Wallbridge Mining: 2024 in Review

0:07 Good afternoon, good evening, depending on where in the world you're tuning in from. I noticed there were some international crowds, so thanks so much for spending time with us today. I'm joined by Brian Penny, Walbridge's CEO. How are you today, Brian? Excellent. Thank you very much. Awesome. Now here's how today's going to go. I'm going to throw it first to Brian to go through a quick update and recap. Then I'm going to go through some questions that I have. And then A lot of you submitted questions over email. Really appreciate that. I'll be getting into those questions as soon as I get through mine. And then afterwards, this is an interactive town hall style event. So please do feel free to ask your own questions in the chat box in the bottom right. Eager to get to as many as we can today. If there, for whatever reason, we don't get to your question in today's

0:49 event, I will still make sure that the Wallbridge team gets it and they'll get back to you as soon as possible. I should also note today's event is being recorded, so it should pop right in your inbox probably end of day today, possibly first thing on Thursday the 19th. And from there you can share it. It'll certainly also go up on YouTube as well as six.com. But enough out of me, I'll throw it to Brian for a recap before we get into questions. Thank you. Just before we get into questions, just a high level review of what happened in 2024. In 2024, we drilled 17,200 meters on Martigny. Phase 1 results came out July 31st, phase 2, November 6th. Fenelon, we drilled 3,700 meters. Phase 1 came out May 22nd and phase 2, December 16th.

1:39 Our regional program, which includes Harry and Casal, we drilled 3,500 meters and there's still a few assays pending and considering the time of the year, I suspect those will come out early in January of next year. That totaled almost 25,000m of drilling. In addition, last month we raised $6.2 million. We're expecting a year-end cash balance of $20 million. And we're planning our budget for next year for a fully funded budget for 2025 with $20 million. A little less than this year, but it still allows us to advance the project and some of the new things that we're working on. Our biggest goal for 2025 is we've started a revised PEA on Fenelon.

2:31 We're looking at a staged approach. We start with a smaller plant and we expand it after 4 or 5 years.

2:40 To do that, we're going to increase the cut-off grade in the early years. That will improve the cash flow in the early years, improve the payback and with the higher metal price assumption, the net results should be much improved. And we're looking to have that complete and follow tech report by the end of the first quarter this year. So, in summary, a little bit what we did last year. We're excited about where we're going because we think there's an opportunity to right-size the Fenelon project for a company of our size

3:12 and go forward on that basis. So with that, I'll turn it back to you, Romeo. Let me jump right into questions. I'm going to see how many we can get through today. So first, I'll say following the exploration success of Martin years satellite targets in 20 24, particularly I'll throw out Horsefly with 15.60 grams a ton. How do these discoveries influence your development timeline for a combined PEA targeted for 2026? And we did provide that guidance earlier this year. And Martinier is still an exploration and resource delineation project Compared to Fenelon, which is at the PEA stage, we're going to do a second PEA to optimize it. Positive results on 3 of 4 satellite deposits around Martigny

3:59 are within 100 to 500 meters outside the resource estimate. The Gold system needs further exploration and more time to outline it for a PEA study.

4:16 It's difficult to place a timeline on when that next stage could be, but the results have been spectacular. It seems to be getting bigger and it's just going to take some time to figure it out. So that's why we changed our focus and are focused on a new PEA on phenyl and standalone, which ultimately will feed into a combined PEA. The question is the timing, when will that be yet to be determined? But it's for all the right reasons and all the good news. The deposit seems to extend. We've got drilling out to 500 meters showing good intersections and we have to geologize that. So our team is working on that. Great. No, that makes sense. One thing I want to know, with approximately $20M projected year end cash balance, That's correct, right? That is correct. Yeah.

5:06 So what are the key exploration and development priorities for 2025?

5:09 Basically where's the money going?

5:12 Well, we're going to announce in early January, early to mid January, what our plans are for next in detail. What I can tell you is our number 1 priority by the end of March is getting this revised PEA done, the news release out on it, the tech report filed, that's our prime directive. From that we need to take a little bit of time after that to see the reaction and develop our next steps. But clearly we'll start working on electrification,

5:42 advancing the discussions with Hydro-Québec on getting electrified and the next steps and start the early permitting stuff based on this new design. There'll be drilling at Martigny, probably about 75% of our drill budget will be at Martigny. That's something that's really exciting and we need to further advance. Phenolon, there's enough drilling in there for a PEA. The next step would be infill drilling when we do a pre-feas, but that's yet to be determined based on where we get in the future. It's really exciting. We've got exciting news coming out on the results of this new PEA.

6:19 You know, what's the exploration drilling? We're looking for exciting news on Martinier. And, you know, our team, led by Mark Peterson on the exploration side, is the best of all the junior companies in this sector. I'm a kind of guy who watches videos, Mark is a super interesting guy. One question I got, so the metallurgical and geotechnical studies at Martin Year, obviously, as you just said, were a major focus in 2024. I'm curious if you could summarize just the key findings so far and how they influenced your development approach. Well, what I can tell you is that

7:02 the metallurgical test work, the results are pending. They will be released very soon. It is pending and it gives us a good indication of gold recoveries on the Bug Lake Zone. So very helpful. As far as the geotechnical studies, that work

7:24 was is provided to our geo team to go into the geo model to help us geologize the new resources with this additional information. And it's helpful from a design standpoint as we get into designing the mill and all that fun stuff. Sure, I know that makes sense. If you don't mind, I just want to look beyond Fenelon and Martin Yard just for a second. And I'm curious if you can summarize what you've learned about the broader potential of the 830 square meter package from this year's exploration program. Well, the whole package is under-explored.

8:04 To put it in perspective, I said this before, is the City of Toronto is about 830 square kilometers and our project is about 830 square kilometers. So it's a big landmass. It's exciting. It's in the Northern Abitibi. We've had drill hits all over the place.

8:22 It's how do you bring this all together? We spent a lot of time last summer. We sent some geos on a walkabout. They were out walking, looking for outcrop, doing some chip samples as well as mapping in that. It helped us identify some targets for the 2025 program on the regional side. In addition, we drove Harry and Kasol and those results are still pending So I can't say much about them, but learning more as we go on. There's other deposits out there. The challenge is with a $20 million budget,

8:58 we can't have 10 drill rigs running around. Nope, no, no, makes sense. One question while we're on that topic of just the whole plan package, given Agnico's success at Detour Lake and your strategic position on the trend, how do you see long-term Wallbridge's projects fitting into the broad development landscape of the Abitibi?

9:20 That's a very good question. And I will answer it by saying, Detour started off as a very small mine. And then over the years, it morphed into Canada's largest gold mine. For us, in managing risks and looking at how we go forward, starting smaller makes a whole bunch of sense. And we'll figure this out over time. It's a massive position and It's in a very exciting area. The province of Quebec is a great area to explore the tax incentives.

9:52 Since I got involved 5 years ago, we've collected almost $60 million of these refundable tax credits, which get reinvested in exploration. So very, very supportive and great support of our First Nations partners and our local communities surrounding us. So we've got a great opportunity here and we just have to take our time and do it in phases and steps similar to what people did at Detour Lake, 30 years ago when I lived in Timmins.

10:22 No, it makes sense. And I do think a lot of people don't realize the credits from Quebec, how valuable that is. I think it's worth reminding people. One question, so I know you had significant success with infill and expansion drilling in this year. As you look into next year, how is the Wallbridge team balancing resource conversion versus testing new targets?

10:46 It's yet to be determined. We have a pool of funds. Most of the drilling is going to be on Martiniere. We've got some extensions that we need to follow up. Is that resource conversion? It could be. So, yet to be determined. But definitely the focus is on Martinier. Is there an opportunity to make it bigger? Some of these results from last year will probably be outside the upcoming resource model.

11:15 Can we fill the gaps and get into the next update whenever that will be?

11:20 The good news is that the cutoff for the current resource model we're working on includes all of Martinier drilling from last year. The only stuff that's not going to be in Phenelon is phase 2, which is 4 holes. So it's a pretty good cutoff going forward. That makes sense. I'd actually love to talk about those. I know that you saw multiple high grade intercepts at Horsefly, Dragonfly and BL North. Curious how, and I'm not looking for a spoiler of the resource update, but how do these new zones factor into the resource

11:51 update? Well, it's yet to be determined. That's in process. And again, some of those results were outside the current resource model, So they may not be there. But our geo team is working on that and we'll have news on that in the first quarter of 2025. Great. Well, I look forward to seeing you back to talk about that then.

12:14 One question zooming way out. Curious what your view on the macro is for precious metals going into 2025. Some analysts say the bull market isn't over. There are some skeptics. I know this is a bit of crystal ball gazing, so I'm not going to hold you to a specific number, but I'm curious what direction you see the macro going for PMs.

12:33 The market for gold is still very strong. We have a world of uncertainty out there. We have some crises in Russia, Ukraine and in the Middle East. We have a president that's talking about tariffs which will be highly inflationary throughout the world. Those 2 items will be positive for gold. So, you know,

12:58 I believe that, you know, I've read stuff where some predictions are $3,000 gold. That would be wonderful. I would love to see that. However,

13:11 $2,600 gold is still a great price. Sure there is a little bit of inflation out there, but it seems to have simmered down from what it was a couple of years ago for the mining business. Yeah. And it's funny if you think of early this year, anytime I talk to people on panels in January, February 26, 2700, that was a unthinkable number. That was that was almost laughable at the time. So things can change pretty quickly when when markets move on gold. I've been in this business long enough to remember when gold was at 250 dollars an ounce, looking like it was going to 0. Yeah.

13:45 So there you go. Things things things can move. But appreciate that perspective. I know it's I hate to pin people on crystal ball gazing. That's something I like to talk about. I want to get into the emailed questions because there are a lot of questions emailed in from shareholders or interested parties. So I wanted to jump into those. So somebody emailed in asking, why did you decide to do separate resource estimates for Fenelon

14:05 and Martinier? Well, we've always done separate resource estimates and they're consolidated because all the properties are contiguous. So you have a consolidated statement. And sorry about that. Okay. So it's still, the resource estimate is on the detour funnel and gold trend. And then there are subsets for both Fenelon and Martini a and that will be the same way it was done last time. Good. Great. Good to know.

14:34 One person writes in, you know, they say they're happy with the tidying of the board of directors. They like the veterans, Tony as chair. But they're curious. And I do hear this from retail, not just on this company, but quite a bit. What time do we say it's ready to commit and start mining Gold?

14:49 Whether you think you have a mine or not, is their question. Well, we do believe we have, ultimately there will be 2 commercial operations here. We do believe that. And the question is, at what time do you make that decision? I think the key point is, let's get this new PEA looking at a scaled approach done, and then we'll figure out next steps from there. But if you look at traditional permitting is 2 or 3 years. So maybe you're talking, if everything goes according to plan and you can finance saying it, you know, something that's 5 or 6 years out into the future. Right. That makes sense.

15:26 It's just that's always interesting. People are always curious about timing.

15:30 When do you expect the update metallurgy study to be completed and released for March and year? It's imminent. Imminent. Good to hear. Okay. That's always a good answer. Now, this next one, it's a combination of a number of questions that we saw coming on email, but also on the boards. And really it's what is Walbridge going to be doing to increase the stock price or increasing the value of shares going into next year? Well, I think our 2 catalysts next year is,

15:56 the biggest one is the results of the Finland updated PEA and updated tech report filed by the end of March.

16:05 That will draw a line in the sand that right-sizes the project for Walbridge to advance. And 2 is the continued exploration results, particularly on Martigny, because it's looking pretty special here, but you know, it's probably still 2 or 3 years behind Fenelon as far as the amount of drilling. Okay, that makes sense. One question is, has consideration been given to drilling 1 or 2 1500 meter holes of martinière to demonstrate continuity at depth?

16:40 There are some deeper holes at Fenelon that demonstrate continuity at depth, 1 hole. The problem with a 1500 meter hole versus a 500 meter hole is probably, you know, it's not like 1 and a half times, it's like 3 times the cost. With our limited budgets and the fact that we're open in all directions in the top 500 meters, you know, Ultimately, yes, we will do that, but now is not the time. We need to get more knowledge of the upper levels that we're exploring.

17:10 That makes sense. One question, this was also written in over email. Could an NSR be used to advance corporate development? Is there visibility and a path to production? Or is the sale of company in whole or in part the most viable outcome? Well, the last one I cannot answer.

17:26 We're in business to enhance shareholder value. And if somebody along the way taps us on the shoulder and says, you know, we can do a better job than you, here's a premium you can't refuse. You know, that's the way we'll go. We're here to enhance the value of our shareholders.

17:43 As far as NSRs, right now, Fenelon has 4-1% NSR royalties on it. So there's no room for additional royalties on Fenelon. And that is on the Fenelon where the resource is today. The larger Fenelon package has about a 1% royalty on it, but too early if you would try to sell something like that you would get nothing for it. Martiniere has about a 1% royalty on it, but again,

18:12 at the stage it is to sell a royalty on it, You wouldn't get a lot of money for it and you would encumber the property. So it's too early to do that I used to sit on the board of Mavericks a royalty and streaming company. So, you know, it's not the time and You know until you figure out at a PA level at a minimum, you know what you're giving up

18:36 you need to be careful with that. No, that tracks. Somebody actually from the audience asked, who are potential buyers of Walbridge? Obviously, this is one of those questions, It's tricky to answer, but that's something they're throwing at you. You know what, I can't answer that question. I'm sorry. Yeah, no, totally fair enough. One question I got, just jumping back to mine, is what is, if you were to narrow it down to 1 thing you're most excited about for 2025, And what should investors be on the lookout for at Wallbridge? What would your answer to that be? The results of the revised, updated PEA on Fenelon.

19:10 Great. And just as a reminder for those in the crowd, I know we've talked already, what is the timeline for that?

19:16 Timeline is, it's going to be done, dusted, and the tech report disclosed before the end of March. Perfect. Perfect. There were a number of questions. This is a combination of a few questions. Really, Can people look for any insider buying next year? Or are they likely to see that from management or the board of Walbridge? Well, in the last financing we did, we did a flow-through financing in November, 4 or 7 directors participated in it. So it's a good number. And I participated in every financing we've done since I joined the company 5 years ago. I believe in putting your money where your mouth is. I believe in backing the company.

20:03 And there are 3 other directors that have done similar things.

20:10 One question on if there's going to be any work done or any news or updates on other assets outside of the trend that Walbridge currently owns. And if not, if there's a consideration of selling those for additional income. Well, we do have some orphan properties which we're always looking for opportunities. I don't know if everybody, the person remembers the Beshopher property which was a smaller property we had, we entered into an Ebitibi Minerals agreement. We've received their stock over the years, we sold it and that money went into the treasure and was reinvested into Fenelon.

20:47 That property has almost gone full course. It will be 100% owned by Abitibi Minerals next year. And then we have a couple of other orphan properties that are not material, not significant, But there's been a few juniors that have approached on an agreement and we would consider it. Right. Great.

21:09 One question that came in on email is there's been concerns this year from a number of majors of ASIC getting out of control. They mentioned some mid-tiers as well. And they're curious if there is a likelihood of a reduced ASIC because of it being in Quebec or what the plans are to keep ASIC low in your planning studies. Well, again, and that's why, you know, taking it in a step approach is better, you know, to help with that. Yes, there is inflation, but it's not like it was 3 years ago. You know, We think the current inflation is, from our last study, almost 3 years ago, is about 7%. So very manageable, consider the higher gold prices.

21:57 But will all in sustaining costs trend up? Yes. But the margins, you know, your cash margin above all in sustaining costs, which is a non-gap measure, is much more improved. Sure. That's helpful context. Somebody in the chat asks If there's been any findings with regards to suspicious trading, or they describe it as suspicious trading, I imagine they mean short selling. There's been an update or any information about that from your end? Well, what I can tell you is that, you know, we did hire ICP. They provide us input. They run their algorithms to help with some of the high frequency trading, you know, to get the bid-ask spreads tighter. Seems to be working. Our published short position is lower, but a lot of, you know, I'll get calls from individuals that says, I just bought 500,000 shares today and the volume on the TSX is 400,000, somebody covered a naked short.

23:00 And because this happened to me, one time I bought stock in the market and The same thing happening. I went back to my broker and it was part of the trade was on an alternate exchange Which is an in the SX numbers? So yes the stock goes trade on about 5 or 6 different alternate exchanges about 60% of the volumes on the TSX and the OTC but there are other exchanges And unless you see all of the data, it's very difficult to understand what is really happening here. And the immediate conclusion is, well, somebody covered it and they can short.

23:37 Yeah, fair enough. That's good to remember that sometimes you just don't have 100% visibility into what's going on, but I do appreciate that extra context. But it's great, you know, we run the company and it's very hard to understand who owns the stock. And to me, that's that's crazy, but that is the world of capital markets. Yep. That's funny. I'll often get that as a request or people asking, they just don't know who's buying who's selling. It's just modern capital markets. You just don't know sometimes. There's always a layer of opacity that you're not going to be able to get there. So honestly, thank you so much for the update. I think we got through a lot of really good material today. I'll just ask one last thing before we jump, which is, what are you up to for the holidays, Brian?

24:25 Well, first of all, I'd like to wish everybody online the best of the season. I wish you all the success next year and have a safe holiday wherever you're going. I am going to spend some time with my 4 granddaughters or 6 granddaughters up at my cottage, which just so happens to be 45 minutes from my house. So it's a sweet drive north of the city of Toronto. Awesome. Well, Brian, thank you so much. I hope you have a wonderful holiday. Everybody in the chat, thank you