Step-Out Drilling at the Carmacks Property Continues to Deliver High-Grade Results

0:00 Good morning, good afternoon, or good evening, depending on where in the world you're signing in from today. I'm very lucky to have with me Andrew, the VP Corporate Development from Cascadia Minerals. Andrew, how are you today? Good. How are you doing, Romeo? Good, good. So here's how today's going to work. I know there's quite a few of you in the room, so it should be pretty simple. I've got some questions based on Cascadia's most recent, very exciting news release, but this is also an interactive event. So I know some of you have sent questions already over email. I'm gonna cover a lot of what you guys asked over email, but there's a couple that are still left over that I will jump into. But if you've got some additional questions, please do feel free to use the chat button at the bottom of your screen. You can also press that request meeting button to request a meeting with the Cascadia team, and they'll be sure to get back to you either using your phone number or email, depending on what you put in at registration. Last boring thing I'll say before we get into the fun stuff. This is being recorded and will be available for replay.

0:50 Probably exactly end of day today, Eastern time. It'll pop into your inbox. It will also be available on Six's YouTube channel. But Andrew, let's get into the protein, the fun stuff. Sure. So on the press release, Grammar's CEO called zone 2000s the best possible location for new mineralization, which I love that as a wording, right between 2 parts of the existing resource. So give us the plain English version, why a tech guy gets excited about that spot specifically. Yeah, I mean, so the background on this project, right, is it's been explored for years, but the focus was always just on the oxide. So we're kind of looking at the sulfides for the first time in a real meaningful way. And you've got these 2 zones of mineralization, the 147, the 2000 S, and there was thought to be this big gap between them. There was an interpretation that there's a geological structure or something happening in there that was truncating mineralization.

1:39 So historically, they just didn't drill there and didn't test it. You know, that's where we're finding all this mineralization now. And as Graham said, you know, that's the best possible place, because from

1:48 a mining perspective, suddenly now you've got way more continuity. If you're looking at an open pit, well, great. Maybe what was previously 2 pits stitches together into one. That reduces your strip ratio, operationally makes things much easier. But we're also gonna look at this thing as an underground mining target. We haven't done the studies yet, but you know, the grades and depths we're seeing right now are pretty exciting. So we're going to look into that. And when you do contemplate underground mining, the more continuity and connection you have underground, the better because you you have less underground workings that you need to drive just to connect these zones. So in pretty much all of these mining scenarios, having a longer, more continuous, more connected zone of mineralization is the best possible thing you could have. And that's exactly where we're finding this mineralization. Awesome. No, appreciate that. Now, hole 58, I know pretty significant.

2:36 Called one of the highest grade intersections ever drilled at CarMax, which is already impressive. So walk us through, just for everybody in the room, what happened in that hole, including the 14.5 meter cord over 5% copper equivalent. And just on a personal level, I was like asking what it felt like when the assay came back for the team. Yeah, I mean, this zone has been really exciting to drill. Because obviously, the first couple holes we put in, we thought we're maybe not going to hit anything because we didn't think there was supposed to be an realization here. So it's been exciting stepping out. And when we see the drill core, we can see good copper grades in it. So we were quite confident this was going to come back well. But what really blew us out of the water was the gold grades. I mean, the average gold grade in this deposit is closer to 0.2 to 0.3 grams per tonne gold. And we're getting back almost a gram. It's 0.97 grams per tonne gold over that 75 meter long interval. That is a meaningful gold intersection on its own, let alone with 1.19% copper to go alongside it. So that was very surprising. And we were all very, very excited when we saw that come back from the lab, because we knew the copper was going to be there, we were blown away by those gold grades. And then to see that core of it, as you said, it's over 5% copper equivalent, it's about 14 meters of 2.3% copper and 2.68 grams gold. That's a phenomenal gold number. And then it also has over 1000 ppm moly with it. So, you know, copper is really the driving piece of this deposit. But the gold is really starting to be prominent, especially in this area. And the molly is incredibly intriguing as well. Yeah, I want to actually get more into those right away, because to

4:06 talk about hole 59, because the Goldeney's holes is running 3 to 5 times the deposit average. And the Mollie, like you said, way up, including I saw that sample grading 6.47%

4:15 molybdenum 59, which like, you know, I think we were talking about before would make the top hits for a moly mine. Like, that's really kind of remarkable. So what's the geological story for why this northern extension is so much richer in those metals than the rest of the deposit?

4:31 So the nice thing about being our VP Corp Dev is I can speculate because I'm not a geologist, I'm an engineer, so I'm going to speculate here and by no means do we have the geological understanding that's figured out yet, but you know the deposit style we're dealing with here is a metamorphose porphyry. It's you know it's Minto style, it's like the Minto deposit just to our north, and the concept there is you know you had this big bulk copper gold moly porphyry in place and then it was subsumed, remelted, and you know ejected up a structure or somehow turned into these kind of long continuous lenses of mineralization that are much much higher grade than you typically see in the porphyry. Now porphyry deposits are frequently zoned where you'll you know you have these these lower grade pyrite zones on the outside then as you get kind of in more towards the potassium core of the system you see the gold pickup and there's certain associations with cores of those systems that can be rich in moly.

5:20 So you know hypothetically does that mean we're getting into the core of the original porphyry before it was metamorphosed? I don't know it's 1 possible interpretation. We're going to have a lot of work to do this winter to kind of look at all this geochemistry in detail and start doing vectoring based off that. But you know it'll be very interesting to see because so far it looks like increasing gold grade might be correlated with increasing moly grade which which could be exciting to use as a vector to find more higher grade parts of this system as well as a geochemical vector to explore kind of across the property, because Mali is another great element you can look for in soil sampling results. So I think the answer is we don't know yet, but it's certainly very, very intriguing. And there's a very distinct zonation into higher Mali and higher gold here than we're seeing elsewhere. That's one last thing on the MOLLE, because it barely registers in the 2022 resource at what point a 1% this whole 59 average over 900 ppm across 94 meters. So at today's MOLLE prices, just for an example, or as a lens in which to think about this, how meaningful could that become as a byproduct at CarMax if it holds up across this extension?

6:25 Quite significant, potentially. And I think that goes to show the resource rate is kind of the original 3 zones. And the 147 zone, for whatever reason, has basically no MOLLE in it. So that contributes a lot to the existing resource and really brings that molly grade down. We had seen some molly in 12.13 and we knew it was picking up in 2000s from what was done in the resource but that was the most under drilled part of the entire resource. So now as we're stepping out really growing 2000s, but also finding higher grade moly, I think eventually when we do a resource update, you're going to see a more significant moly component come in. But

6:56 to your point and significance, I mean, moly is like 30 to $40 a pound in moly, I think right now, way higher than copper. Obviously, the grades are significantly lower here, but we're getting into serious byproduct grade. I mean, some of these intersections are comparable with primary moly deposits and primary moly mines. There's a lot of work still to be done. Don't get me wrong. We got to do a network. We got to figure it all out, but it's nice coarse-grained molybdenite. It should have a good recovery profile. We'll start evaluating all of that kind of this winter and on into next year. But I think we're optimistic that it will become a meaningful by-product in the deposit. No, I appreciate that. It's just, yeah, the results are so interesting. I just want to tackle those kind of angles of it first. But one thing, the release notes true widths are estimated at 60 to 70 percent of what's reported.

7:44 So for investors who skip the footnotes, and I'm guilty of that myself sometimes. What does a 75 meter drilled interval actually look like in the ground? And why is Cascadia reporting it this way?

7:54 Yeah, so our zone of mineralization is steeply dipping. It's not quite vertical, but it's like 80 to 90 degrees, kind of almost, almost vertical. And what that means is, you know, we've got to drill at it from an angle. So as you're coming in, you're never going to get a perfect cut across it. Cause you'd have to be drilling from underground and we don't have that right now. So, you know, you're always kind of cutting it at a bit of an oblique angle, which makes the drilled intervals wider than the true width, which is why we talk about that. So our true widths here are still 40 to 50 meters kind of throughout the deposit, which is a fantastic

8:25 zone of mineralization for underground mining. But yeah, it does get accentuated a little bit by the angle at which we drill it. And that's just kind of the unfortunate realities of geometry. Now, we appreciate the geometry lesson. That's helpful. People in the audience, I think so too. I was like, well, 57, because it's successfully tested depth of the 2000s extension to 430 vertical meters, and as I understand it, it's still open below.

8:49 So at what point does depth stop being an exploration question and start being a mine planning question?

8:57 Like where does that conversation start? Yeah, I mean, it's an interesting one here, right? Because you can chase these things incredibly deep. And I think we're certainly interested to see what the ultimate depth potential on this is, but you also have to make sure you're chasing it after something that's mineable. The nice thing here is the grades we're seeing where we're optimistic are going to support underground mining. Now we do need to do some study work to actually analyze that, but that's the nice thing is if we continue to see high-grade mineralization with these sizable widths, even at those depths, it's still definitely underground minable. That gives us the opportunity to keep testing it deeper down. But there's always that interplay between do we keep chasing it? Do we think we have enough to quantify and move ahead with more advanced mining studies now? And there's a balance and an interplay there that's, not exactly, there's no right answer and there's different approaches you can have with that. So I think we're just balancing that moving forward.

9:45 We're close to wrapping up for this year, but I think next year you're going to see a lot more drilling, some of it testing deeper, but also just really stepping out laterally and fleshing out the zone in more detail. Sure. Now I know Hole 59 picked up a second mineralized raft near surface at 132 metres that might be an extension of the zone for oxide target.

10:04 How significant just for the folks watching is a near service oxide hit the release that's otherwise about these deep sulfides we've been talking about?

10:13 Yeah, well, so the zone 1 for 7, you know, it's called zone 1 for 7 because there's zone 1, which is the primary horizon that we see all salpated out. But then there's 4 and 7, which are kind of offshoots to the side. And those came into the open pit because they're kind of right up at the surface and they were fairly well defined, but then kind of petered out as they moved south towards zone 2000s. Now, if this is an extension of that, that means as we continue to delineate this and hopefully come closer to connecting these zones, if we look at a future open pit that's going all through this area, even finding smaller zones of mineralization up near surface, that lands in that open pit. And that means that's potentially mineable material as opposed to just moving a lot of waste. So it's not a huge change, but it's always positive when you can find an additional zone of near surface mineralization that might fall into a pit. Sure.

11:01 My next question, like Christian in the chat, is going to test what we can ask on a webinar. So keep that in mind as I ask it. Looking at the color table, holes 60 and 61 are pending. And sit further north than anything else that you've

11:14 released so far, which puts them squarely in the gap towards zone 147. So without front running the assays, obviously we're following rules here, folks. Is there anything you can tell us about what to expect from those holes?

11:25 Yeah, I mean, I can't say too much to be honest, but we did say in the news release that we put out yesterday that, you know, all of the holes in this area have encountered sulfide mineralization. So I think that's the takeaway. We are still drilling in this area. The drill's gonna turn for another week or 2. We're getting kind of late in the season. It's getting pretty cold up there. So we're not gonna go crazy this year, but we are gonna keep drilling in this area based on what we're seeing. And again, you can see in the news release, we did confirm that the additional holes that have been drilled in here have encountered sulfide mineralization. We're not going to characterize the nature of that sulfide mineralization. We will wait for assays on that. Okay, great. And to speak more directly to the questions in the chat, but I also had 1 about it, so I might as well. You've also put 3 holes into zone 14, 3 into zone A, 11 kilometers away, and 3 under the 2025 step-outs at zone 1213.

12:12 This is just really a personal question, but feel free to speak on behalf of whoever you'd like. Which of those side bets are you most curious about and why? Oh, geez, I'm curious about all of them. Zone 14's in... I'm just going to talk about each target really quick. Yeah, go for it, please. But zone 14 is about 500 meters east of the main trend of mineralization. So that's really interesting because it represents potentially a whole new structure that could be evaluated. It was drilled back in 2007. I think they had 16 meters of 1% copper, but it was sulfide. At the time, all they cared about was oxides. They kind of walked away from it. You know, we put 3 holes around that this year, not expecting us really to be a huge discovery or anything there, but just to get an understanding of that historical drilling, start trying to figure out what that could look like from an orientation perspective.

12:57 Really curious to see what comes back from those assays, just because if that is a parallel zone of mineralization, it really opens up the whole area. Zone A to the north though, I mean, that's 11 kilometers away. That was drilled in the 80s. They had some really high grade, really interesting results there, but it's a bit more variable. You know, when we look at the historic drilling, there's some really high grades and then there's some other lower grade zones. So it looks like it's seen a lot more structural deformation. It's not nearly as simple, so to speak, as the main zones. We've got these nice continuous rafts of mineralization. There's something more complicated going on up there. It's intriguing. It's definitely interesting. There's mineralization there for sure. The goal of this year's drilling there was to really get some proper structural orientations so that we can start figuring that out and ideally plan for bigger program next year. So really interested to see what comes back from that, but it's gonna need more work going into next year.

13:47 1213, I mean, that's exciting to me as an engineer who wants to see this move towards mining because that's just building the resource in this nice, you know, near surface zone that's a bit more flat line. So 1213 is like a really favorable orientation for open pit mining. And if we can find more mineralization there, that's gonna factor into a mine plan, especially the early parts of a mine plan really, really nicely. And we originally planned to actually do quite a bit of work at 1213 and testing deeper this year. We just, for lack of a better term, got sidetracked by how exciting this 2000s extension is, because obviously we need to follow up on these phenomenal grades. So we kind of reprioritized a lot of what we originally had planned at 12.13 to 2000s. And there's still a ton of room at 12.13 to keep stepping out at depth and

14:28 a long strike at these things. So that'll happen next year, but I am very excited to see what comes back from the, I think the 3 holes we drilled there this year. Oh, great. Just because it's on topic and Hester, I'll get to your question before we close. But Christian asked in the chat, will you be testing for continuity between 2000S and the 1213 zones next year? Or has that geological thesis already been killed off with pest drilling somehow?

14:49 So the interpretation there is that there's a fault offset which is shifting the 2 of those. But if folks look at the plan map that we actually put in the news release yesterday, you'll be able to see that we did actually drill a hole kind of right diagonally between those 2. And that's the first hole ever drilled there across that fault. So it's gonna be interesting to see what comes back from that. If nothing else, it's gonna give us some orientations and some controls on that faulting, which is great to understand what's going on there. So yeah, we are actually testing that. We put a hole right through there this year. Stay tuned. Okay, great. Well, there, Christian, watch this space. I appreciate that. Now, Graham, I know, mentioned that the camp is being upgraded for a scaled up 27 program. You drilled nearly 17,000 meters this year already, which is exciting. So what does scaled up mean in practice?

15:34 And what would a successful 2027 need to deliver for Cascadia to move from expanding the deposit to re-estimating it, to putting a new number on it? Yeah, I mean,

15:45 Again, we bought this thing a year ago, right? So we're still kind of really diving into this. And I think it's been good to ramp up to the level we're at this year. It's given us a good understanding of the deposits, but also how to work in the area. And one of the challenges, the camp's just pretty old there. So we are looking at upgrading that and getting in a position where we can ideally have at least 4 drill rigs operating all of next year, as well as kind of lengthening the season a bit later in the year and start earlier in the spring as well, is our goal. So we're working on that right now. You know, we've been saying 20,000 meters or more next year, probably aiming for closer to 30,000 meters, if not more than that next year. But really the goal is to to try to get to an updated resource at the end of next year. I mean I think we definitely have enough to be interesting to do that. The question now is how much drilling does it need to really you know drill off these zones and put them into a resource level quality of understanding so that we can do that estimate at the end of next year. But I think that's still our target. We're probably just gonna do more drilling than we originally expected, given we have all this new areas to really flesh out and understand better, but still try to get to an updated resource end of 2027. And we really do want to move into pre feasibility at some point in 2028, because I think, you know, the PEA done in 2023 shows this is economic, it's significantly lower metal prices, there's a lot of work to be done. It's an older PEA, it is a PEA, so you take them with a grain of salt. But, you know, we're very confident that even just looking at what was previously known in the existing resource with current metal prices, it's going to look interesting for sure.

17:08 But now as we're finding this zone, if we can bring this to the resource stage next year, we think that's going to really, really make the economics look good on this and bring that forward into a hopefully a pre-feasibility study in 2028.

17:18 Great. Jumping into a couple of questions from the chat, and then I will get to the ones that came over email. It's just I want to stay kind of meet natural flow. And then Wazni asked, can we expect full rigs at Carmack next year?

17:30 I can say that's what we're hoping for. Folks who are tuned into, well, drilling in general this year and the Yukon in particular may know how difficult it was to acquire drill rigs this year. So we're working on that now. We've got to have a lot of conversations with contractors, but rigging and in particular crew availability is a big challenge this year. So our hope is to get that camp upgrade done, secure the rigs we need for next year, but we're working on that stuff, but that is certainly the plan. Great. The next question I can even answer slightly before I throw it to you, Andrew. Christian asks, if you could briefly talk about your impressions from Beaver Creek,

18:01 what was the best reception at Cascadia Story? I'll say from my perspective, one of the most talked about names at Beaver Creek, it kept coming up at dinner conversations and at every bar in that little village.

18:11 But Andrew, I'll throw it to you for who was in the actual meetings, what was reception like? Yeah, really positive. I mean, we had an absolutely jam-packed schedule, which was great to see, and very, very positive response. I mean, the number 1 takeaway we have from our readings is people go, well, this is just really straightforward. Yes, yes, it is. That's what's nice about this, is it's not a complicated story, and you can actually see the path from where we are towards advancing towards production and it's not going to be difficult. Well, there's always bumps along the way, but I think it's something we can meaningfully do. We can meaningfully advance. This is not a multi-billion capex low-grade bulk porphyry deposit that takes a

18:48 ton of engineering, takes a ton of resources to advance. This is higher grade. It's smaller. It's going to have a reasonable capex cost on it. And it's something that could be meaningfully advanced in a relatively short timeline while we're seeing this incredibly favorable copper price environment. So that's what we're fixated on. I think that's really resonating with investors as well. We also just heard a ton of interest in the Yukon more broadly. I think there's a lot of investor excitement about the Yukon right now. It is it's a jurisdiction that's near and dear to my heart. Obviously, I've spent my entire career working up there. But we have such incredible geologic potential up there that's

19:19 aligned with actually good infrastructure, especially where we are in the infrastructure picture is really, really great. And you've got an alignment in governments right now, both territorially and federally to see these projects move forward. And I just think it's a fantastic time to be looking at the jurisdiction. That's great, thank you. A couple of questions specifically about where your heads at. 1 snow in the chat if there's plans to purchase rigs at all or if it's still a rental situation for you guys. No, I'm not gonna go into that. You know, Being a drilling contractor is a thing. We will hire contractors. We're not entertaining purchasing the rigs ourselves. Great, thank you. One question came in over email. They say geophysics have been improving. How important has your DAS experience been in terms of enhanced resolution at depth? They note that this would seem to put more power in the hands of junior explorers with large properties.

20:09 Yeah, and so for those that don't know, we flew a very large airborne magnetic survey over the entire property this summer, and this project is 180 square kilometers, So it's very, very large land package. The deposits that we're drilling, it's just 1 very small part kind of in the Southern part of that. And, you know, we don't have the data back yet. So it's hard to answer this fully, but I think we're very interested to see what comes out of that. The zones of mineralization that we have here are very well correlated with magnetic lows. So that's been a nice diagnostic technique used in the past. And the mag data we have from the previous operators is good, but it's relatively low resolution. What's cool about this new survey is it's using this magnetic tensor gradient measurement method that DS Geophysics has developed that actually measures like the 3D component of mag intensity everywhere it's taking a reading. So the hope, and I say hope because geophysics is always a bit of a black art, the hope is to turn this into a 3D model at depth that we can slice and ideally see wraps of mineralization. We don't have the data yet.

21:06 It's super new technology, so I don't know if that's going to work, but at a bare minimum, we're going to have much, much higher resolution, superficial magmaps. And I think that's going to help us identify more zones right in and around here, as well as extensions of the primary mineralized horizons, but it's also gonna let us find regional targets across the property. So really, really excited to see that data, we just don't have it back quite yet. Okay, great. One more question that came over email. There were quite a number of questions, but I think I covered most of them during our previous conversation, but let me know in the chat if I didn't. They want to know if the current drill spacing supports upgrading any of the new material to measured indicated, or is it likely to come in as inferred initially? So the existing resource that was put out in 2022 prior to our drilling is pretty much entirely M&I. There's a very small component of inferred. So our goal, at least originally, is to keep stepping out at the spacings that will allow for M&I calculations. Now, given what we're seeing in 2000s, we did end up actually stepping out much more broadly than that just to kind of start quantifying the strike length of that extension. There's going to be work needed in there to bring it up to the MNI standards. That's the main reason we're not looking at doing a resource update this year, is a lot of that's probably not even quite at inferred levels yet. But the goal certainly by the end of next year is to get almost everything if we can up to MNI, because that's what usually holds you back from going to pre-fees, right? If you've got an inferred resource, you can do a PEA off it, but then you've got to come back in and do this huge resource upgrade program to go from inferred to MNI. We're just going to stick straight with MNI spacings, make sure that by the end of next year, we've got this stuff drilled out to ideally support most things at MNI, but there'll probably be a

22:36 bit of an advert horizon around it as you typically get. Okay, great. We'll conclude or give everybody a chance to ask a last question with Hessler's question from about 10 minutes ago, famously impossible to answer on a webinar just for everybody's reference, but they want to know what is Cascadia looking at for next round of financing in terms of timing? Yeah, I'll turn it to you for any commentary. Honestly, don't know. Right now, we've got about 8 million bucks in the bank. We're going to close the year out somewhere between 6 to 7 million, depending on timing on this camp upgrade. We've also got about 15 million dollars worth of warrants in the money so you know that's an interesting piece. We're looking at you know do some of those get exercised that could bring a lot of capital in so we're in this great position right now where we don't need to raise money right now And I think we're going to keep our options open. We genuinely think we're undervalued right now based on what we have in the ground, let alone what we've been finding with this year's discovery. So we're going to keep getting the story out there. These drill results should already are resonating with people, but should continue to resonate with people. And I think we're going to see a growth in the share price and optimistically, we'll look at the right time to finance, but we're not under the gun at all right now and it's a really great place to be.

23:40 Great. One last question that snuck, oh sorry, 2 more that snuck in. Any appetite to have a traveling rig that punches the odd hole farther out, considering the odd historic course? Well, we'd love to have a rig next year. That's actually kind of what we're hoping for, is like 3 rigs concentrated on the main deposit and 1 for at least part of the summer, testing a bunch of regional targets. So 100 percent. Great. Last question, or again, last opportunity to ask a question while I ask one. Az, are we going to get any more updates on the JV projects in Q4 this year? So this is referencing our strategic alliance with Agnico Eagle, doing some kind of very broad grassroots exploration on our portfolio projects in Southern Yukon. Don't know. You know, everyone who's familiar with major partnerships knows there's not always a lot of news out of those. So, and it's super, super early stage work. I just want to emphasize that really, you know, grassroots exploration work. So don't hold your hat on waiting for too much out of that, I think this year.

24:36 Okay, and final question, note that it ended with a ha ha, but they want to know looking to acquire any more projects at this time.

24:43 You know, not currently. I think that's the nice thing about this, right? Is we've got a very good focus here. We've got a project that's the right size and scale for our team and our experience, and we just really want to focus on moving it forward as quickly as possible. Adding more projects just going to dilute that focus. So at the moment, not what we're looking for. I appreciate it. I will say, Andrew, we'll wrap up here at 25 minute mark. I really, really appreciate your time and willing to go through. Let me grill you and let the audience grill you a little bit, but really sensational results. I hope everybody takes a deep dive on that press release again.

25:16 Last chance, when I close the room, you'll be able to request a meeting with the Cascadia team. But Andrew, I'll throw it to you for last words before we close off. Yeah, just thanks again for the opportunity to be on here, Romeo. And thanks everyone for joining us. I think we're at a really, really exciting time for Cascadia. It's been a fantastic summer, but again, we're still drilling. There's a lot of results still to come, so stay tuned. And if you ever have questions, want to chat with us further, just reach out. We're always happy to talk. Awesome. Well, Andrew, have a great weekend and everybody in the room. I know there are a lot of you. Thank you for behaving as always,

25:46 But have a great weekend, you guys, too. Cheers. Thanks, everyone.