FenixOro Exploration Update: Drill Results To Date - What are they telling us?

0:12 Good morning, everyone. Good afternoon, as it were, depending on which coast you're on. Thanks for joining us again today for our update. As you know, most of, you know, I believe we have been drilling, we have been receiving results. We're to be clear, we're very encouraged by what we've been seeing to date and we wanted to ensure that everyone understood the significance of what we've been intercepting and provide some context so that the results are clearly understood for what they are. Just to recap, we believe at Aboriki that we have something very similar to what we call Beritica-style mineralization.

0:58 What is that? It is the combination of extremely high-grade gold with wider zones of lower-grade mineralization. And we're certainly seeing both of those things in our drilling to date. Each of these holes has very specific targets that we're aiming for and we're hitting the targets that we're aiming for, that's a positive. We are finding the combination of both these things. We've hit extremely high grades up to 71 grams per ton and we have hit wider zones of lower grade. So we're seeing both these or all the elements in this environment, in various environments. All these holes have slightly different objectives that we're testing in this early stage of drilling and we are feeling good about what we're seeing. We're seeing a lot of correlations that are important.

1:52 And that is is important to to understand. Those are obviously the shallow mine workings that surface, which are. The, the initial indications of the presence of gold on the property. Those are obvious indicators for structures that we're hitting below them. The soil anomalies that we've been identifying are also really, we're finding to be really good indicators for intercepting structures that we didn't know were there prior. We are, we are hitting those and I think thirdly, you know, a really important characteristic of Eritica is the depth and the continuity of the vein system there. It's what really gives it the ability to pack so many ounces into a small surface area.

2:42 What we are seeing and have been able to trace through our drilling from surface, the surface workings, We were identifying that the veins continue to 7,800 meters, in some cases, you know, 1000 meters below. That's going to be very important. You know, I had a conversation last week with someone, and I was describing some of the results. We're not necessarily trying to hit a box that's below the surface or find a buried treasure chest, if you will. But the intercepts that we're hitting at certain depths are representative of that particular level underground of the continuity where we're intercepting that vein as it continues from surface to that level and then it continues on for several hundred meters below where we're intercepting it. So, you know, lots going on.

3:35 Our objective here when we started is to identify a multi million ounce deposit. As I said, we're very encouraged by what we've seen to date. Our objective has not changed our view of the potential for our objective has not changed, and I'm hoping that when we're done here today, you can all appreciate why we remain very optimistic with what we're doing. Stu, maybe I'll toss it over to you, and you can do your thing. Very good, John. Thanks for the intro. This first slide, I'll just spend 1 minute getting any newbies up to speed or reminding people where we are geologically in as non-geological a framework as I can do it, realizing that we have the full spectrum of listeners from geologists down to the more business-oriented folks. Remember, we're on the very north terminus of a 200 kilometer long geological belt, a very similar age, intrusive rocks, which are the bringers of the mineralization in many gold and gold copper systems along that 200 kilometers.

4:50 Between 90 and 100 million new ounces of gold have been discovered on that trend since I first got to Columbia in 2007, including Beritica, which joins us at the very northern terminus of the belt, it's about 25 kilometers to the east. This is sort of a broad brush geological map. Basically, the pink unit is an intrusive unit that came in as molten magma and was intruded into the surrounding sedimentary rocks. And it basically brought the mineralization, which sort of the latest stages of which froze in the cracks and formed these veins. As you can see, those veins, which are the red, there are 80 or more of them. We're seeing many more than the 80 that we've been able to outline on surface in the drilling, so that will be probably double that size if we really wanted to count the little ones too. But they are hosted both by the red unit, which is the intrusive diorite itself, and in that light green unit, which is a part of the host sedimentary package, which was affected by the heat coming off of that cooling intrusion out into the area where it's light green.

6:07 And the main effect of that was a hardening of that rock, which allowed these sharp cracks, which then became veins to form in the surrounding rock. Outside of that light green thermally altered zone, the sedimentary rocks are a bit more squishy and they deform more plastically rather than brittly. And so they're not very good outside that thermal halo at holding open a nice crack which can be formed as a vein. So we're looking at 90% probably of the vein potential anyway as being hosted by that light green unit and the pink unit and as you can see That's where we're seeing them. Let's go to the next slide, John. John's controlling things. Still a little local color.

6:54 Normally, by this time, we would have had a couple of analyst visits and maybe a friends and family tour, but this is not a normal year. So we'll do it here digitally. As you look at the inset on the bottom right, that's basically the area of our licenses, the same red veins. I just put that inset in there to show the same 4 platforms that I'm showing in the photo. Basically, we're in the bottom center. We're standing, the photographer is standing in the bottom center of that inset right now looking to the north. And this is good for several reasons. Number 1, you can see the lay of the land and the topography.

7:41 The only road access comes up the valley, which we can't really see the bottom of the valley, except at the place where it says hole 1 and 2. You can drive in from the upper left into just above upstream from where it says hole 1 and 2. You can see we have platforms on the right for holes 3 and 4. You can see a small path snaking up there. The way our permits, our environmental permits work, we're permitted to drill from any of the meadow areas. We're not permitted to take out any trees, which we wouldn't do anyway. Fortunately we don't have to, there's plenty of pre-existing meadow. We can't do any mechanized trail or drill access preparation, so it's all by hand.

8:30 You can see just above the inset that we cut a few, by hand, we cut a few switchbacks to get up to that drill platform for holes 3 and 4. When we're done with these pads, that will all be reclaimed by hand, brought back to natural contour, reseeded, and hopefully years from now, you won't be able to tell that we were that we were there. So basically the reason we started where we did holes 1 and 2 is because it was right alongside of the road. There was real pressure to get some results out to get started drilling, because we've been telling people for 2 years, it was, well, for a year, but it was any day now we're gonna get the permits. We finally got them, so we started down there, not necessarily our highest priority holes, but logistically it made sense.

9:20 And we've currently drilled holes 1 and 2, holes 3 and 4, and we've reported at least preliminary assays on all of those. Hole 5, we have just finished before the Christmas break. And when we take up after Christmas, we'll be finishing 6 and 7 and continuing onward from there. So why don't we go to the next one, John? A little more local color. Plus this is our metallurgy slide right here. We haven't done any metallurgical test work yet. It's way too early in the program to do it. But remembering that Our partners, those of you who know our story, our partners in this venture and the underlying owners of 2 of the licenses are a legally constituted small miners group, fully permitted to do what they've been doing for 100 years now, third generation miners.

10:16 They're not permitted to use any explosives in their mines. They're not permitted to use any explosives in their mines. They're not permitted to use any chemical, cyanide, mercury, or anything else in their recovery plants. This is one of about 30 so-called arastre mills, water-driven underneath the wooden bucket. These are all wood, 100% except for the nails.

10:38 Underneath that there's a water-driven paddle which turns that capstan, which in turn drags big flat rocks over the ore. They take the ore out in very small quantities with a hammer, with a ball-peen hammer. They knock it down to probably a fine gravel size. They put it in there. The water-driven mill breaks, physically breaks down the ore. And then the wooden trough you see in the foreground is their sluice box, essentially. It's just a raw, rough piece of wood. They run the crushed ore across that with lots of water, the gold separates out. What this is telling us, I think the real lessons here are 2. Number 1, their recovery is very crude, very inefficient. One of my favorite stories, one of the guys who works with us in the field, he's a part-time miner, He owns one of these plants.

11:35 He said, yeah, in times when there's a mine cave in or I run out of ore in the mine, I just rerun the tails that I've already run through my plant. I asked him, I said, that must really hurt your recovery. He said, no, it's about the same every time we run it, which means that their recoveries are very inefficient, which, working back to the minehead, they don't do any assays, So they have no idea what the grade is in terms of grams per ton of the mineral they're mining, but it's got to be incredibly high, given the fact that they're still recovering significant quantities of free gold 2 or 3 times through the ore. The other really important point, which plays into modern day metallurgy, which as I mentioned we haven't done yet, is that a significant portion of the gold, as at Barytica, is a major positive there, is present in the form of free gold, not complexed with other minerals. And free gold generally can be recovered by gravity separation techniques, probably a bit more up-to-date than what we're looking at here, but when I left Beretica several years ago, the then current state of the metallurgy, they were hoping that they could recover at least 80% of their total gold through gravity techniques.

12:54 Hopefully this operation will be similar. So there's lots of good news in this sort of Flintstones quality mill that we see here. Let's go, John. Okay, John mentioned that we had been able to demonstrate over 1000 vertical meters of vein continuity. We had a couple of questions on that. We've been getting that point out over the last few press releases and some follow-up calls with investors. And that point, we felt that that point needed to be highlighted a little bit better graphically. This is a Google Earth image. Now we're looking back up the valley. So turn around from the photo that we looked at in the first slide. We're looking back up the valley to the southeast.

13:45 What I've plotted on this slide are the veins, now in yellow instead of red, and they're sort of distorted because of the angle of the Google Earth image. But we have taken what we're arbitrarily describing as high grade, greater than 20 gram per ton samples from the Shala mine workings from the very highest topographic levels you see in the upper left, 27, 72 meter elevation up on top of the ridge, all the way down to the lowest, down in the valley in the bottom right, at 840,830 or 4,000 meters below that. Obviously we've lost a bunch of that to erosion down in the center of the valley, but it shows that geologically we have at least that vertical range of high-grade gold. And as importantly, if not more, the mineralogical assemblage has not changed. The metal ratios have not changed. The gold-silver ratio or the gold-copper-lead-zinc ratios. And what that indicates is what we as geologists know to be the case here. These are very deep seated veins that formed 2, 3 kilometers below the earth surface where you can get thousand plus vertical meter ranges without much in way of geological changes.

15:06 We've added to that 840 meter vertical range that we can demonstrate on the surface in drill hole 001. You can see that it looks in this projection, which is a projection of that hole to the surface, as if it's drilled uphill. It's not. It was drilled from that pad, that drill pad, downwards at an angle of 45 degrees. And as we'll see in a cross-section of that hole in a couple of slides, basically, the deepest hit, and it was the highest grade hit, it was that 72-gram sample, is almost at the bottom of that hole at about a 1,700-meter elevation. So that's the deepest point we've touched in the geological system so far, and that gives us more than 1000 meters of vertical continuity of high to very high grade gold.

15:53 And that, as John mentioned, that's really key when you want to get a lot of ounces out of a relatively small horizontal area. John, do you have something to add? I don't understand what it is that I'm, yeah, just so people don't understand what it is that I'm scribbling here. So this is the highest point where we've had a soil anomaly, I believe in this direction, not this exact area, I think is where we had our highest sample or towards that area. The highest sample is

16:24 in the southern block which is 146 grams per ton. But I mean, you know, we're showing mineralization obviously at the top of a ridge. It wasn't placed there from the sky. It's clearly coming from below. So we know this continuity is going down to at least the surface here. This area where we're drilling, we're drilling deeper. So we're showing that this distance here, this is ground level, we've now drilled a few hundred meters below here so that's where we're getting this you know 7,800 meters plus 300 below we're talking about 1000 meters so just to in case anyone was wondering what what the hell I'm scribbling here. I'm done Let's go to the next one. Okay, this is the slide from the most recent press release which basically shows the 4 holes that we've drilled and received at least preliminary assays from to date. And what this is, okay, it's again on the Google Earth image

17:24 we're back to the normal orientation, north is to the upper part of the screen. You see the white outline, that is the diorite contact with the sediments, sediments being on the outside. Again, you can see all the red veins, which are the ones we've been plotting in either red or yellow in previous slides. I've superimposed on this, the horizontal trace of these incline drill holes, the 4 holes, 2 from pad 1, which are 001 and 002, and then 003 and 004. Remember These holes were angled at a minus 45 degrees downward from the surface. So the trace to the surface, they're cutting across these families of more or less vertical veins.

18:13 And I've superimposed the assays on those in different color ranges. Hopefully the scale on your screen is sufficient to see that. If not, these same colors are in the most recent press release. But what I've put on here also, which wasn't on the press release slide, is all the historical mines with the little white mine symbols. Something important that goes back to that slide of the mill working, the small miners don't mess around with anything but the highest grade because this is how they feed their kids. Their recoveries are very low. They can't afford to do any development, either a long vein or going at an angle of the vein, getting into them, that doesn't pay the rent.

19:01 So basically, you can see the distribution of mines. And that is more or less an indication of the distribution of potential high-grade targets for us. We've hit significant high-grade in hole number 1 and little spotty bits of higher grade in the other holes, but we had just begun to scratch the surface of the high grade potential on this thing. So if you look on the chart to the right where we have the intervals, On my screen it's so small that I need to refer to a different screen on my iPad here to make sure I can read them. They're the same numbers we have published with a couple exceptions. The very top line, the first half of the screen describes the intercepts in hole 1.

19:52 And we pretty much went for the high grade in I used a two-gram cutoff in calculating intervals. And therefore, that 4.14 meters of five-ish grams did not appear in the first one. That includes 3 or 4 of the individual higher grade intercepts that I included in that press release table. But I allowed for this purposes of this presentation, I allowed myself to include a little bit more of lower grade stuff that was sort of in the middle of that run of samples. That 4.14 meters is made up probably by 12 different samples. And you can see sort of the nomenclature on this slide from 2, and then if in the left column it says including, then that, you know, the thing that is included is included within that 4.14 meters. So there are obviously some higher grade things that make up on average, on weighted average, that 4.14 meters.

20:57 So depending on how we look at it, We can either look at this as a number of relatively thin, quite high grade to very high grade veins. You can see there's a 71, or we can sort of glom those together and make some thicker intercepts out of that. We've got the 4.14, we've got a 2.6 in there. And these are very, very easily mineable and relatively economically mineable widths. What it comes down to is what the engineers decide at the end of the day when they're putting a mine plan together. And that's all done in the context of the then current gold price. Just as a little local color, I don't mean to keep hearkening back to Beritica, but when I was there, they did the first model and it was when gold was at $1,400 an ounce. They decided that their economic cutoff, it wasn't profitable to mine below that cutoff grade.

21:59 And then it was 3 grams per ton. Now at $1,900 gold, I have no idea what their current thinking is. But I guarantee that they can afford to make a buck at a much lower cutoff than that. So I've included both, sort of the broader intercepts that include some lower grade material within which I'm showing the higher grade intercepts. So you can come to your own conclusions. It depends on whether you like high grade thin veins or if you like the thicker intervals of lower grade.

22:32 That's the hole 1 story. Hole 2 was not a high priority hole. As you can see, it's drilled to the northeast from the pad, same pad. It was drilled, we were already there, and it takes a minimum 4 days to move the machine and all the equipment and all the pipe, drill pipe from 1 pad to the next. So we really need to take advantage of the fact that we're at a particular place. But we drilled it. It was a very important hole because it tested, It was the first test of this whole huge family of soil anomalies that we generated. Drilled again to the northeast, so we're getting deeper as we go further to the northeast. Those 2 yellow dots, which are in the sort of the 2 to 10 gram per ton range, individual samples, right toward the end of that hole, there's some really good soil anomalies right in that area. And as you can see, there are no known veins projected through there.

23:26 That certainly got us all excited. That's just one of probably 20 or 25 areas where we have good soil anomalies, overlying areas with no known veins, no known mineralization. Now we've drilled them. Now we've proven that technique. As you see in the chart, those aren't spectacular intercepts. They're relatively thin, less than 10 grams per ton. Those are probably economic intercepts, you know, at the end of the day, but they're not real eye-catching things. But for me, that was arguably the most important drill hole of the first 4 because it proved up that whole premise of our exploration philosophy. And as you can see in our ongoing target slide, a few slides down the list, we have many places where we can export that knowledge and hopefully find a bunch more veins.

24:17 Holes 3 and 4 tested, as you can see, just the East-West family. Hole 1 tested the Northwest, that main 1,200 meter long Northwest trend, which we know from our underground sampling and from the talking to the miners, that's high grade through and through. You can see in holes 3 and 4, the East West family, the density of preexisting mines is much less. That's 1 point. Although there are some high grade individual samples out there. I hope you can erase all that junk sooner or later. Ah, good. So I can see what I'm talking about. But you can see that holes 3 and 4 are both out in the sediments, outside of the intrusive diorite.

25:04 And there at sort of a hole 4 especially is at the extreme outer edge of where the ore bearing fluids reached. Remember it was inside that white unit in the diorite. That was the bringer of the fluids that had the gold. It was the heat source and the gold source. And where it's mineralized outside of that block, the fluids had to travel through whatever conduits they could find, whatever plumbing system to get out there. And by the time you get as far east as hole 4, you're at the very limit of where those fluids reached. And the fact that we have thick intercepts in 3 and 4, there are a couple of variables there. We don't understand it. The variables are, is that related to the fact that we're something related to the East-West structural orientation?

25:53 Is it related to the fact that we're out in the sediments? We're no longer in the diorite? Is it related to some other factor? But we get between holes 3 and 4, there are 3 of them in hole 3 and 1 of them in hole 4, we'll look at a couple of these in more detail later. But we're getting, well, we're not getting the individual super high-grade veins. We have some, as you see in hole 4. But those high grade veinlets are part of thicker intercepts. There are 4 intercepts of at least 7 meter thickness, 7 to 9 meter thickness between those 2 holes. Which I'll get into in subsequent slides. I think before we get there, let's talk about hole 5, which is from the Northwestern most pad. I'm just showing it as a dashed line. We have no assays yet. We've just finished that hole before the drillers took a break for Christmas.

26:51 It tests that main northwestern vein, sort of at the end of that hole, the main northwestern vein trend, about 400 meters to the Northwest from where we first intercepted it in hole number 1. And I can say visually, it looks great. But also we're out in the sediment. So this is a different combination of factors. We're testing all sorts of different ideas, sort of 1 hole in each idea in this first drill phase. And we're testing the main Northwestern trend, but where it's hosted by the sediments. We'll see what differences that, when we get the assays, what differences that imparts. You'll see that that northwestern trend continues beyond that north-south land package border where it says polo acquisition.

27:39 If you recall a couple of press releases ago, we described that acquisition. We, well, what we acquired is the legal rights to a foreclosure type thing. That has almost run its course. Hopefully, by the time we get back with the drill on property in the first quarter next year, that will be ours and we'll be able to drill it. But some of the best mines that I've seen in terms of wandering around underground on the property are on that northwestern trend at the extreme northwest end there. So what we're going to look at in the next slide, look at hole 1, drilled to the southwest, the high grade hole. We're going to be looking at a vertical section through that, looking to the northwest. Okay, I had a question, Stu, that I think maybe is relevant to deal with now.

28:28 And it relates to the item you just raised

28:31 with respect to this trend that runs from southeast to northwest here. I'm paraphrasing here, but the question is, we've got some extremely high grades. This is where the 71 came and there was obviously some additional mines on surface here and this vein structure.

28:57 This person watching has noticed that the top of hole 1 here seems to be at the same level as the bottom of hole 5. So the question is, you know, assuming these widths and, you know, similar widths and similar grades, and the continuity of this strike length along this family. Is that something that has potential to be mineable, be a deposit, represent something that could represent some ounces here in the future? Well, let's just look at that 1200 meter Northwest trend. Look at the density of mines along it and its correlation. I hope I've convinced you that that correlates with high grade historically. We've now seen that from the surface all the way down. When we see the cross section, you'll really get a 3D feel for what we have to date on that. After this discussion, we'll go there. But just back of the envelope, 1,200 meters, let's say we have an average of at least 600 vertical meters times whatever the average thickness is on that family of veins, none of these veins, no veins anywhere on the planet are 100% mineralization.

30:15 Say half of that plane, that playing card that we've stuck in there that goes down 600 meters, say just half of that is mineralized at 10 grams. I'm not going to throw any numbers around, but you can do your own calculations. Just on that 1 1,200 meter trend, assuming half of that is mineralized, you can pack a whole bunch of ounces into that, given that deep third dimension. And that's just one of many, many significant main trends on the property. So yeah, I think if worst case, absolute disaster scenario, that that's all that turns up economic grade, I think just that one trend is enough to give us something to hang our hats on.

31:06 That's not going to be the case, though, as you can see by the distribution of the high grade throughout. Okay. So here is hole 001. You can see it's the hole, again, a vertical section looking to the northwest. You can see the actual topography. Okay. Can you? Okay, good. Okay. So, You can see the surface trace. It's very steep topography from southwest to northeast. You can see the pink unit, which is the diorite, the intrusive unit. This whole hole was drilled in the diorite, and you can see the Hornfels sediments that we didn't quite hit in the bottom of the hole. As I mentioned, these holes start out at minus 45 degrees, but especially in the deeper holes, we're surveying all the holes.

31:55 You can see that this one flattened significantly. It was like 33 degrees, I think, downward from the surface by the time we're done, which was an advantage actually, because these are fairly steeply deep dipping veins and sort of the more,

32:15 The closer to 90 degrees between the drill hole axis and the vein itself that you hit them gives you a much more true width of the veins that you're hitting. Basically, I plotted the soil samples on the top too. And the actual ranges are not that important, but just think of the rainbow colors, the hotter colors, the reds, orange, and yellows are the higher grades. I also plotted the best mine sample that we have, that 50.7 gram sample with the arrow pointing to it in a shallow mine working on the surface. You can see going downward, we've done some preliminary correlations of veins and mines on the surface with what we've hit down below.

33:00 And you can see that that high grade sample on the surface correlates quite well with the highest grades, including a 32 and a 71 at the deepest levels that we've drilled. But you can see here, just in this area, and this is not way up the hill at the top of the ridge to the southeast, but just here you can look at the vertical scale on the left. The intercept, our deepest intercept, is like 1750 meters and we're up at what 1921, 2300 meters where that same vein outcrops on the surface. So just between those 2 points, we have shown that there is significant potential on that family of veins over 600 vertical meters. So this is the kind of thing that we're encouraged by in the high-grade vein scenario.

33:53 Every hole at depth gives us, every deeper hole gives us more and more at depth. And as you can see, these are our very deepest samples on the surface or in drill holes from anywhere on the property. And they're among the highest grade samples that we've seen. So that tells a tale, certainly. Unless you have something to, okay, good. These are some core photos. What does this stuff look like? The upper inset photo is sort of the classic stuff that the small miners have been working on for 100 years now. It's more massive metal. The metal, the 2, sort of the yellow and then the reddish yellow are 2 iron sulfides, pyrite and pyrotite, which are closely associated with the gold. But the fact that the gold is recoverable as free gold by gravity tells us that it's not complexed within those minerals. We're not going to have to do fancy metallurgical techniques to free the gold from these sulfide metals.

34:57 A significant portion of it will come out on its own just with gravity treatment. When we see that in Drill Corps, we know that's going to run. So we had real pressure from folks like yourselves and the expectations that we've created to get numbers out, to get assays out as quickly as possible. So the first time through, as the core came out of a hole and we processed it and logged it, I told the guys on site to sample what the obvious winners were gonna be, the obvious veins, sample them at a few meters on each side. We need to get some assays out to prove that, you know, to people that what we've been saying for 18 months now is indeed the fact.

35:43 And so what we did is we, in going quickly, we sacrificed things like the lower intercept, which obviously looks like it has potential, it has some metallic sulfides in it, but visually it's not nearly as glitzy as the stuff that we knew was going to run. If you look at the text, this is the best looking, the lower intercept is the best looking what, 25 centimeters of a 50 centimeter sample which gave us our very highest grade sample. So you don't need that massive metal. And another question that I see pop up on the side of the screen is, why were you still reporting hole 1 results in the second press release?

36:29 It's because we went back and did a bunch of infill sampling after we got those first numbers back. And indeed, we've done a third round of infill sampling in areas which probably aren't going to run, but we may get some surprises, who knows, in hole 1, 3, and 4. We have final numbers for 2. So it could be, if we have some luck, that you'll see some even further results from hole 1 in the next press release as the assays come in. But that's the reason why, things don't come in sequentially either. We send in holes 2, 3, and 4 together, and the lab, you know, processes them, you know, they grab a bag from a group of 100 bags, they grab one and start working on it. So we don't control the fine tuning of which assays we get first.

37:16 And plus, once we get them, we are sort of legally bound to get the results out if they're material. So we pretty much have to get you the results publicly, excuse me, without the luxury of waiting to get them all, all our ducks in a row. So a couple, couple lessons learned from this slide. Next slide, please. Okay, now let's have a look at those higher grade intercepts. 2 of those, excuse me, higher thickness intercepts in holes 3 and 4, 1 from each. We've shown these to a few geologists prior to receiving assays, myself included, and we just started drooling. We said, hot damn, here we are. Look at this, especially on the left. If you look at the insets, Those 2 bottom most panels on the slide on the left are blowups of something that appear, of a couple areas that appear further up.

38:10 The quartz carbonate veinlets are replacing up to 70, or in some cases 80 percent of the rock over a 7 meter interval. This isn't right along some little 1, 1.5 meter vein where all the fluids are channeled through 1 distinct discrete crack. This is invasion, a more fine grained invasion of 7 meter minimum of this massive rock by massive quantities of fluid. This one, the results were disappointing. It only came out 1 gram, averaged over that 7 meters, but the geological process involved is extremely exciting. Remember this is in hole 3 and the other one is in hole 4. This is where we're out in the sediments in an area where we don't historically have a lot of high-grade mines, individual high-grade samples.

39:05 And this is probably why. We're using the same volume of ore-bearing fluid, of gold-bearing fluid, but it has access to much thicker volumes of rock. If you look at the hole 4 intercept on the right, that's almost 8 meters at a gram and a half, which at current gold price is probably approaching economic. I can't say that out loud in a press release because the stock exchange will be all over me unless I have 27 footnotes explaining my rationale. But, you know, that's close. And as you can see, it's the same phenomenon. It's a much broader volume of rock that the fluids have had access to. And this is, and there are 2 more that look just like this. I didn't see the point in belaboring the point and putting them all in.

39:56 Actually, I've updated the chart, the spreadsheet that appeared a few slides earlier, to show this 7.75 meter at a gram and a half. In the press release, I actually reported 2 or 3 of the higher grade intercepts within that 7.75 meters. But now for a little context, in the context of this discussion with that visual in front of you, I think it's a lot easier to understand that those are just the high-grade peaks within a much broader zone. We have every reason to believe. Remember, holes 3 and 4 are at the extreme end. That's the extreme outer limit of where these ore-bearing fluids reached. And we still had enough oomph to the system and enough gold left in the system to mineralize that volume of rock at that grade.

40:50 So we have very high hopes that a little closer to the center of the system, that we're gonna see these kinds of widths at better grades. And this for us is extremely important. Geologically, It would have been great if they went 30 grams, but frankly, that's an unrealistic expectation. But if we can get a few of these zones at say 4 to 6, 8 grams, And that gives us a lot of tonnage at these thicknesses. And then we have a lot of tonnage from many much higher grade veins in the future that gives the engineers and the metallurgists exactly their dream scenario in that they can mix and match or types and maintain a feed grade to the mill somewhere in between those 2 extremes.

41:40 And so this is very important. And I don't think it was well received by the market And I can understand why, because in the course of a couple of page press release, you just can't provide the context that I'm providing now. But this is a good result. We're really jazzed by this. Yeah, John, anything to add? I think even as well, Stu, within these zones, sort of, it's fair to say up or down the whole and, you know, further north or south along. A long trend of the of these zones, you know, We're not expecting these are going to be perfectly uniform. These aren't pencils. They're going to swell. They're going to narrow. So there is going to be some variability.

42:27 This happens to be the interval that we went through it at. Yeah, yeah, this is, remember, this core is 3 inches wide. So every drill hole is a 3 inch wide sample of something which is hundreds, and on the case of that Northwest trend, 1,200 meters long. So you can only infer so much from them. And that's why you drill a bunch of holes. And that's why we can't demonstrate 5 million ounces from the first 4 drill holes. But we certainly, as John mentioned, have not lowered our expectations for what this system could conceivably deliver based on the few holes today. Okay, good. This is just sort of a summary slide. It's the same slide on which I've superimposed that yellowish amoeba, which is the outer limit of the soil anomaly. That soil anomaly doesn't continue west of that vertical line. It goes over to the polo acquisition because we arbitrarily stopped the grid there, because we can't explore it on other people's properties.

43:36 We will certainly continue that when we come out. But looking at the 12345 holes drilled to date, Just from those 3 platforms, we have lots of options as to how we follow up. In a minute, I'll show the expanded area of all the remaining targets. And we can talk about what we're looking at going forward. But just From these 3 platforms, we have many options. We can just tweak the angle. Say look at hole 1, drilled to the southwest from that first pad. One of my favorite areas is the northwest extension of the southwestern most group of Northwest trending veins, if you got all my southwest and northwest together. John, could you highlight that area?

44:21 I'm sure I confused everybody. The northwest extension of that lower intercept. Okay, that's arguably my favorite area in the whole property. We're seeing some surface sampling there, which indicates a potential for significant width. Actually, no, to the southwest. But basically, just tweaking the angle a bit more to the west from hole 1, we can hit that same structural family 200 further meters. Yeah, to the west. And from that same pad, remembering we started at a 45 degree angle, we can drill that whole family of holes at a 60 degree angle. We could sit at that pad and drill 15 holes if we, there you're 15, if and when we get to the sort of the development drilling phase. And we can say that from each of these other holes.

45:21 All the areas, as I showed on the photo slide, all the areas that you can see on the Google Earth image here that are meadow were permitted to drill from. So we could set up drill pads and basically get good angles of attack on all of these vein systems. We don't want to be doing definition drilling, like, you know, hitting a given vein every, you know, every hundred meters on 100 meter vertical and horizontal grid in 600 meter holes. We would want to get a lot closer to them. And we certainly don't want to spend a lot of development drilling meters, because this is costing about $140 a meter, this drilling, all in costs. So it's something you certainly want to be efficient with your drilling. We're not being efficient with this phase 1 drilling because it's sort of a one-hole-each test of ideas.

46:15 Once we finish this, we find that we have hits and misses, we find out what ideas were good and which ones we need to back burner or at least deprioritize a little bit. I think we can be a lot more efficient with our drill meters, but we can attack all the veins we're seeing here. We can test all the soil anomalies within that amoeboid yellow blob from easily accessible drill pads here. And sort of the ideal scenario in my mind would be continuing with 1 rig here, doing sort of follow-up drilling, step-out drilling on the successes from hole 1, and possibly with a second drill dedicated to go out and doing further tests of new ideas in the southeast block and elsewhere.

47:01 And I'll retake that point in a minute on a slide which is more appropriate. And here is that more appropriate slide. Okay. So the area we were just looking at is the area you can see in the key sort of the black lines forming the V, those are the 4 then 4 drill holes to date. So you can see it's just that lower inset portion is what we have been looking at. Basically I'm putting all of our remaining targeting ideas on this for stepping out from that area in the near future to expanded future. I think we've got a year's worth of phase 1 targets here, looking at everything. You look at that southeastern area, the area mostly contained within the pink geologic unit to the southeast, the numbered anomalies, including number 5 down there, are ones that we're specifically keen on.

48:03 That anomaly number 5 is a combined geophysical anomaly, magnetic anomaly with a coincident soil anomaly that we had a dedicated press release on about a month ago. I'll show that in a moment in the subsequent slide. But basically the targets just in that southeast block, as I said, where we haven't been yet, the open blue circles are soil anomalies where there are no veins, plus all the veins, which would be the equivalents in the southeast block of the holes that we've drilled to date in the northwest block. So we've probably got 15 drill holes that we could drill in that southeast block alone. The open small blue circles in the area that we have already drilled are more of these soil anomalies, now validated thanks to hole 2, which are very much in play. So we have all the remaining obvious vein drill holes in that area, plus those open blue circles, plus numbered anomalies 3 and 4, which are over on that Polo acquisition, which we're about to tie up, which we haven't been able to touch yet. 4 is the westward extension of another geophysical anomaly, which we're very excited about.

49:19 And 3 is the northwest extension of that main northwest vein trend, which we could easily drill that at depth from the platform where we have just drilled hole 5 from once we get access to that ground. Looking further north, the red vein, almost east-west trending red vein, partly off our ground and partly on the polar ground, which I'm showing as target number 2, that vein, the Pourvenire vein, is the most thoroughly historically mined vein in this entire area, mined by other companies, local Colombian companies. As you can see, this fully half of the potential of that vein, where you can see it on the surface, projects to the east onto what will soon be our ground. That's a significant target.

50:10 You can see all the little mind symbols and some small red veins in target area 1. We haven't really had a chance to look at those yet. We've walked over them and taken a few samples, verified that they exist. Basically, that's it. So all of that sort of outer expanded area targets, as I mentioned, suffice it to say, we have a year's worth of other targets, other ideas outside of what I think we've proven to be the core area that we could go into immediate step-out drilling with right now in addition to that. So there is no lack of targets, no lack of ideas, no lack of opportunity here, well outside the areas that we've currently drilled. There we go, I think there's just one more, 1 or 2 more. Oh yeah, Here's that area, that numbered anomaly number 5.

51:04 Way up at the top of the ridge, the inset photo with the colors, the colors of the geophysical anomaly, and the individual dots. You can see the orange dots in the lower center of that. There are 4 in a row, which are high grade in soils, which are totally coincident with the purplish part, i.e. The highest intensity of that magnetic anomaly. We don't know what those represent, but the coincidence of magnetic and soil anomalies, And we know those soils aren't transported. As you can see from the photo, that occurs right at the very top of the ridge. So those are in place. Those are very real. And this also shows that that's one of the more logistically challenging targets that we have. We can certainly get there. If it turns out that we're, we decide to prioritize it, we could fly a helicopter, a drill rig up there. So these are all drillable, they're all doable, but there are some logistical challenges.

52:01 So I guess that's it, except for, let's go to the next one. Actually the best slide in this whole package is the next one. We put in and whitewashed the walls of our core shed. And every morning from the minute those walls were put up, for some reason it attracts this incredible swarm of butterflies. Literally there are thousands of butterflies. Must be a heat thing, but they're on that wall. And if you notice, those of you who are old enough to remember Alice Cooper, the 70s era rocker. He is on that upper left butterfly. It's really spooky, but that is Alice Cooper's face. And that can't be bad luck. So a little more local color. That's pretty much the formal part. John certainly will have some comments and we'll certainly get to some of your questions which we can see are pouring in.

52:53 Oh, John, you want to talk about? Okay, so yeah, thanks for that. I think that kind of we have had a few questions coming on. I guess I'll address some of the obvious ones while we have a few minutes here. We're going to try and keep this under an hour. So I respect people's time. They're taking a lunch break or or copyright. We've had a number of questions about what do we think has been going on with the stock price? I think as we've tried to relay to you here today, it's certainly not related to what we feel the success that we've been having on the ground. We've been identifying some very interesting targets. We're seeing the high grades. We're seeing the wider zones, all the characteristics that make up Beritica style mineralization.

53:45 You know, and I'll point out again, I haven't not for the first time today, but we've done in the past, you know, is the fourth lowest cash cost producer in the world this year with an all in cost of under 600 dollars an ounce. And while I would say their higher grade intercepts. Always received the most attention, It's those lower grade wide zones that really make it so valuable and so profitable because that's what gave it the ability to drop the operating costs so dramatically and by extension, boost the cash flow and the value of that asset. So, you know, let me interject just for 1 2nd, John. John, let me interject just as a point of reference. As John mentioned, The press just went crazy over the high-grade intercepts at Barytica through the 10 years or so that they were coming out. The average grade of the calculated Barytica resource, and this is resource. This is not a reserve where you're diluting it down to a lower grade. The average grade of the Barytica 11 million ounces, which is the most recent public number that I've seen, is just over 9 grams per ton.

54:53 We're not talking about 150 gram ore. It's a 9 gram ore body with really good mining characteristics and really good cheap metallurgy. And we're still in the ball game for those 2 parameters where we are. Yeah, so that's important. I think people look at some of these wider, lower grade zones and think, oh, well, that's not very exciting. The reality is, you know, when those wide zones are economic, they are very, very profitable. So, so don't don't sell those short, you know, speaking of speaking of the stock price, but, you know, I think, you know, in terms of what, what, what our perception, what my perception is conversations we've been having, I think we've had a number of.

55:40 Shareholders who perhaps didn't know why they Owned shares in the company. Perhaps they felt it was, you know, they were told by a friend of a friend of a friend. You know, we've been kind of in a, you know, certainly within a range and, you know, more recently, you know, trading down. But again, to to us and to, I would say, more sophisticated analysts that we're talking to, it doesn't make a lot of sense or certainly doesn't correlate. And I think you have some people who bought the stock, hoping it this is this is the oldest cliche in the book. But I think it's it happens to be true. In this case, you know, you buy something. You think it was gonna go higher. It didn't go up. It's the end of the year and maybe just don't want to look at it anymore. So I think we are getting some of that.

56:36 It's too bad for them, perhaps some opportunities for others. But as I tried to relay at the beginning, and maybe here in summary as well, we're really, really encouraged by what we're seeing. Our view of the potential here to have a multi-million ounce deposit has not changed. We're seeing and we're hitting what we are aiming for. We're seeing the high grade, we're seeing the low grade, all those characteristics of Berytica. So, hopefully, this gives you some comfort and some perspective in terms of what we've been doing, what's coming next. Stu mentioned we've now completed hole 5. We'll see how quickly we can get those results out over the break. Typically that has been about a three-week-ish turnaround from submission of samples to having results. So that would put us some time over towards the end of the year here, beginning of the new year.

57:39 In terms of, we had some questions around the rest of the program as well. We're certainly cashed up to finish this first, part of the program, which is an additional, I think, 5 or 6 holes from here. And we also have a number of of warrants. These in the money warrants that we are seeing being a pretty reliable generator of cash for us. So, we're not in a position where we need to do a financing tomorrow. We do have some cash. We do have warrants that and some very supportive shareholders that are allowing us to to continue this program. So we feel we're in pretty good shape.

58:28 We're about at the hour mark, so I think we'll, we'll, we'll leave it there. I want to thank, on behalf of Stuart and myself, I want to thank you all for your attention, for your support. It certainly has been an interesting year for a number of challenges that I think everyone is familiar with. And if you're like me, we're kind of over and ready to move on. I want to wish everybody a very happy holiday and happy new year and look forward to bringing you more more positive news in the in the coming year. Keep the faith guys. You know this is early stage exploration. Of course I'm an exploration guy for 40 plus years. I'm the eternal optimist But this is a really good system. We're testing ideas there. We've talked to folks who said, well, go offset hole 1, get some more numbers.

59:24 I am going to keep discipline. I'm going to keep discipline through this first, this first phase. I'm going to drill all of our ideas, all of our best ideas. And we've got one of the questions I see, and the little question thing is, what is your goal in terms of number of holes to be drilled? The answer is hundreds, because I don't want to stop. So let's test all the ideas early, sort of measure the thing out. What are the good ideas? Where do we go back and do follow-up? What are the priority areas for ongoing phase 1 idea testing? And this happens in the early stages of every program. I was just reviewing my old monthly reports from the early days, 2008 drilling at Beritica.

1:00:11 And you guys as investors didn't see that first year because we were private all during the first year of drilling. The discovery hole at Beritica was number 11. There were 10 holes. They weren't dead, but there were 10 holes that would have caused any share price to go down before we hit that first one. So keep the faith. This is a good system, and you really do have good people working on it. Our Columbia crew is fabulous. And John and I kind of know what we're doing at the top end of the of the structure. So we're we're still optimistic. We really are very much so. OK, thanks, everyone. We'll see you