Virtual Investor Day 2: Newfoundland Gold Group

0:04 Welcome everyone to day 2 of the virtual investors forum of Newfoundland Gold. My name is Greg McCoach, editor of the Mining Speculator. I'll be your moderator today. With me I have 3 panelists and for the next 40 minutes or so we'll be interacting. I'll be moderating this panel regarding the new discoveries that have been made in the Newfoundland gold area. We have a staking boom, a modern-day gold rush going on. It's a district-scale area play that I think is the hottest thing going not just in North America but around the world at this point. So it's very exciting for attendees. I think this is one of those moments as investors.

0:50 This could be a very profitable conference for you to listen in on and learn about the companies that are involved with this great area play. Just some housekeeping. We'll first let our panelists each introduce themselves for 3 to 4 minutes each. Once they're done, then I will begin asking some questions. And as attendees, you should participate as well. We'll leave 15 to 20 minutes at the end of our hour for your questions. I can see them in the Q&A section, and I will try to get to as many of those as possible. So with that, why don't we start with Craig. Craig Roberts, you go first. 3 to 4 minutes on yourself and your company. Chris, you'll be second.

1:37 And Janet, you'll be third. Great. Thanks, Craig. Yeah, so to introduce myself, I'm a mining engineer by background. Spent a number of years in operations, mostly underground mining. I worked for FLIR for quite a number of years doing mining engineering, feasibility study type work, and then I've been mining investment banking for about 18 years with First Marathon National Bank Financial, PI Financial. More recently, I'm the CEO of Newfound Gold. I'll just give a really quick run-through on Newfound. 152 million shares issued, no warrants, very minimal warrants, at least 600,000 or so.

2:24 We have 79 million in working capital and we're currently executing on a 200,000-meter drill program on the Queensway project in Newfoundland. Just really briefly, some of the key people involved in the company, Colin Cotel and Benny Labby-Ellett are the 2 founders. They put this company and the project together and starting in 2016. There's a very large amount of work done between 2016 and 2019. Well in excess of 5 million dollars spent on geochemical surveys, geophysics, other kind of work to advance the project.

3:10 Late 2019, we drilled the discovery hole at Queensway, 19 meters, 93 grams. Subsequently went public with Canaccord and BMO leading that IPO. And then since then, we've continued to step out at the Keats zone from that initial discovery hole. And we're now 425 meters down dip on the heat zone. Our latest hole was 4.7 ounces per ton, actually over 25.6 meters. That's 146 grams per ton. And there's been, you know, really some outstanding widths and grades right from surface down to that most recent and deepest hole.

4:00 The project itself is over 100 kilometers north to south. It's staked on 2 very deep crustal faults, the Appleton-JVP fault. There's more than a dozen high-grade showings or zones with historic high-grade drilling along these structures. To this point, we've primarily focused on Keats. We made a new discovery at Lotto

4:30 about 2 kilometers north of Keats, which the highest grade interval there was about 2 and a half meters of 225 grams. But we're starting to see some good continuity there. I'm very excited to be stepping out 2 kilometers and getting those kind of grades in similar type of mineralization. So really, there's 2 aspects to what we're doing. In our execution of the drill program, we're stepping out and infilling on the targets and discoveries we have to this point. And then we're also aggressively going after quite a number of other high-grade targets along both the Appleton and the JDP fault. We think there's very good potential that there's quite a lot of repetition of this type of mineralization.

5:24 Quentin Henning came to site in early 2020. Quentin was involved with Newmarket and Cocoa Lake Gold when that transaction happened and is very familiar with the Fosterville style of mineralization.

5:41 We think there's very strong similarities in the style of mineralization, that the high-grade gold we have is explained as epizonal type mineralization without sort of getting into the details on that. That's sort of been a breakthrough for us in understanding this type of mineralization and how to explore it. And previous explorers here did not have that model and understanding. And it's certainly been very helpful to us in both at Keats and Lotto and also in the new targets that we're drilling. Greg?

6:15 With that, Greg, I'll stop there. Yeah, let's do the introductions first. We'll get more into those geological questions. Chris, why don't you do your intro on yourself and your company? Thanks Greg. I'm Chris Healy. I am a director and the chief geologist for K9 Gold. I'm a professional geologist registered in Newfoundland and other jurisdictions. I've been working in the business for over 50 years and as Greg mentioned earlier, this is probably the most exciting area of play that I've ever seen. It's just phenomenal what the results of our neighbors are getting. We acquired this property, a Stoney Lake property last year.

7:01 It is a large property, 13,000 plus hectares, 27 kilometers north to south. The north boundary is immediately adjacent to Sokoman's Moosehead Discovery. We're about a kilometer and a half south and along the exact same structure. When we acquired the property, there had been some quite a bit of historic work, but not much in the way of comprehensive covering the whole area. The previous operator had flown a regional airborne magnetometer survey, which provides some very good background information. And we decided as a strategy, we would develop a good overall picture of the whole property before starting to pick specific drill targets.

7:56 We've stuck with this strategy. We have continued with Airborne VTEM, the time domain electromagnetic survey last fall, looking for conductive material. We have done LIDAR, orthophotos, we've done some more prospecting. We have prospecting crews out right now. We did 60 kilometers of IP on 2 grids earlier this year and we just got the preliminary results from that on Friday last week, so we're in the process of interpreting that. It's looking like we have some very, very good-looking targets, in particular, just south of the border with Sokomet. That's exactly where we would hope to be targeting as our highest priority.

8:55 There's some old drilling in that area, which had some low-grade mineralisation. Probably the holes drilled in the wrong direction. The core for those holes drilled in 2002 is stored by the Newfoundland government in Buckins. They do a wonderful job of storing historic core. So we were able to see that last week. And not surprisingly, the core looks very, very much like some of the core that Socomun has on their website with the veining and the like. So we're pretty excited about what we've seen there. We will be starting a drill program, 5,000m in about 2-weeks and We're geared up and ready to roll.

9:47 Super. Thank you. Janet? My name's Janet Leigh-Sheriff. I am the Executive Chair of Sea to Sea Gold. We trade on the CSE as CTOC. And I am joined by my CEO, Lori Walton, who I have known for about 15 years and is a geologist that has worked across North and Southern America. And also my CEO, Camille Zhao, who I've worked with for a number of years. As an aside, we are an all-female team and it just happened to work out that way. We are compiling the best team. Our projects are in the central Newfoundland Gold belt. We started acquiring projects under C2C around November of last year from Sean Ryan and we have quite a large land position just under 1200 square kilometres.

10:43 We see Newfoundland as a very highly prospective area. Excited about what Newfound Gold has been doing because to date there's been a lot of shallow drilling and there isn't a lot of showings through the till. So, we see this as an amazing opportunity in an incredibly progressive jurisdiction with great government support. One of the things that I really like about it is when other governments were cutting,

11:11 Newfoundland and Labrador actually expanded their work in the geological survey, which has led to a lot of this information that's benefiting all of us. So our properties, Millertown, Badger and Barrens Lake, we acquired from Sean. We did expand our staking in the area And you'll see from our news, we're still acquiring projects. Our team's in the field right now, starting our soil sampling and our drill permits are coming along. The new projects that we've just announced have showings. The last one we announced is adjacent to Sokomans property. And so we will be establishing some drill targets very quickly so we can move into a drill program this year as well.

12:00 Most of the projects are located between the Red India Line and the Valentine Lake Shear Zone and we see some similarities to some projects across Abitibi and Bendigo throughout Newfoundland. And I'm looking forward to one of our directors, Rich Goldfarb, speaking tomorrow. Rich is very clear that he sees Newfoundland as one of the 2 best places in the world for discoveries of economic size. With that, I'm going to hand it off back to you Greg and again I'm happy to be here. I also want to mention that I did start Newfoundland.Gold because I see the value of this collective marketing and very excited about this. Yeah great alliance, great alliance to get the message out.

12:50 I'm shocked that more mainstream investors don't understand what's happening here. They should be listening right now to what we're talking about. And that brings me to a point, you know, I've been trading these junior mining shares for over 40 years personally, 21 of which I've been a newsletter writer these past 21 years. I've been through multiple area plays in my career, both personally and as a newsletter writer. And I can tell you, I really looked into this because I don't want to get burned like I have with some other area plays that can tend to come and go. This looks like it has real teeth, real staying power at a time when I believe gold is going to be moving up dramatically. And, you know, this is a very exciting situation.

13:38 Other area plays, they get super hot and then they fizzle quickly because there's something lacking with the Yukon when the first Yukon gold rush happened was because the power line wasn't gonna be there. And the whole thing was like a dagger to the heart. The whole thing came to a crashing, burning end, right? This looks very different to me. This really looks like, you know, you got supportive government, you got certainty with mining permit law, you've got skilled labor infrastructure, ocean ports, you know, within 100 miles of any mining area, high-grade gold potential, a model that's pretty simple to understand, and, you know, I'm very excited about it. So the first question I want to direct to Craig, because obviously New Found Gold is the model.

14:30 They've made this discovery that has broken open the understanding in this area. And, Craig, you started to address this, and I'm sorry I cut you off there because I wanted to get through the introductions, but geologically, what are we looking for? I mean, it seems that we're looking for these deep-seated structural faults that define the epizonal gold model that you found at both Keats and the Lotto Zone discoveries, how likely do you think it is that now that the understanding has been broken open, that other companies can match what you're doing? Yeah, to answer that question specifically, as you alluded to, Greg, one of the key elements to the geology in Newfoundland is that it is a sort of 400 plus million year old collision zone where the African and North American plate collided and created these very deep seated structures right across Newfoundland.

15:33 And the gold mineralization, certainly on the Queensway project and on a number of the other projects in Newfoundland, is related to that collision event, to the very deep crustal breaks that happened during that event, the plumbing that then brought fluids up and led to the gold mineralization, including the very high-grade epizonal-type gold mineralization. So this is a very big, in fact, that model continues across into Ireland and down through

16:10 the Maritimes offshore back into Maine. And it's the formation of the Appalachian Mountains as well. So it's a very, very big global scale crustal event. And so I think, just to get to the answer to the question, I think that there's very good potential, not just on our project, but on a number of these other projects for some very significant discoveries here. Yeah, and I mean, it looks to me, this could be the biggest gold event in our lives. It has potential for that, and we'll see what happens. There's 30 plus companies already working in the area. I'm sure the staking rush that's happening, there'll be more coming along, but plenty of opportunity for those who are in attendance.

16:56 You're not too late. This is still early days. And I think this gold bull market that we're experiencing, I believe gold is going to a new all time high and then some. This is just the beginning of some very big moves that are about to happen, starting later this summer, going into the fall

17:15 and for years to come. So very, very good timing for a model like this to come about for investors who are smart enough to follow this and get involved with all the right companies. So with that, let's see here. When you guys have to work in the field, let's just address this up front because I know we're going to get the question. What are the COVID issues we've got to deal with here as we're going out into the field? How complicated is it? Anybody, why don't you take that one because you seem to have a little insight into that before we got online here. Yeah, it's obviously a bit of an inconvenience, but you do what you have to do.

18:03 I was in Newfoundland for 3 weeks, came back a couple of weeks ago, going back this weekend. Right now, mining is an essential business, so we are allowed to work. If you are not at work, you have to self isolate for 14 days. The paperwork you have to do before you get there, then you have to arrange for 3 COVID tests. And it's, like I said, it's a minor inconvenience. We have a crew of about 6 or 7 staying in the same house so with people rotating in and out basically

18:47 you're in isolation the whole time. Get your groceries delivered, you know, you can't go to the bars, which is, that's great. They don't have to track the way, but you've got, you're here to work. That's all you can do. Sorry. But the news as a couple hours ago, the

19:10 Newfoundland government announced their plan for reopening. And what they're saying is tentatively as of July 1st, if you've had 2 vaccinated, if you're fully vaccinated, you will be able to travel without any restrictions whatsoever. Just just the normal, you know, wearing a mask in public place, stuff like that. But no paperwork, no isolation, if you have the 2 vaccines. If you have one, then you would have to either have a pre-arrival negative test or isolate for a couple of days until you get tested. So yeah, it's a minor inconvenience, but it's not seriously affecting our ability to get the job done. If I could add something, Greg.

19:56 I think what's really important is our sampling crew is in the field now, And they did their self-isolation as well as our exploration manager. But there's a labor force in Newfoundland that we are all drawing from. And they're experienced in mining because they've been through the mining cycles and had to move away for work. So it's easy to hire local and to work with respect to the communities by keeping people where necessary in the camps. But a very skilled labor force that we're able to draw from. Right, okay, well, that's it sounds doable, you know, I mean, I think it's been a little discouraging for investors, they were okay, what's COVID gonna do today?

20:47 How's it gonna be a negative? Investors are always trying to cover themselves and I think that's why it's such an important question to address here. Let's talk about some of the other major players. Obviously, Newfound Gold is the key player, but there's been other companies in the area. Who are some of the major players that were before us? Well, I think Exploits is another company that has acquired very large land position and is coming on quite strongly. Mike Collins will be speaking tomorrow from exploits, but they've been doing quite well. I believe they've started drilling. I think there's Lab Gold on tomorrow as well. Zocum and Minerals, they're joining our group as well. So there's some definite leaders in the field that are

21:42 really helping the rest of us build a great deal of knowledge. And I think the work of Sean Ryan, Danny LaValle is amazing in what he's done. Sean Ryan's been doing an incredible amount of research very quietly behind the scenes and putting together some interesting models. That's what you're seeing with the number of deals he's been doing. And I think that will lead to some very good drill targets that they'll develop.

22:16 Yeah. And anybody can answer this one. Do you feel like there's going to be a point where the opportunity wanes? I mean, there's only so much land and it's a lot of land and you've already got over 30 players. Will it get to the point where, you know, unless you can get an X amount of land, it's not worth really getting involved anymore. It's probably going to all be gobbled up. Would that be fair to say at some point?

22:45 I would say, I agree with that, Greg. I think back quite a number of years now to some of the big area plays. Yeah, the ground does certainly get taken up. But I also make the point that within any of these project areas, including our own, the Queensway project's over 100 kilometers north to south. So while the acquisition of land might become a lot more challenging,

23:14 each of the companies here is gonna have a very long time, I mean, decades and decades to even scratch the surface on some of these projects. It's a very, there's a lot of ground here that's suspected. Right, the scale is amazing. I mean, your situation, you're saying 100 kilometers, I mean, you could drill 100 kilometers of, you know, and you have a 200,000 meter drill program and yet 100 kilometers, that's a lot of drilling. Well, some key points around that, Greg, is that, you know, there's certainly over our project area and I think most of the projects, is a very thin glacial till cover that masks the underlying rocks. And it's shallow enough that it's not a problem in the longer term in terms of mining and that kind of thing. But if that wasn't there, I would imagine these discoveries would have been made many years ago.

24:08 And you could you could you could explore this ground very, very quickly. But, you know, that that glacial tilt covers could sort of been a blanket over this geology. But specifically, again, using our project as an example, but, you know, we've got sort of over 7 kilometers on the Appleton Fault and 12 kilometers on the JDP fault, the 2 deep structures on the north part of our property. But those structures continue for 70 plus kilometers on this to the south. And we've done a very large geochem gold intel survey over that area, particularly over the projection of those deep structures based on geophysics.

24:56 And that's revealed some very large gold anomalies coincident with those structures. And we're in the process of vectoring in on the source of that gold. And I would imagine that situation is very similar on a number of these other projects as well. Yeah, well in your case, you know, when you're saying this glacial tilt covering, So it's kind of like blind drilling, but you guys on your Keats discovery, you had the famous Keats rock now that did outcrop in that area. So there is some outcrop, but what's the best way for companies to go about exploring? Several of you have mentioned different types of technology that's being used. And I've learned about Gold Spot Discoveries and their AI technology that's been used.

25:44 Chris, do you have Anything to say about that?

25:49 Yeah, well, following up on what Craig said about the lack of outcrop, one thing, the LiDAR survey we flew last year, we are finding actually very useful in finding genuine outcrops as opposed to areas with just elevated terrain, drumlins and things like that. So we are identifying outcrops that we didn't know about. And then the soil sampling, till sampling, we've had over the years a number of surveys, till sampling, soil sampling, bee horizon, all using different methodology to collect samples, all using different methodology to analyse those. So it's very difficult to combine that into a comprehensive data set. So we have, we're carrying out a very large, almost proper covering the whole property, the soil survey right now, with, I believe this is the same company Janet's talking about, Ground Truth Exploration.

26:55 Very well designed program, the techniques are good, their efficiency is excellent. This is a bit of a commercial, I guess, for them.

27:09 It's a very good way to get a comprehensive coverage of a very large area and then key in on target areas. We've got, from historic work, we had 7 or 8 areas that were targeted for with anomalous various surveys, but you don't know really what you've got. It's not nothing you can put a drill hole on right away. So you've got to integrate that with everything else. But the soil survey, we're very excited about what the help it will give us. Yeah. How about everyone? 2 things I would add, Greg, is I know there's always a split opinion on geophysics, but geophysics works here.

27:57 And it's structure. Structure is key. So when you're looking at the perspective opportunities and that I think Sean is presenting next and he'll go into a lot more detail on that as well. Yeah, I don't wanna steal the thunder from him right now. I mean, over the years, Sean's one of my favorite guys in the mining business. I'll never forget when I interviewed him right when he made that initial discovery up in the Yukon that started the gold rush up there. And he got all this fame and fortune came his way. And I remember seeing him at PDAC and here he was in a suit and he looked like a penguin out of water. And he felt so uncomfortable, but that's Sean.

28:42 He's great, great guy, great character. You'll hear from him after we're done here. But anyway, so let's see how much time do we got left? We've got about 10 minutes before we get into the attendee questions. Why not each one of you, Craig will start then Chris, then Janet, Is there a question you would like to answer for the attendees that hasn't been asked yet? Is there something that you think is important enough to bring up with this at this point? And I'll let you take it from there. One question, answer it, and then go to the next person. Craig, you've got one, or whoever has 1 first, go. Sure, I can go.

29:28 I think

29:34 I would frame it in a question exactly, but I'll just talk about how I look at the Queensway project, and including from an investment point of view. And I look at it as both narrowly. So you look narrowly at Keats or at Lotto or even the knob which Niranda drilled south of the highway and some of the other areas we're drilling. And on that kind of scale, we now understand, I think, fairly well the genetic model for the mineralization, the overall orogenic environment, and then particularly the epizonal mechanism, which I won't try and describe but is what leads to this very high-grade gold and actually again, we think is Very very similar to what in place the high-grade gold it at Fosterville including in the swan zone, so So Narrowly looking at each of these zones,

30:46 Keats comes right to surface. You can look at the geometry, the fact that it's on infrastructure, the grades, the widths, etc. In terms of getting a sense of value, value per ounce, number of ounces, etc. Then from that closer view to step back and look at the very big picture, you know, the 100 kilometers of stripe,

31:11 and then think about, you know, the potential, why wouldn't there be repetitions of that, of those kind of zones, in our case, across our property and on other properties as well? I mean, I think the historic exploration here had some very high-grade gold, but didn't really have get quite to the tenor that we found at Keats. And in any case, there was a lot of confusion historically about the genetic model. There was even thoughts it was Collins-style and epithermal and different sort of ways of looking at it. And now that we have this kind of Fosterville, orogenic, epizonal model and can explain that high grade, we can each go hunting for other zones of that high grade along these big structures. It's looking at that interplay between, if you like, the example discovery so far and then the potential for multiple of these discoveries on our property and I think that some of the other companies as well that are exploring here. So that's sort of to me that's kind of a basic way to look at the the value and the investment

32:31 potential of this of our project and of other projects as well. Yeah, no, I think that's a valid point. Great for attendees to hear that. So that's why I wanted to turn this over to you guys because you're, you're boots on the ground. You, you, you see what's going on. I'd love to be able to get up there to a site visit, but as an American going to Canada right now is not likely.

32:57 So Chris, how about your question? I noticed earlier somebody had one of the participants, one of the audience that made a comment about permitting. And that is obviously always a potential risk factor in any jurisdiction. Prediction. What we found so far, at least for the exploration phase, is it is very straightforward, very transparent. For simple programs which don't involve any mechanical disturbances, it's strictly a notification process. You send in your details, and if you haven't heard anything back in 14 days saying, no, you can't do it, then you're free to go.

33:46 For drilling, trenching, where there is disturbance, obviously a little bit longer, you have to get proper approvals. But I think our drill program application, we got approved in about 6 weeks, trenching about the same, the drilling we had another week or so to get a water use permit, another week to get a temporary commercial cutting permit so we could put some drill pads in and things like that. So, very straightforward. And so far, we have not come up against any significant roadblocks that would impede our ability to get the work done in a timely manner. Right. Yeah, you know, I've done some research, you know, just as a newsletter writer and being in this sector for so long as a personal investor, these area plays, you can get burned on them because they can get super hot and they can burn out like very quickly.

34:48 And before I really got involved with this with Janet and C2C, I heard about it. I started research and I was trying to compare it with other area plays I've seen over the years. And this one just really stands out to me. It's got size, it's got the gold market going for it, a long-term gold bull market that's probably gonna end in a Super Bowl market. So we have plenty of time for the companies to do their thing without the rug getting pulled out from under them. Newfoundland's as good as it gets, you know, in my years of traveling around the world I always say some of the nicest people I've ever met in the world are from Newfoundland, right? I remember the weather was bad, I couldn't get out, and the hotels were all booked, and I had people that didn't even, you know, they knew who I was, but they didn't really know me from Adam, and they're inviting me over to their house to stay.

35:45 And I was, and that wasn't just, it was so nice. You know, it was, they invited me right into their family. And, you know, fortunately I had that invitation because otherwise it would have been difficult during that bad weather when I got stuck there. So Janet, how about your question? I think my question would be 1 that I've heard several times from people who are skeptical. If Newfoundland's so great, why wasn't it discovered before this? And where's all the investment been? And I think there's a few good answers to that question. The jurisdiction has a strong history in base metals and operating mines in Labrador. So it has a mining background. It has a good permitting regime. It has low power rates for mines.

36:38 And there was a companies like Naranda that were in there, but there was not a lot of deep drilling. And So it's really an opportunity that was overlooked because there was a lot of other stuff going on. So when a company like Newfound comes in and puts in such a concerted effort with a significant drill program, and you combine that with people like Sean Ryan that are deep in the research, all of a sudden the opportunities emerge. But I think there is a skepticism because it hasn't been developed to this point. So really it's at a point where other jurisdictions were decades ago, except you're dealing with a very confined area on the island.

37:25 And I think there's a lot of opportunity. And I think we're just starting to see it now. And I'm looking forward to the next company that hits it on the drill results. So I think that's really going to perk people up. And I think it's an environment where, and it's a nice euphemism for Newfoundland, all boats will float higher when that happens. And I'm very much looking forward to that this season. Yeah, all the boats would float. We get several other discoveries that are confirming this model that Newfound Gold has uncovered. And boy, I think this will get the money and the investors would come to this area in droves. And that's kind of what our mining business needs. We need a big new discovery area like this that's not a 1 and done area play. We need one that's got some teeth and some longevity and I like I said, I've compared this to other Area plays that I've been involved with This 1 has way better than anything I've ever experienced in the past. And we'll see.

38:37 I mean, the drills will tell us the story as always, but it just seems like this has all the ingredients. It looks like the planets may have aligned. And what we've all hoped for in our industry over the years to have such a big discovery that becomes the hottest area of play in our lifetimes would be just a great way to go out and we'll all make a ton of money. I like the way Sean Ryan says it when he says this is a once in a lifetime opportunity. Yeah, no, there's no doubt about that for sure. So let's see here. So I got to get in. We're going to start our questions with our attendees here. So I pause here a second.

39:26 I gotta just read some of these and see what everyone's saying here. Public, okay. Okay, so Richard asked, what would we watch out for on the risk side? Where would be the grid up being the power line issue that nailed the first, that nailed the final, nailed the coffin for the first Yukon Gold Rush we saw there. But what will we watch out from a risk side? Would it be permits? Would it be environmental concerns? If in structure, cash cost to get the gold out, et cetera. Anybody can answer. I'd say one of the risks is there's a lot of companies and there's a lot of demands on infrastructure.

40:20 And so we're all looking for drills and acquiring drills, but I think we're gonna strain the system a little bit, but I think we're all gonna adjust quite well. So I think it's a matter of knowing what you need in advance and acquiring it. Right, because there's going to be a lot of companies need assays. We're talking about hundreds of thousands of meters of drilling. We've been through this last year in the exploration industry in North America where assays were severely delayed You know good good question Richard and good answer Janet Next what the staking rush Yeah, go ahead Chris Just maybe add a little bit on the assaying. As far as I know, there's just the one accredited lab on the island.

41:10 Up in Springdale, I was at that lab a couple of weeks ago. They're heavy into construction to expand their capacity. Of course, they recognize that, yes, it's going to be a busy summer with all the work and I'm sure quite a lot of the assays will be sent to Vancouver or other places. Hopefully not as bad as it was in the Yukon 10 years ago, where we were waiting for 4 or 5, even 6 months sometimes for results. But it's obviously a challenge for the service providers when you have these big swings in demand. They know they're gonna have a lot of demand this year. They expand the capacity. They're hoping that it'll be there next year.

41:56 And hopefully it will be, but if it's not, then they suffer for that. And other supplies, pickup trucks, very, very hard to find on the island. We actually shipped 1 from Vancouver. Only cost $3,000 to ship it there, but It was the only way to get one with a reasonable price. Well, I think that COVID risk is going to present some shortages to everybody, every industry, whether it's mining or whatever. Down here in the States, I was looking for a used truck for one of my sons and they were not to be had. I mean, the price on them was almost like a brand new truck and there was just no inventory and dealers were begging people to trade cars in so they'd have some used inventory.

42:53 But to some extent is that, I mean, it's that dynamic that's leading potentially to inflation and to higher gold prices. So while it's a risk on the one hand, it might be an opportunity. Exactly. Absolutely. All right, well, that was a great question, Richard. I think we really dealt with that one very well. The next question I think is a little premature, but I'll ask it anyway. With the staking rush, when does the panel anticipate consolidation through merger and acquisition? Well, we're a little early there, but what's going on with Newfound gold, I think that would be, that's definitely going to get the attention of the majors. But they have a long way to go in proving that up to a 43-101.

43:40 So my take on it would be it could take some time before we get to that point. Anybody else? I agree, I think we need results. Craig's out in front on this one. Yeah, he would be the leader on that one. Yeah, I mean, completely agree, Greg. There's just so much on our plate in terms of exploration, both again on the targets that we're sort of infilling and stepping out on, but certainly, you know, to really assess the, to begin to assess the potential of the project is gonna take quite a lot of time. We've got 200,000 meters in our program and we're probably about 25% into that at this point.

44:32 Yeah, I mean, M&A is possible at any point, but I think it's early days, you know, in terms of, yeah. Well, I mean, M&A, I would say, look, you have to come out with a PEA first, right? Or at least something, some kind of delineation of how much gold is there, let alone doing the engineering studies and you being an engineer would know better than most. But is there a timeline for, you know, again, this is premature, but wouldn't the PEA be the first milestone in such a question? Yeah, definitely, Greg. I mean, there'd be an initial resource and then a PEA based on that resource. And yeah, the timing of doing that, there's many factors that coming into thinking about that.

45:22 In our case, you know, I actually think we could elect to move to that fairly soon, but. There's just so much going on in terms of still stepping out even at Keats where it's wide open. We don't know where that's going to go. And Lotto and all these other areas. So we obviously think about it quite a lot, but we're not putting a peg in the ground and saying we're gonna aim to do a resource by a certain date at this point, which would then form the basis of the PDA. Great, Okay, I think we've answered that one. Here's a follow-up to the risk assessment question earlier.

46:07 What about a change of government in Newfoundland? Would that, could that be a negative potential risk if the government changed right in the middle of this and pulls the rug out from under us? I mean, anybody want to address that? Because I had a number of conversations with the government of Newfoundland and Labrador both before and after the election. And I think what's really important to remember is, you know, as a Canadian, you remember when Newfoundland went through hard times and the people from Newfoundland had to leave. And I was living in a Northern town in Northern Canada and 2 thirds of the population was from Newfoundland. So they've been through difficult times and they value having the ability to develop their own economy and their own labor force, stay at home and work.

47:00 And the oil and gas industry has suffered in the resource revenue of the government. And they made a clear strategy a number of years ago to build up their profile to attract more investment in the mining space, which they have been very successful in doing so. And to me, it's a source of revenue governments need. And that is a driving factor to the interest and the willingness to support natural resource revenue development, whether it's oil and gas or mining, and hopefully both for the province. So, you know, I think politics is always a factor, but I like to think that in the end, and maybe it's not a short-term issue, but in the end, it's economics.

47:52 We put money into local communities. We put jobs into local communities. We put money into government coffers. And in the end, and there is only one way to do mining and it's the right way, it is going to build a stronger province. So I'd like to think that that is what's going to drive things ultimately. It's taxes. Chris, do you want to add anything? Basically I agree with everything you said there, Janet. I know that the oil and gas industry in Newfoundland is going through some tough times. I believe the come by chance refinery has shut down. There was a big new development proposed for the Terranova area.

48:42 I forget which company, one of the majors that's probably not going to go ahead. The revenues are way down, of course. They need to replace the oil and gas revenues. They're really struggling. They're borderline bankrupt right now in the province. And everybody I've talked to in the Grand Falls, Windsor area is said, bring it on, bring it on. We need the jobs, we need the investment. And everybody's excited about it. So is there a risk? There's always gonna be some political risk. I would say it's pretty low in this jurisdiction. Yeah, I would agree.

49:29 When I've compared this, this little bit of research I did comparing area plays during my career. This one seems to have the least amount of risk when I look back on it with hindsight. And you're always looking for the answer to the unanswered question, right? Or the thing we didn't see, oh, we didn't understand the power line issue in the Yukon, blah, blah, blah, at the time. Is there something we're missing here? You know, I've really been going down that road as deep as I can to ask myself all the questions before I talk to my subscribers about really, you know, getting on board here in a big, much bigger way than I already have. But I, like I said, I'm full speed ahead on this one.

50:15 There was always risk, like you said, Chris, in anything. It's life, right? Life is risk, but you try to limit those and manage it as best you can. And I think the companies in Newfoundland and the government of Newfoundland is giving us a green light. So as investors, I think this is one of the safest jurisdictions to invest in with such an exciting, I mean truly, truly, once in a lifetime, like Sean was saying, opportunity to make money in the mining space at a time when gold is obviously going to go through the roof and very exciting. So that ends our questions with the attendees. I'd like we have about 9 minutes so if you can promise the state of the 3 minutes because I got a there they hold me tight to this ending right at the on the hour here and I've got a you know briefly introduced Sean Ryan as the keynote speaker. So 3 minutes or less you talk about anything you want for yourself, your company, go ahead.

51:22 Chris, why don't you start? Okay, thank you, Greg. I know somebody just posted a comment, a question, has K9 Goldstart drilling or exploration? Yes, we have started exploring. We've done a lot of studies and a lot of surveys. We will be starting drilling in about 2 weeks. So, hopefully that answers that. I didn't mention earlier, our share structure, we have about 53M shares, currently outstanding 92M fully diluted. We are fully funded for the 5,000m program we're about to start, and well beyond that. We've been very, very successful in raising funds and the way our stock price is going, you might see some of that warrant money coming in.

52:14 Great. Janet, why don't you go next? I would like to thank Eric Sprott. Eric Sprott has been very good to many companies in the jurisdiction and he's ahead, out in front on seeing the opportunity. He's taken a position in I think all 3 of our companies. And I think people like that are incredibly valuable to building the profile of the jurisdiction. And his absolute focus on Newfoundland and the gold rush and the opportunity here I think is serving all of us extremely well. He has just under 20% of our company and I think very similar to a number of companies in the alliance.

53:05 And I think that is going to start to generate more discussion on what's going on in the jurisdiction. We have an exciting season ahead of us at C2C already in the field and more news coming. We're also looking at additional properties all the time. We do a lot of due diligence and I just am very excited about what I'm seeing in Newfoundland. I'm thankful to Craig and his team. They have done an amazing job and created something, I think, that's fabulous for not only all of our companies, but the people in Newfoundland. With that, Craig, we'll let you wrap it up. Yeah, well, I would just really emphasize how remarkable this focus on our discovery at this point, but it certainly extends beyond our property.

54:00 But in my career as a mining engineer, looking at mining projects, I mean, sometimes you find fabulous ore deposits, tunnage and grade, but they're remote or in a political unstable jurisdiction or have many, many different kinds of challenges. And when you look at, I'll just use Keats and Queensway as kind of the case here, but we're on the Trans-Canada Highway, 15 kilometers to the west of Gander, which is 18,000 approximately people. And as Janet was pointing out, I mean, a lot of these very skilled people, you know, It's a politically positive jurisdiction for the reasons discussed.

54:52 It's an available workforce, permitting is quite straightforward to industry standard, but very straightforward. The mineralization itself, wide intervals of high grade coming right to surface. If you were just to imagine all the elements of a discovery that you wanted, And I can't think of a box that doesn't tick. And I've never seen that before. So I just think it's very exciting. It's quite a remarkable discovery. And It's just fantastic to be able to, and Newfoundland itself is just a great place, wonderful people.

55:39 And so couldn't be more thankful for what we've got. It's very remarkable. Yeah, I couldn't agree more, Craig. And thanks to all of you as our panelists, our attendees. Thankful for the Newfoundland Gold Alliance, for this great venue that is giving us all some really good information and insight into one of the best investment opportunities I see ahead of us here. This is very exciting times. With that, I will just briefly tell everyone, this is day 2 of the Newfoundland Gold Alliance. There's day 3. So we invite you back tomorrow to partake of the moderation and panelists that will appear tomorrow.

56:28 With that, I will just briefly just introduce Sean Ryan, who's our keynote speaker today. And Sean has been a personal friend of mine ever since I met him back at the Yukon Gold Rush days when I did a big interview with him that went viral. And he's been one of my favorite people, like I said, in the mining business. So it's fun to be able to work with Sean again and I don't really think he needs much of an introduction. He's a explorationist extraordinaire. He got to start looking for mushrooms and mushrooms and looking for gold have some similar anomalies in the soils. So as I learned many, many years ago.

57:14 But with that we're right at the hour. I will turn it over to Sean. Welcome Sean Ryan. Thank you for today. This is Newfound Gold, the land of Golden Opportunity, a prospector's perspective. Today's talk, I'm going to talk a little bit about the Gold exploration history on the island, and then I'm going to talk a little bit about the Newfoundland Geological Survey. They help set the science stage, so it all starts with a good Gold map. The idea is that this is a unique geological setting, it's a structural story and it's the perfect Gold timing event.

58:04 The other topic we're going to talk about is the geological potential from Cape Rea to Bay Burt and everything in between. It's a structural story. And then I'll finish off with geochemistry, what works, what didn't, show some case studies and how we're about to approach this on the island. So Newfoundland's got a rich mining history. They've been basically mining since the 1800s for copper and They've got really cheap electrical prices on the island, roads almost everywhere, and there's a water port anywhere within the island within 125km. So, infrastructure is very good. But the best thing for the island was its Newfoundlanders. They're basically the best resources for miners across Canada.

58:52 They go to Alberta, Ontario, Quebec. They're true miners and they've been doing this for a while, so it would be great to find them a mine to work in Newfoundland so they don't have to travel all over the country. The next thing I'm going to talk about is basically the history of the exploration. And this slide is showing you some stats. Here's the Gold price in the background. This is Gold at $400 an ounce right here. The idea is that they came in waves, and this is the 1988 to 1989 exploration boom. This is what I'm getting at, that we haven't seen a big boom like this for a while. This was based on the lake sediment sampling that they released, but it was short-lived because of the 89, the super flow-through crash in Canada, and pretty well everybody was out of a job here working in the bush. But you can see that here's our 91 to 96 cycle, not too many claims, very little work was done. And it started to peak up a little bit in 96, but then the 97 BreX crash hit. And this is 97 to 2001. And this is when they started changing the staking law, roughly around year 2000. So you can see more claims are added on, and really what it is is the prospectors are picking up some ground. The next little boom rush was 2002 to 2004, and this was mostly Rubicon, Crosshairs, and Cornerstone working the area.

1:00:21 And Really, what I'm showing you here is the ground, the area that was in the Gander area north, and the cycle, so it's kind of the micro to the macro. The idea is that you can see now more claims are staked, some money was spent in airborne stuff like that, but that was short-lived. Gold never actually cracked $400 at that point, and by 2005, everybody went home. They didn't actually get hit with a big cycle, even when the Gold boomed up by 2011. This is what I'm getting at. The exploration was basically all from the 1988 to 1989 rush. Here's another graph looking at it, basically claims in red versus dollars spent per claim. You can see a lot of money was spent per claim. They didn't have a ton of claims. That was in the random mostly.

1:01:14 The idea was, When you look at this cycle, 80% of the Gold discoveries on the island was from this 1988-1989 cycle. Then you can see what happens here as basically the pre-Bre-X, this is the Bre-X, And this is when they went to paper staking and you could see lots of claims were picked up. And really what this is, is the prospectors were picking up some of the old showings from the 89 to 90 rush. And then you get the 2002 to 4, this was cornerstone coming in with Rubicon. They flew some airbornes, they looked at the big package, staked a lot of ground. But again, Gold never broke $400, but they actually did find around 15% of the rest of the Gold showings that were discovered that we know about right now on the island. And again, the cycle continues. When everybody left, some claims were picked up and the ebbs and webs. And now the whole idea is that basically 5% or roughly, and this is roughly that I'm breaking apart, of the newest Gold discoveries were discovered in this kind of 2010 to 12 era. But again, you could see not too much money being spent. So that's kind of the micro to the macro of the whole island in a sense is the biggest push was the 88 to 89 push.

1:02:32 And there's a reason for that. And I'll get to that soon. But this is the real reason why I survey. These guys produce some of the best data that I've ever seen to work with. The unique thing is, it was their staff. They basically had geologists working the ground for 30 years, the same guys. There's one guy that's been there for 40 years. He just loves working. The idea was the consistency of their geology maps that they put out. They actually have a geophysicist on staff that basically helps to produce some of these nice geophysical maps, and he's been there for 25-years. They actually had a crew, a surficial geologist working for another 25-years. So these guys were there, they were building this database since this 88, 89 rush. And that's kind of what I'm getting at. We actually have now 30 years worth of data to work with. And they even have surficial geologists working with them. So that's what's kind of really cool is the data they produced was like it was exceptional here so now Geologically, what's so special about the island? Really?

1:03:40 This is geology on a continental scale that was developing here We have Newfoundland down here And you can see how here's West Africa, and basically here's the Baltics. And really what this was all about was a collision event of these continents crossing the Atlantic and hitting the North American continent. And here you can see it here. You have different slivers of continent that cut across the ocean and all basically started colliding with the mainland. And now when you look at it from this scale, these are these big regional structures. And this is the Bay Bird line. You can see it comes all the way up through basically Ireland and up through England. There's the Red Indian line, main structural event coming all the way down, even down to the North Carolinas.

1:04:27 The Dog Bay line, the Grub Bay line. So these are big fundamental structures that help set up this whole event Now, this is a good little cartoon to explain and here's a time schedule like 450 million years old to 435 basically this continent called Ganderia collides in with Laurentia and it starts to create this structural pattern here. This inset up here is actually what we're looking at, but here this is what's going on, 435 to 429. Now we get these slab break-offs and this creates, basically it's dumping big chunks of the continent or this piece of rock continent into the mantle. It basically volatiles and comes up and forms these gabros and intrusives, but it basically creates these extra fluids that come up. And then 429 to 420, this is when the kind of really cool, it actually reverses a bit. And the analogy is, is kind of like when a schooner hits a shoal, let's, cause we're on an island, we'll talk boats, and when it collides and hits a shoal, it cracks the floorboard, and as soon as you pull away from that shoal, the water starts to pour in up through the floorboard, through the cracks. And this is what the setting here, when the continent collided, it created these faults.

1:05:49 When it rebounded a little bit, it's called deduction, the fluids came up through the cracks because they relaxed. That's what's unique about this setting. Now, with the timing of the gold mineralization, it's actually perfectly in sync. So, another good, and that's what I'm showing you, I'm actually working pretty well all with the Newfoundland Geological Survey data. This is a report from Hamish, he's giving a talk here, and the idea is that this is, he's studying the ages of the mineralized event and the ages of rocks and giving us these nice structural maps to actually try to understand it. And here, this is just one of his maps. But it's showing you this 419 event, mineralized event. So now when we put this into context with that cartoon that I showed you earlier, and this is a bunch of his gold sampling or age dates that he have. And So here you see the 450 to 435.

1:06:47 Just as the continent collides, this is the beginning of the Salinic event, and then 435 to 429. You can start to see all these cracks, these basically the break off slab, but this is the actual gold pulse. We're looking at the gold pulse event here. And as this thing, the eduction event happens, when it starts to rebound, here's the 429 to 420. This is the 420,419 mark. You can see this is right in the peak of actually the gold pulse event. So the fluids coming up through the floorboards in a sense, up through the depths from the mantle, up through these structures are actually, it's right part, like it's right in timing with this gold event. So That's what makes this whole system so unique.

1:07:38 When you look at the whole island as a whole, and this is what really got me excited about the island, and this was the aha moment, that when you look at the mineralization from Cape Ray all the way to Bayvert and everything in between, here's Marathon, it's all relatively the same gold pulse of it. So In a nutshell, this is the same DNA from one end of the island, at least in the center, Dunigil, that when you find gold here and find it at the beaver, it's from the same basically pulse. And that's what's really cool now, which this sets it up for that all structure is key here. The whole point is not 1 is better than the other. Now, you've just got to figure out where did the Gold land? But the whole island, at least the centre part is all game and it's one big event.

1:08:32 Now, we hear a lot about the Fosterville, Bendigo, Bellarat area in Australia. How close is that analogy really to the island? It's extremely close. Here what I did is I took out some data from some research papers of the Bendigo, Bellarat and their time in with the gold event. And here I added Hamish's time in, basically in this box. And I added government, the Newfoundland data from basically some of their research papers. But all I'm showing you here is this is the 374 event. That's roughly 410. That's probably the 420 and this is 427. What we're seeing here is that the Gold pulse that happened in Newfoundland happened exactly the same time as in this Bendigo-Bellarat area in Australia.

1:09:18 The settings are quite the same, And even from a geological point of view, they are the same kind of rocks. But the big thing to take from this is the whole rock setup was done ahead of time. And then the pulse all hit basically once this prep was set up. It was a pre-setup and it was very unique geologically and the timing of the Gold mineralisation. Then Dave Evans, another geologist from the survey back in 1996 was recognising that we were having different expressions. They would find Gold at one end of the island and they'd find Gold at the other, but they had different geochemical characteristics. That was based on if you had a pulse of fluid coming up, and it's expressing itself in different settings. Here's a saddle reef, more like the Bendigo bellarat, or basically, and then you've got these potential shear zone areas.

1:10:14 But the point is, this was 96. Now we have much more data to understand the big picture. The next piece of the puzzle is, can we actually find anything on the island, especially using soil geochemistry that I use quite a bit? Because this area did get glaciated, it's a lot different from the Yukon. The idea was that again, the government, Martin Batterson and Dave Liberman, they basically put out some good research papers. What we ended up figuring out is the island is unique. And this is the Laurentide Gold, basically glacier on the main continent. But the actual glacier that happened in Newfoundland was quite local.

1:11:00 And it basically had short, diffused trains. So it wasn't like this strange lake, and this is strange lake, and this is kind of the double-edged sword. So if you're looking for a diamond pipe, this was a rare earth thing, rare earth basically kind of showing or deposit, and you could see the smear was out up to 40 to 50km away. So if you're looking for diamonds, let's say, that's how you would backtrack and find these things by seeing the signal way down here, way out from it. But this would be a nightmare if you were looking for Gold and you had your Gold project here and find out that the Gold on your project in Till came from 30km away. I partially think this is why a lot of people ignored the tills on the island for the last few years because they were more concerned that it might be like a strange lake kind of factor here.

1:11:54 So now when we actually look at the surficial geology, these are all pieces that we needed for exploration. And the idea is that, again, the government puts out these great maps. And this helps us with the probability when we sample these areas, you know, what's our response going to come into or come out. And the brown is showing you where there's rocks or concealed rocks. The light green is till veneer, and some of the heavier greens are basically thicker, basically, sometimes till blanket. So that kind of gives us an idea of what we're expecting from a response if we're going to tackle this with soil geochemistry. Now, What drove the island in this 88-89 rush? It was this big regional lake set sample.

1:12:40 The interesting part was the GSC, Geological Survey of Canada, basically gathered most of that data in the late 1970s, but they only assayed it from base metals. Someone had the really good idea in 1987 to actually assay it for Gold, Arsenic and Antimony and release that in a public database. What was unique is they actually released a lot of data at once. And that's this is what it looks like. All the red was all these different matches. These are quite a few different matches here. A lot of ground that was all in this 87 8889. And the green was in 90. The idea is that they actually produced the big picture right away and basically these companies like Miranda and Inco and stuff like that, Some of the other juniors all came out of the gate with 1 nice big map to work with. And hence, that started this mini Gold rush. But like I say, it ended pretty quick by 1989 with the super flow through crashing in Canada.

1:13:45 Now, since then, they've been gathering till, and that's almost more of a direct method because you're closer to a potential source if it works well for you. You can see how the survey's slowly been producing data covering the island partially, but they still got more to go. But you could see how the time the window of release dates is basically this is over the, you know, almost 15 years. So the picture is slowly evolving. It's not jumping out like it did with the lakes in 1 shot. But what's interesting is the government's putting some nice data. This is Jennifer Oregon. She's still working with the survey. This is her 2014 report of the Red Indian Lake Basin area. And you can kind of see the data that you're gathering.

1:14:34 And what's so interesting about this is this data was only put out after that second global pulse event, you know, the 2004 or 2 to 2004 event. So this is really new data to work with that nobody's actually worked since you know Like some people are working with it, but we haven't really you utilize this kind of piece of data You know people were worried about that strange lake phenomenon potentially smearing for kilometers Here's a just a quick map, you know, like these are taken from their reports. And this is Mount Payton, it's a gabbro. And this is the gabbro area. And this is part of the granite area. And what you could see here is this chromium. Chromium hasn't left this basically gabbro, it's hanging right in there.

1:15:22 So if you know Strange Lake, you'd be seeing it smearing somewhere for miles. And then you look at Zirconium and you can see how tight it is to that geology. So, What we could see is that till geochemistry is working, and it's actually really working well to define the geology, which hence should define gold systems. This was so far the coverage. This is from their Geo Atlas, another great site to work with. This is Gold, and you can see all the blue dots lighten up. This is the Gander area, this is the Millertown area, this is the Marathon area. Basically, this is a gold map of where to start looking for gold. But the point is, just because you don't see basically anomalies here and there, I'm saying it's not spreading.

1:16:14 Your spread from a gold till is probably only 30 or 40, maybe 50m away. So it's not like 500m smears or stuff like that. It's quite local. Now, the next piece of information that I was able to dig up is this Rodney Claussen that was working for the GSE, again, another good character working for the survey for over 25-years as a geochemist working in Labrador and across Canada. He noticed in 1993 that there was something happening that as he dug deeper through the till, he got a better response. Everybody historically was working with B horizons, and he actually started questioning that. That's what we started seeing when we were there in 2015 doing some research. But really what he vectored into is you actually had to get below, there's a weathered profile in the top, almost 80cm to the meter in the tilt, and you have to get below that. And it's getting to this BCC horizon, which is normally 50 to 100 centimeters.

1:17:20 So it's below what we normally take as a B horizon. And again, that's what his basically gist was, is that you got to dig deep, try to get as deep as possible past that basically weathered profile. And once he started looking at it a little bit more, his take was, because when they're doing tills, they're usually 230 mesh or 180 mesh, which is very, very fine. But his take was that even 80 mesh would work, especially when you're doing exploration in tight basically spaces. So, you know, these were kind of, as I look at it as good wins, because this is a lot cheaper to explore if you could use 80 mesh and just dig a little bit deeper. Now, this is basically a picture, and you can see this is the B horizon here, that's where everybody would sample, and his take was you gotta get past that, get into the B-C, and then, or try to get down to the sea. But that's usually sometimes too deep.

1:18:20 Now, even the BC Geoscience guys were working on this. And here's the sea horizon, the blue, and the light green is the lower B. And you could see that they're actually getting better responses with basically the lower B and sometimes down by the C horizon. Again, they were actually not caught off guard, but everybody's been looking at the B horizons all the time and These guys could see that even though the reason why we're taking these was because of the iron and magnesium enrichment, it was still actually better to go lower down. This is brand-new data we're working with in these glacial environments. Now that was the setting, and now I'll go through some case studies and talk about various basically deposit areas or showings on the island. And so, this is Marathon, largest undeveloped Gold resource in the Atlantic, but the idea is that you can see how they've been slowly building up this resource, incremental at a time.

1:19:24 Now, when we actually go back to the history to see how it was discovered, it was discovered by soils. They actually tapped into this in 1983 to 1985, Habitatby Price. They didn't do any follow-up and then BP came in in 1985 to 1992 and they basically gridded it on 100m line spacings, 25m station spacings, did good old MAG VLF and outlined, started outlining the earmarks of this deposit. You can see the structural setting, here's your Dog Bay line area and this is the Grub line. Your keats showing is over here and here's your Ballantyne on the next big structure. That's what this is all about, structure, structure, structure.

1:20:11 Let's have a look at the marathon system. What you can see is this is a MAG map, first vertical derivative, and the idea is that here's the geology and that's what's kind of cool about Newfoundland. Once you tap into one of these structures, there's usually more of these deposits along these structures going for kilometres. So now, how do we vector into this? How do we find this quicker and faster using our modern day science? And here, let's go back to this. Now, I'm just making it transparent, but you can see this magnetic feature coming out following that structural. So we could see that. And this is mag first vertical derivative. And these blobs, these nice magnetic features are gabbros.

1:20:58 Sometimes the gabbros are not directly related to the deposit, but they're always very close. It's the oldest Gold camp on the island, and they ended up basically doing more soils and actually finding more of these deposits. And again, the whole thing is, this one's basically found in Gabbro. So, we got this Gabbro soils kind of affinity working again, but this was kind of unique up to as late as 2014. Soils and Gabbros are in the Gabbro area. So, that's what we're getting at. Soils and gabbros and geophysics on structure seems to be a theme here. Here, when you started evaluating the area, you could actually see that this area is in till veneer and it has a magnetic component to it.

1:21:45 Here, as you can see, a bunch of Gold anomalies sitting on these first vertical derivative, basically mag features, which are the Gabbros. Steve Pearcy from MUN did some work on it in the area and his take is that these Gabbros, they're a nice brittle rock, they crack nicely, but they're really iron and titanium-rich magnetic rocks. They actually help the Gold dump out as a chemical dump. It's got a twofold thing going. We can look at the hammer down, this 1 Maritime Resources putting this into production. Again, look at this, they were on top of this, following up on basically sampling on lake sets.

1:22:31 You can see this pattern here, This is their original geochem map. This is on 12 and 1 1 2 meter spaces. And the idea is that they could have missed it. It looks kind of very narrow. What does it look like when you actually look at it? Here it is here. And you can see these are narrow structures coming up with mineralization, hence why we got this kind of bizarre pattern. It's not a big blob. So, but again, what do we see a common theme? It's basically a magnetic feature, which are gabbros. And you've got these structures cutting across here. When you look at the till, to see how well it worked or not, this is actually a till blanket, so it was pretty good that they actually got any response in here because normally they don't see too much in till blankets with B horizons.

1:23:19 The famous keats showing that everybody's talking about, what Newfound Gold was on, again, this was an Aranda product. Back in the late 80s, they were doing soil samples in the area. They actually basically got a nice soil anomaly going on. Then Fred Keats and Peter Tallman, back in 1994, were walking around and finding these crazy high grade boulders. They were right on the edge of the keats showing. It wasn't until a few years later when Peter Demmel came in and worked with the Nether Junior in 1999. They did these nice big soil programs cut across it, and this is the background map that you can see. This is our soils and here's our keats showing. The idea is that soils responded. When we look at basically the surficial map, we can see it's in till veneer.

1:24:11 And there's a bunch of dots here from the till from the government survey, But you don't see too many dots around here, and that's my take is if you're not right on top of it, sometimes you don't get a response. But again, the beauty of these systems, just like the Ballantynes, is that you could see how long these things go. These things go for like, you know, tens of kilometers sometimes. So this is about 8 or 9 kilometers, maybe a little bit longer. So that's what's, so Here's the Lotto up here and the Keats, and here's the knob, and there's still some more of the grouse down by the lake. Once you get into a good structure, she goes for miles. So when you look at the geophysics signature, here's tilt derivative and here's horizontal tilt derivative, and you can see this little blow up, this little, here's the keats showing here and that's the direction they drilled. But when you look, stand back from the high level, here it is here, here's the Keats and here's the Lotto, you could actually follow these things just like a sidewalk.

1:25:09 These structures, now it's up into lab gold ground, that's what they're chasing, the big vein. So you could see these structures. These are all structures. So the point is we can now see them with geophysics. Again, the H pond not too far away. Again, it's in Tilbinir. They did some soils. You can see these nice linear soil anomalies popping up. And here you look at the mag and geophysics, and you can actually see here it is here, and there's another system down here. So now you actually have a way to actually kind of help you hone into these. And so this is the Snow White, and this is a really good example in the Millertown area. The idea was these guys were in the 2000s, this was from the Rubicon days, and they came in and you could see how they did this big grit and they cut across white space lines, still doing 25m soil spaces, and they hit a good hit.

1:26:05 Here it is, here is the Linda Snow White, and the idea is they came back in and filled in with a bigger grid. This is what we're trying to figure out. Can we hone in on these targets without doing big, massive soil grids? Can we be more strategic? When we look at the Snow White, this was hindsight with better data. This is basically a GSC map that they put out at the end of 2005. So these guys never had it when they found this, but we could see is this nice Kerridocean shales along the structural corridor. And then when we look at a little bit more detail from the assessment reports, we could actually see gabbros. So gabbros, we could see. Structure, we could see. So now let's have a look at this.

1:26:53 This is the gold map that they had from 2005. You can see they got some sporadic hits in here, and same up with here. Let's look at the geophysics. We add the geophysics and you can see the magnetic signatures behind it. Even these guys up and over here are related to these magnetic little lines in here. When you add the geology to here and you add the geophysics, now we may have a method to hone in on this target, instead of wild-catting these big lines. You look at arsenic, multi-element geochemistry now that we get with our data packages and look at how this arsenic is related to the MIG. It works beautifully. So, these guys, I think it's great Atlantic guys that have this, these guys just have to walk down this structure, this gavro, and start poking holes. Because they actually pulled out like a 1.9 meters of, or 1.1 meters of 19 gram material. So, you know, it was a good hit, you know, so now there's more hits, that's what we got to do, hunt on these structures. But now you could start to see how we have a method to hunt for these things.

1:28:01 So This was some more research we did in the Millertown area, just south of that, basically, here's the Linda Snow White over here. We're just down, lower down in the valley. The same guys who found that 2005 soil anomaly, the Linda Snow White, they were working this big valley down here. They were working lower down. Again, they were using B horizons. This is where I'm all about now. It looks like we have to go deeper. These red areas, you can see where they got nothing, here's their soil lines going across here, and these red circled areas, I'll show you what we picked up, but you can see their response was nothing with bees. This is tilled blanket, so it's a little bit deeper. And now when we look at ours, boom, now we could actually see some nice anomalies.

1:28:50 They're not wild numbers. What they are is, you know, these are 90 percentile anomalies, so based on a good population, but you could see how linear these basically anomalies are. And that's what I'm getting at is we're now seeing responses mostly for a couple of reasons. 1, we're digging deeper below that oxide level. And 2, I think we have better detection packages with our ICP-MS these days. So again, so now you could start to use modern day science to help us out quite a bit with this gold exploration. Here's another setup. This is in the Gander area on Lab Gold ground. The idea was that this was Gander Minerals, 1989. You can see the background lines here that they sampled and they got nothing. The same went down here. Now look on the other side. This was my 2019 work and you could see the response we picked up. Again, why? I believe it's because we went down deeper and we got a better response.

1:29:56 That's what I'm getting at now, I think deeper soils is going to be the method for this exploration based on structure. We're running down structure. Then LabGoal, they followed that cookie-cutter formula and they put some big soil grids in, and that led to seeing their patterns, which led directly to finding their big vein. The idea is that you could see these soil anomalies, they didn't have the rest of the soil database before they made this figure, but you could see they're finding quartz veins with VG in it or mineralised quartz veins, you know, parallel in these soils and that's what we expect. So that's kind of what I'm getting at is, you know, the idea is to get in and take deeper soils, but you have to understand your surficial, you know, geology to understand the context of what the soil anomaly is going to look like or need.

1:30:53 That's my talk. I believe it's the dawn of a new Golden Rush and I think this is just beginning where Niranda left off. Thank you.