Steve Letwin Chairman of Cassiar Gold sits down with 6ix

0:00 So Steve, you built Cote Gold into a really world-class mine. Curious, what do you see at Casio that makes you think they're similar, that there are similarities there? Well, let's just go back a little bit to, I guess I was the one who Initiated it in terms of the purchase of Kote. I actually didn't build it, but I brought it to this stage where it got built and very similar They're both roadside mines and what I mean by that the highway between Sudbury and Timmins Highway 144 literally runs right alongside of Cote. So you exit off the highway, you're at the mine. At Cassiar Highway 37 south, you exit off the road, you're in the Casio deposit.

0:50 In fact, highway 37 bisects the mine. So both have similar land sizes, about 59,000 hectares. By the way, that's like a 140,000 acres. It's huge. And both had very well-developed infrastructure. Cote, which what I liked. We used to have a hunting cap up there my family when when we were younger. So I knew the area. Cote had all of the roads built by the lumber company that was cutting trees there, so easy to get around throughout the entire deposit. Casiar, a group of investors around 2009 put upwards of $100 million.

1:37 Wow. And developing about, I'm going to say 170 kilometers of roadways, Corshack, Camp, power Access. So if you were going to try and replace that today and build that infrastructure at Casio, it would cost you $300 million. We're trading as if we're about a $50-$60 million market cap company. I find that ridiculously cheap. So and that's why I buy shares every year, that's why I participate in the financing. Very similar to Cote and I am Gold. I never sold a share at I am Gold. I took all my bonuses in shares at I am Gold.

2:24 At Casio, I don't get paid cash. I take everything in shares and that's why I am the largest independent shareholder of Casio. That's real skin in the game. Yeah, well you've got to. I mean, to me, you've got to walk the talk and show people that you believe in it. And I do. I was a prophet, if you will, for Cote. The people at IAMGOLD deserve all the credit for building that mine. I'm not taking credit for that. I will take credit for the fact that I was able to see it, I was able to develop it, I was able to bring financing in. And both of these mines, think about this, okay? Casiar has about 2 million ounces right now of gold, inferred, measured, indicated about 500,000.

3:14 Run that mine at 150,000 ounces a year for 15 years. At today's gold prices, you're going to generate about 300 million a year in free cash flow. You'll pay off the Casior mine in 3 years, And you'll be generating cash flow for the next 12 years. Our stock right now is trading at 45 cents Canadian. It will be cash flowing around $2 Canadian a share. I find that an enormous value right now. And I think if once shareholders understand this, and the same thing happened at Cote and IAMGOLD, it sat and it sat and it sat.

4:02 And we were trading at around $2 a share. This morning we're what, at IM Gold, $24, $26 a share. So went from about 1 billion dollar company to $15 billion. So I see the same thing for Casio. I see Casio going from a 45 cent a share company to at least at least 2 dollars to 2 dollar 50 Canadian their share Wow, and I'm gonna hang on to my shares till I see it because I know people are going to want to develop that mine. Good First Nation relationships, great technical team, Jill Maxwell and her team are excellent. Great infrastructure, great access, And we're in a very friendly mining jurisdiction.

4:52 We're not in Africa where I worked with Iron Gold. Where I don't have 8 bodyguards. Right, I drive off the highway, grab a coffee, and you're in the deposit. Very similar to Cote. In fact, identical. Yeah, and I want to talk about infrastructure actually for a second, because I know Casio has permitted mill, camp, the highway going through, et cetera. How important do you Reckon all that infrastructure is to cast your future in de-risking Well, you take a look at how much it costs today to build something like that Sure, and the fact that we have all of that in place today As I said, we're not raising money to build roads. We're not raising money to build Corshacks, We're not raising money to build roads. We're not raising money to build core shacks We're not raising money to build a camp.

5:39 We're not raising money to get permits. It's all there We're raising money to drill which we've had great success and we're gonna raise money I would suspect in some way shape or form to refurbish that mill and start producing cash flow. It's a 200 ton a day mill, and It doesn't take a rocket scientist to figure out that 100,000 ounces of gold is going to produce about $400 million in cash flow for us. And that mill can, call it $10 million of expenditure, all of a sudden start generating some great cash flow. We have tailings we can access, and we have the, in Cassier South, we have the narrow veins, high grade gold, which is where 4 to 500,000 ounces of gold was previously mined.

6:34 I mean, this is to me a gift. It's a gift for people to take advantage of. And that infrastructure to me, it's the same reason I went in and bought Cote. Absolutely same reasoning. When you have that access, when you have that infrastructure in place, it is a huge benefit for shareholders. Awesome. I know, speaking about drilling and the resource itself, I know you've got bulk tonnage, but you've also got those high-grade sections. What excites you most as you get in towards development about the current process? It's like going to a restaurant and looking at a menu and you have some great entrees. We have Casio North, which is the bulk tonnage, and very little overburden, easy access, easy to mine.

7:28 And then on Casio South, I would say higher risk because it's the narrow vein mines that are available. High grade, so economics are a lot more attractive. But you've got both. So you can do both as well. So mill probably would be more receptive to the high grade to start, because you're gonna get greater returns. But the bulk tonnage is gonna be very attractive to mid-tier companies as well, because again, 100,000,150,000 ounces a year at today's prices, huge cash flow returns. Sure, and the majors and mid-tiers are, you know, they're looking for new inventory, so it makes sense. You tell me the last mine that's been built, I mean, There have been 1 or 2 maybe. But a lot of people are not going back into Africa.

8:20 In fact, they're selling out of Africa. So you find a mine like this in a friendly jurisdiction like British Columbia, I think it's pretty attractive. Makes sense. I got one last one for you. You mentioned the valuation gap for right now. What do you think are the catalysts that's going to get you closer to what you feel is that fair valuation? Well, if you believe in net present value, which I mean that's a religion to me, and you've heard people like Rick Rule talk about this, you've got to be able to show shareholders a path to net present value. And in order to do that, you've got to show them a path to cash flow. So I think if we can demonstrate to our shareholders or future shareholders, there is a distinct path to producing cash flow, which we are going to do.

9:07 The stock's going to move up quite rapidly. Awesome. Well, looking forward to following the story. Thank you very much. Talk to you soon.