Transcript
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0:05 Hello, Matthew. Thank you for joining me today. You have made 2 new discoveries so far in 2021. What did the Tango and X-ray discoveries mean for the GreenSprings Gold Project?
0:16 That's a great question. And certainly those 2 new discoveries are very exciting. I think they really confirm our ability to deliver high-grade, high-quality new discoveries at Green Springs. Certainly the grade profile at Green Springs is relatively high for a near-surface Nevada gold project. I think when we look at Nevada, we're looking at an area or a jurisdiction that typically delivers high margin, low cost of production, and that's really based on
0:53 discoveries or deposits that share characteristics with Green Springs. So, you know, we're really checking the box as far as this being potentially a standout Nevada deposit as far as what it can ultimately deliver. The other thing it's done for us and what's meaningful for Green Springs as a project in the short and medium term is that it's really confirmed our exploration model. This is based on following a really productive unit that is mined extensively elsewhere in northeastern Nevada called Pilot Shale. We have quite a lot of this at Green Springs and this is really good confirmation that by focusing our exploration efforts on the Pilae Shale. We're well set up to make additional discoveries and continue growing our discoveries that we have made. So it's very meaningful. How far away is the Pilae Shale from the North Pole?
1:45 That's a really good question. And at the moment, it's relatively early. It's got a big footprint, meaning sort of that the length times width is quite significant at about 250 by 500 meters. It's anywhere from 20 to 25 meters thick. And the grades are really impressive. So what we're looking at in that heap leach or gold factory situation is something that ultimately could be very profitable rock for someone to mine. I'd say could easily double if not more than that. And it's really a matter of just systematically expanding on what we've already done.
2:30 More than likely it does. Yeah, we see a good shot or good opportunity to build continuity. So linking up these zones from Bravo, which is the northern end of the mine trend through X-ray through Alpha up to Tango. The rocks are similar. What we call the geologic setting as far as faults and what controls the distribution of gold are quite similar through that corridor.
3:00 We found X-ray really through good systematic science-based exploration. So we've started with soil sampling and rock sampling, geologic mapping, some geophysical work as well, and layering on those different data sets or complementary data sets led us to defining a target or identifying an area we thought had some high potential for a new discovery and then ultimately testing it with the drill rig. And certainly those data sets were supported with what we found in the new discovery. Very similar, very similar as a matter of fact. A lot of soil sampling and rock sampling, careful geologic mapping of the prospective rock units or where we would expect to find gold.
3:50 One of the key things with Tango is that we did need to build a road measuring about 2 kilometers in length up the hillside that had never been done before. And that was really one of the key elements in unlocking that Tango discovery for us. We believe there's good potential for some. Specifically, there are 2 existing target areas, 1 called Whiskey and 1 called Foxtrot that are a little bit further to the east, still on Green Springs, and a little bit further south. They're both relatively large. They've never been tested with a drill before. So we think those are likely the next areas that we will test in order to make those new discoveries.
4:37 Outside of areas we've already identified, there is a large portion of the center of Green Springs that really hasn't seen systematic exploration. We do know that the favourable rocks or our preferred rocks for new discoveries are present through that area and we are optimistic that as we continue to do the surface work through there we will be defining yet more drill targets that we can then test and make a further round of discoveries. Really when we next get back on the ground, which ideally is this fall, there will be follow-up drilling on X-ray, there will be follow-up drilling on X-Ray, there will be follow-up drilling on Tango, really looking to grow those discoveries to the point where we can be talking about a significant length with thickness and ultimately looking at defining some fairly significant gold deposits.
5:35 On top of that, we still want to continue testing new targets like Foxtrot and whiskey through that.
5:49 Yeah, it's a great question. It's a great question. Ultimately, we're looking to define a large near-surface oxide gold project, so something that has a clear economic base case to proceed. There's a really good reason that so many of the major gold producers like Newmont, like Barrick, really focus on Nevada. It's that not only can you make discoveries like we're doing now and grow them into significant resources or deposits. But ultimately, when you get to a mining or development point of view, gold projects in Nevada typically have a very low cost of production and therefore a very high margin. This can be a bit different than some of your higher grade or deeper gold deposits or projects that you might see in Northern Canada.
6:43 So while grades in Nevada can be lower, ultimately when these projects are developed and mined, you can have a much higher margin and a much more profitable operation. We really do. The amount of Green Springs that remains unexplored is relatively significant. And everywhere we've done the surface work, mapping, sampling, we've been able to define neutral targets or new opportunities to drill and make those discoveries. So, yeah, we do believe that as we continue our work this year and on into future years that we will be able to continue delivering new gold discoveries at Green Springs.
7:35 Yeah, there's quite a lot actually. Greensprings is roughly 20 square kilometers and I'd say about 50% of that hasn't been systematically explored. Where contact has been focused has been through the mine trend and now through the X-ray Tango corridor. And that's been really, really productive work. From where we are now on the heels of these new discoveries, we are extending our surface work southwards through the central part of the Greensprings property. And that's really a critical step or an important step into defining new targets and allowing us to make new discoveries. So with what we've seen so far, with the amount of Greensprings that has been explored, it's been extremely productive, and we see no reason why that will change as we step out into new areas.
8:27 Great, well, thank you so much, Matthew, for speaking with me today. Always a pleasure. Thank you.
