RPX Gold Delivers Robust PEA And Updated Mineral Resource Estimate

0:03 Good morning everyone and thank you for tuning in today. We're pleased to welcome RPX Gold's President and CEO, Michael Michaud for their first live event with us here at SIXX. RPX Gold recently announced some very compelling numbers from their robust PEA and updated mineral resource estimate at their Wawa Gold project. We're looking forward to diving into that today. Just a couple of quick housekeeping items before we get started. If you're new to the platform, we always encourage your participation. You can do so by submitting your questions in the chat box found in the bottom right corner of your screen. This event is also being recorded and will be available for replay shortly after we conclude here today. With that, today's format will have Michael walk us through a brief presentation highlighting the company and their recent PEA and resource update, after which we will open things up for questions.

0:53 So with that said, Michael, welcome, the floor is yours. Great, thank you very much, Kyle. Thank you very much for 6 for the opportunity to present. As Kyle said, we have a very exciting presentation. It's very exciting times at RPX Gold. We recently changed our name from Red Pine Exploration. We felt that RPX Gold better represents where we're going and that direction is towards production. So as part of that, we completed a PEA and those are the results that we'd like to go through today.

1:30 We'll be making some forward-looking statements. Please consult our website for further information. All right, so really when we started the PEA, we started to look at this about a year ago. We were using a gold price of $2,500 per ounce at the time. What we found was we had a really good opportunity to start with some higher-grade, smaller pits and develop an underground. When we noticed that, we thought that's really good, we should start working on this. This was a year ago, but we quickly realized that the resource was mostly, if not entirely, inferred resources and we didn't believe that was suitable for going forward and announcing to the public in case we had to make some significant changes after drilling.

2:22 So last year we raised the money, we drilled over 10,000 meters into the near surface part of this deposit to better define the gold mineralization near surface. And With that done, one of the unique things about this PEA is we have a very high percentage of indicated resources and that's because of the drilling that we did. That really lowers the risk of the resources and of the PEA. But the other things that we were really looking for in the PEA, given the size of the company, is a couple of different things. One was a low CAPEX. And we could do that by using a toll milling scenario, given the number of mills in the area and given the infrastructure on the property and in the region. So we felt that if we could use a toll mill to get started, really reduce the capex required and it really reduced the execution risk as we didn't have to build a mill or a tailings area.

3:19 And not only does that reduce your construction costs, but it also reduces your permitting and construction timeline. So that was really important for us. And by doing it that way, by reducing that time for construction, for permitting, and using a 12 million scenario, it gets us into production that much faster. Therefore, we can leverage a much higher gold price that we're going through right now. And when we look at the results, we believe they're pretty spectacular. And again, this is, we had updated the resource estimate at the last part of 2025. We increased the indicated resources by 48%. We have a resource combined, inferred, and indicated approximately 1.7 million ounces.

4:06 I'll show you a chart on that later. And we're really only using a small part of that resource in the current PEA. And the reason we're doing that is because it's to concentrate on making money, getting money into our bank account that we can use to develop and drill off a larger underground mine and explore the rest of the property, which has some fantastic exploration targets that really need testing. We thought, what a better way to produce our own source of funds for the drilling and development as opposed to going to the market and continuing to raise equity financings that are often very dilutive for the shareholder. We thought this was a good way to advance the property and self-finance all of that future exploration work and development work.

4:52 So the PEA really comes out with, starting off with an open pit, small pit, then turning to an underground. In this current plan, it's a nine-year mine life, 67,000 ounces per year, with a lot of exploration upside. And that delivers 100% IRR. And The reason that IRR is so high, and that's a $3,500 Gold, it's high because the CapEx is only $51M. For us, it's a very low-risk approach for $51M. We have an NPV of $523M at $3,500 Gold. If you increase that Gold price to $4,500, of course, Gold is $5,200 now. It's almost 1 billion dollars in NPV discount at 5%. So I think it's a really great project. I think it's a project that's unique in that it still exists in the ground and has been mined out in the past. And the history of this area has really been old timer mining, very fragmented property ownership.

5:52 And what we've been able to do over the last number of years is consolidate the land package. We now own 100% of it, compile all the data, create a new geologic model, update the resource estimate, and now we should start looking at bringing this into production. And you can see with a payback less than a year, this is a pretty spectacular property. And I think because the property's been around for a while, it's maybe been a little bit forgotten in the past. And I think it's our job now we have these results, we're starting the marketing to get the word out there of how good a project this is. And that's one of the reasons we're on 6 today is to get the word out to new shareholders who might have forgotten about this opportunity. So where we're located, and this is really important slide because it's Northwestern Ontario, it's on the North shore of Lake Superior. It's right beside the town of Wawa, Trans-Canada Highway, power lines, rail lines.

6:49 The infrastructure is there. We're very close to Alamos Gold, who owns the Island Gold Mine and Mill, and also the Magino Mine and Mill. It's about 40 kilometers away from us. West Dome mine, which operates the Eagle River mine, it's about 100 kilometers away. I worked for West Dome for the last 7 years. I just joined RPX Gold about a year and a half ago. So I'm very familiar with this property and that's why I joined, because I recognized the potential of the property. And further away, we have the vault minerals, which was the old sugar zone mine that's now in care and maintenance. Importantly, is further away, about 140km away, certainly truckable for instance, is the Hemlo mine. It was owned by Barrett for a number of years and it was sold just recently to the Hemlo mining company that is now new to the region and they're actively exploring ramping up the mine in that area. So this is an area that's really seen several billion dollars worth of investment over the last couple of years. So it's a really hot area. As I always say, it's great to have the smallest house on the best street in town. That's how you generate value. So you can see we have some pretty good partners in a pretty good region, and there may be some opportunities for partnerships going forward. And just as a note, Alamos Gold, that's very close to us, they own approximately 10% of the shares of RPX Gold.

8:21 When we zoom in a little bit on the property, this is a property that's been mined often on and off since 1890. You can see the number of old head frames that exist on the property. It's a large Gold system over 6km long. In the past, the way they typically mine is they were very small, it was splashy Gold and little quartz veins, mostly mom and pop type mines. I think that's our opportunity is to consolidate that and mine a much bigger deposit. It's right beside the town of Walla has been very supportive of the mine. Walla used to have about 6,000 people in town, now it's somewhere in the order of 3,500 people. They're looking forward to getting some business going again in the region so they can continue to grow.

9:09 They lost an iron ore mine back in the 1990s, so they're looking to replace that with development where we are, So they've been very supportive. We also have exploration agreements signed with the 3 First Nations in the region, have good relationship and we have a number of people that are in the First nation that work at our site on the exploration side. Now, we're looking forward to converting or transitioning those exploration agreements to IBA agreements as we go forward and go towards a production scenario. But The other thing that's most important is, when you have a deposit, it goes right to surface, you can mine that quickly. When you have infrastructure there in the middle on the go, you can get to that quickly. But really what's the third leg of the stool here is, can you permanent quickly?

10:00 And because this site is a brownfield site, you see in the gray colored, the gray shaded areas, those are original leasehold patents and mining leases. So we can operate here, we can do all our exploration, roads and whatnot, We don't require a permit for that. When we come into commercial operation, we need the permits to operate. We do have a closure plan still on file from a previous operation back in the 1980s. And we have a number of permits that still exist. And because in this current plan of toll milling, we won't require a mill, we won't require tailing. So it's really about surface water and in the mining operation, the stockpiling of waste rock in the area. So that's why we believe the permitting can be relatively quick, relatively easy compared to a typical operation.

10:52 Again, looking at plan view, you can see the geology, the resource that we outlined, the 1.7 million ounces is really only covers about 30% of a 6 kilometer long gold trend that requires additional exploration. In fact, we just located the faulted offset of the deposit. You can see in the South part of the property, the red line coming down. There hasn't been any resources there because it just hasn't been drilled at all. So it took bringing all of the information together, consolidating that geologic information, reinterpreting and going out there doing some test holes to make sure we had the interpretation correct. We did, so That's an exciting future for drilling as we go forward here. You can see the resource on the left-hand side of the screen. This resource is based on a large open pit. That large open pit of approximately 1.7Moz does exist.

11:49 It's a large capex project, a more moderate grade at 1.5g per tonne and a lot of potential to increase the ounces. But for us, what we wanted to concentrate on was something, a project that's more appropriate sized for a company our size, so something low capex, so small pits and then going to an underground to keep the grade high so we can transport it to a tool mill. So as we go forward, that may change, but we want to be able to start generating some revenue, put it in our bank, having the money to be able to drill and develop and gives us optionality on the property going forward. But we can start with the first few years making money with our small open pits. And the reason that, and I think this is a really important slide. If you can see in the top right-hand corner that photograph, that's essentially the ore body there. You can see mostly in the brown color with the people standing on it for scale.

12:42 And on the very top of the slide right below the tree line, you can see a white quartz vein, there's an old added on it, and then the vein just pinches

12:49 out. And that's what they were trying to mine in the past. So very small, very high-grade veins, but unfortunately those mines were small because they couldn't chase those veins. The geometry is very irregular. Our plan is to essentially mine out the entire shear zone, which is about 5 to 10m thick, and it goes for approximately 2.5km along the surface and then continues down to approximately 1km at depth. It's a very tabular body. It makes the mining very easy, very low risk and low cost because the economy is a scale. And then we get all the gold in all those little veins that are stretched out and pulled apart within that shear zone, as opposed to just trying to target the high grade veins themselves.

13:35 So certainly there's some areas where it can be a bit more selective and leave some waste behind, but generally we're mining the entire shear zone from hanging wall to foot wall. And this is a diorite body, very similar to the neighboring Eagle River mine that I worked at, and also to the Magino mine. Good rock quality that should make for good mining in an open pit, and on the underground should be able to do big stopes, which we would like to do to mine out this envelope of ore. Could I just ask you a quick question? If you go back to the other slide there, Michael. For those smaller veins, how much drilling has been done there? Is there potential for those to be a lot more exceptional? We certainly have done a number of drill holes into this. We're trying to be conservative to make sure that we don't extend the veins too far.

14:25 We've been quite conservative. There is an opportunity. You've seen some of the drill holes that we released last year. We've had a number of, when the average resource grade for the shear zones around 4g per tonne in the underground, we've reported a number of holes last year that were very high, over 10g per tonne, over 5 to 10m thick. Those areas do exist. We really have downplayed them because we want to make sure that that would be an upside when we get into the mining, but certainly there are some higher-grade areas. Actually, we are drilling again right now to get ready for the PFS and we are continuing to find more of these zones and we'll be issuing some additional drill results here within the next month or 2.

15:20 And then you can see here, this is a long section of the deposit. I think this explains really our plan. So we're looking at the side of the deposit. You can see that in the lower left corner, that's the CN Tower for scale. This is a big deposit. And it's really only been drilled down to about 300 meters other than a couple of small areas you can see in the lower left, where We actually found some great mining areas. That everywhere it's white is areas where we don't have any drilling. So it needs a lot more drilling, but the first 300 meters has been well drilled and it's about 2 and a half kilometers long, 5 to 10 meters thick. It's over 2,000 ounces per vertical meter.

16:06 So it's a very good mine. And you can see our approach here. 2 small pits at surface. They're mining some higher grade parts of the deposit that are in the warmer colors, the yellows, the orange, the reds. And we start with the North pit and then we move into a South pit. And when those pits are finished, then or get to a certain stage in depth, you can see in the North pit, you can see where the underground starts and it connects to 13km of underground development that's been previously done by previous operators. That development, never mind the shear zone, they were looking for these high-grade Gold and Quartz veins. When they developed on a lot of these zones, they found that the geometry wasn't regular enough for them to mine these deposits. That's why the development exists. It's a great bonus for us. We would have to rehab some of that development and make it bigger for our bigger equipment that we want to use, but it certainly makes the process a lot easier. So we would start with the North pit, and then when it's finished, that'd be the very first pit to mine. After about 6 months, it would be completed. We would start the underground development in that area.

17:11 That small pit alone would be operating for 6 months. It would generate enough funds to cover our capital costs of $50 million. And then at the same time, we'll be starting to mine in the South Pit. And you can see after year 2, it gets down to about this level where you see on the North side of that wall, that's where it gains access to the underground. And then in year 3, we'd start mining from the underground. Then in year 3 we finished the small south pit and then we have access to another big area of high-grade mineralization in the underground. So that's really the plan is to start with the small pits and continue to the underground. And the $50 million CAPEX is what gets us started. And all other CAPEX required to develop the underground, including the sustaining capital, it's all paid for out of cashflow because the small pits generate such good revenue.

18:08 And give you an example of that. Here's our annual gold that's going to be recovered. You can see in the first 3 years, it's first 3 years of mining from an open pit. You can see it in the blue colour and then in the yellow colour is the Golden Curve from the underground. In the first 3-years we're averaging almost 50,000oz per year and when we hit the underground it's about 74,000oz per year. That's with the current plan without additional drilling. I'm sure when we do drilling and we expand the ore body, the underground will continue to grow. But what I really like about this scenario is that there may be an opportunity, depending on the gold price at the time, when you're mining these small pits, you might find that if the gold really is at $5,000 an ounce maybe you mine a little larger pits and you delay the underground for possibly another year or 2 over the open pit, another year or 2 longer before you start the underground operation. And you can see the average grade's quite good. It's 2.4 grams per ton in the open pits, 3.6 grams per ton in the underground. And given the volume and the very regular geometry of this tabular ore body, that generates a lot of revenue based on the economies and scale. Everything's been costed based on other operations in the area, including the toll milling.

19:33 The PEA was completed by DRA Americas Inc, which is a very well-known respected engineering firm that's very familiar with operations in the area. So, they really guided us through the mining and costing of this operation.

19:53 And then we look into the cashflow. You can see that the free cashflow and the cumulative cashflow and the capital expenditures. So essentially you put in $50 million, you start generating close to $100 million a year. You do that for 2-years and then you reinvest that money back in to generate the initial capital for the underground, which is about US$61M. And then you continue with the underground for the rest of the mine life. But I think we want to be able to see, and we're kind of seeing that now with a bit of our drilling, is if we see those pits start to grow, it gives us more time of accumulating cash flow before we start the underground, which would make this even more lucrative. Because even if we just did the pits alone, we never touched the underground. So 3-years of mining those pits at $4,500 Gold, that's about $300M it generates.

20:48 It's very profitable and that's why we went with this plan. It really generates revenue. It's a high RR because of the low CAPEX and it's low risk because of that low CapEx and because a lot of it is contract mining and for me to up production or down production, we can do that quite easily. It's really after that about finding a toll mill. As I mentioned, the Hemlo mine, about 140km away, has a capacity somewhere in the order of 6,000 to 7,000t per day. We're really looking at a 2,000t per day operation, so I think there's opportunities there. Alamos is operating 2 mills, Magino and Island Gold Mill at the time. Right now, at present, they're producing over 10,000t per day.

21:38 We would look to have some discussions with them about the ability to have some toll milling done that side as well, and also at West Dome-Ziegel River. So I think there's some good opportunities in the area. And now I think that the goal for us is to move forward and secure who's going to do the processing. But now we have all the details we need to do to have that discussion and how much tonnage and

22:06 what production rate they can process our feeds. So now we have the details that we can have those more formal discussions. Now, If we look at the site layout, you can see, as I mentioned, it's really about generating some small open pits. There's some on-site buildings we need to construct. Right now we have an exploration camp there and roads and power. So we have to build a little bit more infrastructure on site, but it's really about starting the pits and finding an area for the waste rock. And you can see we found a nice location, high and dry, hidden from view up in the top part of the image. So now we're working towards with these details, we start working towards the permitting for the project to get started.

22:58 And as I mentioned, we never forget about the exploration opportunity. It's one of my favorite slides because this is why we came up with this plan. Avenue is because we have some excellent exploration targets. And I would say that, off to the left-hand side of the slide, you can see that big blob in red. That's really the faulted extension of the main zone. It was not known for over 100 years. Again, it's because the property was fragmented. They never consolidated the geology. Now we have that opportunity. We drilled through the fault, found its sense of movement, so it was down faulted. We drilled a couple of holes into this area. We hit some very nice alterations similar to the main zone, some nice visible Gold, some good values over narrow widths to start with. I think we're just on the edge and we really need to drill some holes into this area. So that's an exciting exploration target we'd like to get to. The other areas on the north part of the deposit, we have the Cooper vein area. These are the classic Eagle River style of very high-grade, splashy Gold in quartz veins in narrow, brittle fractures in the north part of the property.

24:12 They can make enough material for their own mines, but in this scenario, we're already mining elsewhere on the property. They would certainly be excellent feed into another mine. Then at depth, of course, as I mentioned, Everywhere in White doesn't have a drill hole, so we have a lot of opportunity at depth. We've identified another Gabbro sill, which is often related to the mineralization now, so now it's really about going in there and drilling some proof of concept holes to really show how much bigger this deposit could be. We wouldn't drill it off from service because those holes get pretty deep and expensive, but we can certainly get an idea of what's to come in the future. So, exciting exploration targets and sure as we go forward, we're going to have the optionality to decide how we want to go once we have a couple of hundred million dollars in our bank from the open pit mine, then we can decide, okay, let's start the underground now. If it's this price, maybe you run the pits a bit longer, maybe you decide to put your own mill on site or you buy a mill somewhere.

25:12 In the meantime, you always have the opportunity for 12 million, that's what the PA covers. Even in that scenario, it generates a lot of revenue and it's a valuable property. So we're gonna be optimizing it as we go forward using some of the money that we've had to better define the property and what we have there for total resources.

25:33 Now, when we look at why this is a good investment opportunity, we've been able to bring in a number of institutions over the last couple of years. Alamos is a 10% owner of the stock. Merck is a 10% owner. The Bolton pro rata for the most part of the last number of financings we brought in Royal Bank, Gold 2000, McKenzie and more recently Libra and Palisades. So bringing in some more institutions provides a lot of strength. You can see that the share price has been strengthening over the longterm. I think it will continue as we get the word out there. And I think as we encounter more catalysts for the year, I think the value will continue to come into the company as we did in this project. After the PEA came out, Haywood, Pierre Vincor, the analyst there, came out with a dollar target price on the stock. We're currently trading at 20 cents or so. So That's a 5 bagger if we can get up to that. And Stewie McDougal from Research Capital has a 60 cents.

26:37 He's done a value per ounce where Haywood has done a more intensive discounted cashflow model to come up with that valuation of a dollar. So I think starting to see the value of the property with the PEA. And really when we compare ourselves to other people in our peer group, we're really trading somewhere around 10 or 15% of our net asset value for a PEA, compared to some of our peers, you look at Amex and Radisson, West Red Lake, where you are quite a bit below value compared to our peers. But I also think there's a few other steps that we need to take to recognize that value. And That's really for the plans for this year. Those plans are really, first of all, going off now that we have the details, finding out who is going to do the toll milling. We announced an MOU, it shows where the ore is going and that they've done their work to know that this is a credible project.

27:39 That's the one-two punch, I always call it, for bringing value into the company. After that, we'll have the permitting and the PFS, which is expected by the end of year. And then we continue on with our First Nations and community

27:54 relations. And, you know, after that it's sourcing the contract miner and the highway trucking suppliers. So it's a busy year. I think we're going to add a lot of value this year and it's all going to be very quick because it is an advanced brownfields project and we're not building our own mill and our own tailings area. So It makes it a fairly straight project and fairly quick to bring into production. And we're hoping that's going to be in 2027.

28:30 So thank you for the time and again the opportunity to present. I'd be able to take a few questions now if we have some time. Perfect, yeah no great presentation sir. There have been quite a few questions in the chat as well as upon registration so I'm going to try and ask them all without doing too much overlap here. Now, Michael, you have talked about the toll milling situation quite at length during the presentation, but there are a few questions. So I'm just gonna reiterate a bit here, but go ahead and talk about the process involved for potential LOIs. Are you doing bulk samples currently to confirm local mills are able to process the ore? If you could touch on anything further in regards to the toll milling?

29:18 Yeah, certainly. The typically the way that a toll mill, now when I was last one, we had a couple of clients that we used for a toll mill. I was on the other side of the coin, I guess you could say. It's usually an outright payment of the Gold found in the ore. You can do it different ways where you can sell the ore right as it leaves the site. Some of the things that the toll mills would want to see is the metallurgy, the mineralogy. The reason for that is they have to make a decision whether they're going to batch process the feed with their own feed, or they're going to blend it with their own or they're going to run it separately. So that makes a big difference on the costs as well.

30:08 Also what size the material comes in our capital costs that we've had, we have included the cost of the power and the having a crusher unit, cause we need a crusher outside anyway to reduce the run of mine into finer material that we can put into highway trucks and haul down the road. We also need it finer so we can get a better sample so we know exactly what we're sending to a tool mill. They may require a certain size depending on the mill setup and that gives us the opportunity to deliver whatever product the mill would want. When we came up with these costs, because we don't have a contract,

30:48 one of the things we had to do with DRA is to estimate what those fees would be. On the shipment charge, that was a little easier to figure out because We actually called a few of the trucking contractors in the area. We have very good numbers with that. It's actually about $35 that we used in the PEA, and that's to take it to the farthest away mill, which would be Hamlow for us. Obviously, if it went to Alamos, which is a lot closer, that would reduce the cost a lot. And when we look at 2000 tons per day, for comparison, the Borden Lake mine ships rock twice that distance, over 200 kilometers, a 4000 tons per day up to the Timmins area from Shaplow. So, you know, certainly doable.

31:39 And, you know, easy to, not easy, but I mean, we expect to have a permit for that. So it would be good. As far as the toll milling goes, like I said, the big mills are there. It's

31:52 really a matter of looking at where they are in their production schedule, how much feed they have. And it always comes down to what kind of deal that you can do. It's based on whether a mill wants your feed or whether you want the mill. We believe that because there are 3 and actually 4 mills in the area that we could use, that would give us some leverage in the negotiations. It also gives us an opportunity where we could possibly split the feed and have it go to several different mills. There are a couple of mills in the area that over time, like I said, we would start with toll milling, but maybe over time some of these mills may become available for purchase and be able to buy it, move it or buy it in place and use it.

32:38 Like I said, this is a 9-year mine life to start with and getting bigger. It's really just about getting started with the tolling and seeing where it goes. By then, there may be some other opportunities for partnerships in the area for the development of the underground mine or a larger open pit. I think it's really the key for us to get started, very low-risk approach, low capex, start generating some revenue. It gives us a couple of years to really decide what the next steps are gonna be. And in the meantime, we can be running the drills to help answer some of those questions. And for those 3 mills, do they have the capacity or are they at full capacity at the moment? Are you aware? At the Hemloth, it's approximately 11,000 tonnes per day mill. They currently have about 4,000 to 5,000 tonnes per day, so that leaves about 5,000t to 6,000t a day of capacity, so certainly a lot more than we would need.

33:40 At West Olmo there's a smaller capacity, but they are looking to grow in the region, expand the mill so that may generate some additional capacity there. Then at Alamos, they have 2 mills, it's my understanding they're looking to increase their Maginot mill from 10,000t per day to 20,000t per day and shutting down the old Island Gold Mill. There would certainly be additional capacity there as well. I think there's a good opportunity and it's really about nailing it down and going forward but I feel quite confident that we'll be able to reach an agreement within the next number of months. That is a really big catalyst for this year. I think people will really believe when they know where it's going, they know what the costs are going to be. Now it's just going through the permitting and getting the project started. So I think it's a big step in de-risking the project and we hope to have that done shortly.

34:43 Now you mentioned in a few months, there's a couple of questions here, Tim saying, can you fast track this project? Someone upon registration said, how long do you think it would take before first day, first or delivery to a contracted mill? So I know it's up in the air right now, but realistic timelines for investors' expectations?

35:05 Yeah, we're certainly looking for 2027. Our environmental consultant has told us that we believe we could get the permit by the end of this year. We can certainly get the PFS done by the end of the year. Everything comes in line, then we go to a project finance, which would be pretty straightforward at $50M or relatively straightforward. We believe we would be trucking or in 2027. And the reason that we, again, believe this the permitting can be so quick because it is a Brownfield site. We have been collecting water samples here every quarter and send them to the government for the last 30 or 40 years. We have old studies, baseline data.

35:51 We've been told by our consultants that we need about a year's worth of baseline data, less than the mandatory 2-3 years, because we have a lot of this data collected already. So we started last summer, we drilled the boreholes, we did the floor and fauna studies, we still are working on some fish studies. We have 250 samples out right now for the acid

36:15 generating potential for our waste rock areas. Certainly, we have a lot of that information from the past that shows it's not acid generating, but we had to update that. We have 1,000 metallurgical samples that are out right now to spatially confirm what we believe the recovery to be based on more limited sample. That's sampling that's been done as part of our PEA. We have geotech data that we're collecting right now and with that we may be able to challenge some of the current parameters for the open pit where I think the slope angles have been fairly conservative so we might be able to see that we can steepen those up a bit and lower the stripping ratio and reduce the cost. So I think there's a lot of work that we're doing now. We're waiting for the data so we can optimize this PEA as we go towards the PFS.

37:06 We have been drilling since October, since the last resource came out, particularly in the area between those 2 pits. We've been having some good success there, so I think those pits could change a little bit in size before we have to switch to the underground. That's all information that's going to be used to update the PFS. So we're kind of excited to move to that right away. And because we are drilling right away, able to update the resource estimate as soon as tomorrow sort of thing. Definitely. Ralph in the chat is wondering if you could provide any commentary on the status of the litigation with Quinton. Yeah, that's Some parts are a little bit out of our control. Certainly the OSC felt there was wrongdoing and brought in the RCMP. The RCMP is doing their investigation.

38:02 They certainly interviewed and acquired a number of data from the company which they have in their possession now and are deciding what to do. The timeline that I'm not really sure, but we've certainly cooperated well and provided all the information to them. So I'm not entirely sure the timing, but we will find out in due course. Excellent, thank you. There's quite a few questions about operations here. Are you looking at ore sorting too? Is that addressed in the PEA? Okay, I'll just start with that for now. Okay, it certainly is, that's a great question and a lot of people are asking about that because it does make a big difference.

38:54 Typically, the ore sorting machines are very good these days because of the sensors on them, and they can do large tonnages of rock. So because we are going to be crushing rock down does give us an opportunity to use an ore sorter. We are just starting to send some samples out for that analysis. I don't know that it's a silver bullet where you're going to save 50% of the ore separation, but if we could save even 10% or 15% by separating out some lower grade material before we send it to a mill, that would be a huge savings for us and put money in our pocket. We're definitely going to be looking at that going forward. It could turn out that maybe different mills are set up differently so we can sort and maybe it works better with sorting it one way is good for 1 mill and sorting different ways is better for another mill. These are the things that we're working on right now.

39:53 I think about the fine-tuning from a PA to a PFS. There's a lot of that that's going on to help to optimize the project and only make it better. Have you bought some small crushing equipment to start milling ore? Far chances of this happening is, sorry, just a few questions in 1 here. Yeah, we haven't purchased anything yet. Now that the PA results are here, I think that we're gonna start to look at, because we will purchase the, even though it's contract mining, we'll purchase the crushing equipment. And now we're gonna look at, what it's required to purchase that we might have to, they might be long lead items. So we wanna start to get those ordered now so we can get them to the site so when we are ready to start we have all the equipment that we're going to need.

40:46 Anthony is wondering why was mining stopped at these properties deemed quote-unquote mined out? It was really because in the 30s, 40s and 60s when they were mining here. They were really just after those very high-grade areas in those small quartz veins. I think it was just too challenging. They didn't understand the distribution of the Gold. They just went for the Gold in these high-grade veins and they just weren't regular enough to mine. I think in the latest commercial operations that Citadel Gold Mines did in the 1980s, they're the ones that did the bulk of the underground development and really never did any stoping. They just did development to look at the ore body.

41:32 Their cut-off grade was somewhere in the order of 5g-6g per tonne. The only thing that would be above that cut-off grade would mostly be these splashy quartz veins and that just wasn't easy to follow for them, especially with mechanized equipment. That's why we're not taking that approach. We're mining hanging wall to foot wall and taking everything in between. That lowers the grade down to around 4g per tonne, just under 4g per tonne, but it lowers the risk and makes the geometry very regular because now you're mining a tabular body and you benefit from the economies of scale. I think that's a really big difference in how we see this deposit and how people have seen it in the past. That gives us the comfort that we've done it correctly. And one of the things I want to stress is all these high-grade areas, we've actually went in drilling where most people try to go in and expand these high-grade areas. We've actually gone in and specifically drilled around any high-grade quartz vein hit to make sure we understand the extent of the geometry so it doesn't bleed out into the rest of the shear zone and overestimate the number of ounces that we're going to get. So I think we've taken a really conservative approach to that modelling and that was done by WSP Global out of Sudbury.

42:54 They're very familiar with the project. They've done a couple of updates for us now and that's why they've classified most of that deposit as indicated resources because we've done a lot of this infill drilling to make sure that we understand the Gold distribution. Michael, can you do me a favour and go back to that exploration slide? It was one of your favourite slides in the deck. Philip asked a question, it was before you touched on this slide, but if you want to provide any further context, he's wondering if you could speak a bit more on the geological upside on the property, given that it's the same rocks as the Island Gold Mine? It's really a unique area. It's a diorite, so it's very similar to the host rocks at Eagle River. In fact, where that belt comes down, goes under Lake Superior and comes up right at Walla. So it's really an extension of that, that zone and then continues up towards the Island Mine.

43:54 The diorites in the area, they often react a couple of different ways when the surrounding volcanics are stressed, you know, they're behaving more in a ductile way. So when it gets to these diorites, it often squeezes them and breaks them either in a brittle way where you get these quartz veins like at the Cooper vein, like at the Eagle River veins. And then sometimes depending on the amount of pressure, these little fractures develop into small shear zones. I think that's what you see here. You see it at Eagle and you see it at Mojino. I think the interesting thing here with this deposit is that it creates a really big shear zone right through the middle of the deposit. That's why we have this big wide shear zone as opposed to just the narrow, splashy veins. Once it initially broke brittlely, these veins infilled, you had these veins, and then what happened is the shear just kept getting bigger and bigger and more ductile, and just start tearing apart all these quartz veins and crushing them all and putting them all everywhere in the shear zones. And that's why we see wider zones of lower-grade mineralizations as opposed to just the quartz vein that's left there.

45:06 What I see as potential, and there's really a few different areas here, is the main zone that we know that's faulted offset. I think at depth we found this Gabbro, and why this Gabbro sills is important because a lot of the shearing often is confined to this more mafic, softer Gabbro sills, and when it interacts with the surrounding harder diorite rock, it cracks it so you get a lot more flooding. So that's where we want to see at depth more mineralization there than the Cooper vein style of mineralization at the north end, which is the more classic veins. So a lot more to discover in this area. And I actually have 1 slide in the appendix if it's allowing me to this one. You can see now in plan view, better shows where that offset is coming down. You have the modeled area, the main zone coming down, it's offset on the Park Hill fault. Then it continues down to the south with only a few holes in that very shallow depths. That's where we believe the main zone to go. But you can see these cross-cutting, more brittle areas of veining where the Park Hill mine was and the Grace Mine and a number of these other very high-grade Gold and Quartz veins mines. That was more the focus of the old-timer mining than what we're looking at mining today.

46:27 Another thing about the geology, it has similarities to Cote Lake as well in that it has some very low-grade, wide zones of gold mineralization, often related to the original IRGS style of mineralization. That's true out into the footwall of the zone. We really haven't spoke about it here, but if there was more drilling to do, and I think there is to test this, it could be a very large deposit that needs more work. It's just that for us doing that work, it would take some time and take some money. The best way to pay for that is really from a smaller operation to generate that revenue. So that's really what's driven, provided the focus for us to get into production.

47:15 Thank you for that. We have touched about the optionality for toll milling at length, but Tim's just wondering, have any majors been in contact about the property? There actually have been a number. You know, there's been some that are near us and some that are farther away who like this area and would like to get a toehold. They always look at the bigger project. One of the questions they always ask me, because I came from West Dome, is if you had $30M or $40M drilling program, would you go into production? I would have to say I think I would drill this off If I had that kind of a budget first before going into production to see what we have, unfortunately, RPX doesn't have that luxury of having that kind of funds available.

48:12 So without diluting the shareholder, this is the best way to get those funds to do that drilling. They certainly like the large-sized potential. It is a big diorite and it is in an area with excellent infrastructure. I think that's what attracted some other people to start their discussions with us. Now with the PEA out, I think that'll even attract more people because they can actually see that there is a pretty good way to start this project off. Even if you wanted to go at some stage to a much larger pit, you could certainly start with these small starter pits and make a lot of money that would help pay for and develop a larger pit mine. Definitely.

49:00 We're nearing to the end of questions here. Got a couple more. Tim's wondering, how is third-party milling controlled as per output or yield? I guess I would sort of take that to mean it really depends on, let's say if your mill was full, for instance, but you're using 0.8 gram material to do it, and it generates a certain revenue for you. If you could bring in material at 2 and a half grams that could generate more revenue for it through a toll milling basis and then you might start displacing their under their company's feed to be able to have your feed go through their mill.

49:56 But the most certain way is if there is spare capacity, most mills would want to have a feed going through their mill. It just, it makes, it generates revenue for them. Let's say in this area, in this, we're paying, let's say 60 to $70 per ton. If they run these big mills at say 15 to $20 per tonne, they're making $40 a tonne. So if you sent in 2000 tonnes a day, 700,000 tonnes a year, let's say they make just 40 bucks on that, that's $28 million. So it's not, you know, it's not chump change. So, yeah, there's money to be made in the total milling business. And, you know, so that certainly is a benefit to a mill to have that additional revenue.

50:46 Excellent. Thank you, Michael. And thank you everyone for submitting questions. There was one more upon registration and it's a great way for you to conclude today. But the PEA seems robust. How come the market has no reaction? So Michael, please take this as the opportunity for closing remarks, but why is the market not reacting as much as some investors are hoping at the moment? Right. I think there's a number of reasons. I mean, I don't have the exact answer, but my theories are that there is, it's a company that's been around for a while. I think the story has been forgotten for a number of years. It might have an overhang, a bit of an overhang for what happened a couple of years ago. We've certainly fixed that problem.

51:38 I think we're starting to get the word out there. I would say that we go into a number of meetings and people say, I love the story, never heard of you before. That really is just an indication that we haven't done enough marketing. We were pretty heads down, honestly, for the last year with doing the PA. Now that the numbers are out, we are heading into a more intense marketing period And that's part of why we joined the 6 is we wanna get the word out to people. So that's on us to do a better job with that. I also believe that there's upside because this stock typically trades in the order of 1 million to 2 million shares per day. 20 cents, that's a lot of money that changes hands every day. And oftentimes you can see in some of the alternate markets, a lot of volume gets traded and shares go down, even though gold might have gone up $100.

52:30 We have some positive new releases. I think there's some algorithms that are out there that, you know, have been working to keep the share price down. But, you know, our goal is to, you know, focus on the things that we can control. That's more marketing. We have 2 analysts covering us now with high target prices. We're having meetings with more people and we're getting better shareholders in every day. So We're starting to see the benefits as the share price is creeping up at some stage and maybe it's gonna be the next catalyst, the MOU or the PFS permit, but at every stage we expect to see more value put into this company and we're just headed down that path knowing that it will be properly valued at some stage down the road.

53:22 Great. Thank you so much, Michael. It was a great presentation. And thank you everyone that joined and asked questions. It really makes these events wonderful. If you did come in a little late, this is being recorded and our team should have the replay up within the next couple of hours or so. But thank you, Michael. I believe you will be attending PDAC this weekend. Is there a booth number people could Stop and say hi to you in person There there is a booth. We're there for 4 days. I can't remember There but we can and we're also in the core shack too so for a couple of days The last 2 days were in the Korshak as well. We'll be able to see a couple of different locations. Come by and see the rock type. You can see what the shear zone looks like. It's Dean Rock.

54:15 We could have a chat with our geologists, that would be there. Great. Thank you so much. And thank you everyone for tuning in. Enjoy the rest of your days. ♪♪