Goldshore Resources: 2023 – The Year of Catalysts

0:08 Hello everyone, welcome to Goldshore Resources live summit today hosted by 6. I'm joined today by their CEO and director, Brett Richards, who's going to be walking through a company presentation and afterwards going to be accepting questions. So if you'd like to participate in the Q&A, please submit your questions to the Q&A chat on the right hand side of your screen at any time during today's summit. As always, this event is being recorded and is going to be available on six.com in the coming days. So look out for that if you want to refresh. But with that, Brett, I'd like to pass things over to you so that you can get us started. Thanks, Cam.

0:39 And good morning, everyone, and good afternoon if you're on the other side of the pond. Yeah, thanks for taking the time to hear a little bit of an update on Goldshore Resources. And our theme today is 2023, the year of Catalysts. I direct you to our disclaimers and forward-looking statements, And you can find this on our website, please review it. And the reason I emphasize it today more than ever is because you're gonna hear my views on things. They are my views, they are my opinions, they are my opinions of the market, and they are my opinions of Goldshore Resources. You know, we have had a really, really kind of interesting almost 2 years now. We acquired the Moss Lake project in January of 21.

1:34 We listed in July of 21. And we hit the market with a story that at the time I thought was very relevant and would be very interesting. And sadly, in 2020, late 2021, late and into 2022, we hit a geopolitical thunderstorm that just put the entire market risk off from about February of last year. The last 12-months have been an absolute landslide for equities, for mining equities, for Gold mining equities, and certainly for the junior Gold mining space. This is an interesting time because we've raised $60M in the past 24-months.

2:30 We have acquired this project. We have put 76,000m of drilling into the ground. We have taken a historic resource at Moss Lake and East Cold Stream of 4Moz. We've taken the 3Moz historic resource at Moss Lake and turned it into a 4.17Moz current resource at 1.1g. I think our story is starting to pivot on the fact that we have this high-grade shear domain that more than half of our resource is at 2g. That is significant because it's not horizontal, it's sub-vertical. I think there will be a way that we will be able to sequence the high-grade material at the front end of the mine plan.

3:23 We will be mining low-grade. There will be some strip, but there's a lot of wheels in motion right now for us to not only expand the existing current resource, but also to put a project around it. So we are kind of well positioned to do what it is we want to do. But the problem that we are facing now is the headwind in the market. We went to the market, wanted to raise money in December of last year, it was quite obvious we needed to. And then we run up against a retail market that just punts the stock. And I get it, I've done it myself in the past. You come into a financing with good intentions, you buy at 25 cents and you sell at 25 cents so you keep the free 0.5 warrant. And I think we've flushed a lot of those punters out of the stock now.

4:20 And I think they're sitting on their free 0.5 warrant at 40 cents, but I think that's just the nature of the beast of the market that we're in today. And I need to create an environment where we don't go back to the retail market. And I'm going to speak to that a little bit more in a second. You know, the people, they haven't changed. They are we are still extremely committed to realizing value at for Gold Goldshore Resources shareholders. I'm extremely committed. And quite frankly, I think we are starting to go into the period of time in this cycle where we're going to start and see a different market dynamic. You know, I don't have to refresh a lot of this. I want to jump to a slide here that really talks about the investment thesis and the investment opportunity.

5:16 Yes, we have 4 million ounces here. Yes, we have at Moss Lake, yes, we have 850,000 ounces at East Cold Stream, opportunity. Yes, we have 4Moz here. Yes, we have 850,000oz at East Cold Stream, a little bit lower grade. And yes, it'll probably come into the next resource estimate we do. And that will be one of the catalysts I talk about at the end as far as the catalysts go. Again, I think one of the things I'm going to highlight today is we're at the stage of the cycle, which I've talked to the market, I've talked to our shareholders, I've been on these summits before and I've said, what is going to happen is, you know, when the market starts to come back, You're going to see silver come back first. You're going to see gold come back and start to perform.

6:07 It has started to perform this year. It did its job in 2022. It went sideways. It had a 0% return in a market that went down 20% And a gold equity market that went down 40%. In some cases, like us, 50%. So where equities got hammered, gold did its job in an inflationary environment. We are still in that inflationary environment. We are still in a rising interest rate environment. So for gold to stay around $1850 to $1900, I think that is, again, still doing its job. You'll recall 12 months ago, 24 months ago, when I first got on here, that I said I felt gold was going to trade between $1,800 and $2,200 for the foreseeable future. We are going to have spikes below $18,000 and we're going to have spikes above $22,000. We've seen the spikes below $1,800 and we are going to see spikes above $2,200 later this year. I think the US dollar is going to weaken as a result of a number of dynamics coming forward, including the primaries and the presidential election, whereby the Democrats really can't optically have a damaging recession during an election year. They simply won't win.

7:21 And I think we're going to see we're going to see some easing. We're going to see some weakening of the US dollar and we're going to see gold price perform even stronger than it is doing now. I think we're also going to see gold equities perform. And I said 12 months ago, when we start to see this cycle turn, we will start and see M&A activity in our space because people will try and call the bottom. And we're starting to see that now. Yesterday, we saw the announcement of B2 Gold acquiring Sabina for $1.2 billion. I think Enterprise was something like $852M, but it was a plus or minus 1 billion dollar transaction for a high-grade open pit development project in Canada. And we saw 12 months ago where Kinross bought Great Bear Resources for a very similar price, $1.4Bn transaction for the Dixie project. And they came out yesterday with its maiden resource of 5Moz.

8:34 Again, both of these projects have significant grade and significantly are higher grade than the median open pit projects in Canada, which are around 1.1g. Sabina is 2 or 3 times that and Ken Ross, the Dixie project is around that as well, 2.8g. We are starting to see what happens at this stage in the cycle. Some early consolidation. We'll see some traction in the majors. We've seen Barrick down as low as $13.50 and trading at $18. It has started to rebound since August of last year. We've seen other majors rebound. And that trickle-down effect comes down into the mid-tiers, will come down into the junior miners when liquidity frees up. And this whole risk off sentiment from last year gets lifted because the geopolitical situation has tempered, I think what we're going to see is a market that is going to be very robust in the second half of this year. And yes, I've talked about consolidation. Yes, I've talked about equity appreciation.

9:47 And that's what we are striving for as well. But what makes Moss Lake or what makes any mining company attractive at this stage, like for consolidation or for M&A? Could we be the bride or the bridesmaid here? Well, our share price today tells me we're gonna be very difficult to be the bride. We can't be aggressive in pursuing opportunities because we don't have the currency in our share price to be able to do that today. I'd like to, but we simply don't. We have actually turned off all activities on the ground that will not add to the catalyst that we have coming out this year. So we're preserving capital and we wanna make our capital last as long as we can so we don't have to go back to this revolving market of capital raises whereby we have share price pressure and depression because we have the retail punters trading on our stock, either at par or below par in order to acquire the 0.5 warrant.

10:54 And like I said, we're going to try and change that dynamic. But what makes companies like us attractive? And The first thing that the majors, the first thing B2 did when they looked at Sabina or Kinross did when they looked at Great Bear, and there's others. You've got Anglo taking a 9.9% position in Canada Nickel. You've got a lot of these entry-level positions being taken by mid-tiers or majors with junior mining companies. And, but what is the criteria that makes them attractive? The first thing is geopolitical location and jurisdiction. Is their investment sound? Are the mining codes and the mining licenses going to be sound?

11:40 Is there a jurisdiction where there is the ability to legally argue in the event that they are ever taken away. And after kind of working in Africa for 15 years, I've seen that happen firsthand in many places. And now we are in a jurisdiction of Ontario. So the first criteria being geopolitical location and jurisdiction, we tick that box in a very big way. Ontario is, if not the best, certainly one of the top mining jurisdictions in the world. The second thing is about size and scale and potential. Mid-tiers and majors don't want a captive resource. They don't want a land package that is, you know, a small piece of where on this slide where Hamlin Lake is, And that's it. They don't want to say, hey, there's 1Moz here, 2Moz here, and that's it. We have no alternative land package. We have no upside.

12:39 We are going to build it. We are going to operate it and we are going to shut it down. And that's a 10 or 12-year period. And that's it. Mining companies don't want that. You may want that in other jurisdictions. You may want that in Africa. You may want that in other, I'll say, risky jurisdictions where you can get in and earn a return and get out. That's one thing. But in Ontario and Quebec, you want generational size mines. And what you see here is a 35km mineralized trend of about 10 or 15km of Gold mineralization from Moss Lake all the way up to East Cold Stream. And we have VMS style deposits at North Cold Stream and Vanguard that have delivered copper and cobalt results in recent press releases. So lots of optionality, but size and scale potential, you'll see that here. And I'll show you a slide that really illustrates the size and scale and potential of Moss Lake. The third thing is grade.

13:48 Grade is this, It's a bit of a thing that gets overlooked in certain projects, but we like to illustrate it because grade is extremely important. The greater the grade, the lower the capex, the greater the production profile, the greater the cash flow, the better the economics. Grade goes hand in hand with metallurgy. If you can't liberate it, you can't recover it, then it doesn't matter what grade you have. You have to have grade and it goes hand in hand with the metallurgical properties of that ore body so that you can get 90% or 95% recovery. Or in a heap leach, you can get 50% or 55% or 60%. We have what I think is a very unique situation. You'll see a lot of captive resources of our peers. You'll see a lot of resources that are at 1 gram, 0.9, 0.8 grams, no high grade alternative.

14:48 And the only way they can do it is getting it into production and living with the economics they have. And that's a best case scenario. There's no upside from there. There's only downside. And that is what makes, you know, our investment thesis different is because we can offer, possibly we're going to be offering kind of a high grade mind plan whereby we can sequence some of those 2 gram and above material through the mine plan earlier on in the sequence. The fourth thing that is the most important thing, the most important of the 4 things is accessibility to infrastructure. If you're in northern Nunavut or northern Arctic or if you're in remote jurisdictions where, and I've worked in some, and I've worked in some at my time at Kinross and also my time in Africa. If you have to build roads to get to your facility, if you have to fly in, fly out, everything.

15:47 If you have diesel power, certainly in today's gas prices and oil prices, that is a major disadvantage. Access to infrastructure is extremely important. We have probably the greatest access to any infrastructure if you were to draw a map and build something that is a perfect scenario for infrastructure. We have, the most important thing is power. We have 10 cent kilowatt hour power on our site. We have international rail, CNCP, both on our site. We are on the Trans-Canada Highway, which is Yonge Street in Toronto, goes all the way to Manitoba. We are on a four-lane Trans-Canada Highway. We have access to an international port that's 120 kilometres away, and We have access to an international port that's 120 kilometers away. And we have access to an international city that is 120 kilometers away, which is Thunder Bay, which is full of contractors, consultants, and I'll say the proper regulatory government agencies to support natural resources and mining. So we have the, you know, I'll say one of the greatest infrastructure projects I've seen in a long time. So we tick every one of those 4 boxes, the geopolitical location, the size and scale, the grade and access to infrastructure.

17:07 So again, I'm coming back, I'm making kind of an argument now for, you know, consolidation and where we fit in that scale now. We are a very attractive project. We don't have the grade of Sabina. We don't have the grade of Great Bear and Dixie, but we have our own grade, which is probably next in queue, and we have size and we have scale and potential. But why are we trading where we are? We're trading where we are because we have a lot of games going on with our share prices. We have people putting shorts on our stock because they think we're running out of money. And the reality is It's short-term thinking and those are people who just want to make a buck and they don't want to create wealth. We will move up this food chain fairly soon. We are trading at $7 an ounce, $8 an ounce today.

17:58 You can see the comparisons between us and our peer group, but also on a high grade, when you start to talk about a 2g deposit, there are really no development projects outside of Dixie and Sabina's Goose that have a grade above 2g. I'm not saying that we're going to be above 2g. half of our deposit is at 2g today. Our target is to try and not only increase that but maintain the grade as well. You can see how we will calibrate to where our peer group is and probably be closer to where some of the high grade guys are at the other end of the spectrum. And although these are development stage projects, some of them are more advanced than us and I get it. They will get a premium for that. Marathon's going into construction. They will get a premium for that. They're further down the curve than we are.

18:56 And yes, they should get a premium for that. But should we be trading at $7 an ounce today? Absolutely not. And That is my view. I think we should be trading at $30oz or $40oz today and that would calibrate us properly relative to where we are in the quality of a project for consolidation. Those 4 factors I talk about, a lot of these are peer projects here have 2 boxes or 3 boxes out of those 4. They don't tick all 4. I think we're in a situation where we are going to be very attractive going forward to partnering with somebody to get out of this dynamic of going to the retail market every 3-4 months and raising money.

19:43 Yes, we may have to, but we need to end that relationship and we need to start looking bigger. We need to start looking at partnerships with mid-tier major mining companies who can come in, take a 9.9 or a 19.9 position in our company or larger, make a commitment to through development that they maintain their percentage and then I don't have to go back to the retail market again. Yes, we'll use the flow through market to develop on the ground, but we really don't have to go back to the retail market again. If you look, and again, grade is extremely important. You can see the projects that are in production and the projects that are near production, still working out some bugs, are all around 1g.

20:31 I think If you saw the threshold here, 1.2g, 1.1g is about that threshold. That's what we have. We have this high-grade shear domain that I think is going to sequence early in our mine plan when we go to put a project around this. And I think that's gonna significantly add to the economics. We have been doing a lot of work on the ground, not just with our First Nations host communities, where we have agreements in place with 2 of our host communities. But we've been doing a lot of work with our groups, with our people, who we employ from our host communities, both employment training and environmental initiatives, where they oversee our environmental activities.

21:21 And they have an affiliated company managing our environmental baseline study so that we can get ready for permitting. And we're starting our stage 2 archaeology in the summer. Again, capital willing and market willing, we will start some activities in the summer of this year.

21:43 One of the things I know The second point I talked about being size and scale. We put some tremendous drill results out last year and all it did was give retail an opportunity to get liquid. There was a lot of pressure, probably a lot of margin calls, a lot of people looking for liquidity last year and getting out of our stock. In a declining market, and let's face it, our stock went from 65 cents to 25 cents throughout last year, and people were looking for an off ramp. So when we put out results and some of these results are quite stellar that today might move the share price 25 or 30 percent. They actually didn't do anything for our share price last year. So all the good news that we put out last year really just gave liquidity events for shareholders to sell into. We had great liquidity. We still have great liquidity, but we just haven't had that traction yet. And we will get that traction shortly.

22:41 When I talk about size and scale and potential, you can see where Pete and his team have modelled Moss Lake and you can see the high-grade material. This is above 1g, coming centric into the halo of lower-grade material. We have the same setting at East Cold Stream, which we're gonna be bringing into a current resource later on and in the beginning of Q2 in April. But as I said, these systems, these shear domains are quite vertical and

23:20 this will allow us to sequence early in the mine plan. We haven't really even explored or talked about North Cold Stream, but we did put out a drill result that got a lukewarm response from the market. Even though we have 62.8m of 0.88% Copper equivalent from almost surface, this is something that is quite astounding. The Copper and Cobalt together here is quite interesting to explore. We simply don't have the capital to do it. I've talked about sending this company out and raising capital. That may be the option, but there's a cost to doing that. I'm in capital preservation mode right now in order to deliver on the 2 main catalysts that we have.

24:09 This is where we took the bulk of our drilling. This is where we focused it. This is the historic resource at Moss Lake and this is the resource we have now with the high-grade shear domains in it. This system down here in the southwest is going to get much bigger because when we did this resource update in November of 2022,

24:34 we cut off on October 1st and we had 45 holes report into that mineral resource update. Since then, we have still about 72 holes outstanding which a lot of them are infilling this area here, but some of them are stepping out and a lot of them are at Cold Street. Our first catalyst of 2023 is going to be the mineral resource update in April of this year. We're going to start working on that fairly soon. We're gathering all of the details, all of the assays from all the outstanding holes from last year and also from the drilling that we did in January of this year. We did have 2 rigs running in January to complete the information required for the MRE in April.

25:24 We have now decommissioned them and they are off-site. We are no longer drilling on our site. We are just working towards the catalysts, which are going to certainly make us attractive for consolidation, certainly make us attractive for a strategic partnership coming in to assist with the capital requirements of developing the project going forward. And this is not just about mining companies. There's also private equity firms that are interested in participating as well. So very exciting time. We will get out of this melee of retail turnover. And we will get to the point where we will not be offering anything to retail going forward, because we will have locked up sources of capital elsewhere. And that's the whole purpose of consolidation in order to access different pools of capital rather than the pools we're operating in right now.

26:23 This is kind of the it's a logarithmic bubble scale of kind of where we are, but we're right in the middle with our 4 million ounces and our potential to take this to 6Moz in April. This is quite an attractive value proposition. There are not very many projects out there that have greater than 5Moz today, but also with a path to show 10 and or 15 million ounces. This is our 4 million ounce pit currently. It's constrained at a $1,500 Gold price. The inputs are 250 mining, 1250 processing and $2 USD G&A. Those are the same inputs that the majors use. They use $1,500 Gold constraints.

27:12 Actually, Barrick just announced they increased their reserve Gold price assumption from $1,200 to $1,300 and they added 7Moz to their portfolio. On a resource basis, if we use $1,700, you'd be seeing 6Moz today and maybe 8Moz or 9Moz in the update. We are very conservative because we're realists. If we have to build this 1 day, I don't want to have to walk back the resource. I don't want to have to walk back the grade. We do this openly, transparently, and this is a real project. This is where we will get credibility going forward with any consolidation activities.

27:58 One thing we will be talking about in the next MRE. We didn't talk about in the original MRE, is these shear domains go down to 1000m. This is going to allow for the possibility of having an underground transition later in the mine life because of the high-grade shears. Some of these high-grade shears are hundreds and hundreds of grams per tonne over half a metre, a third of a metre. There are some extremely high-grade areas here, and I would hazard to say, even north of 500g per tonne over A0A metre, there are going to be underground opportunities here, which I think will be significant. This is where I want to focus on, because When you talk about size and scale, this is the illustration that is really going to start the discussion.

28:53 There is 4Moz currently contained at $1,500 constraint in this pit shell. We want to make this a little bigger. We're going to do that with bringing in the holes that we're gonna report on and the MRE in April. And then we wanna put a project around this. And we wanna build something that is not detour lake size, not $3Bn or Cote Lake or Maginot. We want to build something that is manageable, something that certainly we can finance, that doesn't blow out the equity story, but something that we can take to the market as a phase 1 or a starter project. Because in this market, I think that's smart.

29:39 We have known mineralization all the way through this entire 8km. This 4Moz sits on about a 3 to 3.5km stretch of this 8km known mineralized area and Gold mineralization all the way up to the Northeast and to the Southwest. Also parallel structures right where this white line are and this area down here that's been highlighted. There's the opportunity not to just make this pit longer, but to make this pit wider. That is the size and scale and generational size mine that I talk about. This is the generational size mine that the majors want to look at. They don't waste their time with captive resources.

30:28 They want size and scale. They want 10, 15 and 20Moz deposits. 10Moz deposit, upper half of the grade curve, lower half of the cost curve in a geopolitical environment that is known as tier 1, that is a tier 1 asset. I've said in the past that we are working towards becoming the next tier-one asset in Canada. We still are. We can now probably show a path to easily this being well north of 10Moz in the future. We have a real project in a real location with size and scale and grade, and we've got all the infrastructure we need to build it. So the catalysts for this year are really 2 things.

31:17 We are doing all the metallurgical test work right now to understand the recoveries and liberation of both the high grade material and the low grade material. Because those metallurgical recoveries are gonna factor into the PEA, They'll factor into an economic analysis of the project we're going to put around it. And we are testing for also heap leaching the lower grade material to see if that's a possibility. They do it at Fort Knox in Alaska. They do it in Victoria. I don't know why we can't do it in Ontario. There's no permitting issue. There's no weather issues or climate issues. There are ways to deal with this in heap leaches. There may be a geological issue why it's not done, but I think it's simply not been done because they haven't needed to do it because low-grade deposits were not really developed when Gold was at $1,100 or $1,200.

32:15 They simply weren't economic down there. And that's probably the cutoff of where we would stop being economic. But at $1,800, these types of deposits are very economic. So we need to understand that metallurgically, the liberation, we need to understand it better. That way we can design a front end, engineer a front end to this plant that may be gravity recovery for the course goal, but maybe flotation for the less course goal, and it may be a circuit for the remaining material. But the low-grade material may liberate out of heat bleach. That is where we will do the selective mining unit study. We'll do a number of optimisation studies to really put this together, bring the high-grade material forward and enhance the economics as much as possible.

33:06 Metallurgical test work is going on right now, quite important. It will also feed into the resource estimate we're going to do in April. The MRE that we're going to do starting this month and in March, and we'll get ready for presentation in early April. So that is the first catalyst of the year. From that MRE, we are going to put together a project and That project PEA, we will do throughout the next 4-5-months and we'll have it ready for September.

33:40 We may or we may not choose to publish those numbers. I don't know the answer to that yet, But I do know one thing, people can do their own math on the back of a napkin. This is most likely going to be a CAD$300M to CAD$400M CapEx project that will have a production profile of about 140,000oz to 150,000oz with all-in sustaining costs of $1,000 and a margin of $800 at today's kind of gold price. And that company today would trade normally at 2 times cashflow at this stage of development, probably 3, 4 times as you get a little closer to getting into production, but at 2 times cashflow, that's a $250 million company today. And the NPV of that project is gonna be at least 600 or $700 million at 5% discount.

34:29 And Development companies trade at 0.3 times NPV, and that's a 200 cap company as well. So today for us being a $35 million market cap, the upside on a per ounce basis, as we're adding ounces in April, the upside on using other economic analysis to address our share price and to enhance value relative to the potential economics, I think are astounding, very compelling that this should be a $200M, $250M market cap company this year. That's 5times to 8times money from where we are today. The single biggest overhang is the market's perception of capital.

35:19 So we are preserving capital. We are gonna preserve the funds we have today. We will go back to the market. We will look for a strategic partner because I think those are all the things that a company of our size at this stage of the cycle, at this stage of our development, we need to start considering. West Elm owns 22% of us. They are not a strategic mining company per se. For us, they're just an investor who happens to be a mining company. So they have not sold anything. Obviously insiders are long as well. half of our share structure is locked up with several parties who believe in the story. I still believe that we should be able to get this to $150M to $200M market cap company in the very near term.

36:10 Then we can see where to from here. We can see who our partner is. We can see where the flow of capital is going to come from. And we can gauge later on for 2024, how we do that. Whether we start a pre-feasibility study, whether we start infill drilling, whether we start taking us to a construction decision. So also starting on permitting. So all of these things we need to do, we can't do today because capital is not available for us and certainly not available at the share price in big numbers and big quantums because we could easily put together a $30 million program for this year, but that's just not realistic given where our share price is today.

36:55 So we have to buy ourselves time, we have to carry on, and we have to make smart decisions with the capital we have. And I think we're doing all of those things today. So having said all that, I think we are still well positioned to be a leader in not only our space, but also when it comes to the consolidation and all of the news flow you're seeing, the New Months trying to acquire Newcrest, the Anglos taking big positions with Canada Nickel and all the big resources coming out. I think what we're going to see now is an environment of consolidation, partnerships, strategic discussions that are going to lead to removing us from relying on the retail market. I think that's the single biggest catalyst that we need to do. It's going to take time, but we need to do that this year. We will.

37:51 We will announce a bigger resource this year and we will announce, potentially announce the project economics. They will be good, but we may want to preserve those numbers for our strategic partnership to understand. Lots to unpack here today. We have lots of things we're doing. We're just not spending a lot of money like we did last year on drilling. We've completed all we need to do to put a project together. But again, when I go back to those 4 things that are essential when making M&A decisions, location, size and scale, grade and access to infrastructure, I don't think you're going to see a better team of people with the dynamics that we have in our project.

38:38 I just don't think you're going to see it. The market will reward us. I think it's going to take time. From there, I'm happy to take some questions and feel free to ask me anything. We are in a very difficult, we're still in a very difficult space. This is not, we're not through it yet, but what I can see for the future is quite promising. So Cam, happy to take some questions. Yeah, absolutely. And just as a reminder to everyone in the audience, if you do have any questions, please feel free to submit them in the Q&A chat on the right hand side of your screen. We've already received a couple, so let's dive right in. David wants to know if you're in discussions with any major currently to make an investment in the company? Great question. We are in discussions with every major mining company in business.

39:28 We are, and I'm just being honest. Yeah, we're under NDA with 19, 20 different companies. We're in discussions with many people. Some are more advanced than others. Some have had a bit of derailment. Newmont Newcrest announcement took 2 of those players off the table for now. They're going to be very distracted in the short term dealing with whether that merger happens or not. And if it does happen, how you rationalize those assets at the end of the day, they won't be worried about Goldshore type opportunities. They'll be more looking internally. So yes, we are in talks with every major mining company, every mid-tier, many of them are under NDA and discussions are advanced. Like I said, we are going to, one of our catalysts this year is to find a strategic partnership and we're working hard on doing that. And I hope that we will be in a position to act within certainly the first half of this year.

40:36 Just staying on the topic of potential partner, Stefan's wondering if Copper and Cobalt may be interesting and add to the attractiveness of partner. Yes and yes. So Every major Gold company is a Copper company. Barrick is a Copper company. Newmont is a Copper company. Gold comes in many different forms, but the large porphyries also carry Copper. If you look at even Copper companies, Gold 1st Quantum, they're also a Gold company as well. Do I think the Copper opportunities on our site, on our land package are interesting? I sure do. When you get a drill hit like we had, I think if I gave Pete a few million dollars here, he could drill out North Cold stream and other targets that we have that are similar in geophysical signature that may illustrate the same geological setting, we would drill them out and see exactly what we do have. Is it material?

41:45 Is it going to be a bolt-on? Is it going to be something that's standalone? I don't have the answers for that because I don't have the capital to do the work required to come to those answers. But interesting, you hit 62m at 0.88% Copper equivalent with 0.01 Cobalt. You're going to be very interested in that. That is extremely exciting. Copper mine average grade is around 0.4 globally, maybe even 0.38 or 0.4. This is 0.80. So Again, go back to those 4 things I said before, size, scale, grade, and that could be quite meaningful. So yes, interesting, absolutely. All right, fair enough. Brian's wanting to know, what's the biggest business challenge you face in getting to production? And what's your most important near-term hurdle that you have to clear?

42:38 Good question. First of all, I'm going to answer them backwards, because I think we have to sequence this. So exploration companies that have made in deposits and they turn them into developments. So you're taking a deposit and you're trying to put a project around it. And you go through the various stages of development. That all requires risk capital. And the stage after we're at, which is kind of the study, final study, and then getting into financing and all the different ways of financing projects today, you know, taking it from day 1, which we did, taking it all the way to production, the equity story gets quite, gets quite hammered because of dilution over kind of that longer period of time.

43:31 We don't have the balance sheet to be able to get this to the finish line, even a $400 million project. So we need partnerships. We need people to come in and help us. So what is the single biggest challenge today? Raising capital at reasonable dilution levels And in a market that we've seen in the last 12 months, and that we can continue to see, because hey, let's face it, we have created this, we are where we are, you know, It's nobody's doing other than our own and the market, but we felt that it was important to get through our program so that we could have these catalysts we're going to have this year. We were very aggressive last year, spending money drilling and getting this to 4Moz and potentially well beyond 4Moz in April.

44:25 That is tier 1 potential. That is world-class now. That is a project that everybody's going to start looking at as they go down the grade curve. Sabina, great bear, Sabina. Now they're going to start looking at projects like ours. We are going to be a target, a big, big target. I need to be able to create value in our share price. And in order to do that, I need to raise money, but we're not getting the bid. We're not catching the bid. We're not catching that bid at 20 cents today. You know, I'm in the market kind of, you know, looking at buying shares today because, you know, I love to average down my price. And I have a commitment to this company with over 1 million dollars of my own money into it. So raising capital today at reasonable dilution is the single biggest challenge.

45:14 Technically, there is not a bigger challenge. Operationally, there's just simply no bigger challenge than raising capital today. We have no red flags on our project. When somebody goes and does due diligence on a project, We have no red flags. And I think that is going to be extremely attractive as a value proposition, but we have to, you know, that's not, it's not just about defining a great project and, you know, a historic project. It's about creating value for your shareholders. We will get there. I have a lot of following after living in London for 15 years, a lot of following in London and Germany and generally Europe. I was speaking to 2 groups last week in Germany, And the questions and the interest was tremendous because of 2 things, the entry point of where you are today, I'm gonna do 2 things for you this year. I'm gonna make you money.

46:15 And that is my message to them was, if you support us, I will make you money. Because this is a no brainer. From $7 to $30 is a natural re-rate to our peer group, from $30 to $40, $50 is a natural re-rate to the size and scale and potential and grade that we have. And that is a $250M company. And my job is to get it there. So get the story out there, get new investors on this, get the proper sticky people that want to see this through to whatever exit there is, whether that's a consolidation, whether it is a strategic that helps us build it, whether that's Pete and I doing this on our own with a private equity partner who's funding the whole expansion and keeping a 29.9% position. I don't know what the structure will look like. All I know is there's a number of options. There's a number of things before us we're going to pursue. We're going to talk to lots of people, but raising capital today is the single biggest challenge. Down the road, I think it's going to be similar.

47:24 It won't be as much access to capital. It will be where we deploy capital to create the most amount of value. So I hope I answer your question. No, absolutely. There's only one other question we have currently. So if there's anyone in the audience that's itching to ask one, please submit. Well, Brett provides this answer. But Vlad's just wondering if you could reiterate what the current cash position of the company is, where it stands. Sure. We've got an order of magnitude around $3M right now. We had a very aggressive program in December and January. As you'll know, and as all the bloggers have reminded me, I think the question on January 10th was where'd all the money go? Well, we have a lot of work on the ground. Drilling costs money. And although we had one of the best drillers in the business, we had to let go because we don't have the support of the market.

48:18 They were excellent. All in drilling costs were $280. We were very aggressive in December and we were very aggressive in January. We're not drilling now. Our cash burns are substantially lower. But if your question is, are we going to go back to the market for capital? The answer is yes. Whether I go to the capital markets via retail, whether I go to the flow through market, whether I do both, whether I bring in a strategic, that's yet to be seen. This isn't about survival for us right now. We can easily survive. I think the board and the management have large enough checkbooks that we would finance this company if we needed to. But we're a long, long way away from there.

49:08 Every major mining company, every mid-tier mining company that Pete and I talked to, the very first thing is their comments back after we go through our presentation. Pete goes through a technical presentation and we quickly realize that we have their attention. And when the response is, this looks really interesting, That is a tempered way of saying, holy shit, we need to really understand this better. We have that response almost from day 1 from many of the people we talk to. And we're not just talking to people in Ontario. We're not just talking to majors. We're talking to people where I think we can put deals together, even at market or at market merger of equal, that makes sense. That makes sense, that bring new treasury, that bring new shareholders, that bring new interest.

50:02 We are a single asset company, I get that. That's not as attractive as being multi-asset. We have shareholders, the big players in this industry, the Fidelities and McKenzie's and the VanEcks, et cetera. They like the upside, but they really want $100 million market cap companies and I'll deliver that to them. However, we deliver that to them in due time. We will get there and we will bring them on. We still have our family of Sprott Investment Funds supporting us. We still have management owning 10.8% and buying and putting money into every financing we've done so far. And between Gail and McNamara, Doug Ramshaw, Sean Cooncoon, myself, and others who are very close to us.

50:51 We are, you know, one of the some of the strongest supporters of this. Victor Cantor has a large position in this company. And so we have a lot of strength and certainly a lot of wherewithal to push this story. And we will we will get there. I've asked for patience before. I'm asking for patience now. I'm asking for shareholder commitment to see this through and we will get there. So this is going to be an exciting year. There are going to be some catalysts. I wish there were more, but we will start to separate ourselves from the pack and that will leave us vulnerable. But that may well allow for us to have the strategic relationship with a mining company that we so desperately need in order to remove the retail sector from playing in our financing. That's probably the long-winded, roundabout answer of that.

51:52 I hope that people have learned kind of where we are in the cycle and understand things a little better. We are in a place now where Gold equities and junior Gold equities, this is the beginning of a major cycle. And this is going to be a super cycle like we've never seen back in 75, back in 1980, back in 2001 and 2011. I've seen them all. I didn't see the 75 when I'm not that old, but I've seen all of those cycles. And quite frankly, this is the strongest with the highest starting Gold price that we have ever seen. If you look at all of those cycles and given where kind of the US was, where the major superpowers were in the world at the times, where the events that were going on at the time, you know, gold starting at $1,800, If it performs like the last 3 cycles, it will go to $8,000.

52:49 Now do I think gold going to $8,000 is going to move the needle? Yeah, it would, but it's not going to go to $8,000, but it sure as heck going to stay north of $2,000 for some time. And that's why I say $1,800 to $2,200, this project delivers tremendous returns. And beyond that, well, it's just free upside, free optionality. So I think, you know, you compare the cycles to where we are today. Exciting time. You want leverage to the goal, to gold, go buy gold. You want leverage to the gold price and buy gold equities. And you want to take the leader in the gold equity space as far as potential goes, you buy gold short. So thanks everyone for being on the show today.

53:36 I'm happy to take stuff offline and if anybody wants to reach out to me I'm available at all times. I know there's been lots of blogging and lots of talking about our cash position and where we are, but those things don't faze me in the least. We run a very professional business. We have professional people. We do things right. We have the right people doing the right things at the right time. And quite frankly, we are hitting the market at the absolute right time. So thanks for your time. We have a great project and happy to see you