Replay available

Vior Inc – Outlook 2022

Join us for a great event!

Wed, January 26, 2022 at 12:00 PMendedReplay
Vior Inc – Outlook 2022
Company
Vior Gold Corporation Inc. (TSXV:VIO)
Date
Wed, Jan 26, 2022, 12:00 PM ET
Replay
Watch the replay on this page · 34 min

On 6ix: 6ix.com/event/vior-inc-outlook-2022

Replay

Transcript

Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.

0:07 Hello everyone and welcome to Veeor's live investment summit today hosted by 6. Today I'm joined by Mark Ferocewicz, Veeor's CEO and President, as well as Laurent Eustache, the Executive Vice President of VeeR. The team's gonna walk us through their company presentation today, and after we move to a live Q&A session, where we'll be accepting and answering some questions. You can submit your questions using the Q&A panel found on the right hand side of your screen at any time today. And As always, this summit is being recorded. It'll be available to watch afterwards on SICK.com. And so without further ado, Mark, I'm gonna hand things over to you to get us kicked off.

0:38 Thank you, Cam, and good afternoon, everyone. Welcome to VR's Outlook 2022. So what I'm gonna do today is run you through a quick update on VR's corporate initiatives and aspects. Then Laurent will take you through the technical highlights outlining some of our exploration program and objectives for 2022. I'm just going to move on here. So just before I start, I'd like to draw your attention to that the presentation will contain some forward-looking statements. Please take a moment to read this cautionary page with the disclaimers. So just to begin with, just an update on our corporate profile, you know, our mantra is value based on strong fundamentals.

1:29 Some of the highlights here are strategy, exploration on multiple high potential projects. So it's clear that our flagship Belter Gold project is our focus for 2022. But it's important to add that we do have upside on 8 other very promising gold projects within our portfolio that Laurent will touch on a little bit later. Everyone's pretty aware that a discovery is the key driver for value creation in our industry, known for a very low rate of exploration success, So we've structured the company in such a way that we provide our shareholders and our stakeholders multiple opportunities. All of our projects are situated in safe jurisdictions in North America, either Quebec or Nevada, arguably 2 of the best jurisdictions in the world.

2:20 Expertise, we've got a really highly committed management team, strong leadership and track record, management with over 100 plus years experience in the industry. And most importantly, I'd like to add that management owns over 16% equity position in the company. On a support basis, we have some really strong project partners, both on the financial and technical side. Well, Cisco Mining, who recently invested in VR this past March, owns a 9.9% partially diluted position in the company. FTQ, the labor fund in Quebec. CDEX, small money manager out of Montreal. SDBG, which is Associated Lab-A-James, are all shareholders as well.

3:06 We've also got other great partners, Aluka, SOCHEM and Ridgeline Minerals. Our hybrid strategy provides added diversification both for exploring and investing, which provides our investors increased exploration exposure and reduces our overall corporate risk profile. So we've revised the presentation a little bit, so what I'd like to share with you right now is Fiora's corporate growth catalyst for 2022. Clearly our focus and we've tried to convey this to our shareholders over the past many months, Belter is probably the single greatest growth catalyst within the company. What we've done is consolidated a past producing high-grade mining camp and we're using a systematic exploration process

3:57 to systematically explore belt error and hopefully create shareholder value. You know this proven exploration strategy is focused on value creation. I'd just like to draw your attention to a couple successes that we'd love to emulate ourselves on with Cisco Mining with Canadian Malartic, Detour Gold, the Detour Mine, Integra Gold, Lamac Mine, and Great Barrier Dixie Project. So I'm just gonna briefly go through the schematic here, starting from the bottom. So wealth creation milestones. So, you know, we started this endeavor back late June 2020. We had a market capitalization of about $7 million. Once we consolidated the Belter Gold project last February, March, our market cap was situated at about $14 million. I think the market recognized what we had just accomplished.

4:53 And most recently, we've had some good, pretty significant gold results at surface. And we've just concluded our first phase of a drill program, which I will touch upon shortly. So our market cap is situated probably somewhere around $17 million, you know, arguably in a very difficult junior mining market, the last 6 to 10 months. So you know I think it's validation for what we've done. Some well-heeled investors recognize what we've put together and the potential in our portfolio. So In terms of milestones forthcoming in 2022, what we'd like to do is further identify some of the structural mineralized traps at Belterre, vectorize our drill targeting for the next campaign which Laurent will go over with you, and further on down the road, you know, hopefully identify a nice economic mineralization and build on ounces over time.

5:54 And I think anybody who's followed other juniors will see that these milestones are critical in the value creation process. A little bit about VeeR's corporate assets and diversification. Our exposure is to major exploration projects in North America. We structure the company to reduce overall corporate risk and to expose everyone to multiple potential discoveries. We've got a disciplined capital and human resource allocation process, and this will allow for a strong focus on Belter this year. You know, clearly, we do have many projects in our portfolio. They don't all have the same priority. It's important to note that our focus is on Belterre, both from a corporate and capital allocation point of view. We feel that this is the single best asset to help deliver shareholder value in 2022.

6:50 So, you know, some of the key milestones we've just completed. Summer field exploration program for 2 months last summer. We've received recent surface results, which are excellent. We should have another release probably tomorrow with some additional results. High resolution mag compilation, which led to the 3D model. We just completed prior to Christmas, the first 4,000 meter, almost 4,000 meter drill campaign over 5 holes that Laurent will go over in more detail. The diversification aspect at VeeR also provides our shareholders with upside via our other Quebec projects. They're not all at the same stage of development, but we believe that we should be able to find some good strategic partners, create some value with other people's money within the portfolio.

7:42 Also, we have our strategic investment in Ridgeline Minerals, quality projects and management. VR owns about 6.5% equity interest, which is worth about 1 million and a half dollars right now. It's a separate asset within our balance sheet, but we think there's excellent upside here as well.

8:03 A little bit about the board of directors and management team. I think most of you on the call are probably aware of the board. I'm just going to go over it quickly. Myself and Laurent, I think you're already familiar with The 3 independents are basically Eric Dazoni, founder, CEO of Nouveau Mont Graphite, and his CFO, Charlotte V. Taupe. They're the new generation of Quebec entrepreneurs. They have developed and created success for their shareholders the past 3 to 5 years. You can just look at their stock, NOU, which is testament to what they've accomplished. So they're really important voices on our board. And Claude Saint-Jacques, sort of the patriarch founder of Nouveau, of Vior. He's also the founder of Virginia Gold Mines and an excellent business sense.

8:52 Technical and management team, Laurent and myself and our CFO Ingrid Martin. And then our technical team is Christian Blanchet, Mathieu Gay, 2 senior geos, 20 plus years experience. Mark Lutter, our former VP Exploration, is also a technical advisor. And Ken Williamson, a very well-known structural geologist out of Val d'Or, runs his own consulting firm 3D Geo, and he's been instrumental in helping us develop the 3D model. Just a brief update on the corporate structure, working capital, that number as of September 30th, we haven't published our DIS 30 numbers, That number is probably sitting in the vicinity of a 1.6 million if I were to guesstimate.

9:42 In addition, we completed a flow through financing of almost 1.5 million late October and another flow through financing just before Christmas, about $800,000. So that's in addition to the first working capital number. In addition, we have investments in public companies, largely Ridgeline Minerals, worth about $1.7 million. Shares outstanding have increased a little bit as a result of the flow through financings,

10:10 sitting at about $81.2 million. Major shareholders, as I mentioned earlier, Osisko Mining is at 6.7% undiluted. Management sits a little over 16%. Quebec Institutions a little over 16%. And Close Strategic Holders, which would comprise about 15 high net worth individuals who are very close to the company, approximately 30%. Market capitalization, recently about 17 million at 21 cents. So I'm going to pass the mic over to Laurent, who will get into the technical aspects and what we have in store exploration wise at Belter and elsewhere in 2022.

10:56 Thanks Mark sure and welcome everyone. As part from Belter on which I will get back in a minute, VR owns 4 other gold projects in the ABTB.

11:10 The Ligny-Rissoin located in the Laffin Volcanic Corridor, where AMEX is successfully delineating high-grade gold, as well as Mosso and Skyfall located in the Urban Valley Corridor. VR has been active the past 12 to 18 months, consolidating prospective position in the area as Osisko and Bonterra are delineating world-class high-grade gold deposits. So we expect demand going up on these projects and properties as the camp moves toward development and production.

11:52 So as Marc alluded to later on, Belter is our flagship project located in the heart of the Quebec mining industry. We have really great access and infrastructures.

12:11 That's a proven mining belt with the former past producing high-grade Belterra gold mine, that produced over 750,000 ounces of gold at about 10.7 grand per ton, on which we have the option to acquire.

12:31 So it's a proven mining area. The size is, that's what we saw as well, the opportunity to consolidate ground around that path producing mine. This Rixcal project was up to 37 kilometers of probable geology and comprise about 551 planes covering a surface of 300 square kilometers. So Vior has consolidated this project looking at executing on a similar approach of what Osisko and some other groups successfully did in the past, which is finding a new mine in an old high-grade camp by taking advantage of the modern techniques and the project scale.

13:19 So the opportunity that we saw was the high-grade potential, the potential as well for multi-deposit

13:27 area. It's never been consolidated, so we're the first mover on that particular area. And we think and we work the geology. Shallow drilling in the past, not much below 250 to 300 meters of depth. And never been explored with modern techniques, new high definition geophysics as well as drilling below 300 meters.

14:00 So since consolidation we have put in place a systematic approach, compilation of data from all reports and plans, as well as 3D modeling, helping on the global interpretation of the camp with the help of Ken Williamson, a well-regarded structural geologist modeler. But we've also been pretty active on the field in 2021, with completion of a high-resolution mark survey on the whole property, 2 months of prospection, as well as recently completion of the 4,000 meters drilling program, located mainly only on the historic mine trend.

14:50 So since then we've been able to validate and extend goal showings, recognizing various type of mineralizations, as well as advancing in a comprehensive structural interpretation of the camp. So here are some examples of high grade that we've been able to validate on the field. With up to 274.9 gram per ton and 121.3 gram per ton quartz veins. We've got lots of high-grade and in various place of the brownfield area of the project, as well as some high-grade as well QFP, intrusive rocks with up to 50 g per ton.

15:38 So here is the map of the brownfield area of the project. As you can see, the scale of that brownfield is huge. That's about 12 kilometers extension from bottom left to up right corner of the corners of that map on which you are control the brownfield. So the 2021 was concentrated on the northeast, as you can see on the map, where we have identified and discriminated prospective exploration targets, highlighted on the red bubbles that you see on the map.

16:24 And at the end of the summer last year, we've completed the agreement with Osisko Mining, which represent roughly the other half of the dehistoric Beltyar camp to the southwest. And that's where we will concentrate mainly our effort for the summer 2022. For the summer 2022. And finally, we recently completed the first drilling campaign of about 4,000 meters on 5 holes, only on the historic mine trend. And for various reasons, we decided to extend the depths of most of the drill holes that we did.

17:15 And as we did not completed the whole program planned initially, we will take it back from where we left it as soon as we mobilize another drill rig. So results from the 5 holes are expected end of Q1 2022. All the core has been logged and sampling is completed or should be completed shortly. Also as we already explained in our past summit, that initial campaign has been done to better understand the structural framework of the historic mine trend. And we've got holes from east to west of that specific trend, as you can see on the long view of the trend.

18:10 So we've been able to recognize the geology, various types of lithologies and structures on which we will get results in the coming months that will help to vectorize for the next phases of exploration. So on that I will pass on the mic to Mark to wrap up the presentation. Just to summarize the VeeR opportunity, VeeR is on a really solid foundation here. We've got a low-cost corporate structure, very large inside share ownership, exposure to 9 promising precious metals projects, all in safe jurisdictions. Cisco Mining's investment in Vior last March is an endorsement and validation of our project's potential, and not just Beltaire, several of our other projects in Quebec as well, and also in terms of execution on our corporate strategy.

19:10 There will be continuous news flow throughout 2022. Beltaire is developing rapidly, as you can see. We've had some excellent surface results from our summer field exploration program and fall exploration program. There should be more to be announced in the coming day or 2. We've just completed the 4,000 meters of drilling prior to Christmas. Unfortunately, the labs are very backed up here right now. I can't give you a real accurate time frame in terms of when results should be here, but We're hoping by the end of Q1, possibly sooner with a few rush samples. In addition, we've made the corporate decision to begin a 5,000-metre additional phase 2 drill campaign beginning in Q1 as soon as we can mobilize a drill rig.

20:05 We have no shortage of drill targets. At the moment, we're just trying to prioritize what this 5,000-metre campaign is going to look like. Our other projects, Skyfall, Musso Lignorous, they're all intermediate to Greenfield stage gold projects, all with excellent blue sky potential. And our Ridgeline Investment, which we haven't spoken much about today, but they have excellent exploration potential in their 4 gold and silver projects in Nevada. So perhaps we'll open it up to the Q&A right now. Absolutely, thank you for the presentation gentlemen. As you mentioned there Mark, we'll be entering Q&A session as we speak. So if you have any questions, feel free to ask them in the Q&A tab found on the right hand side of your screen. But begin with, we have a question.

20:58 Is Osisko Mining just a passive investor or are they actively assisting? What price do they pay for your shares? Sure, I'd be happy to answer that. You know, in terms of passive, they're somewhat active in the sense that we do have a technical team set up with their technical team on 2 of our projects, not Belterre, however, the 2 projects in question are Lignorous and Skyfall. It's going very well. In fact, we're working out an exploration program on Lignoris as we speak with their technical team. They bought in at 20 cents a unit last March. I would expect that if we do another hard round financing of any sort, I would expect them to maintain their equity interest.

21:53 Okay, great. Thank you. A question from Eric in the audience. What are the holding costs for the project portfolio? Laurent, you want to answer that? That's a good question. Let's say, I mean, we have lots of credit on all our projects. I mean, we still have to do some work on part of our district-scale goal project. I mean, Skyfall, Lignaris is pretty well covered. I mean, it's not that expensive. And Belter, I mean, we've been really active, so I have no worries about that one as well. So it's going pretty well. I would add that in 2022, the holding costs are going to be minimal.

22:50 I would say, I would guess, you know, if you're talking claim renewals, that's one thing, but in terms of work commitments on the various claims, It's minimal in 2022. Yeah. Right. Okay. Thank you. Pauline wants to know if you've had any assays come back yet. Yeah, we like Mark and I alluded to and by the way, sorry for the bad connection. It's not under my control, but I hope you hear me well. So the, What was the question again? Just if any assays have come back yet.

23:35 Yes, we've got some assays and Mark and I, I mean, we will release some news in the coming days on the summer and fall prospection. But in terms of the assays on the drill campaign, what we've received is absolute minimal. It represents probably a couple percent of what was shipped. Yeah, I mean we're absolutely not ready. I mean we're still ending of sampling the whole, so it's... And yeah, so I think we will be able to get results in maybe 2 months, something like that.

24:27 Okay, great. Thank you for that. Another question, If things go well at Belterre, would you consider optioning Skyfall? It's a very large land package there. What's the bandwidth and focus challenge there? Yeah, I'd be happy to answer that. I mean, clearly, we're limited in terms of our capital resources and human resources. And it's getting more and more difficult out there. We're very fortunate to have a good, solid team right now, all with experience and, you know, a very decent Treasury. There's no question that if we have success at Beltair that Skyfall will become less of a priority in the short term. Not that it doesn't have excellent upside potential, but It's quite a bit more greenfield in terms of its life cycle.

25:20 And certainly if a bull market was in the order that we'd have no difficulty with the right partner and the right arrangement, joint venture option agreement To allow another partner to help advance it. Okay a question Chris how much cash you have right now and what's the burn rate look like. Yes so cash position you know I we have a released or D. 30 or D. 31st numbers. I'm going to give you a guesstimate here approximately so don't don't hold me to it. You know, our cash position is probably situated about 3.5 million, I would guess, in that area, because we had to pay for the fall drill campaign.

26:09 But we're in a very healthy position, certainly for the next campaign, the next 5,000 metres, and we'll evaluate things on a month-by-month basis after that. And that excludes our investment in Ridgeline Minerals. So if you really took our true working capital, it would be in excess of $5 million right now. Okay, great. Thank you for that. And we just just to follow up on burn rate. Burn rate is probably situated in the 50 to $60,000 a month. Ballpark, if you include include the marketing we've been doing recently, probably closer to the 60,000 area, 55,000, 60,000. Great, thank you for that.

26:55 At Belter, you have such a large and highly prospective land package to explore. What are your priorities over the next few years and what's the process of determining those priorities? Yeah, I'm going to take that one and hopefully everyone will hear me well. It seems that I have some trouble with my connection. Basically, I mean there's the brownfield area where we have more advanced geological information where we are able to execute and have some high potential real targets where we will be more active there. And as well, and at the same time, we will advance more grassroots area up north and down south where we did some till sampling. We're still waiting for this result and where we will try to focus where the most interesting areas are.

27:55 We still have to delineate these areas. So basically we have some advanced areas where we are already ready to drill and some more remote exploration where we will advance and as we find some good eventually showings and good reasons to move a drill there we will do it. So that's the usual strategy for this type of project where you have a core more advanced area where you can build some and create some value faster and advance the other area as time and results advance. Great, thank you for that. Paul on the ions wants to know, are any asset sales likely to avoid further dilution?

28:49 Yeah, I'll take that one. I mean, we're open to a number of optionalities with respect to keeping dilution to a minimum. An asset sale or a good option or JV agreement that would bring in some cash would certainly be welcome with the right partners. So all options are on the table. You know, I would add that, you know, Belter is a beast that deserves a good amount of drilling. Corporately, we're looking at a number of options right now in terms of how do we really attack Belter with a large amount of meters and drilling in 2020. So, you know, stay tuned on that side. Well, thank you for that. And what can you expect this year out of Belterre?

29:39 Mike? Well, I mean, listen, with respect to Belterre, We're doing all the right things. We have no shortage of drill targets. Certainly we'd like to show the market that there is mineralization, there are structures either at depth or laterally in the mine trend. We are also going to step out to Osisko Mining's project that we have joint ventured with them. You know, probably stay tuned for some updates on surface results there in the coming days. We have our eye on a number of targets there. We'd like to drill a good amount of meters. I mean, as everybody knows, this is a process.

30:27 It's not necessarily the first 3 or 5,000 meters that makes you that significant discovery that we're all looking for. But it is, it will tell us a lot in terms of vectorising on new targets in the second phase or the third phase. But we have every intention at Belterre of continuing to drill throughout 2022. We'll secure the funds for a much larger campaign at some point. We're pretty optimistic, though, on these first couple of phases of drill programs that we will have some degree of success. I'd say as well, there's lots of time investment from the technical team to dig into these data.

31:13 Going on the field, we start to get the results. And I mean, we start to really better understand all the various area, which are not all the same. We see some, I mean, the timing of all the mineralization may not be the same. We see some association with various types of lithologies as well, with various types of alterations. All these things take time for the geologists to better understand and vectorize. So I think we will start to see these, I mean, that investment that we did for, I mean, just a year. I mean, we started to consolidate that, announcing the first acquisition early next year, last year.

32:04 So I think we will start to see these results coming up and increase the level of targeting, which will provide eventually exciting news for our shareholders. Wonderful, thank you for that. Listen, gentlemen, I think that's the time we have for today. So, first and foremost, I'd like to thank both you, Marc and Laurent, for coming on today, as well as everyone in the attendance for joining us. If you didn't get a chance to ask your question or if you think of 1 after the summit, you can find VR's company presentation in the handouts and you can of course always find out more information on their website at VR.ca. But With that, Mark, I'm going to hand things over to you to wrap things up for us. Thanks, Cam, and thanks, Laurent. So just in conclusion, I'd like to thank everyone for attending today.

32:54 The VR team really looks forward to delivering some solid growth, delivering on some milestones where the portfolio creates some value for everyone in 2022. I think we've got a fabulous project on our hands. The team is working hard, both technically and corporately, to advance all aspects of it. Stay tuned for some additional, I think, promising news and perhaps how we attack the project a little more aggressively at some point in the year. But all indications are we've got no shortage of really excellent drill targets. We know there's mineralization at surface.

33:42 We know there are still ounces at Belterre as well. They're obviously non 43-101 compliant at the moment. It's not our focus to prove those answers up right now. You know, at some point we'll address that, but we're looking at the bigger prize where perhaps we see a really good system at depth or laterally. So stay tuned for a lot of news flow beginning shortly. Wonderful. Well, thank you again, gentlemen. I hope you have a good rest of your day. Cheers. Thank you. Thank you.

Follow Vior Gold Corporation Inc. into a list and get an email when it puts out news.

Latest news releases

Companies on this call

Speakers

Speaker profile Mark Fedosiewich

Mark Fedosiewich

CEO at Vior Inc.

Mark is an Honours Bachelor of Commerce graduate who has been involved in the investment industry for over 30 years in a number of senior advisory positions with several prominent investment firms, most recently as first vice-president at CIBC Wood Gundy. He has established, over his successful career, an extensive network across North America of mining executives, experienced high-net-worth junior resource investors and prominent junior resource portfolio managers. Vior Inc. deploys a hybrid exploration strategy that is different from other junior explorers. We focus on exploring or partnering on our own prospective portfolio of district-scale projects in Quebec, but also look for strategic investments that have tremendous upside - diversifying risk and increasing the odds of making a discovery. Our focus and priority is exploring and drilling at our flagship Belleterre gold project, a historic past producing high-grade mine with tremendous district-scale brownfield and green field exploration targets.

Speaker profile Laurent Eustache

Laurent Eustache

Executive Vice-President at Vior

Laurent has held a number of progressive positions in the mining industry over the past 15 years. As an exploration geologist, Laurent has contributed to different exploration successes; with Aurizon Mines at their Casa Berardi mine in Abitibi, and with Agnico-Eagle Mines with the early-stage recon of the Amaruq area in Nunavut. Since 2014, he has held positions in mining finance both as Portfolio Manager and Investment Advisor for SIDEX, a Quebec based institutional fund specializing in mining exploration Companies. Laurent holds a Master’s degree in Economic Geology from Université d’Orléans (FR) and Université du Québec à Montréal (UQAM) and an MBA with Honours from École des sciences de la gestion of Université du Québec à Montréal (ESG-UQAM) and Paris Dauphine (FR).

More from Vior Gold Corporation Inc.