Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:32 On this page, the thing that really stands out is, A, at the end of the year, we had $5.6 million in the bank, so, you know, our treasury looks good. We trade about half a million shares a day, so there's liquidity in our stock. But really what I wanted to point out is if you look at the top left where it shows that we raised the $10 million in a bought deal around 11 months ago. And the thing that strikes me is that you can see that it goes straight down from the point that we closed the bought deal. So sometimes the market does things to your stock that doesn't really have anything to do with what the company's doing, clipping warrants, shorting your stock into a financing, that sort of thing. But the second sort of leg, sort of closer to the middle, that was precipitated by a drop based on results.
1:24 And I'll explain to you why we thought the results were misunderstood and why we're so excited about what we have and where we're going. So we have 2 projects, but we won't even talk about Quebec anymore because we're 100% focused on Ontario. We're in Thunder Bay, Ontario. We straddled this Chaban-Dawan Greenstone Belt. We have 100, we actually had 107 square kilometers of land, but we've just made an acquisition and we've increased that to 131 square kilometers. But this is just to show that there is gold endowment along this Chabandawan Greenstone Belt. You know, location is everything in real estate and it's the same thing with us. If you're going to put a mine into production, you're not going to be in a better place than we are anywhere in Canada.
2:15 We're 50 kilometers west of Thunder Bay. We're straddling the Trans-Canada Highway, so road access is tremendous. It's major highway access. And there's no potential environmental liabilities of any kind where we are. So the property's been essentially logged. There's no lakes. There's no rivers. None of those things. On top of that, we have 2 major power lines across the property. And the Ontario government's about to build a third high voltage power line. So we have power. There's a rail line, the road I've already told you about, et cetera. If you see that block sort of here, this block right there, that's the block that we bought just this week, actually, and actually some more property to the south of there. So we're at 131 square kilometers.
3:08 This is looking at the property facing north and this is just to demonstrate you can see that the deposit would be somewhere as it stands currently now around here. That's the Trans-Canada Highway that runs here. And you also see that the trees have essentially all been logged. This is facing west again. And again, you can see the road, how close we are. And then facing east, you can even see that we have cell phone towers. So we have the ability to exchange data right on the property, make calls, all that stuff. So we have everything you need for this thing to be a success, assuming that you believe in the deposit. So up until the end of last year, we drilled 26,000 meters dripping wet. That's from day 1 to December 31st, 2023. That's it, 26,000 meters.
4:02 And if you remember, at the beginning, I showed you the chart and I showed you the first drop and then the second drop and I said, oh, we had some results that were kind of misunderstood. This is the reason we did this. We prepared a block model. One of our shareholders is Troilus Gold based in Quebec. They have 13 plus million ounces. They have a much larger team than we do, and so we were able to use people on their team to essentially prepare a resource estimate, although I'm not allowed calling it that because we have no intention of publishing it. So, we call it a mineral inventory. You call it whatever you want, it's just non-43-101. But what we did do is we took all of our drill data and we uploaded it on an Excel spreadsheet onto our website for anyone that needs that information and to come up with their own block model or resource calculation, quite easy to do, and they have access to all the data.
4:52 So, we're completely transparent. So, as you can see, we've essentially followed this for 2 kilometers so far. It's about 100 to 150 meters wide. The deepest we've drilled is 250 meters vertical depth from surface. That's the deepest we've drilled up until now. And I'll get back to that in a second. And in an open pit mine, we use a cutoff grade of 0.3. And we cut off anything above 10 grams because we've had some, you know, very high numbers such as 1.6 kilograms over a meter, 750 grams over a meter, so we cut all that out. And essentially, we're looking at a deposit of upwards of 2.2 million ounces already with 26,000 meters of drilling, which is quite exciting. So what I've done here is I'm going to strip away the 0.3, 0.5, 0.75.
5:44 We're only going to look at the deposit, everything above a gram or above 2 grams. And as you can see, it holds together very well. So we have a very homogenous deposit. This is not going to be a vein that we're going to mine. This will be a big open pit. The question is, how big can we make this thing or get this thing to be? And we think that we're just scratching the surface of it as we speak. So now we're looking at it at surface. So it begins right at surface and it goes down. Now you see The sort of red area that stands out, which is the higher grade, we see these chutes, high-grade chutes developing, sort of like this. We see another one here. And so essentially, we're going to want to test those chutes, probably to depth beyond the open pit. In fact, on Monday, we will be drilling 2 deep holes into the first chute, this one over here, to test it. 300 meters is a cutoff in an open pit, but We want to go beyond that because we think there's reason to believe that the grade can increase substantively.
6:50 As we go deeper, we'll soon find out. Because as I said, we're drilling 2 holes starting Monday that will be the deepest holes we've ever drilled. So let's look at this year. What have we done? I started by saying we had $5.6 million in the bank. I said that we had 26,000 meters of drilling in total. And then we started the year January 16 with a 5,000-meter drill campaign. We had the initial results, which were within the envelope of the mineralization, the first 5 holes on March 1st. Then we extended the drill campaign by an additional 3,000 meters. We had the second set of results from the initial 5,000 that came out April 9th, which is not that long ago. And we're currently at around 8,400 meters, 8,465, probably add another 1,500 to 2,000 meters to that by the time we're done.
7:48 And so we'll be done drilling probably within the next 2 weeks or so. And then we're going to take a small pause. By the end of all that, we'll still have north of $4 million in the bank. In addition to that, 2 of our larger shareholders, 1 is a private, wealthy individual that speak to almost every single day, and the other is Troilus Gold. We have another $3 million in warrants at 18 and 24 cents. And You're going to say, well, your stock's trading at 13 cents. How are you going to get 18 cents and 24-cent warrants in? Well, I've been told repeatedly that they have every intention to exercise those warrants this year. They expire in December. They have every intention of filling the Treasury with that money because they don't want us going to market. So that could potentially, I'm going to use the word potentially because until it's done, it's not done, take us back to around $7 plus million in the Treasury for the balance of the year. So I believe we're in very good financial position. We're not financing. We don't need to finance.
8:55 We've already got a deposit, a near-surface deposit or at-surface deposit, right south of the Trans-Canada Highway in a fantastic jurisdiction in Canada with a few million ounces already in development. We've got such a large land package and no one's ever drilled this before we got there. This is not somebody else's project that we took over and we started to drill. No, this is all virgin territory. How it's virgin territory, I don't know, especially given where it is. But this is what it is. So we're the first company to actually spend any real money on this property, and we're getting the results. So what do we think? We think that this property has the potential for multiple million ounce deposits along that trend.
9:45 We think that it needs a very large drill campaign. It's nice that we're doing these fives and threes and twos and whatever, but at the end of the day, we've got to...you know, the way our strategy is, is that we've got to apply the amount that we drill based on, you know, in the context of the market. We can't blow our brains out, spend all the money, and drill even though we have plenty of targets and plenty that we need to drill, and then run out of cash in a market that really hasn't caught up yet. And The last time I was here, which was October, November, I think, I had said that, you know, I had declared because I'm such a grand economist, I declared that we were entering the mother of all bull markets in gold.
10:31 And I was right. Gold has done what it's done. It's beginning and I think it's got legs to keep going, but the juniors have not reacted in the same way yet. So, you know, I think it's safe to say we're at the bottom of the market or we've possibly come off the bottom of the market but we're not in a bull market for juniors yet. So we'll play our strategy knowing that that's the way it is but I believe that given the elements of our story, given the elements of our land package, given what we already have with such little drilling. Remember, that resource is all with 26,000 meters. Now, we'll be at something like 37,000 meters when all is said and done, or 38,000 meters, which is still nothing. I believe that we're going to be in a very good position that if the market were to bounce, if we were to enter a bull market, that shareholders of Delta will do really, really well.
11:26 So I apologize again. I'm not feeling 100%, But normally I'd be a lot more rah, rah, rah. So, okay. Thank you. Yeah, exactly. Thank you. We still have a few minutes, so any questions? One question there. Just gold. Yeah, and one thing I did forget to mention, we're doing our first metallurgical testing. It's a comprehensive metallurgical testing, and the results of that will come out soon, but the preliminary results are off the charts.
13:28 And we kept hitting. So the problem with that is that everyone thought, oh, that's the type of deposit you have. You have this potentially 3, 4 gram deposit. And that's not the deposit we have. We don't believe that that's the deposit we have. We do think that within the deposit, there will be these high-grade chutes, as I've explained. And so we will chase those for sure. But at the end of the day, we think when you average it out that that's the type of deposit we have. So now, given that we did do the mineral inventory non-43-101 resource calculation, when we do put out results, it's within the context of that. And I think people understand who we are much better than they did then. Okay, we have the time for the last question.
14:16 There. Yeah, maybe one question is, why did you not issue the resource estimate? Is that not true? It's a good question, I guess, because we don't want to. We don't think we need to release a resource estimate with 26,000 meters of drilling. There's no pressure. Nobody's saying, hey, we need a resource calculation. And the problem with the resource calculation, I mean, I don't have first-hand evidence, but, you know, from talking to enough people, the problem is when you put out a resource calculation, then you're branded with that resource until you put out your next resource calculation. So we're not there yet. We think we've got some time in front of us to hopefully take that 2.2 and make it 3.3, 4.4, 5.5, I don't know, you know? So we're just, there's no pressure on us to do it yet.
15:12 Perfect. That's all? 12 seconds, hold on, 11 seconds. Okay. What's the end game? Well, to sell it. I mean, I have no intention of putting this into production myself. So that's not who we are. Just want to drill and do drills. And hopefully, what I'd love is a major, and we've had plenty of them come. Now we're at 0, but we've had plenty of them come. I love going over my time. We had plenty of them come, but again, even that, if you look at the market, the way the market is, you know, I used an analogy today of going to a dance and there'd be a bunch of women at the dance and they're all available, so there's no rush on having to go and ask one of them to dance. But all of a sudden, a few start disappearing.
16:00 You know what I mean? It's the same thing with us. Deals aren't getting done really yet. So they're looking, they like what they see, but there's no real push yet. So what I'd love to see is I'd love to see a major come in, take a piece of the action, fund a large drill campaign on their dime, of course, and take this where it needs to go. Where does that mean the shareholder? Well, the shareholder would still be a shareholder of the entity. Yeah. Maybe be diluted? No, no, no, no, Because what I said was take a percentage of the company, 25%, so that would be the dilution, but within that deal have expiration dollars that they would spend. So it wouldn't screw the shareholder. It'd be very good for the shareholder.
16:49 You can continue outside. Thank you. Thanks, everybody. Thank you very much. Thank you.
