Alaska Silver Cuts High-Grade Silver Zinc At Waterpump Creek & Silver Sage

0:04 Well, good morning, good afternoon, or good evening, depending on where in the world you're signing in from today. Thank you so much for taking time out of your day to join us. I've got with me today Kit Mars, CEO of Alaska Silver and Dr. Peter McGaw, Technical Advisor, to discuss recently announced results. Kit, Peter, really great to see you both. How are you guys doing today?

0:23 Oh, good morning from sunny Tucson. So nice here and nice to see you again, Bianca. Good morning from chilly Vancouver. Great to see you. I should be in sunny Tucson, but I'm not you and I both you and I both I'm looking out my window and I'm I'm always I'm I'm very jealous of sunny Tucson, but folks, here's how today is going to work for you folks in the room I've got some questions for the team based on the latest release, and then I'd love to answer a couple questions from the live audience. It's gonna be a short event today, likely gonna be about 15, 20 minutes or so. So if I don't get to your question, I'll make sure the team still gets ahold of it and they can tackle it afterwards.

1:01 Last piece of housekeeping before we get into today's show. Today's event is being recorded and will be available for replay likely either later today or early tomorrow. Without further ado, why don't we get into it. Kit, congratulations on these high-grade results from both Waterpup Creek and Silver Sage. Can you walk us through the key highlights from this press release and share your overall thoughts on what makes this 2025 drilling program particularly significant for Alaska Silver?

1:30 Sure, thank you for that, Bianca. First, I'll say that we did have, we were able to, had to start late in the season for a number of reasons. But we had, so we had a limited drilling program, but in the limited drilling we did, we had some very nice results. So, Started off at the Water Pump Creek South. We were able to complete 4 holes there. What it showed is we're gaining more and more knowledge of what's called the Water Pump Creek South Fault. We drilled 2 holes south of it, And now we've been able to put in 3 dimensions, the very important contact between the overlying schist and the host rocks and the carbonate. And then 2 drills trying to penetrate the structure going north, and those were successful.

2:16 And one of them is it's announced in the news release, which is hold Waterpump Creek 25. And that had a very nice intercept of Showing some good grade silver. It's not in our high grade zone or our large zone, but it does have some high grade So we know we're getting close and that will guide our drilling In this coming up here and then we have this we'll talk about a little more later but our blind discovery at Silver Sage, very important, as Peter will talk about in a few minutes.

2:52 It's a 4.5, 4.6 kilometers south of our resource at Waterpump Creek. It's actually south of our airstrip. Folks remember some of the slides on our website. That was a totally blind discovery that was generated by Sage Langton-Stewart, our principal geologist, who's been with us about 6 years and really has got a handle on our technical details. She flagged about a dozen soil anomalies. And I think something like 8 out of the 10 trenches she spotted hit some very high grade Argentiporous

3:27 galena. So we now have A brand new zone we'll work on and I'll stop there, but that was really thrilling and be great to work on that coming up. Sounds like very exciting stuff. Next question is for Peter. Peter, from a technical's perspective, what excites you the most about these results? The press release mentions the classic CRD settings at both locations. Can you help investors understand the geological significance of what's been discovered here and what it might indicate about the broader Illinois Creek District? Oh That's a softball question. Thank you. For Waterpump Creek, you know, the resource continues up to what Kit calls the Waterpump Creek fault. That's a post mineral fault. So it appears to have offset mineralization. So we're trying to find the mineralization on the other side of that fault.

4:22 We don't know whether the fault just moved vertically, moved laterally, did a bit of both. Our evidence from this year is that it did both and that it moved down and a bit to the west. So that tells us what direction to go next year to look for this continuation that we expect to be there of the Water Pump Creek body. It's a resource on the north side of the fault. It's an exploration target on the south side of the fault. So zeroing in on that with relatively few holes

4:55 is a great step forward. The part that really gets me excited though, because I like new upside things, and that's Silver Sage for a combination of reasons. 1, what we see at Silver Sage, high-grade silver, high-grade lead, lots of evidence that the zinc that was there got flushed out in the process of oxidation. So probably classic

5:19 water pump creek, Illinois Creek style replacement mineralization, but deeply oxidized. I mean, that's what happens when you find it in the surface. And that's important because this gives us a whole new thing to work for. And it's in exactly the right place. It's in the carbonate rocks right below an impermeable seal. So the fluids came up, they ponded against that seal and moved laterally. We don't know how far. We've only had a few short drill holes go into it

5:47 to try to nail it down but it's in several of those holes that appear to be defining a corridor so it gives us something to work with. That's exciting in and of itself but to me the What's most exciting is what this is telling us about the district as a whole. That these districts typically have an intrusive center, which we can think of like the hub of a wheel, and then there's a series of spokes that come off of it. Silver sage is, based on where it is, different metals that

6:17 are there compared to Water Pump Creek and Warm Springs and some of the other places we've identified, appears to be a different spoke. And just as there are no one-armed octopuses, there are very few one-armed CRDs out there. So the fact that we've now found what looks like another arm tells you, okay, we found one more, how many more are there? And the fact that SAGE was able to find this based on

6:46 follow-up of effectively blind geochemical results from surveys done decades ago, to me opens up the potential of this district. I mean, I always like things that tell me I'm working on a system that's got the potential to be a giant. And that's, to me, the most important part of Silver Sage. And the fact that it's got great numbers makes it even better.

7:10 But thanks, Peter. You know, when you talk about that, I can visualize the fluids moving along and sneaking through the carbonates and hitting the schist. So thanks for the visual prompts there. I did love the visual prompts too. And another point to make is that we're seeing metals leaking up into the schist. So that's telling us that the fluids came up and ponded and there was enough of them that they could infiltrate upwards in through cracks into that impermeable rock. So that's telling us that the fluid movement was pretty potent. So

7:49 it makes me even more excited about Silver Sage itself. Yeah, and I think I'd like to ask Peter to expand a little bit. He's really, besides a great economic geologist, a geochemist and mineralogist at heart. And one of the things we see in the assay results at Silver Sage is for the first time in this part of the system, we're starting to see appreciable gold numbers, some copper numbers, and a number of other trace elements that Peter follows to give us vectors towards mineralization. I just want to point out that our high-grade resource at Waterpump Creek has basically little, almost no gold in it, and almost just very low reported copper. And at Silver Sage, we're starting to see some drill assays of half a gram, some of the rock trench samples,

8:42 over almost 2 grams gold, and close to a percent copper, plus Peter's other favorite trace elements. Go ahead, Peter. It's, you know, these systems are zoned with respect to that Central hub that I talked about and the classic zoning is hub Copper sometimes with gold zinc lead silver manganese That's the overall bullseye that one of these districts shows. So when you start to see copper, when you start to see gold, it's telling you you're moving in the direction,

9:17 in the direction of the bullseye, but at least towards a fluid corridor that taps into that bullseye. So this is different from what we've seen before. These systems are continuous from their source until they essentially run out of gas. So when you find one you get to follow it in both directions. You get to follow it further outboard and then you get to follow it back towards the source.

9:43 There's a whole basket of elements that come along for the ride, and we have a number of them in here. It gets pretty technical to talk about things like bismuth and indium and stuff like that, but these are all components of what we use to figure out which direction to go and how close we're getting to where we want to be. Brilliant. I'd love to jump into Silver Sage specifically a little bit. So the Silver Sage discovery appears to be a completely blind zone located

10:13 4.8 kilometers south of Water Pump Creek, with trenching results up to 1,235 grams per ton of silver. Can you discuss the exploration implications of finding high-grade mineralization hidden beneath cover, and what does this suggest about the potential for additional discoveries. Across your 80895 acre land package. Well I'm not sure I can rattle off that number of acres. As importantly as you did I think I got a really. But but if you if you've ever seen a picture of Illinois Creek, the first thing that you notice about this place is it is completely covered with vegetation. There's very, very sparse outcrops.

10:59 So we don't have everything we do out there effectively is blind. And historically, everything that's been done out there was blind exploration.

11:07 So you have to do various kinds of studies to see if you can see through that cover. And seeing through that cover resulted in the Illinois Creek gold mine, it resulted in the discovery of Water Pump Creek, it's now resulted in the discovery of Silver Sage, and a number of other areas of mineralization known around the district. So the more of these you get, the more it tells you there's more to look for. So it's just telling us it's a big system. It's large. We have a lot to work with.

11:42 You know, Kit will probably tell you that I flog this horse mercilessly, but boots on the ground geology is what resulted in the discovery of Silver Sage and systematic boots on the ground throughout this district, I think is highly warranted. And the beauty of it is it's very inexpensive.

12:06 We are going to continue and expand on that, Bianca, this coming season. As we mentioned the news release, we had a very successful financing October 3rd, I believe it was, and raised about 13.8 million US. And so for the first time in many years, we've been planning already for the last couple months. We'll have a drill season that will be approximately 6,000 meters. We're still working out the details. We have our company-owned drills on site, so we'll have 1 dedicated to expand that Waterpump Creek South area that we touched on in 2025.

12:43 And with Silver Sage Discovery, I'd like to have the second drill rig focused on that. We're going to have to do more trenching, figure out the structure, really understand the stratigraphy a little bit better, but we will have 1 drill rig full-time there and really hope to track down the heart of the mineralization and move it along. Another thing that's exciting about Silver Sage is that we've been hitting a number of assays of gallium. We announced gallium at the detection and the fact that it is at Waterpump Creek, and we've done some work on that. And Silver Sage looks to be more than just a continuation of that. It seems to be more dominant or more predominant at Silver Sage, a lot more assays. We don't understand the details of that. It'll take some work on three-dimensional geochemistry and we'll do that, but that's going to be a fun coming up.

13:43 I believe it. Switching gears for a second here, I would love to jump into Waterpump. At Waterpump Creek, you're working to locate the southern extension of the 75 million ounce silver equivalent resource across a post-mineral fault. Based on the 2025 results and your improved understanding of the fault architecture, can you outline the drilling strategy for 2026

14:06 and your confidence level in successfully locating this offset mineralization?

14:12 Yeah, I think we're still working on the three-dimensional modeling. That's what we do in the winter. If viewers will take a look at the news release, there's 1 figure there, figure 2, I think it was, that shows the location of the drilling. And that really gives somebody a visual clue of where we're gonna go. We'll move a little bit to the west. Drill these, this drilling and foliated schist terrain, it's a drills curve. It's sort of like a windage and target shooting. You really have to understand your three-dimensional stratigraphy structure and plan the drilling. But that's where we're going to focus. And we do have our equipment on site. We'll be preparing some drill sites very early in the season. Hope to start right around June 1st and have a successful season there. We will have more opportunities to drill. We'll probably double at least the drilling we did last year there.

15:13 Very good. And folks, the metals basket at both zones includes not just silver, but significant zinc, lead, and some gold and copper. Can you discuss the economic implications of this polymetallic mineralization and how it fits into the current market dynamics for both precious metals and critical minerals? Dr. Ken Atchity, Director, Illinois Creek Deposit Administration Well,

15:36 what's really unique about the Illinois Creek Deposit, it's a very large CRD system between the past producing Illinois Creek mine in the west and our Waterpump Creek resource in the northeast is about 6 to 7, almost 8 kilometers. So it's a big system.

15:56 We have the gold resource at Illinois Creek, which we're actually working on an update right now. Everybody, I think, listening to this knows there's been quite a run up in both gold and silver prices. So we're going to re-look at that and hopefully come out with something very soon, as soon as our QPs sign off on the numbers.

16:15 Waterpump Creek is polymetallic. So it is a combination of very high-grade silver, which occurs in the galena mineral, the lead, and then separately the zinc, which contains more of the critical minerals such as gallium. So the silver numbers are pretty phenomenal. I would urge everybody to look at the real assays or the, not the real assays, the actual ounces and pounds

16:44 that are in that resource and it's changing very quickly. Silver is more than doubled this last year. We will start to look at the, or currently starting to look at the economics a lot closer of Waterpump Creek because that is, If you look at a net smelter return, which we haven't announced that yet because we're still calculating,

17:06 it's great. So it'll be a very profitable underground mine when we get to that point. Brilliant. I have one last question and then we'll get to some audience questions here. Kit, you mentioned this earlier, but with the recent $13.8 million financing completed and the US listing now in place, how does this position Alaska Silver for a much more aggressive 2026 drilling campaign and what are the top priorities and how many meters of drilling are you planning for?

17:37 Well, it is very nice to have the the cash in the bank and that's really the shows the What we really like about having now dual listed company both on the Toronto Venture and also in the US on the OTCQX which is the best market for OTC. And really the focus is to bring in more and more US shareholders. We'll be simplifying our share structure this year and really start to focus on the US shareholder base, which we have not done over the years because of our previous foreign private issuer status. So 6,000 meters is right now the target for planning. As I said earlier, we'll divide that probably 50-50 between Waterpump Creek South and the new Silver Sage Discovery.

18:24 That's going to be a great program. We'll start probably first week of June and continue on as we have through August. This last year we actually continued our drilling through almost October 1st. So, season yet is still to be defined, but it's going to be a great start. Brilliant. We only have a few minutes left here, maybe time for 1 or 2 questions. I'm going to jump to the audience here. First question that came in was 1, where they want you to discuss briefly the maintenance of the drill rigs off season and during initial season activity. Well, that's an easy one. The reason we won, we own our own drill rigs for many reasons, transportation, we don't have to go out and bid for them in the market. We do contract the drilling with Moore Corps Drilling out of Stewart. They've been with us since 2016.

19:15 So not too many companies can say they have the same drill contractor and many of the same drillers We have a few that started as first-year helpers that are now full-time drillers. We also on staff Bill Mandel has been with us about 4 or 5 years, started out as a driller in 2016. He is our in-house supervisor and oversees all the maintenance, which we do on site. So by the time drilling season comes around, everything is in perfect order. And we keep about 1 million dollars of spare parts in house on the airstrip. We haven't had a downtime for lost ship for maintenance in well over 2 years. Brilliant. I think we have time for just one more audience question. Folks, if I didn't have a chance to get to your question, that's you guys in the live chat, but also folks who sent their questions via e-mail, I will make sure that we send them over to the Alaska Silver team.

20:13 The question I see here is, have you done or do you plan to do some downhole EM? Well Peter, we've talked about that at our planning sessions quite a bit of time. We have looked into that. We're not sure how cost-effective it would be, but there are some modern techniques that some other companies have used. And so it's something we're considering. It hasn't been planned. Peter, would you, you have some ideas because you've used downhole EM in the past. I've used downhole EM with, with sort of a mixed track record. The big issue at Waterpump Creek is there's a couple of units in the schist package that contain enough magnetite to give us a strong magnetic signal, which when you mix it with everything else can sort of give you, well, it just sort of blurs the picture.

21:09 So that, you know, Sage has come up with some ideas that some of that magnetite may actually be related to mineralization rather than an integral component of the schist, which would change my opinion on mag surveys as well as electromag surveys. There's some work to do, but you compare the cost of running the survey to the pretty low cost that we have up there of drilling, and it's hard to say a massive EM program is justified. Yeah. Yeah, I think I'll just add to that. When we run our program, we look at each dollar, how it's spent, and what it goes for, and what it produces. Peter said the geochemistry and the trenching is extremely low cost, very productive exploration.

22:00 Then geophysics and drilling. But we don't want to spend a lot of money on a geophysical survey that we don't have confidence that it'll produce usable results. And we have to compare that with those dollars, how many meters of drilling they produce. So That's the back and forth we work with pretty much every day. Fair enough. Folks, I want to thank everyone so much for tuning in. I know we're already past our 20-minute mark. If it's okay with you, I just have one final question, just as a final word. I would love to hear from you, Kit and Peter. What are you both most excited for in 2026? For me, it's having the funds in hand, the treasury full so we can spend our time on planning, drilling. There's a lot of work to do. And in past years, we've been distracted, I guess is the proper word, with financing in the spring or last year with our US listing that extended about 9 months, about twice as long as I planned, or more than that. So we can really focus on the drilling, a well thought out program, expand our staff, which is going to be great. And so just looking forward to having a very complete robust exploration program in 2026.

23:17 Brilliant. And I'll jump in and say, I love CRDs. I love the potential of chasing both of these bodies. They both look like they have the potential to get a whole lot bigger and go a whole lot farther and have a whole bunch more relatives that we have yet to find out there. So it's a big system, it's unfolding, and that's really exciting. Sounds very exciting. Kit, Peter, what a pleasure, happy to be with you. Oh, so go ahead, Kit, over to you. We've never seen a octopus with only one arm. I'd like that one. I love that line. We gotta put that on a hat or something. I like that, that's handy. Guys, really, really do appreciate it. Thank you so much. To all the investors in the audience here, If you have any questions and we didn't have a chance to get your questions, feel free to send them along. We'll pass them to the Alaska Silver team. But with that, hope you all have a wonderful rest of the day and thank you