Karoras Powerplay: Increasing Gold Output & a Boost From By-Product Nickel Production

0:08 Hello everyone and welcome to Corora Resources live investment summit today hosted by 6. I'm joined today by Oliver Turner, their Executive Vice President of Corporate Development. Oliver is going to walk us through company presentation and after we'll move on to the live Q&A session. I'd like to remind everyone in the audience that you can ask questions using the Q&A tab found on the right hand side of your screen. Without further ado, Oliver, I'd like to hand things over to you, get us kicked off. Yeah, thank you very much and hello everyone. Good to get back on the 6 platform. I know it's been a while since we've been on here, so excited to give you an update with a fresh look on our

0:39 new deck here. We've certainly been very busy since we last talked on 6, so I'll walk you through some of those updates and of course we'll have some questions at the end of the session that we can run through. So with that I'll kick it off and I'll try to balance it between for new investors as well as obviously our great existing shareholder base. So Core in sort of 5 points here is a growing Tier 1, sorry, Gold producer in a Tier 1 jurisdiction. We are in Western Australia. I'll talk more about that position a little bit later on. We are ramping towards a production rate of approximately 200,000 ounces by 2024. I'll talk about how we're doing that. Very excitingly we recently announced the results of a nickel PEA. As we're going to be expanding some nickel production at our beta hunt mine which has a long history of nickel production.

1:26 You know backed by a management team that certainly done this before I in terms of you know acquiring and scaling assets. And we have a very new and exciting COO that's joining us as well. I'll talk about Bevan shortly. And of course, we take our Climate Action Plan very seriously, which is a differentiator for a whole range of investors in the current environment. And last year, we were the first carbon neutral junior gold producer in the world which is fantastic and we've done some great work moving that forward over the course of this year and more of that to be announced later this year. So I draw everyone's attention to the standard disclaimers and forward looking statements. You can read those on your own time. But let's jump right into the asset base. So as I mentioned, we are located in Western Australia, just south of Kalgoorlie, which is the most prolific area for gold mining in Australia.

2:16 No stranger to gold mining has happened for several hundred years there. Our assets, Beta Hunt in Higginsville, are located just south of Calgary. Beta Hunt's about 60 kilometers by road. That's our primary asset and the majority of our production comes from there. It's an underground gold and soon to be again nickel mine. We also have the Higginsville properties which cover over 1,800 square kilometers. In fact, the total land package is 1,900 square kilometers as you can see on the slide there. That's where we have our Higginsville mill, 1.6 million tons per annum. We also have the Spargos open pit mine, which we're mining and expecting a great quarter out of in the third quarter here. And then, of course, the Lakewood mill, which we recently acquired as part of our expansion plan. All of this comes together in a fantastic package. And in fact, that land covering is the largest land package in the Cal Gorley Belt that's even larger than Goldfields.

3:07 So a tremendous exploration upside. It was capped by royalties for a very long time. We are now unhandcuffed by those royalties and wide open for exploration which we invest in heavily every single year. So let's step into the management team. Most people will be familiar with Paul Hewitt on the left the chairman and CEO of the company built and scaled Klondex from a single asset development asset into a producer tucked in a mill and then of course several assets in Nevada actually sold it to heckler mining. Very strong track record there has been doing the same thing alongside our management team here at Karora. Our newest addition to the team is Bevan Jones. He'll be starting very shortly here. We are thrilled to have Bevan. He's going to be our chief operating officer in Australia.

3:55 Bevan comes from the St. Ives Gold Camp, which is literally over the fence from Beta Hunt. In fact, Beta Hunt is a sub lease on Goldfields property there. Bevan has a long history in the area, is very well respected, comes with a massive network, so we're super excited to have him join our team. You know, St. Ives is a camp that's produced over 16 million ounces historically. Bevan's time there has been very productive is increased output. As well as significantly reduced all in sustaining costs and all in costs there. At St Ives so we're thrilled to have them there- you know and have them hop over the fence to our side of things. Graham Sloan who was our MD of- Australia previously has stepped into a very well deserved retirement. We wish him well in his retirement but also core shareholders are extremely happy to know that we'll benefit from Graham's strategic input over time. He has agreed to join us as an advisor and of course will be benefiting from his experience in a variety of areas as we move forward. So welcome to Bevan and congrats Graham Sloan on his well-deserved retirement.

4:55 The remainder of the management team, myself on the left, background in mining engineering and ultimately mining capital markets. Barry Dahl, that is our CFO, he was prior to joining us as the CFO of Karora. He was the CFO of Excelsior and of course the CFO of Klondex Mines, was a big part of the success there. Mike Doolin, who's our SVP of technical services, you know, is a mill expert but ultimately an operational expert, you know, has a variety of experience across the C-suite and of course was the COO of Klondex and a big driver of their success operationally when they were scaling their operations in Nevada. So strong management team and you know we've been delivering a strong track record of success so far. Let's jump right into one of our most recent events with the Lakewood Mill acquisitions. So earlier this year we announced the acquisition of the 1 million ton per annum Lakewood Mill which is located just north of the Beta Hunt operation.

5:51 This is a fantastic mill that was run by a private operator in excellent condition and was one of the 3 mills that we were tracking over a period of time, certainly our preferred option. We acquired it for $80 million Australian, $70 million Australian in cash and 10 million Australian in shares. We closed that in July, so we've only had the keys for the mill for a few weeks. As I mentioned, approximately 1 million ton per annum capacity. It is actually 20 kilometers closer to Beta Hunt than our Higginsville mill, which obviously from a hauling cost perspective will actually lower our costs of processing Beta Hunt material, which is tremendous. And then in the first quarter, we actually toll milled some of our Beta Hunt material through Liquid. Now we did that for a variety of reasons.

6:37 Obviously during the first quarter we couldn't disclose that we were conducting our due diligence on Liquid. We were very interested in acquiring it and one of The ideas that our milling group, led by Mike and Dennis over in Australia, came up with was the idea to basically try before you buy. So we wanted to toll mill some of our material through that mill to see what it performed like. We were thrilled that we delivered 94% recoveries. In fact, that's slightly better recoveries than we get at the Higginsville mill. Why do we get better recoveries there it's because 100 percent of the feed goes through a gravity circuit. At Lakewood which is a- and superior for for material where you have some of that horse gold that we get a beta hunt- at the Lakewood mill so that performed very very well and eventually as we scale up data hunt we'll be sending 1 million tons per annum to Lakewood and the second million tons per annum down to Higginsville with the remainder made up by Spargos and the Higginsville's operations.

7:30 So fantastic acquisition. Why did we do it? We did it because we were seeing as with everybody else in the industry, a tremendous risk increasing around the Higginsville mill expansion. So originally our mind plan, our growth plan was to expand the Higginsville mill from 1.6 million tons per annum, actually originally it was 1.4, we already did a small expansion to 1.6, but 1.6 million tons per annum to 2.5 million tons per annum by the end of 2023. We had basically put that out for tender, we did our advanced engineering, which is complete, and we can store that work for a later date. But as with operations across the world, we saw 2 major risks. Number 1 was your input costs were increasing materially for long lead time purchase items, consumables, structural steel has really gone up materially across the world, doesn't matter where you are.

8:23 So input costs were increasing, so the capital number was increasing, but also schedule risk. And schedule risk is very, very real. The company that was going to be constructing this expansion for us was building 2 new mills elsewhere in Western Australia. It started to indicate to us basically that they were sure if they were going to be able to get the personnel onto our site to begin our project on time. And of course, time is money in this business. So we saw some schedule risk and some capital risk there. And late last year and early this year really put our shoulders into looking at other mills which is when we started reviewing Lakewood. And you know it's exactly what we wish we what we wanted to purchase. Really happy to reach that transaction with the counterparty. And basically what we've done is added that extra million tons of capacity, call it, you know, almost an entire year ahead of when we were originally gonna have it. And also we obviously eliminate a lot of the technical risk associated which is always there with expanding that mill. So thrilled to have it, we're evaluating a whole range of opportunities for filling that mill. We've got some significant stockpiles ourselves that we're looking at processing through it so really happy to have it and welcome to the whole Lakewood team in joining us here at Cora. We're thrilled to have you and thrilled to bring this into the Corora portfolio.

9:37 So great acquisition there. With respect to carbon neutrality I mentioned at the beginning you know we do take this very seriously at Invert, sorry at Corora with Invert and it's something that we launched on in 2021. We will be advancing this in 2022. We're looking at a variety of emissions reduction strategies as well that we're going to be executing on over the future year. So we'll be updating the market on that a little bit later in the year and of course direct everyone to our inaugural ESG report which is a big achievement for Kourora and a big achievement in terms of us showing up on more investor screens. We released that earlier this year and we'll be updating it early next year. So a very important role in our company as we move forward. You know in terms of moving forward we also have a strong track record which we're basing that progress on. So since we acquired the Higginsville mill for $50 million Australian in mid 2019 What a glorious purchase price that was. Of course, gold was down around $1,400 an ounce at that point in time. Great acquisition and certainly a turning point in transformation for the company. Since then, we've delivered repeatedly on our quarterly production and in terms of reducing our all-in sustaining costs all the way through to the end of the 2021.

10:49 Obviously in the first quarter of 2022 like everybody else in the industry, we were impacted by COVID costs, inflationary impacts, particularly a tight labor market. So what we saw in the first quarter is about $300 an ounce in increased costs. Western Australia opened up for the first time in 627 days. In the first quarter of 20 22 while that also brought some. You know employees back into the fold that were unable to cross that border with the heavy restrictions they had. It also brought with it Western Australia's first wave of COVID. So while we saw you know no hospitalizations and certainly no severe impacts on COVID on our employees, they did have to serve you know that isolation period which led to lower workforce availability. You've seen that right across Western Australian producers in the first half of this year. And the first quarter was the biggest one for us happy to say that in the second quarter we reported a 15% improvement.

11:42 In all in sustaining costs in the second quarter of the first quarter so cost of training. In the right direction as we get a handle on all those impacts we dealt with in the first quarter. But also, and this is very, very important, we delivered a record production number in the second quarter despite the challenges we're still going through, 30,652 ounces. That is a record since the acquisition of the Higginsville mill. So a tip of the hat to everyone at the operations for delivering just an outstanding 0.25 here obviously as we ramp into that growth plan over the coming years. But very well done. We continue to expect to attack costs. We did revise our guidance range for the second half of the year which consequently impacted our 2022 guidance and you know if you reverse engineer those numbers you can see that costs are expected to improve over the second half of the year as originally stated but obviously versus where we are in the second quarter as well so ounces will be up and cost will be down. So great second quarter things are trending the right way in what is probably one of the toughest operating environments you know we've ever dealt with in the mining industry So very well done to the group.

12:47 Here is our three-year guidance with that revised 2022 number. On an ounce basis, we actually improved our guidance. Originally it was $110 to $135, and now we've squeezed it to the upper end of the range, $120 to $135. So that gives you an indication of how well we're tracking on a gold production basis so far this year. And then of course our all sustaining cost numbers, we did increase those by about $150 an ounce US and that was due to that first quarter impact predominantly. You know you've seen probably about 40% of producers across the world increase their guidance over the course of sorry 60% and 40% 30% have maintained and some have reduced but not many. So in line with the rest of the sector we continue to expect to attack costs over the second course of the year. At 23 and 24 is when we scale into this growth plan so big component of that I'm gonna talk about it. Is data hunt- but also we have some of this new milling capacity. And then by 20 24 were expected to reach that annualized rate of 200,000 ounces a year. At some pretty tremendous all in sustaining cost numbers so excited to deliver that to the market.

13:53 With respect to the milestones for this growth plan I you we've refreshed this- versus our our our last deck here you know we're gonna be ramping up data hunt- the second decline is going a tremendously well in fact we're ahead of schedule talk about that in a few slides. We're also advancing the Nickel studies. We just released the PEA. Moving on to the next level of study and going to be aggressively moving the Nickel forward, which has tremendous byproduct potential. And of course, continue to evaluate. We've got several other projects which we're not talking about yet with the market as we continue to evaluate them but several levers we can pull to both increase output and lower costs so lots going on across our site certainly no shortage of exciting things to work on. Stepping into Beta Hunt which is our primary asset and really is the backbone of the company and these are the anchor of our valuation here. You know lots going on there we've materially added to both gold and nickel resources we've slashed royalties which is really what opened up this asset for the first time in a very, very long time. And as I mentioned, made new discoveries previously. So there is our resource base in both gold and nickel. That nickel resource was updated in January of 2022.

15:02 And that formed the basis of that initial PEA that we put out just a couple weeks ago here in August. We are expecting to expand that Nickel resource. We're going to put out a new Nickel resource and reserve here towards the end of the year as we update all of our resources and reserves. But we expect that nickel resource to continue to grow as we do with the gold and as we have with the gold over the past several years. So material resource base but expected to expand significantly. So for those of you new to the story, I'm going to go over this very briefly here, but Beta Hunt, long before it was a gold operation, was a nickel operation for the better part of 40 years. And as a result of that, there's over 400 kilometers of existing infrastructure in place underground. And at Corora- what we've done is we've really. Leveraged that both for exploration and for mining so number 1. It allows us to mine that average rate of 2.62 0.7 grams per ton that is the average rate of the resource- very profitably. But also it allows us to discover new zones so in green here on the slide the sort of lime green color.

16:05 You see the Larkin zone I'll talk about that a bit later but that is a brand new area. Which we discovered only about 18 months ago or just over 18 months ago now I should say about 2 years ago- and you brought that into into the resource base we also continue to expand these other areas so- we're leveraging that existing infrastructure is a huge advantage for us. And we will continue to do so moving forward- expanding beta hunt to 2 million tons per annum involves the addition of a second decline. We're doing just north of 1 million tons per annum out of our current decline. In fact, we actually just reported our first hundred thousand tons per month, sorry, hundred thousand tons per month at Quora, which is a tremendous achievement by the operations. For some context here, when this asset was restarted in 2019, back in the RNC days, I was doing about 30,000 tonnes per month. So to triple your throughput out of a single decline shows the operational excellence of the crews there. There's a lot that goes into that in terms of productivity, equipment upgrades, training, and you know, just improving the skill set of the operators. So great work by the team there, you know, as we're able to move more tons, obviously your fixed cost base is reduced and you're able to increase your margin. That was a big reason why we drove those costs down for so long. So well done. What we're doing here is we're adding a second decline, which is replicating what we've already done so well, and it's proceeding very, very well. In fact, it's ahead of schedule. Originally, the second decline was scheduled for completion and mid 2023.

17:34 We're now moving that ahead to the first quarter of 2023. So it's 67% complete or two thirds complete right now. We're attacking it with a crew from the surface who completed the portal. And we're also attacking it with a crew from underground and those 2 will meet in the middle. So very, very strong advance rates. It feels wonderful to say it in this current environment, but it's actually ahead of schedule and slightly under budget or on track with budget, but very well done to both of those groups for moving that forward. But what comes next? So next we will be advancing the additional ventilation. So we poured the vent pad already and we're going to be kicking off some of the vent raise work that is critical for increased mining activity underground. So you're building a second decline but you need to ventilate the mine additionally in order to get those production rates up.

18:21 So the second decline is expected to be fully operational versus the decline itself being completed by mid next year and the rate limiting step there is the ventilation. So progressing very well there and that'll allow us to increase gold production but also that's what I'll talk about in a few slides, increase our nickel production as we get down into areas such as the gamma zone where we have the potential for significant nickel by-product credit. So good progress there and you know once we get to 2 million tonnes per annum, we're hoping to exit next year at that 2 million tonne per annum annualized rate. It'll really be off to the races here in terms of production at Beta hunt. With respect to additional targets for resource expansion, we've got a phenomenal resource and reserve. We expect to expand that again later this year as we update everyone on it. But we just continually are adding these additional share zones.

19:15 Of particular note, we added that Larkin zone, but we're drilling over in East Alpha. We've got the Mason & Calso, which we just put a press release out on yesterday, which was fantastic. We've got the Sorensen zone, which is up close to surface, obviously extension of existing zones and then Fletcher, which we've got probably about half a dozen holes into, but it looks like it could potentially be as significant as Western Flanks and all of these are wide open at depth as well. So we're testing them at depth. So a lot going on in terms of gold ounce additions and then of course nickel pound additions or ton additions at Beta Hunt. I do want to mention the Larkin zone for those of you that see me present before we talk about this quite frequently. We discovered that in September of 2020 and in just 18 months we took it from initial discovery hole which was on the slide that you saw there. Right through to resource which is about 300,000 ounce resource added earlier this year so phenomenal work in a perfect example of us leveraging that existing infrastructure right on the slide right here you see that kind of gray line or block going across it. That's an existing underground drift or tunnel. What we did was we channel sampled the walls, found 14 meters of 5 grams, knew we'd found another shear zone, drilled through the back or the roof of that area, found all that wonderful gold there. Also found a brand new nickel trough.

20:35 The relationship between gold and nickel at Beta Hunt is very predictable. You basically have these gold vertical shear zones. Nickel sits right on top. They used to mine the nickel. They never knew about the gold. Now we mine the gold, and we're going to be mining the Nickel there. So it's now extended over a kilometer in strike, 150 meters in a vertical extent, open at depth, but a perfect example here of our ability, especially once we went back those royalties, to really give this asset the exploration it deserves and all from established infrastructure, which is just a wonderful luxury that we have at Data Hunt. With respect to other areas that we've been drilling off, I mentioned the cow sill in Mason which we press released on yesterday. Our 2 1st holes returned, 1 was a fantastic intercept, 13 metres of 6 grams. That's a wonderful economic intercept.

21:22 And then over at Mason, we drilled 5 metres of 2.4, which is very consistent for what we're seeing in other areas that data hunt so again building that resource inventory adding ounces to the to the registry that extend your mine life. And of course you get valued on those, that increases the net asset value of your company and ultimately drives value going forward. So lots going on there on the gold front. Switching over to the nickel front. So, you know, later, I believe it was in late 2020 and early last year in 2021 we announced the discovery of the 50 C or the gamma zone which is south of a fault called the gamma block at Beta Hunt. I'll do you know it's a fairly busy chart here so I'll just try and draw on it for you right here So this is the Gamma fault at Beta Hunt there and this zone right here is what we've discovered and drilled off over the course of the last year. So what we did was we drilled it off in over a 800 meter long strike extent, 120 meters wide and it you know some phenomenal results with our initial nickel resource there down at Gamma which significantly added to the existing resources that you see on the right hand side there at Beta Hunt.

22:27 This is an area, as I mentioned before, Beta Hunt was a nickel mining operation for close to 20 years. I started 40 years I should say- it produced at 60,000 nickel tons. 33,000 those came from the beta belt- this has all the hallmarks of potentially being another large nickel area. In a particular interest and hopefully you can see this- as a circle it- there's a historical drill hole which is located about 400 meters. To the southwest of our existing resource- that we have right now. That drilled 9.5 meters of 11.4 percent so. And at data hunt as I mentioned before we can have these continuous nickel- gold share zones and on top of them we have these continuous nickel troughs. So that's a great potential validator of a strike extension of that nickel zone. And then we have another 2.6 kilometers or I should say 2.6 kilometers in total- to get down to our property boundary. So significant potential for that nickel resource to grow and to add significant years of mine life beyond the initial eight-year mine life that was envisioned in the PEA that we put out.

23:32 As I mentioned, it's 120 meters wide, and why is that significant? You know, it provides a very large virgin mining area. By virgin, I mean a new mining area. What we've been doing historically at Pedo Hines is mining nickel remnant areas, which is higher cost. It's very manual. It's done with physical jack legs. Once we can get into some more mechanized area but also in virgin territory, it significantly lowers your nickel mining costs. What does that mean? It means increased nickel margins, which means stronger nickel byproduct credits, which ultimately drives more cash to the balance sheet. So very, very happy about how this zone is shaping out and just how big it's getting. This is the latest nickel mineral resource. And as I mentioned initially, we discovered it just earlier last year, all the way through to resource on the 50C in just over a year. Another example of how quickly we can drill these things off at Beta Hunt.

24:25 We will be updating reserves in the fourth quarter of this year. And here are the highlights. So all that resource, We talked about how big it is, how we believe we can expand it. But what about the PEA results? So ultimately, you know, we are a gold company. We're going to have some phenomenal Nickel byproduct credits. BHP is restarting the Kembala facility just next door, wants to take all of our nickel. They signed a huge off-take agreement with Tesla. Tesla is very interested in green nickel. As we mentioned at the beginning of the conversation here, we're very focused on being a carbon neutral company, basically producing green products. So that green nickel is something that they absolutely want. Obviously the grades are phenomenal too, just below 2%. So BHP is very happy to be a customer of ours. But ultimately, at that base case assumption, it's going to drive about $80 to $100 an ounce in by-product credit. So that's phenomenal.

25:16 A couple of things I want to highlight here is so the base case is done about $19,500 per ton US for nickel. You know, current spot prices are somewhere in the range of $23,000 per ton. We ran an upside case that's very close to street consensus. What do I mean by street consensus. When you basically pull all of the brokers I believe we pulled about 27 of them. I you know investment banks and metal price forecasters across a Europe- in the U. S. And Canada. The average consensus price was over 25,000 dollars per ton so we ran a scenario there. When you look at the numbers at that at 25,000 dollars per ton. And you know depending on what your view is macro economically if the nickel environment you know with all this EV demand. I think everybody's in agreement producing more nickel is a good thing. And there's not nearly enough high quality high grade nickel being produced in the world. That's why we're seeing such large investments into this space. So in an upside price environment, which is really, we've been there before, we were there just in May of this year, we were $27,000 per tonne actually. Look at the IRR, so you go from 105% to 232% that is an unbelievable return on capital invested.

26:22 And speaking of capital costs we're only putting $18.7 million Australian over the life of mine that's over 8 years. Now The first year investment is only $7 million Australian. So $7 million investment to drive those kind of byproduct credits with that kind of return and in fact if you increase that nickel price by 20% the value of your project increases by 60%. I said this on another interview last week, you'd be hard pressed to find a nickel project in the world with those kind of metrics that have that kind of return profile and that kind of leverage for such a low capital investment. Again, we come back to the theme of leveraging that existing infrastructure at Beta Hunt for both gold and nickel and the capital requirements being so low due to the fact that we have all that infrastructure in place.

27:09 So phenomenal project. We are very excited to advance this. Going to be working aggressively on the next level of study over the course of this year. Obviously that second decline is a key component of it. Additional ventilation so we can get mechanized mining down there. And you know hopefully we can basically have this thing spitting out a whole lot more nickel in 2024. But we're going to keep pushing it forward and is a huge differentiator for for for for for Karora shareholders. Obviously we have Nickel byproduct credit so we're somewhat insulated to Gold price movements but also exposed to Nickel price movements which is phenomenal. So we're going to be getting that story out there more and more just like we are today but really happy to get that out into the market. And great work by our team internally. Lastly, on the Nickel, we are drilling several other areas. We talked a lot about 50 C in the Gamma zone, but as you can see in the graphic on the left-hand side here, there's Nickel everywhere, right? So there's 30 C, there's 40 C, there's a new area called 25 C that's not even on here. You know, we've got nickel above the A zone, we've got nickel above Western Flanks, and then of course the new area of Fletcher, there's potential there as well. So even though the gamma zone is just such a high grade, beautiful virgin mining area.

28:19 We are going to be exploring for nickel all over the place and we've got infrastructure going to most of these areas. So that's a huge advantage for us as well. So the nickel story will continue to go and we'll continue to allocate dollars towards it. Stepping down to Higginsville, so obviously we have our mill there, the 1.6 million tonne per annum Higginsville mill which has been performing very very well, but we also have an enormous enormous property and lots of areas for us to explore as well as some operations that we've been operating. So for those of you that have watched presentations before, you understand this is a Higginsville Central and greater resource split that we did. Central is kind of the higher grade core, let's call it, around the Higginsville mill. The greater area brings in some of the larger exploration properties and areas that we'll continue to test. Earlier this year, due to the COVID restrictions, particularly on drillers and personnel availabilities, we didn't have much drilling happening on the exploration front in Higginsville due to personnel restraints.

29:15 We're going to have more of those people stepping in the second half of the year and into next year. Beta hunt has been the priority just due to the return, right? The dollars you invest there, you know, you just get such a fast return on them in turn being able to monetize them, mine it. It really is the value driver, but certainly wonderful exploration potential across the Higginsville property. Looking at the properties that are closest to the Higginsville mill, these are some of them. Right now we're operating underground at Aquarius, which is a new mine we've started up. It's getting into some higher grade vertical veins, as well as the 2 boys restart which is a past producing operation so you know if you think about where our future feeds going to come from we've got 1 million tons per annum of capacity at Lakewood taken up by Beta Hunt we've got the second million ton of capacity taken up by Higgins or Beta Hunt taken up by Higginsville that gives you 5 to 600,000 tons of capacity that you need to source from elsewhere. Obviously we've got some great stockpiles, but we've got Spargos and we've got this variety of Higginsville mills. So from a value basis, it still is Beta Hunt that's the driver, but we'll be looking for the best opportunities across our portfolio here to supplement that feed as well.

30:22 With respect to exploration, this is one of the areas which is certainly very, very interesting for Corora. As I mentioned, we weren't able to get drills onto this earlier this year. Our priority was beta hunt with the personnel that was available. That situation is improving now. But the sleuth transit, you know, fantastic area, you know, between Balu, which was a mine we previously mined, and the Monsoon target where S2 drilled 66 meters, 11 grams per ton. You know, we did air core drilling there last year, We did geophysics earlier the year before. We did some RC drilling. Fantastic drilling results combined with geophysics. You got the Zaluka shear, which is the major structure through the entire area, actually goes right through this area, which is phenomenal. So all stacking up to tell you that this is a very interesting area. So we're keen to get back into there to do some more, let's say, grassroots and blue sky exploration there. But of course, you know, anything we mine there won't be into the mill anytime soon. So our priority, of course, is turning, you know, drill dollars into cash. So we'll continue to deploy most of our capital into the beta hunt exploration and nearer term opportunities at Higginsville but this is a phenomenal area for us to continue to to explore.

31:28 With respect to Spargos you know That is interesting to see how much the mine has evolved from that drone shot you have right there. It's a much deeper open pit mine now. It's been in operation for a while. We put our first ore through the mill in the fourth quarter of 2021. It's going to be a mine that's going to perform well in the second half of this year as we get into some higher grade areas of Spargos. So we'll see that delivered over the course of the quarter. Very interesting underground potential at Spargos. We're evaluating that right now on what the economics look there and making capital decisions to go in there, but some phenomenal drilling results that can support that. So, Sparkos will be around for a while to come and part of that supplementing feed that we talked about into the Higginsville mill. With respect to where we're going, so this is a chart that I think is particularly relevant in terms of where the market values producers of different scales obviously with different pre-cash flow profiles.

32:24 So our goal here and our stated objective is to get to that 200,000oz mark by 2024.

32:32 You can see on a market cap basis that, you know, potentially is over a doubling of our current market cap. Excuse me. And that is, broadly speaking, remained the case over the course of, you know, let's call it the last 6 months of tumultuous trading. So you know we were north of 1 billion dollar company a lot of the companies on this slide were north well north of a 2 billion dollar company. So you know the basically that kind of 2x return as we scale into this growth plan is something that We're certainly believers in and the market is telling you is what they expect. So I'm happy and excited to execute on that and drive additional market cap and per share value for shareholders. Corporate summary right here. You know, obviously, We've got a lot of analysts covering us and the calibre of some of those groups, or all of those groups really, including some of the big banks, tells you the calibre, the story and the investors that we have. Some of those investors are listed in the top right.

33:27 So high quality, institutional shareholder base, very well cashed up. Obviously, we financed the acquisition of the mill. We also refinanced our debt facility. I should mention that earlier this year. We had a $30 million outstanding amount on our Cortman facility. We refinanced that with Macquarie. Number 1, that's a huge stamp of approval for a company like ourselves to have Macquarie behind us. Number 2, we reduced the coupon rates. We actually outlay less cash on an annual basis in order to maintain that facility. We also tucked in a $40 million revolving credit facility. Capital is cheapest when you don't need it. I'm confident in saying that if we went to refinance that right now our interest rates would be significantly higher than when we did it so our timing was excellent. And one of the key components is you know hearing this from several shareholders in terms of you know why wasn't this refinanced a year ago well we visited all the banks to refinance it a year ago, right when we announced our initial growth plan and all of the facilities that were shown to us came with gold hedging. And just simply put, we had unwound a lot of hedges that were part of the Higginsville mill acquisition. So we were not willing to put gold hedges back in place. We want full exposure to upside in gold prices. You know, I was an analyst for 7 years prior to working here at Karora and there are few, if any, companies that are rewarded for hedging gold price.

34:44 You know, you look smart when gold prices go down, but you get heavily penalized when they go up and the reward versus the punishment on the downside is heavily skewed in the wrong direction. So we were offered facilities that had hedging in place. We said no thank you let us go ahead and continue to execute on our plan. We revisited those conversations earlier this year as the company had evolved as we had more exciting projects. Obviously the addition of the liquid mill is a huge de-risker for this company and that led to much more favorable debt terms. Look, Our previous facility had a high coupon rate, it was very low on covenants and we wanted something that was equally light. So we have a great facility with Macquarie right now, happy to have it and it's just a, it's fantastic to have that in place and puts another stamp of credibility. So I hope that answers some questions we've had on why it took longer than people expected to get it done. And that's simply put the first facilities we were shown were not of the standard that we wanted. But now we have a great facility in place and happy to have that done. So that's great. Last thing I'll comment here is, you know, We're all share price, I should say shareholders of Corora here. Obviously, it's been a tough retrace from $7.50.

35:52 We were trading at about 1.1x NAV when we were at $7.50. And for context, the average group at that point in time was 0.65x NAV. So we're trading at a massive premiums the group. On evaluation basis that was fantastic obviously when macroeconomic conditions changed earlier this year- we saw share prices roll over in every sector across the world. Gold was no exception- simply put we made shareholders a lot of money, a lot of the institutions have made significant capital with us, and so we were one of the first ones to be lightened up as they looked across their portfolio. Since then, calls with institutions have basically been focused on, you know, how are you guys doing, how's your financial position, okay, you guys are in great shape, continue executing. There are other companies, as you all see left, right and center in the market, that they are more worried about. So, you know, we basically were a source of liquidity- in order to offset losses elsewhere in their portfolio. And now we retrace basically the pure group average we're trading around you know call that 0.45 0.5 times NAV which is exactly where the pure group is there's 1 or 2 exceptions to that. Either trading slightly higher but our next you know next objective here is when that capital comes back into the sector and the gold trade is back on, we want to regain that premium multiple versus the group and that's what we did before. We've only added fundamental value to the story since then. So we plan on executing in the same fashion going forward. So we have a few more minutes here. That's our resource base and some lovely looking gold that's actually in the Perth mint from Beta

37:22 Hunt. But I think at this point in time, what I'll do is I'll pop it over for some questions. I think we've got about 7 or 8 minutes left here. Hopefully, I can get through a few of them. Yeah, absolutely. Thank you, Oliver. I'd like to remind everyone in the audience to keep asking questions in the Q and A, but Oliver, we've already received a number of questions. The first being, if you could provide some more color on the recent course gold discovery and how that might impact your third quarter. Yeah, yeah, for sure. So just last week in tandem with the announcement of Bevan, we also announced that we discovered some more coarse gold and I should say rather than discovered we'd actually mined it. So We have 2 ways of mining at Beta Hunt. One is in development drifts, so basically tunnels through where you take a round, you get to look at it, you take another round, you get to look at it, you take another round, you get to look at it, and visually you can inspect the ore. So the previous Father Day discovery and other gold discoveries, the coarse gold discoveries you had have been done that way.

38:18 This actually came in a stope. So what a stope is, is a large area that we basically blast and then mine out in bulk. We checked our muck pile, which is where you pile up the rock on surface, inspected it and found that coarse gold boulder that Rob Walker, our GM of Beta Hunt, took a wonderful photo with. So we do get that from time to time in stoves we just don't always know because we don't always visually see it. So that was great to have you know obviously that's going to bolster ounce production this quarter We haven't quantified it at this point in time because there could be potentially be some more there. So we'll know as we move forward over the next several weeks what we have there. But we do know when we're in a zone where it is more likely that there is coarse gold. And another thing that is very, very important to emphasize here is that mining needs to be done in a way that manages geotechnical stress.

39:06 At Beta Hunt we're doing something called open stoping and I'm not going to get too technical here for those of you that don't understand mining or don't have a history in mining I should say. But basically we are not backfilling or supporting our stokes at Beta Hunt. In order to manage stresses for there not to be ground failure, which is a significant safety risk for people, you have to take your stokes in a specific sequence so that as you mine this one, the stresses from around that area are redistributed into other areas that have rock in them or unmined area. So we follow a very specific pattern in order to make sure we mine in a very safe way. Our number 1 objective at core is to make sure that everyone goes home at night and there's nobody that can tell us anything different, we mine it in that specific pattern. We are now back into the area that was under the original Father's Day vein discovery because we have mined other areas that redistribute stresses from that open area over there. That is absolutely critical in bulk mining, especially when you have no support, which is what allows us to mine at such a low cost. Now we're stoping in that area, which is exciting and we're very excited. We think that there could be more coarse gold there, but we're in that area right now based on a mining sequence.

40:19 You cannot just choose to mine here or mine there whenever you want because number 1, you put lives at risk and number 2, you sterilize other areas. What does sterilize mean? If I mine an area out of sequence and stresses go into that area when they're not supposed to be, I cannot mine that area anymore. That gold that is in that area remains there because it becomes too dangerous to mine it because the stresses have not been redistributed. So that is the geotechnical influence over mining, which is absolutely critical and is very important for investors to understand. No, fair enough. Next question. What areas are priorities for exploration in the second half of the year? And when should investors expect to see more results from the Gamma zone at Beta Hunt?

41:05 Yeah, for sure. So Gamma is absolutely one of our priorities. You know, very excited to get the drills turning down there. Our limit in the Gamma zone is actually ventilation. So it's being basically a secondary ventilation that we have going there, which is why we cannot mine with big equipment or have a lot of people down there. So we'll be drilling that off over the course of the second half. So expect more results from there and actually some interesting nickel results in some of the other areas around the mine that I talked about when I talked about the resource expansion. So lots there on the Nickel, on the Gold front, look we continue to step out from these existing Gold shares which is great. We just discovered 2 new areas that we announced just yesterday in Mason and CalSills. So no shortage of drilling coming out. You know I should mention we're spending $20 to $24 million over the next 3 years each year in exploration. That's heavily weighted to gold and to data hunts where we get the fastest return on investment, but we'll have lots of exploration results coming out over the second half of this year.

42:02 Absolutely. Any possibility of extending the southern boundary of GammaZone with the possibility of extending the nickel deposit? Have there ever been drills for nickel at the same depth of GammaZone on directly adjacent property? Yeah, that's a good question actually. So we do have that historical hole that I talked about, which is a surface drill hole that hit the 9.5m of 11.4% nickel. That's about 400m beyond the current resource boundary, or in total that would be 1.2km from the gamma fault zone. Remember, gamma fault 800m, then another 400m to get there. So good validation of a potential 400 meters strike descent. And then we own the property boundary all the way to 2.6 from the gamma zone all the way down there. So we're certainly gonna drill test that entire area as well as remember at Beta Hunt we have these parallel gold shear zones another parallel gold shear zone and potentially nickel on top of all of them so we can go laterally as well as along strike but lots of areas to explore and we're certainly gonna leave no part of our property boundary or I should say our tenements undrilled by the time we're done here so lots to work on. Absolutely well Oliver listen I want to thank you for coming on today I know you've got a busy day ahead of you I also want to thank everyone that's attended today especially those who have asked questions I know there are a lot of questions that have gone unanswered today. We'll be passing these questions along to the team at Karora 100% so that they can follow up later.

43:24 But listen, today's recording is gonna be available on six.com in the coming days. And before we wrap up, Finally, Oliver, I'd like to hand things back to you for just some closing remarks. Yeah, for sure. So apologies for the short time constraint today, but happy to answer any of the questions that you guys inbound and we'll try to get as active as we can on these platforms. We've done a few of them over the last several weeks, so it's great to be back on on 6 and communicating more of the story to you. Lots of rest leases to come. You know, a great, great valuation point to be in the stock here. If you want gold exposure, I think this is a fantastic name. You've got self-funded growth. You've got free cash for generation. You've got nickel byproducts. You've got a tier 1 jurisdiction. You've got a brand new CEO that's coming in that has scale and experience at just a tremendous operation. So very exciting time for Karora.

44:14 Look, we're all shareholders, as I mentioned. We're looking forward to returning to share prices just a few months ago and when the gold trade is back on and that capital is flowing back into the sector, I think this is a great place to be invested. So thank you for being investors. For those of you considering it, we hope you join the registry and look forward to seeing you in the next 6 presentation.