like it is for everyone else. And those are things we just have to work through. But generally speaking, because we're smaller and have smaller programs and whatnot, it's executable for us and manageable and we'll be able to get it done and move forward.

42:48 So if I can just add into what Blair was talking about, I think we haven't done a very good job in the mining community in trying to educate the new generation with respect to mining. I actually have 3 sons who, 2 of them are in the financial institution as investment bankers and they don't believe mining is the way to go or investing in it which is difficult for a guy who's in mining and trying to convince these guys that mining is just as good as the cannabis or as good as the tech companies. So we haven't done a good job in that. And to get people to actually even work in the mining industry, we've done even a lousier job in terms of educating them. And these are some of the things that the Ontario Mining Association, Quebec Mining Association, or even the Canadian Mining Association needs to take on as initiatives to start right at the high school, or even at, you know, to be able to get the people to understand that mining is not a bad industry.

43:43 I was listening to Marco Tifani of Anglo at the CIM and he was trying to say the same thing that we need to tell the world that mining is what makes the majority of your GDP growth, the majority of the things that are happening in your countries as a result of the work that the mining community does And it's probably just as safe or safer than some of the other industries. It's just got a bad rap that we need to educate people to change their mind. And that's how you can overcome some of the challenges we're talking about in terms of assay turnarounds because there's not enough people who want to get into that field or mining skilled force. I mean, there is 1 generation missing of mining, mining labor. I think I think we're going to be in a very difficult situation in terms of even on the contractor side or a mining side when somebody wants to start the project.

44:35 I think we're moving in the right step forward with the ESG standards and everything else that are coming out. It's a good thing for the sector. Attracting younger people, It's all about the environment now. And you know, having, having, I know Ivanhoe just came out with their new mine that's going to be completely carbon neutral, which is great. It's great to see that because people aren't attracted to the sector as well, especially the younger generation, because they think that mining is so bad for the environment, even though it's not. There's a lot worse things for the environment than mining, and one of them is cryptocurrency. And We need to re-educate people. Mining cryptocurrency is ridiculous on the amount of energy and consumption that it uses.

45:24 Mining can be environmentally friendly. There's battery-powered vehicles now, more carbon-neutral mines that are coming out. We're doing a better job with our tailings. We're doing a lot better job with our environmental assessments on the mines. So that's great to see that as well. But I think We're now catching up. We've been dragging for so long. We're now starting to catch up where we should have been, you know, maybe 10 years ago but also Technology is becoming a big thing in mining as well and attracting younger people people The other thing about mining is mining is in remote locations. That's the problem. No one wants to move from their home and work 2 weeks in, 2 weeks out, be away from their families. They want to live in cities. They want to do that.

46:13 And so that's the other hurdle that we need to get over for attracting the younger people to the sector. But we were able to do that now with technology and with fiber optics and everything else. There's mines around the world now that are completely operated from remote locations. You can run your trucks and your jumbos and your scoop trams and everything else from your home, from your office, if it's set up properly. So as that technology improves, it'll be a lot, it hopefully will be a lot easier to attract the younger generation to the sector because people want to see that. Working from your home and you're basically driving a truck like you play video games all your life, that's quite attractive for some of the younger generation.

47:05 Yeah, I think one of the things that I noticed some years back, I remember being a PDAC and just thinking, God, there was a Sunday morning, maybe 2 or 3 years ago, and there was nobody coming in. And I thought, I know things are bad, but I just didn't realize they were this bad. But, you know, you know, the PDAC started to charge, you know, 30 bucks a head to come in. I was thinking, wow, you know, we can't get people to come in and charging. So it really frustrated me. And I started something that day called Save Canadian Mining. I started it because my perception was there was a lot of forces, dark forces, on the investment side of these things that were making it very hard for investors to get decent returns in mining. It's a risky business, we know that. It's always been a risky business, but there's always been a few big winners along the way and that's driven people to continue to invest in mining. But we've gone through a period of time where we haven't had the returns that we should be delivering to our investors. And I would say, I would argue that, you know, one of the reasons why young people are going into crypto and into cannabis and technology is the returns have been so much better, you know, and, and, and, you know, I think our time is finally coming, but I think we've been advocating, in fact all the companies that are on this call have been supporting safe Canadian mining and are pushed to basically get a fairer playing field so that we keep predatory shorts out of destroying capital and allowing investors to make a proper

48:35 return. So I think that's coming. I think we've had some really good success with the Ontario government and their task force and we're expecting to get some serious role changes, hopefully in the fall. That'll make it much tougher for people to be predatory short selling our stocks. We did a study with Muranbil that showed that if you looked at all the stocks across the metals and mining universe in Canada, They're trading at about a third of where they historically have been based upon the commodity index. Think about that. I mean, so stocks have to almost triple across the board, big and small, to get back to normal. So I think if we start to generate returns in this sector, then you're going to get more investment and then you're going to be able to track and train people better, do the things that Blair talked about in terms of advancing the technologies and these sorts of things.

49:29 I think those changes are going to start to come, we hope. And I think that could be really meaningful for the sector and for attracting the right people to it to help it grow. And because as the saying goes, if you're driving something, you got there because somebody mined it, you know, And technology put it together in something. So mining is the cornerstone of life. It's nothing to be ashamed about. We should be proud of what we're doing. Wonderful. That was a Great conversation. The next question comes from David Chevron. What do you think about the zone innovation in Miner, which is otherwise known as the ZIM project, that is sometimes mentioned on ruins, Noranda region. This is not confirmed project or anything like that for now, but How do you consider this kind of initiative that would allow to build and concentrate the Quebec mining local expertise?

50:24 I don't have any knowledge as that I am, so I wouldn't be able to comment on it. I apologize, I don't know either as well. I'm not familiar with it either. I'm sorry. All right, well, moving on then. Sorry, David. I will look it up. Gernot Wolber asks, how do you manage the requirement by the professional associations like the OGQ that will only give a three-year temporary permission to work in Quebec? If you've not passed a French comprehension exam, there's quite a high level. Also other provinces recognize professional associations of neighboring provinces, but Quebec does not. So it was a challenge for us at the beginning, obviously, because we started with having some of our geologists that came from Ontario to start the final arm and then we sort of became, we followed up the being a local aspect and continued to employ from the Quebec communities as well as people who are members of the OGQ.

51:27 So the three-year certainly was a challenge but we managed to actually incentivize our employees to take up the French literacy language to be able to, because these are all professional geologists and professional engineers who are quite capable of working in any province except for the OGQ wouldn't allow them to do so. So in fact, I believe out of the original 5 geologists of ours, 3 of them have already got their OGQ through the French language that we sponsored. And we continue to hire the employees that are from that area. But I would like OGQ to accept the professionals from different provinces because as operators, we're very cognizant of the language And we definitely follow that regardless of whether our geologists or engineers are only English speaking or only French speaking. You know, all of our supervisors, all of our management, all of the requirements in terms of, you know, working in a mining environment are being met with respect to having making sure that both languages are spoken.

52:37 So I just hope that the OGQ would recognize other provinces as well. Yeah, I would agree with you as well. I think that it should be a requirement to speak French at a certain level. It's just the standard is so high and the exams are quite difficult from what I hear. I'm, you know, I'm the accountant so I don't have to fall under that category, but realistically, it is tough. They basically want you to be almost completely fluent, which is fine. However, if they brought the standard down a little bit and be bilingual or be not necessarily fully bilingual, but be able to communicate at a certain level, it might make it a little bit easier. That might, it might be just a bit of a challenge for Ontarians to work in Quebec, but, you know, and again, it comes back down to training in schools. But I feel that geologists, and if you're working in Quebec and you're working with people that don't speak English, it's just out of courtesy to be able to learn the language and speak the language that the locals speak, right?

53:47 When we were in South America, I took Spanish for 4 years just to be able to communicate and go down there and try my best. And people appreciate that. So, you know, I just think that I think the standard is a little bit too high. And if they brought that down on the exams, I'm not saying not have an exam or not being able to speak French is a key thing. You should be able to at least communicate in French and take some basic courses for sure. I'm learning French right now as well. I take lessons twice a week. So, you know, it's again, we'll see what happens. Yeah, I mean, for us, we've just decided to, we're certainly hiring locally, you know, French speaking geologists and a technical team. So, That's how we're dealing with it.

54:38 I think, again, in every jurisdiction where you're at, where there's another language at play, It's common sense to try and, as much as possible, be able to converse and communicate in that language that's only respectful and makes for better relations all the way around. But as the guys have said, it certainly wouldn't hurt them to relax it a little bit and to encourage the engagement because at the end of the day people do want to work there and do and you know common sense is that they do want to improve their skills and and maybe make it you know less by a stick and more by carrots. Amazing, well, I think that we've had an amazing conversation.

55:25 I wanna, first and foremost, I wanna thank you all, Terry, Mars, Blair for coming on. You've spoke wonderfully. And I think we've had some really, really interesting conversations. We will be wrapping up now at this point. That is all the time that we have for today. So I would like to thank everyone that submitted questions that were able to be answered, and rest assured, if you asked a question, we'll make sure that it gets before our panelists here so that you can get some answers. But again, thank you, Terry, Mars and Blair for taking part in this insightful panel. And with that, we will be closing things off. So one last time. Thank you. This is recording and it will be published in the coming days. Thank you very much everyone. Thanks Cam, thanks everyone. Take care of Mars, take care of Terry. Thank you guys. Good luck with everything.

56:14 Stay safe, take care. Take care. Cheers. Bye-bye.