Sean Mager: 5 Reasons to be Excited About Cortus Metals

0:08 Well, hello everyone and welcome to the Cordis Medals Summit today, hosted by Sixt. I'm very pleased to introduce Sean Major, Cordis Medals CEO and Director. Today, Sean's gonna provide us the top 5 reasons to be excited, why to be excited about Cordis Medals in this quick overview. And then of course, we're gonna always, as always, open the floor up to a live Q&A session. So feel free to submit your questions at any time throughout the quick presentation and we'll absolutely try to get to them

0:40 afterwards. And as always, it's being recorded and will be available to watch afterwards on six.com. So without any further ado, Sean, I'm going to hand it over to you to kick it off and I'll get back up for the Q&A. Great. Thanks, Dasha. And thanks for joining us today, everybody. I'm Sean Major, CEO of Cordis metals. I'm just going to quickly run through some good reasons why Cordis makes a good investment right now. Just 1 2nd here.

1:17 Dasha, I'm having a little trouble seeing where the slide is. Yeah, can you move to, there's cautionary statement, of course, mandatory. It's part of our deck on our website, if you need to read that. Next please. These are the 5 reasons. So boiling down an investment 5 reasons is a tricky thing to do, but here is a bit of a logical flow for you. Cordis is a new company. It's an early stage company that was formed after we went down to Nevada in 2019, looking for projects.

2:01 We found a lot of kind of rehashed projects in the mountain ranges of Nevada, which is pretty typical down there. It wasn't what we wanted to do. We wanted to make new discoveries and follow a first mover type of a formula, which is difficult to do also in an established mining jurisdiction like Nevada as new players. Fortunately, we met a person, Clay Newton, who is an expert in Nevada. He's a PhD structural geologist. He had a portfolio of projects that looked very interesting to us. The concept here is that the mountain ranges of Nevada have been explored and mined for about 200 years. They've been very prolific and produced 200 million ounces of Gold in that time frame.

3:01 There's as much potential in the basins, these valleys in between the mountain ranges. They were formed at the same time and then the basin sunk and the ranges rose. But the strata is similar and the mineralization is similar. So the untapped potential of the basins is what we're after. It's been very little exploration done there. So this is a new and innovative approach in an established jurisdiction. So we've got accomplished management. We've worked for 20 plus years around the world, Australia, Africa, South America, Mexico, US, all over the place. And we've had to deal with all the issues that go with new mining codes and old mining codes, all the quirks of operating in a new jurisdiction.

3:57 Being in Nevada, this portfolio of projects was an excellent opportunity to start from the ground up, both in terms of value, but also to really establish ourselves, learn, build some relationships and grow a company from there. Nevada is a top-ranked mining jurisdiction. Fraser Institute, among others, believe it has the best environment for investing. This portfolio has 2,300-plus claims across 17 projects, and they're generally situated near operating mines and known deposits and on the same hosting fault structures.

4:43 That's key for us. We narrowed the portfolio to projects that have proximity to existing deposits and mines because that story is much more easy to tell. It also has a built-in exit strategy when you're working up an asset next to an existing producer. This does characterize our portfolio there. Our mandate is to collaborate with partners and stakeholders, complete drill programs of 2,000 to 4,000 meters that could result in discoveries of significant deposits, and we would retain an interest in the outcomes of multiple exploration projects and hopefully discoveries.

5:34 The methods or mechanisms for accomplishing these joint ventures, we're creative, we don't have a fixed way of doing that, we're open to negotiation. So, we see our operations in Nevada as being a foothold to bigger things.

5:54 These projects themselves could be company makers for us and any of our partners. Ultimately, these drill programs are meant to produce a marketable asset that would interest a producer. The investment opportunity here is that producers have been churning out gold for the last decade, since the last round of acquisitions, fixing their balance sheets and preparing their war chest for the time when they have to replace those producing assets. We want to have product ready for them in 2 to 5 years. We expect to be drilling in 2022 with our joint venture partners and having a regular news flow of exploration results.

6:40 Once we have drill results from these projects, we believe it is going to validate the model that we're pursuing and the value of our portfolio will increase dramatically. Right now, investors can get in at the IPO price virtually and have a warrant with it. So around 10 cents with a 15 cent warrant. We're looking at a financing and you can buy in the market for 10 cents or in some days in the last month. There's a lingering market dip from 2021 in the junior markets, which affected us as well. And investors can buy in the 8 cent range, which is just outstanding value for the kind of model and the number of opportunities there are for discovery in 1 company.

7:32 If you've seen the discovery curve that shows typical life cycle of a junior company, tends to rise dramatically at the beginning when you're making your discovery and then taper as you develop the ground toward a production scenario. So by having multiple projects and retaining an interest in them, we would expect to see, to have NSRs, shares and cash

8:00 coming from those joint ventures. And we would hope that we would get the benefit of those discoveries in our stock, which would either avoid the dip by seeing multiple discovery curves kind of trail out in a series or perhaps stack on each other and really get the gains. You often see that in a project generator company where you talk about spinning out and the investors retain or receive shares in the new co as well as the original co so you get the gains in your shares across multiple discoveries. So that is in a nutshell our opportunity and Dasha I'm happy to take any questions We have other slides here that I can expand if people would like me to.

8:57 Great, thank you so much. All right, we're gonna open the floor up to some questions if you have any. I have some here from attendees. So what is your outlook for gold, Sean? Well, I mean, we've seen a dramatic increase, I believe, at the beginning of 2021, 2021, 2020, where it was similar to 2008 through 2011.

9:27 That I think is going to be sustained. I mean, you look at the issues that have been created by the policies of central banks printing money and that isn't an easy trap to get out of. So That seems to help the price of gold. And if it happens over a 2 to 5 year cycle, which is what you see the pundits talking about, that fits with when producers will be looking to replace their assets. And it also fits with our timeline for generating product for them. So we tend to look at the 2 to 5 year rather than the day-to-day 50 to 100 dollar movements that day traders can create.

10:17 The long-term trend is strong, and we agree with the predictions that it'll be in excess of $2,000. All right, thank you. And then does Cordis Metals have any GVs?

10:33 We have ongoing discussions. I expect immediate term announcements. So we're just working out the final terms on those. Typically, Nevada JV would include royalties. Typically, a Nevada JV would include royalties, so an NSR, some cash and shares at different turning points of the project, and sometimes an advance royalty, which helps to offset overhead. So yes, we have discussions, we have candidates at the moment, and I hope to have about half of our portfolio joint ventured with drill programs during this year.

11:20 Joe's asking, what is the current cash position? Current cash position is low. We're in the process of raising money, got 2 or 3 angles for that. Part of our

11:41 approach here is to minimize dilution. So We don't raise large amounts of money at any given time. At the moment, I'm looking to raise 1 million to 1 million and a half dollars, and that will sustain our operation as we form these joint ventures and see contributions from them. I might add that as you form the joint ventures, they generally assume the tenure management or maintenance costs. So, you know, the cashflow of our company is dependent on those JVs and it's a critical piece of our strategy.

12:26 So that's the catalyst that we're looking forward to here in the next few weeks. Absolutely. And are you expecting drilling in 2022? Yes. So as we announce the joint ventures, they will have an outline of the exploration that would be undertaken. We have a portfolio with a range of stages in it. 3 that are drill ready, half a dozen that need a little more work to have drill targets and then some green fields in the lower beginning end. And so these joint venture candidates would have different objectives and some of them want a little from each level and some want a few at the lower level where they spend $100,000

13:25 to advance them and then pick something going forward. So not all of the joint ventures will have drilling if they're focused on the lower end, but we will have joint ventures with drilling. The drill programs for 2,000 to 4,000m would cost $1M to $2M, which is kind of the sweet spot for a new company with a qualifying transaction or for companies looking to pivot from an asset and add an asset in a stable jurisdiction like Nevada. So it's a good entry point. And yeah, it's project by project, whether we'll see drilling on each of them.

14:12 I think that might have answered Joe's next question, which is what is the anticipated exploration expenditure for 2022? Yeah. So again, this is something that's negotiated with the joint venture partners, but the overall model is that We will spend up to $100,000 per project advancing them to drill targets.

14:39 We expect partners to come in to either take on projects to pay for that same $100,000 per project, do that, and or drill programs that would be 1 million to $2 million. So per project, it's still in that same range of 1 to 2 million. And if we have half of them with programs then we will be retaining an interest of 10 to 30% of the assets that result. If they don't carry on or complete their obligations, we would benefit from their exploration and see the projects come back to us again.

15:27 So again, it varies. We can scale the exploration up or down, but I hope to have half a dozen drill programs. So if that was 1 million dollars each, then you're 6 million and we're benefiting from that. Right. Thank you. Next question is, what is your approach in project selection?

15:54 Well, the original, let me Actually, can you flip to a slide? I can't see the directory right now, but keep going. There's one that has layered, has layers in it. There, okay. So project selection starts at the desktop. And so our partner, Clay, had originally in concept, 250 prospects. And he'd go out into the field and look at the plants growing on the hillside of the ground.

16:34 And certain plants thrive where the elements in the soil are favorable for exploration. So if the bedrock beneath is casting off

16:51 elements that are related to gold, then he may state that ground. That's where we come in. We've acquired his portfolio. He went from 250 prospects to 25 projects. Then we've evaluated his portfolio and I guess rationalized it, called the herd, so to speak, and that it's down to 17. So that was actually the net result of going down to 15 projects and then generating 2 new ones. So we're at 17 projects now. And on each of those projects, we're at various stages of completing rock and soil geochemistry, geological mapping, and geophysics.

17:39 So these generate our targets and give us a clue about the depth of the bedrock for overburden. And in that process, you learn about the surficial rights and other nuances of Nevada exploration. And so all of those commercial factors and geological factors help us to prioritize the projects. So, you know, we we present that information to potential partners and then work with them to advance the properties. Thank you. And just in closing, out of the 17 projects that you currently have, Which 1 do you think will be your flagship project and why? The original transaction that we had with Clay was we acquired 2 projects, Grayson and Powerline, that are in the same valley.

18:34 It's in the Lahontan Basin. These projects are on the extent of known deposits and mines in the range there that have about 8 million ounces of gold defined or delineated. So the models there are quite strong. We see a JV partner taking that on and focusing on those 2. It already has a 43-101. It was the foundation for our going public, but now we have another 3 in behind it that also have different scenarios, same origin, and Any one of these could be significant deposits. And by that I mean, any one of them could be tier 1 assets in time.

19:35 The initial discoveries that we make could prove up. If we were working on 100,000oz at a low grade, that's still a marketable asset in Nevada. The flagship is in the eyes of the beholder. I think we've got 5 or 6 flagships in here. And by the way, while working on a portfolio, like I say, it's a foothold for us in Nevada. We're learning about other projects. Our team is very qualified, and we found that the other groups have good assets. They've been managing them for a long time and they are looking for a succession plan.

20:22 So we could very well pick up a flagship property project through M&A transactions as well. All right, all right, Rishon, thank you so much for taking us through the presentation and the Q&A. I know it was a quick one, but lots of information. If anyone on the line today does have any other questions, feel free to reach out directly to Cordis Vedal's team. Here, the information is on the slide. There's also more information on their website. And of course this has been recorded so you