Scottie Resources | Corporate Update

0:00 For those of you who don't know us, my name is Gordon Robb. I work in business development, investor relations at Scottie Resources. Joining us is Brad Rourke, president and CEO of Scottie Resources and Dr. Thomas Mumford, vice president of exploration.

0:15 From there, I will pass it over to Brad. Okay, fine. Thank you, Gord, and thank you everybody for joining us today. I think what we'll start is, focus today is, we came up with some big news releases last week. Want the ability to discuss that from our point of view and take any questions. But before we get into those, maybe we'll do a really quick go through of our presentation. We won't make it as long as I usually go. We assume a lot of people already know the story. And if you don't, then please follow up with us after and we'll take a little bit more time to explain the basic Scottie story, but we'll just flip through these slides really quick and get to why we really want to be here and share information with you. So of course, we'll be making some forward-looking statements as a junior exploration company.

1:07 Mike click in there, Thomas you have them. I've got it. Okay, thank you. So of course please take note, take your time to read this as we are making forward-looking statements. So, after the consolidation that we released about last Wednesday, this is what this company should look like from a capital structure page come at the end of day Thursday. A company with under 50 million shares outstanding and fully diluted at 56 million shares. In today's environment that would be almost a fresh sheet of paper. I'll make note that what we've done here with this chart is the graph will have to change on the two-year historic charts. That's still saying 18 and 20 cents, and that'll be adjusted to the 6 to 1 rollback.

1:59 Rollbacks are never easy, very difficult decision to make. I'd like to point out that 9 years I've been in and I'm a very large shareholder of this company. So whatever I've done, I've done to myself. And this this company traded for 8 years before I did. We did get a lot of feedback over the last year or so, in particularly with US investors. And there's never a good time to do it. But we figure with our market cap, and if we could let people just focus on our market cap, If it becomes easier to attract investors because of this move, and that's a big if, we think it's the right thing to do. There's never a good time, but since we have so much more news to come, we think that we can defend a $50 million market cap quite easily and show that there is a lot more value. So that and we'll talk a little bit about that at the end. But when you look at this from a capital structure point of view from this today going forward, I think it actually will make some people really, really think, wow, you know, because regardless, we were at 300 million shares outstanding. We don't have to raise money today, but when I do go and raise money in 6 months from now or whenever that was going to be, did we breach that psychological barrier of the 300 million and is that becoming a problem? So time will tell. We're very encouraged from the feedback we've gotten.

3:24 Today's, you know, on Friday we were, we, you know, we didn't anticipate to move up as high as we did and then today we've given a little bit of those gains back, but we're still above the 14 cents where we were when we made that announcement. But time will tell. And like I say, we have a lot of news to back that up and look forward to getting it out. Next slide. I spent way too much on that one anyways. Again, one of the things we're most proud of is our team, totally independent board. Most people have been here for over 6 years and the board runs me. So different skill sets, all very successful in their own rights. And I just want to emphasize that nobody knew each other before we formed it. This is truly run via the board telling me what they think is best. We can go to the next slide.

4:13 4 things happened to Scottie in 2024 as we approach 2025 that I think are monumental for the company. It started out with Michael Gray picking us up and writing a nice 11-page piece on us just about 10 months ago. Within that, it's a very good technical study. They did 2 site tours to site. We were always hoping that that Mike would write something in and he did. But after that, we did a little financing and where Ross Beatty took most of that financing and has about 5% of the company. That's another big win for Scotty. And then after Ross came in, then we sold a royalty to first, to Franco, Nevada. Now we were royalty free, and we worked really hard to get that. The reason we thought it was good for us and our shareholders is it just gives us a technical validation on what we're trying to get out there into the market. And when you understand that Franco Nevada does not typically give money to companies pre-resource of which we are and also a little bit of equity, hopefully make people sit up and go, well, they obviously see something. It wasn't without a ton of due diligence.

5:26 And so we were really looking for that money, which is important for us to run a company, but also more importantly, is that technical validation worth as much as the money? And the fourth thing that happened this year was about 2 months ago, we put out a news release that Kevin Jennings was joining us as a strategic advisor to the company. Now, that's big for us, because he's given us a whole bunch of different ideas on how maybe better to position this company. Very well-respected guy outside of maybe the junior markets, but held some really, really fantastic positions in his past career where he was the CFO of Africa Barrick Gold, director of business and optimization for Xstrata, and also a director of business development and optimization for Falconbridge. So a very, very

6:22 weighted resume. And then also, Kevin owns about 30 million shares of the company, which was dominantly bought in the market over the last 2 and a half years. So for him to kind of come out, lent the name to the story and more importantly, some of the help that he's given Thomas and I now on perhaps how to better position the companies in valuable. And I think it's going to be really exciting for us in the future. So those are 4 big, big things apart from a whole host of great news releases that we'll share with you. So if you're willing to come into the junior exploration market, we just seem that we believe that we check every box that you would want. Are you in the right jurisdiction? What's the infrastructure like? We are no longer at Greenfields or we never were at Greenfields, but hunting for something. I would say we're advanced. We have found something. We haven't defined how big it is yet, but it is so, you know, the exploration risk that you might have, I think we've done a lot of that de-risking over the last 5 years. We have a commanding land position that we owe no money on, a great team that we just highlighted and then access to capital. So The next few slides, we're just going to check those boxes and we comfortably check any one of those boxes wholeheartedly.

7:38 We operate out of the Golden Triangle. As you can see, we share a neighborhood of some of the better names in this whole industry worldwide. The stories that really come to mind is of course Newmont buying the Pritium assets. Orion just gave Skeena a billion dollars to complete their project. We have KSM, we have Tudor Gold. We're in the right neighborhood. That's indisputable. And so we're happy to be there because again, more eyeballs and better chances of success. We'll jump over to there. Now, Here's the land package that we have. So we offer that district scale potential. Most of our work is just up upper left top there where it says Scottie resources.

8:25 But as you can see, we have so much more land. There's a total of 7 past producing mines on our tenure, even though most of our work is done up at Scotty. I'd like to point out that road empowered bisects the 2 main pieces. And then if you look down to the south, that's our Georgia River project, of which in our news release, we discussed a little bit about the possibilities of divesting out of that. Not because we don't like it. We drilled it for 2-years. There's a whole bunch of smoke there. It's just, if you gave me an extra $20M to drill, I would still have to go drill Scotty and in around that belt that we have around the intrusion. And so I think for our shareholders point of view, and we've seen other companies do this, it might be a little bonus that we get some value to our shareholders for that piece of property, because the likelihood of us getting to drill that here in the next little while are probably not very high probability, yet we drilled it for 2 seasons. If we can find the right deal for our shareholders, that'd be a little bonus because I don't think we're getting any value for that whatsoever. We'll discuss that in a little bit.

9:30 But as you can see, right in around the town of Stewart, very large piece of land, of which is 100% paid for. We have no property payments staring us into the future. We paid for everything 100%. And we own 100%, No JVs on any of that as well. So one of our greatest advantages, and I just want to keep pounding my fist on the table because this is when you start looking at value creation and monetizing potential, turning rocks into dollar bills, is your infrastructure. And we lack absolutely nothing, and it makes us unique. We can drive to our property. Our property actually has a small mine permit on it. You look at that right down at Stewart BC, that's a deep water shipping facility.

10:16 I don't think we've hammered on this enough, but we are one of the few mines on the planet Earth as close as we are to deep water shipping facilities. This is where the concentrates go out for Red Chris and Bruce Jack. And when Skeena gets up and running, that's where they're gonna ship their concentrates to is the port that's 40 kilometers away from us. All those other entities that are using that facility right now, which is underutilized, are 200 kilometer plus drives. And we're just a 40 kilometer downhill drive, which apparently you can use electric trucks for is something I've learned here in the last couple of weeks because of the downhill nature of the road. So I think this is something that we will be bringing out more and more information to the market as we explore all these opportunities.

11:08 But that piece of infrastructure is probably we're getting no value for it whatsoever. Again, real roads, power, and that's hydropower up to the Bruce Jack mine that sits right on our property border and flatland. So we are just blessed with all the infrastructure that one might want to see when you go to the next stage of turning these things into something that's valuable. With that, I'll let Thomas speak a little bit about the geology. At the end, I'll go through a little bit of our plan and strategy, and I'll talk about the consolidation a little bit more. Then Thomas can talk about some of the results that we put out to the market. Thank you for the first few minutes. Thanks, Brad. All right. So what we're looking at here is the Scotty Goldmine project area. This is where we spend most of our money in every year, doing exploration, expanding around the old Scotty Goldmine, expanding our blueberry contact zone, and then testing other targets in the area. And we've been extremely productive doing that over the last 6 years of drilling. So on the far left side of your screen is where the old historic Scottie Gold mine is. It's situated up on the mountainside there. It's a set of veins that strike basically parallel to your screen. They're stepped in and out of the screen. They're dominated by puritite and pyrite-rich veins that go from the average mine width was about 2 meters in width when they mined. They built everything underground for that mine, the mill, the power plant, all the access.

12:33 There's actually a 2 kilometer tunnel from the attic on the far right all the way to the mine just to access it during the winter time, which connects basically the old

12:41 mine to the blueberry contact zone that we recently discovered. Now The 2 deposits located are about 2 kilometers apart as the crow flies. They're connected by a road and that tunnel that goes underground. And when the mine operated, the lake bed was filled with water, as you can see. I've superimposed the historic lake level there. Now there's a glacier downstream of this that was damming up that lake bed. That glacier naturally has retreated and the whole lake has now flushed out from that, which gives us 3 big points of upside for exploration purposes. One is the Scotty Gold Mine. Those veins project east-west to go underneath that lakebed and they can be explored. We've punched a couple holes looking for it. We've also done extensive geophysics looking for the continuation of the Scotty Gold Mine on the other side.

13:27 The other is the tailings. The tailings are now exposed at surface. They were deposited sub-aqueously in the water when the mine was in operation. They're now exposed. On average, there's 2.1 grams a ton based on 115 samples that we've taken from the tails that go as high as 6 grams a ton in the bottom of the tailings pile. The production from the mine suggests there was 180,000 tons of tails produced during the life of mine. Volume estimates that we've done suggest there's now at least 160,000 tons of those tails left at 2.1 grams a ton. Now, The biggest point of upside by far is the discovery of the Blueberry Contact Zone and how it projects to go down to the south underneath that lake bed. That's what we've been exploring with the drill bit over the last couple of years, is how far south does it go and how deep down to the south does it go.

14:16 On this side, you can also see the C&D zones, which I'll come back to later, but it is interesting to point out exactly where they are up on the hillside there. And the tunnel that connects the Scotty Gold Mine to the Blueberry Contact Zone actually goes underneath the C&D zones, which is an interesting feature. Now when the mine operated in the 1980s, you know, it was a vein that was found at surface. It was expanded. It was drilled off from underground largely and then they started mining it. It was a very high grade vein. The average recover grade for the vein was 16.2 grams a ton. And the tailings, as I've mentioned, have 2.1 grams a ton in the tails. That means the head grade for the mine was in excess of 18 grams a ton when they were operating the mine. And they pulled out just under 100,000 ounces of gold from the mine during its 3 year, 3 and a half year mine operation.

15:08 Now the exploration side of the mine when it was an operation was limited. They were just trying to find a little bit of vein material in front of them to keep the mine going. The economics of mining were quite difficult at the time. They took a $20 million loan to start the mine at 22% interest, and then the gold price dropped from $700 to $300 over the life of mine. And Basically, they were not able to operate profitably due to the debt on it and the Royal Bank of Canada actually foreclosed on the mine. So when they shut down, they had 2 years of reserves ahead of them. So the ore, you're already at the ore from an underground perspective. The adits and the stokes are right at the ore body. Now they operated with a 10 gram cutoff grade in the 1980s. Mines now with the current gold price would be operating at a 2, 2.5 gram cutoff grade. And when you drop the cutoff grade from 10 to 2, 2.5 grams, you get a large mineralized halo around this old ore body, this very high-grade ore body, and you expand it quite substantially.

16:08 In addition to that natural expansion, just based on the dropping of the cut-off grade, we've done quite well with our exploration program in the first few years of expanding and showing room for expansion around the Scottie Gold Mine, both from the M and the O zone, the discovery of the P zone, but we've also identified a number of other targets in and around Scottie that we've been having quite a bit of success. And this year, we went back to Scotty and drilled a substantial portion of our 10,000 metre program at Scotty, trying to expand that and also trying to prep Scotty to be part of a resource that we'll put out here in Q1 next year. Now, it does still have a small mine permit on it. This is permit number M139. It's just in care and maintenance at this point. That is an interesting opportunity for Scotty to monetize the value here at the mine, potentially getting in production.

17:00 We're looking at other options like direct shipping or to see how we could advance Scottie quite quickly in terms of a monetary scale. Now the Blueberry Contact Zone, this is a discovery that we made in 2019 and we've been really pushing quite along with over the last 6-years in terms of drilling. We've now drilled over 45,000m into the Blueberry contact zone. Its strike length now extends to almost 1.7km in strike. We've drilled it down to a depth of 525m. The red line on this figure that you can see there, that's the tunnel that connects the Blueberry contact zone all the way to the Scotty Goldmine from the past production. That's the access tunnel connecting the 2 deposits together. Now, what you're seeing here is there's the main part that's just south of that fault.

17:49 Then we go under the lake bed, where there's a little bit of an absence of drill holes and then down to the south which we call gully and serac zone veins. You see that's the 1.7 kilometers in strike length. Now if we look from the West to the east and a slice that goes up and down with that yellow line is that's where the next slide will be, which is representing a long section through the cut through blueberry. You can also see here that we are situated right on top of the road. In fact, most of the drilling that we've done is right on the road. We do all this drilling with the exception of the C and D targets, which are up on the hill with the use of a skid-based drill. So we're pushing it around with the bulldozer, which drops our costs appreciably. We have some of the lowest drilling cost in the Golden Triangle because of that.

18:34 Now looking at the long section here, you can see that fault at the north end of the structure truncating mineralization. You can see that we've drilled down to 525 metres depth. We're still hitting the structure where we targeted down there. We've actually not drilled to a depth where we're not on the mineralized structure now, but our max depth is now 525 meters from surface. Drill hole length is in the order of 700 meters when we're at that depth. What we focused on this year, so we drilled 10,000m total, about 3,500m of those metres were at Scotty, another maybe 3,500m, 4,000m were at Blueberry. Those 4 purple zones there, that's where we targeted at Blueberry this year. And We're focusing on things in the top 300m, which would be likely the first to be in production.

19:21 We're looking to expand on areas that we have high confidence that there is high-grade mineralization. With the 2 news releases that we've put out so far for the drill ring results from this past season, I think it's been overly successful showing where we do have high-grade mineralization continuing in these areas. Now if we step back just a little bit and look at Blueberry and Scotty, we can see here that, you know, they're 2 kilometers apart, They're connected by road, they're connected by tunnel, but we also have identified a number of other targets in the area. And all of these targets occur as in a buffer around an intrusion. So in the Northwest, you can see all those pink rocks there. That's a Summit Lake, Texas Creek Plutonic Sweet intrusion. And all the deposits that we've noted so far, the ones that we've discovered like Domino, the D Zone, the Golden Buckle Zone, these are everything is always within a few hundred metres of that contact. In total, this is a 6km long belt here from the bend all the way to the domino.

20:24 Michael Bray, in his research report that he put out early this year, estimates there's a 3Moz total gold endowment, at least in this area. Now we are targeting to put out our first maiden resource in the early in the new year, which will consolidate both the Scotty Gold Mine as an underground deposit, and then Blueberry as both open pit and underground. So that's what the maiden resource in early Q. 1 or sorry, Lake you want early Q to represent will be Scotty and blueberry. That said, you know, that's a starting point for us from there will continue to expand. But you know, diesel and C zone domino, and we will try to connect all of these together to show that we have this larger system here. But the important thing is that that first marker that we put on the board for the maiden resource is something that we can then wrap economics around.

21:16 We feel that we're in an environment where we can have an extremely low capital cost project and still be profitable and also have a shorter timeframe than many other explorers in the Golden Triangle in terms of monetization of this project. Now We do have targets at both Scotty Goldmine that we continue to explore. This year we drilled quite a few more holes than we normally do. We did tag into some new zones and tested some new theories. We're pretty excited to continue to put out the results. We see visually what we've hit now. It's time for the assays to come back and then populate those into a news release and put them out. But you'll be seeing multiple more Scotty Goldmine releases coming out of us over the next couple of months. Pretty excited to share the results from that because there's expansion potential there at the old historic Scotty Goldmine.

22:06 We see it as a major cornerstone of building out a high-grade resource for the company. In addition to that, we've got the D-Zone, which doesn't have that many holes into it yet. It's an emerging target for us. Blueberry started off in a very similar way to it. D-Zone has more similarities to what we see at Scotty Goldmine in that it's entirely hosted in the Andesite. The Blueberry contact zone, it's wedged between 2 rock types, between an andesite and a siltstone. That's what that yellow line represents, whereas D-Zone is entirely hosted in an andesite. Now, the andesite is what we have at the Scotty Gold Mine. They're just both structurally controlled deposits, but we've been having fantastic results in terms of grade and widths of it. And then the access to infrastructure, should it be an underground mine, would be exceptional given that you have that underground access tunnel located just a couple hundred meters lower than the existing deposit that we're already expanding.

23:02 And I'll pass it back to Brad here just to talk about how we look to progress the project now. No, thanks, Thomas. Yeah, and here's a new slide as the last couple months, our pathway to value and I already can say now I think we'll compress the back end of this a little bit. You know, kind of just shows the progression of how we've gotten to where we are. One thing I'd like to point out is that we've always been shorthanded. We've never got to raise money on that bump ever. But what we've done and what we're going to come up with, with a little amount of money that we actually spent to achieve is something that I think people need to take note of. But here we are at 2024 and looking at the 2025. 2025 will be our MRE, our first mineral resource, which Thomas just said, it is only going to be Scotty and Blueberry and it's going to be less than 60,000m in total.

23:59 The other metres that we've drilled, Those are great zones. We just don't have enough drill holes in there to make that be compliant with the resource. We've just never had the ability to go blow our brains out. You'll see more holes this year with Scotty and less holes at Blueberry, not because we don't love Blueberry. We just thought we had to bring more to people. And again, trying to do things efficiently with a smaller budget. So I think going into 2025, we're going to show what that resource will be. That's exciting in the next couple of months, but more importantly, how little money it took us to get there. And then of course, it's not necessarily the resource we're excited to get it out. It's the economics around that and that TEA component.

24:44 So we're working, We've kind of just switched gears since maybe September. And so we're still working on it. We're doing lots of proposals. We've got Kevin working double time. I'm sure he's watching this. But just coming up with all the different economic scenarios of which is kind of his expertise. And so Thomas and I are learning lots of new things, but it is quite exciting. I think you'll see that PEA a lot closer into that 2025, maybe early 2026. Until I have the MRE into the resource, I can't really give you a definite timeline on that, but we're kind of simultaneously working on both those things right now and commissioning ore storing studies and stuff like that as we speak. So I think we're going to try and compress the end of this and actually start showing value. I think Too many people, I think, just assume that we're going to move in with Asquad or something like that. There's been a lot of challenges and we're just going to show that we're pretty independent.

25:43 Give me another 50, 60, 70,000 metres, we could be standalone. That doesn't scare us. Targeting 2Moz is easy for me to say now. That was never the case in the past. Give me one more drill season and maybe I can stretch my imagination from there. It certainly is probable. I think the future is bright. And from that, we'll get one more slide in and then we'll talk about the news releases. Here's our guiding principles, our ESG page. Dominantly, our land tenure is in Nishka land tenure, but we do seem to have some Ski Kamalha on the top and some Gitinao down to the south, southeast. We've got good working relationships.

26:30 Most of our work is just done in around that Scotty gold mine. We've initiated water monitoring that we haven't been asked to do. We've donated lands to a environmental initiative to protect it in around Massey Addin Lake. And certainly we can't get enough local employees. You know, we would like to have more and maybe next year, maybe so just because we know that the pipeline is coming, slowing down a little bit, all that work and then hopefully we can get more community members because it's more efficient for us and we love when the money stays in the area. So we're in very good standing from that point of view, but never take that for granted. It just Every day is a new day and make sure we're on top of that with the local community. I myself, 28 years of my adult life, I've lived in and around this area.

27:26 So, there's a lot of relationships I have there on a personal level. And from there, we'll talk, maybe we'll just go to our faces and really what I'll discuss is this consolidation. And then we'll let Thomas discuss some of the new drill results. I don't know, Thomas, we are Gordon, I didn't think we thought this one out about asking questions on, you know, how about let's Thomas and I talk and then we'd like to answer as many questions as we possibly can. So on November 15th, we put out a news release that we're doing a 6 to 1 share consolidation. And so I'm just gonna kind of go through the points. There's never a good time to do that. And I know how emotional that can be for some people, including myself and remember Kevin Jennings, who just came on has 30 million shares, But we honestly believe it is the best path forward. And that's not just because we woke up 1 day. That's a lot of feedback.

28:23 And mostly it was for me spending a little bit more time than I usually do in the United States. And it was coming across that if you have a Goldman account

28:33 or a JP Morgan account, and if you're to buy a share, they're going to charge you a penny a share. And at the time at 15, 16 cents, 17 cents Canadian, you're at 11 cents US. And so I heard that from a handful of people, 6-8 people, but some of those people were really, really bigger investors that are known quite worldwide. This came across many times to me. We mulled it back and forth. And we thought the time is now because in the future we're just going to breach that $300M by next summer or sometime if we want to do a major drill program, of which we might. I can still do a drill program like we did last season with the money I have today. We're in no need of money, which is very important.

29:20 We still have lots and lots of drill results to come out, that news release. We can actually feed that market lots of news and underpin, we believe it. I'll just say 50M. I shouldn't put a number on it, but I think that's an absurd low market cap for what we can provide and the value we can provide. And there's a whole host of companies that we can compare ourselves with. And I think what you'll see is a shift in marketing, But we'll start making direct comparisons on why we think we should just be valued a little bit more.

29:52 So again, I talked about we have released more results coming, the Maiden Resource. We're also in some technical studies so we can understand a little bit on how to monetize those tailings. Because with the Gold price so high, we just put them on a boat and ship them over to ocean partners and such. And so We've been playing with that idea for a while, but we're always kind of sitting going, we'd be great dilution for the Ascot mill, but we don't have a deal, nor are we in any time soon as they're still working out their problems. So we're just going to go see, okay, what if I do send that on a boat? And that's also with these direct shipping ore or toll milling. There's some other companies out there that are really blowing us away in market cap that are because of a toll milling agreement or direct shipping ore. And I think we can stand shoulder to shoulder with those great companies.

30:46 And so We're going to bring that out to the market.

30:49 As I said, we're evaluating the divestiture of the Georgia River property. There's a historic non-compliant resource on there, 270,000oz at over 20g. Thomas and I drilled this for there, 270,000 ounces and over 20 grams. Thomas and I, we drilled this for 2 seasons. We had some fantastic hits. I think 4 hits of over 70 grams and at 2 meter type things. And Then we went mapping and we can build a really good case on drilling that. With what we have in around the Gold, in around our intrusion and Squatty, we would just continue adding to the resource right now. That might be a little tip or a little gift to our shareholders that if we can find the right group that wants to take that, it'll be our group that will receive a good portion of those shares.

31:40 And we believe we're getting absolutely no value for that at all. And then we can just focus on where we can really get the torque and get our market cap to where it should be. And then, you know, initiation of a U.S. Marketing campaign, because a lot of that information was coming, there were funds that just cannot invest in us, even if they wanted to, if we're under $0.50, some are under $1. We're trying to see if we can entice a little bit of US buying because that market is bigger. We really honestly believe that the market cap we have, we should be able to defend it and actually show you that it is worth so much more than we're getting valued at right now. That's my thoughts on why we did it. I'm looking forward to taking any questions when Gord gets to it. Let's Thomas speak a little bit about the last couple news releases and then we'll answer some questions.

32:40 Thanks, Brad. We've put out 2 technical news releases based on the drilling that we've done so far. The first one was at the Blueberry contact zone. We were expanding around some high-grade hits that we had had the previous year and trying to show that we had more structure there. We were ultimately quite successful with that, expanding 2 zones on the Blueberry contact zone through that drilling. Then the subsequent release to that, so we put out the first release on Scottie Goldmine zone. We had some fantastic hits on the end zone. So the end, it goes basically the M zone is where most of the production happened on the old historic Scottie Gold mine. They produced a little bit out of what they called the O-Zone, but then the mine shut down. And the N-Zone was just south of the M-Zone.

33:26 And so some of the holes that we drilled, drilled through the M-Zone towards the N-Zone, and We ended up having some fabulous hits on the end zone, which is a really interesting place to expand the deposit there at Scottie because it's right up against the infrastructure of the M zone. It's very similar in character to what they see at the M zone as well. Those were nice hits on the end zone. I think another thing you can take away from that release, if you look at it, you'll see that there is a drill hole that goes from South to North. It's the first hole like that ever drilled at Scotty.

33:58 700m long hole. We look forward to putting that out in the next couple of months once we get all the assays back for it. But it's an interesting hole because it's never been approached from that orientation. It's a challenging orientation to drill it from. But visually the core had quite a few number of intercepts there that were very enticing. And it was essentially aiming to target the lower intercepts of the M zone. It also cuts through the L and the N zones projections, as well as a, you know, 3 or 400 meter section of rock that had never been drilled before. So pretty, pretty optimistic that we're going to get some nice numbers out of that hole and that could be an additional target that we continue following up in the coming years here. Wonderful. And I'll just add one other thing that I think we didn't mention. At Blueberry and at Scotty, we start at ore.

34:50 I got a whole bunch of information that people were writing about us last week because the stock went moving for some reason. One of the things on the Scotty drill holes was high-grade, great width, but it's deep. I'm just guessing it's 200m, 300m. When you understand there's underground workings right there, it's not deep at all. I know you're looking confused, Thomas. It was just one of these computer algorithm things that they're trying to evaluate stocks. And it just came across my desk and I'm going, ooh, with those hits, understand there's underground workings. It might be 300m from where we went to the top of the mountain. But when you look at how close that ore is to existing workings, so we are at ore, at Scotty Goldmine, because when it shut down, it shut down in ore. It was economics that shut it down. Blueberry starts from meter 0.

35:41 Again, when it comes time to monetizing these things, the development costs are very, very little compared to anybody else. With that kind of questions we have, Gord, did we get some? We did.

35:59 First one, is it possible to start producing from the tailings?

36:03 If so, how quickly and would that be covered by the current permit?

36:09 You want to do that one, Thomas?

36:11 Sure. As whether it be covered under the existing permit, that it would be unclear as of today whether it be part of the care maintenance program of restarting the mine and mining it through there. But I would say this is that when the mine shut down, the tailings were disposed of as in accordance with the mine permit. You know, it was a natural consequence that the lake is drained and that they're exposed to surface. And I could see that the Ministry would be an open participant to having some sort of solution where the tails are no longer exposed to the

36:41 air. So I think, you know, it could be a very opportunistic time to advance the extraction of any value from the tailings, given that the Ministry would be on board trying to limit any liability that rests with the Crown on the tailings that are exposed to surface there. Now in terms of timelines on how that how fast that could happen, It would be a seasonal operation in order to extract the tailings. So you could only do it during the summer. So it would be required permitting. So if you could get your permitting through and you had a game plan on how

37:11 you were gonna do it. So you could either ship all the tails or maybe you would sort and create a concentrate up at site and ship the concentrate out of the town or out of the port down in Stewart. It depends on how you would want to actually extract them and what. If you created a concentrate, then you would need to dry stack or do something with the tails from the tailings. You would need to figure out a few steps. I think the earliest it could possibly be done would be this summer. More realistic, it would be probably the following summer if you were able to push forward on that and use the high Gold price in order to advance the tailings portion of the project.

37:51 I'm going to paraphrase this next one a little bit, just for better understanding. You mentioned that Michael Gray saw 3 million ounces in his report on the outline of Scottie Goldmine Blueberry contact zone. We mentioned that we're targeting 2M.

38:06 Why not do more drilling and target the 3M that Michael Gray sees? Where's the discrepancy there?

38:12 This is a very difficult business running one of these things. Up until last year, I only ever said we were trying to show a pathway to a million ounces. We clearly, in our minds, have achieved that. It's just there's no such thing as great grand marketing stories with mining. I think we've demonstrated that we're calm, cool, collected, even though I'm a very high energy guy. I'm just comfortable in that my market cap, now if my market cap was $400 million, I might be feeling a little bit more comfortable to say 3, but why over promise and under deliver? I think we've always been able to do what we said we're going to do. I just don't think there's enough drilling for us. But if we got there, then heck, I could name that to 5Moz.

39:00 We've only done a total of less than 70,000m of drilling to go from nothing to 3M a little. It's just a little much and it doesn't need to capture the imagination of people to see if they can make money. We've really went after solid, solid shareholders and go, look, we're worth more than what it is. 2 million, I'm fine with right now. Of course, I would love to say that, but give me another 40, 50,000 meters of drilling and then I'd be more comfortable. But as of right now, it's just, I want to be promotional, but I don't want to be too promotional. That's the truth. That's an honest answer. Right. But I feel very comfortable saying 2 million ounces, right? And all An investor truly needs to do with this situation.

39:52 A lot of people are getting reward and they're still trying to find something that's going to make economic sense. I think it's pretty easy to see that it makes economic sense where we are because of situated between 2 mines. Really the only question one should try and answer is, what is the value of an ounce of Gold in the ground in situ where we are? And just given the grades that we have and certainly, gosh, if it's 2Moz, the price is fantastic. We're talking much more than a 10 bagger from where we are right now, if that was to be true. So We'll save that number for after next season's jump. What interest, if any, have you had from either US institutional or larger wealth investors with regard to potentially taking a position once your structure is consolidated?

40:45 Well, an honest answer to that is we'll see. Now, I had a lot of, oh, yeah, you do this. And then that's something we can speak about those. I mean, I've been doing this a very, very long time, even before Scottie. Those are just stories until you monetize them. But I mean, as you put into that news release. So I'm going to go arm wrestle a lot of that advice I took from those people and go, okay, I did this. Now, are you interested? I have confidence that we can go in there, But I can't. It's only been a week. We didn't tell anybody. Nobody knew. I'm still fielding phone calls with people who are questioning and unhappy. And so with those US entities that we think will be very beneficial to us and our shareholders.

41:33 We'll hit the road in January. We still got lots of news to come out and then we'll see. But that's why I did it. So we'll see if I'm right. But I'm not feeling... I still have all the confidence in the world. It's just this next little while as it settles in with the news. But yeah, do I have a definite order? No. A lot of people are offering us money right now. We're not interested in taking money. Still got lots of news to come out. So I'll have to put that to test. And that's my job. And yeah, so I can't say definitely, but that's why we did it. It was the advice of, you know, I would say 4 or 5 pretty prominent funds people within the US. In the not so distant future, what side of our estimate in dollars per ton of revenue can we expect if blueberry or is outsourced to a third party to be extracted and processed?

42:31 You want to take that there? We don't have any. We don't have any numbers like that that we can talk about at this time, but we are evaluating a multitude of different scenarios that are all turning. On the back of the envelope that we're looking at things right now, there's a lot of scenarios in which we could make money in a very short time frame. So reactivating the mine permit that's in care maintenance, looking at ore sorting, you know, mining direct shipping ore from either the Scotty goldmine blueberry combination, toll milling, going straight to a smelter. I mean, there's a multitude of options that we are looking at. And just the value of the rocks that we have and the accessibility and the low capital expenditures required to get them into production.

43:19 Most of these scenarios make a lot of sense at this point, even at having less than a 2 million ounce deposit. And I'll jump in on that. And that is the mystery. That is the news that we will have answers to in the next 6, 7 months, hopefully. And that's where we think, you know, there's a lot of value to unlock here. We are, you know, specifically, Kevin's driving that bus right now and using past contacts. There's a lot of spreadsheets there. At this stage, we can't say anything, but that's what we're excited to get out there because we think it's going to be exceptional because we're right at ore. Any interest in the Georgia River project since announcing, looking for strategic options for the asset? Would you be looking for an outright investment, JV or partnership?

44:16 I think we'd weigh all our options since the news release. No, like that's only been 4 or 5 business days. But we've had multiple conversations in the past. In fact, you know, with groups, They probably just weren't the right group, so I discouraged it. If it's not going to work for our shareholders, we wouldn't do it. There are 2 different types of people. You show me a good team that they're going to do proper work on it, then that's when we would go. But nothing since Wednesday, but we've been working on packages just for this very reason for a few months, and it certainly has gone out to a few people.

45:02 But they probably didn't pass our test at this stage. I'm not the one they want to feel bad about it, but right now, I think going into the new year with that right group, we know the property very well. We're able to help that group, but it's certainly not going to anybody who's going to hear. We'll give you a check because it needs to be done properly. Georgia River could be as good as more than half of the junior exploration companies are, just with Georgia River alone. That's judged on work that we've done. And I say, we drilled it 2 seasons. It's not, we're not hoping. It's not hopium. Yeah. It's good. It just needs, it just needs to be leaned into properly. And Yeah, we're excited to get that. But since Wednesday, I really have been taking a whole bunch of other calls rather than the Georgia River at this moment.

45:57 It'll be easier for me to deal with that maybe at VRIC. Brad, here's 1 you're going to like. Jamie Keech. There was a video of Jamie Keech discussing the domino connecting to the Scotty Goldmine underground. Is this still within your scope of study? Drive the tunnel from one side to the other? I love that question. I'm going to let Thomas answer it because Domino is our first, well, I guess it's Blueberry, we discovered Blueberry first, but I mean, Domino is a discovery and we just haven't gone back because of the helicopter aspect, but Thomas, you speak about Domino, sorry. Yeah. So Domino is, I mean, it's super interesting position. It's on strike from the Scotty Gold mine. It's 2km away. It's up and over the other side of the mountain. In my mind, if you were to extract the rocks from Domino, The way you would go about it is you would continue it as an underground line and just continue the ramping up from Scotty up towards the Domino target. It's actually just gently inclining to get up there and then you'd be basically downhauling ore out of Domino once you got it.

47:02 You're not going to start with going underground to find Domino. You would drill it from surface. It's pretty straightforward on drilling Domino from surface. But like Brad said, we made the discovery of Blueberry right around the same time as Domino. From that, Blueberry has been so easy to continue to access and to advance because it's skid-based drilling instead of helicopter-based drilling. We had much wider widths at Blueberry, so it was just a natural place to put our money. Both Brad and I really like Domino. We'd love to get back there. We think that has huge potential for the project. The expansive field of veins that we've found is over 800m long and over 300m wide. Well above 10g at a time. We've intersected a couple of meters of over 12 grams in the drilling. So there is ore there. It's just finding bigger, wider zones at Domino.

47:54 And then, yeah, the longer term extraction plan, you would want to go underground and you'd continue from the Scotty Gold Mine up towards Domino. And I mean, the big question would be, what do you discover in between the 2? Right now, the gap between the 2 is challenging to target just because of the glaciers at the top of the mountain. Great. Next one here is how would you compare yourself to Osisko's Caribou project, grades 3.33 to 5.06, initial capex $137.3M? I can't compare myself with that at the moment, Tom. It's off hand. I think it's more bulk tonnage. We have a lot more underground, but I don't have a good enough answer. I don't know if you do, Tom. I know the project, but not well enough to start comparing myself to it. Yeah, I think I would say that it's something that we are following.

48:51 I mean, they're using ore sorting technology to upgrade their resource as well. I think it's an interesting analog for us to use and compare and to see how they progress. And I mean, we are gonna stay very focused on our plan, but using them as a proxy for what a smaller mine, there's sub 2Moz deposit as well. It could be an interesting thing for us to follow along and if they get a bunch of traction, definitely it's a story that we'll lean into as well. Yeah. Great. Did Franco Nevada run their own resource estimations and potential economic assessment on your project prior to giving you the royalty deal? If so, what does this say to you in so far as significance?

49:38 That's you, Thomas. Yeah, they've done the resource calculations internally themselves before they gave us royalty money. They also went as far as running stove optimization and mine planning to figure out how production would look out at Scotty. You know, we are, as far as we can tell, the first company that Franco Nevada has ever given money to pre-resource. So that means 2 things. 1, they have a high confidence of the rocks, the data and the resource that we look to put out. So they've taken a look under the hood and they believe what we believe. The other thing is that they believe that there's a shortcut in terms of timelines to get this in production. Franco being the largest Gold royalty company and the other ones, if you look at what the deals these guys generally do, they put a lot of money into things that are near term producing.

50:29 Money into things that are way off in the future from producing. Not a lot of royalty companies are putting money into that right now. So them giving us money does suggest that they suspect that we will have a shorter timeline to production than many other companies in the area. And they can see that even pre-resource. And that's largely spatially where we're located. Deep sea shipping port, we've got 2 mills, 1 on either side of us. We've got optionality with the rocks and we don't need to be this huge standalone project for us to have a high value on a per ounce basis. Right. How many NDAs do you have with intermediates and majors? I signed 2 this week or 2 in the last 7 days.

51:21 A baker's dozen, 10 or 12. Yeah, we have a lot of intermediates that have looked at us. Yeah, no shortage of CAs. I got a filing cabinet full of them. We have people in our data room right now. I think Thomas and I discussed that this morning. Unfortunately, at this low price, it's hard for me to offer them anything, right? You know what I mean? They just think about it. It's a little bit different. We're caught between a rock and a hard place. So if I can convince him to buy in the market, that might be good for us. But, you know, there's no shortage of guys that I think would like to purchase Scotty at this stage. I'm not getting that from the shareholders that they're done with Thomas and I quite yet.

52:12 We've got lots. Lots. What is the all-in sustaining cost of the former Scotty producing mine? Do we have the historical data? The mine shut down at around $300 Gold. At the time in the 1980s, that was below the all-in sustaining costs. Current valuations are, I can't give you a number of what the current all in sustaining costs are, but I think we would be in the better part of the gray curve for sure at this point, given the high Gold price and the existing infrastructure. I see the next question there, Gord, what is the Gold price collapses to $2,000 an ounce? I can say that all the preliminary studies that we are looking at and the kind of scenarios we're doing, we're doing at $2,000 Gold. So for us, it wouldn't be a collapse to $2,000 Gold.

53:07 That would be our baseline of where we're looking at the economics of things. Anything above $2,000 would be upside. So any of these scenarios that we're considering, We're considering around a $2,000 gold price, just given where the gold market is and the volatility in it. Great. In your opinion, is 2025 as much about demonstrating the potentially exceptional economics of your project as it is about adding ounces to an MRE? I think so. Absolutely. I think we're switching gears. In the amount of adding ounces in 2025 will determine what the next 4-5-months look like at Scottie.

53:55 Of course, we can do at least the drill program that we did last season with what we have right now and continue for a couple of years of G&A. We're pretty strong, but if the right deal is to be done, we'd like to do a little bit of both. We're switching gears and we're going to show the economics of this. From that, if we can get proper valuation, then it's easier for us to go do that 40, 50,000m drill program that we dream of doing. Can you talk a bit more about permitting? You have a small mine permit. Will you need to do EIAs? Right now we have 2 permits that we operate under. We have the exploration permit that we operate. That's what we do all our drilling under, any trenching, anything like that. So that's our exploration permit. We also have this small mine permit that's associated with the historic Scotty Gold Mine. So underground mine permit, 75,000 tons a year of milled capacity for that mine permit.

55:01 Initial discussions we've had, I mean, we've been in discussion with the Ministry, not particularly exactly with relating to expanding that permit, but around the permit itself. So, you know, defining the margins of the mines, or there is no permitted mine area on the permits. That's one thing that we need amending. But would we need to do an EIA? So our understanding is no. So Ascot, when they applied for their permit, they were in a similar situation where they had a historic permit and they basically, it took it from care and maintenance and amended it in order to get into production again. So they didn't go through the EI environmental assessment period to get to there. So our understanding is that would be very similar for us.

55:46 We would probably not have to do an environmental assessment again for us either. So we would have to bring our permit up to speed with modern compliance. And it would take a bit of time. So for context, when Ascot submitted their permit amendment, it was 10 months from that point until they received their permit. So we could anticipate a similar timeline. So if we were able to get our studies together and define what the mine that we wanna build looks like, we could estimate around a 10 month period in order to get our final permit if everything went well using Ascot as a proxy for that. Great. After the rollback, will you be less or more concerned with spoofing and naked shorting of the stock?

56:37 That's a great question. I'd like to know who gave that one out because I don't know the answer to that question, but it's something that is very much on the front of my mind. There's obviously algo trading on everybody. It's unclear to me because if it was such a low share count, maybe it's easier for me to convince guys to buy into that. And I don't know the answer to it, but it's a fantastic question. I mean, I've been playing capital markets for 30 years. It is different now. I try not to get too emotional about it all, but it's simple. More buyers and sellers will always win the day, even if temporarily you can see what these algos are doing. And it's yet to be seen.

57:27 In my mind, it should be easier. Is it more expensive for these guys to, you know, a 500 share trade now is a little bit more than what it was, you know, but I don't know the answer to that question. But I do believe with that glaring capital structure page, I just go look like, you know, And from my experience that what's worked in the last 5 years is we all want to be part of that, hey, I'll buy it a dime and go to a dollar. I understand that that's what we were trying to achieve. We never ever did get that. We just didn't. So I failed as a promoter perhaps. But where is the big value made when founders finally hit 2 ducks, when Great Bear hit 2 bucks, Snowline, that's when actually, so I think we might've missed that awe, but I think we can stand with our chins up and our shoulders way, way back when look, we have something that nobody else has.

58:21 And is it gonna make it easier? That's what I'm betting on. And, you know, they might turn feather me in 6 months from now, but I honestly believe it's the right way to go. But it's a great question because it's 1 I think about a lot. So whoever asked you that, do you get to know who asks these questions? I get usernames. Oh, okay. Yeah, yeah. That's a great question. Yeah. Do you think Ascot's financing issues affect how the market will view your move in the direction of mining operations? I completely do. I think we're saddled a lot with what's going on with Ascot and people. I think that's a natural way to think, but that's what we're combating.

59:08 We hope the best for Ascot. It's been a challenge and they've yet got another $40M. This is fantastic for the area and for the industry. But we just need to be independent. We're just going to show a number. We're going to put a value to the ounces of our Gold in the ground, perhaps other ways in hoping that somebody else might value it. But I think everything that's going on with Ascot, I think it affects us. It's hard to have a conversation with an investor that they don't bring up Ascot. I'd say 45%, maybe 50% of every conversation I have in relation to Scotty, Ascot comes up and then all the 3 of us went to Beaver Creek and I would say at that point, 80% of our conversations, people want to know what we know about Ascot and such.

59:58 I wish they compare us with Skeena or the Pritium assets, Bruce Jack, because then the big value is so much different. But yeah, we get kind of grouped into what's going on with Ascot, but that mill's there. It's going to turn and we're hoping the best for that entity. How does your current weighted average grade compare to Ascot's grade? I'll let Thomas, I could answer that. I know it, but I'll let Thomas answer that. Thomas, you are on mute. I'm just going to say, wait for the resource to come out with that. Yeah. Yeah. I mean, it's variable for us because we have 3 different types of deposits so far.

1:00:46 Anyways, and it's which one you look at. It's hard to compare apples to apples there. That answer will be soon because we're going to come out with an MRE soon enough. Do you know if Newmont is continuing with Bruce Jack exploration spending to extend the mine life? My understanding is that Newcrest had some really large exploration programs at underground at Bruce Jack to expand the resource, and they were quite successful. Which I think is one of the reasons that new month has held onto that asset and divested with a number of other assets is that they do see the potential for growth at Bruce Jack.

1:01:33 I don't know if Newmont is continuing exploration there, but I think they are looking at advanced development of what was discovered by Newcrest. That's just kind of word on the street that I've heard. It doesn't look like they have a decent mine life at Bruce Jack going forward. It's quite high-grade. I heard through the grapevine that they've had some really good exploration success. Again, it kind of gets washed. We don't get to see it immediately like you would from a junior. But, you know, I've heard a little bit again, it's a lot of the same team from Pritam to Newcrest to Newmont from Boots on the Ground, a lot of local people. So I've heard that they've hit some really cool things, but it's not going to move the Newmont needle at all anymore. I don't think anyways.

1:02:23 That seems to be it for questions. Wow. If anybody has any that come up In the next few hours, please feel free to reach out to us, email us at coordinatescottyresources.com or reach out to Brad. We're always available to talk to our shareholders. Oh, here's another one. After the restructure, how long can the share count stay low? Well, what's the definition of low? I mean, we're not, yeah, I mean, of course, all exploration companies have to raise money And we're front running what we think is an inevitable, because Ascot's going to be at a billion shares or pretty darn close. So we think that one's going to come from there. I don't know.

1:03:13 And yes, we could survive for another 678 months, even a year if we decided and not raise another share. But it was just hitting, going over that $300M and go to the $320M. I don't know. I think anything under a $100M shares these days are quite low. I'm not itching to add any more shares as best I can and that's hope I'm demonstrating that I mean again I was 14 million shares you know I mean and I was 20% of the company 5 years previous so I'm very sensitive to it I just think it's gonna be easier for me to attract who I can. And again, keeping those, you know, that's why this exercise, I don't look forward to ever doing it ever again. And I never thought I would have to do it. And here we are. Those are sometimes the decisions you have to make.

1:04:05 But what's low? Under 100 million? I think we could go for probably sold before then, I would think, but we'll see. I just know that we're extremely low right now. I got a nice comment here that says, let's send the shorts to the breadline. I think we can all agree there. So why is it easier? That goes to that question about 3 questions ago. I don't know, but I'm very curious and it's going to be just very, I'm very curious to see and ways to combat it now. Is it going to be easier? Just those 500 share trades, are they going to allow 50 share trades? I don't know. But Hopefully we don't get this every second, another 500 share trade, 500,500,500.

1:04:50 Again, no one can explain it to me exactly because no 1 really understands. We always try to explore, but we'll soon see. In my mind, I think it's way easier, But having not done it before, I can't tell you that. But I feel comfortable and it is my children's money that I'm risking. So it is important to me. Once again, Thank you all for attending, listening to us, provide this corporate update. Hopefully we answered all your questions. And again, please do not hesitate to reach out to us if any more come to mind over the next days, weeks, or months. We're always available and we look forward to hearing from you. Thank you very much. Thank you very much.

1:05:35 Thanks everyone.