Talisker Resources (TSK | TSKFF) Update | 2026 Bralorne MRE, Mustang Mine Production & Drill Program

0:11 >> All right, good morning. Thanks for joining us everyone. we have an update with Talisker Resources with CEO Terry Harbort. It's been a while since we've had Talisker on a webinar. So we will focus on the MRE, but I'm sure that there's a lot of other news items we could cover as well. I think given we just have 1 hour hard stop at 12:00 p.m. Eastern time. I think we're just going to jump right into Q&A. That said some the session will have forward-looking statements. So if you'd like to know more about those, I'd encourage you to check them out on the company's presentation on the website.

0:49 and yeah, there's Q&A box at the bottom of your screen. If you want to enter any questions, we'll try and cover as many of them as we can. With that out of the way, I'd like to introduce Terry Harbort. Hi Terry. Hi Deborah. thanks for having us back on. It's been a while. as most of our >> Most of our listeners will know we've been fairly busy here over the last couple of months. Yeah, no congrats. you've been putting out a lot of news.

1:15 a fantastic update to the resource. So yeah, why don't we start there? Maybe you can provide a quick overview assuming everyone's read the release hence they're on this webinar. >> >> But yeah, maybe just walk us through what what you're excited about the update and we can >> >> hopefully jump into some audience's questions. Sure. Yeah, look it's I have to congratulate our team. A lot of hard work here really over the last 3 years since we put out our very first mineral resource estimate. so a lot of work, a lot of modeling work, a lot of incorporation of new data, a lot of data validation. so really excellent job from our our team to to put all this together and really to exceed what we thought we were going to come out with. So we sort of expected somewhere in the range of 800,000 to a million ounces.

2:15 and in the end here nearly nearly 1.6 1.7 million ounces added into our books for a total global resource of just under 3.7 million ounces. So very happy with that outcome. We changed how how we how we reported the areas. We really changed it so it's focused on how we going to mine these areas. so we've combined it into the Mustang mine area and the Olympus mine area.

2:49 And a lot of the lion share of the resource total nearly 2.5 million ounces is at Olympus over 700,000 nearly 850,000 at at the Mustang area. So that's that's how we're reporting it now and that's how we intend to to build the mine plan. build the PA and then work towards mining these areas. so some really key highlights here. Only a small amount of measured that we added in here. all at Mustang. Of course where where where we're mining.

3:26 So we're not converting anything to these high levels at Olympus yet. So around about 22,000 ounces but the good grade about 10 grams coming out here about 100,000 ounces at indicated. So about 9 and a half grams average grade there. And that's sort of in line Deborah with with with what we're seeing in our production statistics here going to Ocean Partners, which I'm sure we'll have a a question on later on. So, seeing these good high grades transitioning in in into production grades. and then Olympus about 82,000 oz, a bit over nearly 83 at Olympus in the indicated category.

4:11 Again, with good grades, 8 g, and then about 8 and 1/2 g for the remainder of that 2.43 million oz. So, a very happy with the outcome here. really happy with what the team was able to put together and really it's a big step forward here. We've always had the view that there's potential for plus 5 million oz at Brealaun, and this is a big step towards that that really validates our view that this is a a world-class mining camp.

4:44 So, with a 100% resource growth, and the resource roughly doubling, what were the key geological and technical drivers of the growth? so, it was divided into a a a small amount of new resource drilling, about 30,000 m that we've put into that, and then a large-scale validation of about 38,000 historic drift assays. So, sampled every 50 m, 50-m levels, and then sampled every 2.4 m. So, very high high-quality data. and really a great deal of data that that that came into this. a lot of this was was extensions of known veins, but everyone will see that there's there's there's been a large-scale increase in the total number of veins.

5:32 The original resource covered about 83 veins, 86 veins, I'm sorry. whereas the new resource here, there's over 140 veins. So, gives us a lot of flexibility with mining, a lot of ability to have a lot of working faces. So, a lot of new data come into this space along strike and down dip of of areas that we already knew and already had resource at. And the bulk of the current resource is in the inferred category, mostly at Olympus. Do you plan to work on upgrading these ounces to the measured and indicated category? And what portion of the 105,000 meter drill program is dedicated to the associated infill work?

6:14 Yes, well, look, out of 105, really the vast majority of that, around 83, 84,000 m will go into resource conversion and really derisking our our medium to long-term mine plan. so, that's broken up, almost evenly between Mustang, Breylon West, and Olympus. So, about 30,000 33,000 m will go into Mustang. a lot of that will be following some of these high-grade ore shoots that we're currently mining, particularly the BK that we hit there on the on the 1045 elevation level.

6:49 as we follow that down to the 1030, 1015, and 1098 and and below that. So, following those very high-grade shoots down that we're currently mining. about 25,000 m will will go into Breylon West. we're almost at Breylon West. listeners might recall that we were developing about a 600-m decline across the Breylon West. We've got about 10 days left until we're there and we'll be Carl and his team will be putting a rig there to drill that 25,000 m into Breylon West from from underground there. So, a lot of exciting things, and and that sort of bringing the the 27 and 28 mineable areas into into M&I category.

7:34 and then there's a further 25,000 which will really be the first conversion drilling at at at Olympus. this stage, we look to be conducting that that first trench of that from surface and that'll be really supporting our first production that we intend there across at Olympus. So, really the vast majority of what we're drilling 83,000 m will be resource conversion bringing that inferred into M&I and really supporting our upcoming mine plan, upcoming long-term mine plan that'll be part of the PEA.

8:11 Let's talk about the PEA a little bit. So, with the larger resource base, do you have a rough sense of the scope for the upcoming PEA and which mine or mines would be included? Yes, what we're we're looking at at really building out a long-term mine plan and our planning engineers are working on this right now. Of course, with the extra resource, there is a little bit more work to do. That's a good problem to have having to do a bigger mine plan than we originally intended. They have all the block models and wireframes now from from SGS.

8:47 So, they're working towards that mine plan and then that'll of course be validated by SGS to go into into the PEA. So, it'll be squarely focused here on on Mustang including the Mustang areas and the new Breylon West area and on the Olympus area itself. We expect to see somewhere between 10 to 15 year mine life for for each of those mines. It won't include anything at Congress. We're still in the early drill phases of there about 12,000 m being drilled there this year. But we're hopeful that that if we do an update in a year or two's time, it'll include that that area at Congress in a in an updated mine plan.

9:33 And you used to cut off grade set I think 3200 dollars per ounce for gold. Do current spot gold prices well in excess of this benchmark affect your day-to-day mine planning? no, not really. Really, we we we have a fairly fixed operational operational cut off. We have our short-term mine plan well planned out. Really, there isn't a lot of variability in that mine plan. So, we generally keep that fixed.

10:08 If you have too much variability in the short-term mine plan, then you're wasting a lot of time on development, a lot of time on scheduling. So, we try to keep that scheduling fixed. Obviously, it impacts on our on our bottom line. There's a pretty high margin compared to what we're really setting that gold price that. I think it's prudent to take a conservative approach. We've always taken a conservative approach. I mean, if you know, we end up making more money than we expect, I think that that's a pretty good outcome. There has been a lot of volatility in the gold price. We've certainly with the geopolitical instability over the last 3 months, you know, we've seen 25% change in the gold price. I'm hopeful that that won't occur again, but but if if there is another thousand-dollar drop in the gold price, we're still in a very strong position.

11:01 Mhm. And then, how does the operating mistake mine guide your vision for the wider Braelorne district, especially given the ounce growth since 2023? >> >> Like what do you envision this camp looking like over the next few years? I think it it won't change a great deal from what our plan is, and that is a steady sustained ramp-up. Systematic conversion of a resource, systematic development of access both 4x4 ramp access and 3x3 in vein or horizontal and lateral development. You know, really I think that's that's been well planned out and successfully executed at Mustang.

11:45 We won't be changing the mining method on whole. It'll be long hole longitudinal retreat. We we we might look at increased rates of lateral development. We're bringing in new equipment double boom jumbos that help us with the cycle time. We've also got some trade-off work that we'll do with the ore sorter looking at are we able to mine faster, wider, and and ore sort the the dilution out of that. So, we're not at that stage yet. That's something that we'll be looking at after the implementation of the ore sorter.

12:21 But, it's all things that help with efficiency and and mining rate. So, really I think with that mining's been very successful now. We're seeing very good grades in our material that we're moving sort of between the 8 and and 10 and 1/2 g per ton. So, I think the team's doing a good job. They should just keep doing a good job. Got it. Okay, I'm going to flip over to some audience questions cuz I can't hold the pack all day.

12:48 You now have 3.15 million oz inferred. What is the realistic conversion target into indicated before shortly after the PEA? I think you kind of answered that. And also, you reaffirmed 500 tons per day and September PEA. What is today the single biggest execution risk that could still delay either milestone? It's the first question if you want to read it yourself, Terry, as you answer it. Sure. So, so the first one was What's the realistic conversion target into indicated before shortly after the PEA?

13:25 Oh, it it a little bit hard to answer that at at at at this stage. Historically in in orogenic deposits it can be anywhere from from from 60 to 70%. And I I expect Breylor will be will be probably quite similar to that. what we see in general when when there's conversion is that the total number of ounces may not change a great deal. often the modeling geostatistical modeling underestimates the gold just simply because we can't have enough sample sample density in there to be able to come that out.

14:02 Usually on conversion you'll you'll lose lose some state stopes and pick up some stopes along the way. but I I I think you know probably a 60 to 70% is is is a realistic path and maybe we'll do better than that. But I think that's that's probably a good realistic view transitioning into a minable into a minable scenario. And sorry, the other question was With 500 tons per day in September PEA, what's the single biggest execution risk that could delay either milestone? Look, I don't think there's any real execution risk. You know, it's just executing the pathway. I think we we we have the development underway and we're working under underneath the the 1045.

14:46 Some of the delay we may have is not execution risk, it's permitting risk. So this is is relative to changing our permit application from a 500 ton a day up to a 750 ton a day incorporating with that initial works at at Olympus. So that will likely cause a delay here we think of three or four months, but we think that's a very good step to take because it allows us to increase in the medium term our production rate and also open up that that that new area which gives us a lot more working faces that will actually decrease greatly what our any production risk is when we move into mining. So, we think that's a good good change. I think that application will be going in probably tomorrow towards the end of this week and I think that's that's a a very good change for us to increase that rate coming along. And then, please update the work you are doing to determine the extent of the high-grade BK vein and if you're planning to continue mining this area the rest of the year. We've already drilled drilled that area and we continuing to drill it below the 980 elevation. So, longer-term shareholders might recall that that that that the top of the mine is about at the 11 1130 level above sea level and and we're currently working down towards that 980 level. So, Carl and his team on the expiration side are drilling below that now and they'll drill all that into indicated.

16:21 as everyone's aware, we also do lateral development. So, that's every 15 m and then we channel sample every 2.4 m. So, every blast we we we're doing a a channel sample along there and that that really is the ultimate sampling that we do prior to a a mine or don't mine a decision. So, the press release that that came out I think in in April that that first defined that was generally based on that channel sampling. So, that channel sampling gets fed back into the short-term block model and to the short-term mine plan. Really, that that looks like a fairly consistent shoot that we've hit on multiple levels.

17:04 We see no reason at this stage why that that high-grade ore shoot doesn't continue and it's a real focus for us. Many listeners might know that we we're looking at to taking our first stop over at over Braelon West in in third quarter, but we're flexing a bit here to really move that development back to the Mustang area and follow that high grade or shoot because it's it's it's it's exceptional. So, we might as well take advantage of it while we're there. Okay.

17:36 And then with the new lower grade discovery, can you describe how you plan to make this economic given that is well below the cutoff grade? Also, what is your initial estimate of how large this low grade resource is? Oh, look. I'll just attempt at the excitement there on on the Braelon deeps. You know, we're only we're back in 2024 we're only or 2022 sorry, we're only able to complete three drill holes through that area developing a a section and a section sure it it defined a kilometer of mineralization. So, it's well worth following up.

18:14 But, what we have to do the right work. We've got to be scientific about it. So, the exploration team here they're doing about 250 m step outs on either side of that that first section. So, that will will define the footprint. And then if we get through the gate there of yes, it is it is continuous across sort of 500 or 600 m, then we'll come back and and look to drill that into an inferred and then into an indicated category.

18:44 Relative to the cutoff, so we envisage that we'd mining be mining that with a totally different mining method. So, we wouldn't be looking at narrow vein long hole stoping. We'd be looking at a more a bulk tonnage method something along the lines of sublevel stoping where you where you develop levels and you and you backfill material and and you mine columns out. So, it's more a bulk a bulk tonnage style of mineralization. So, we did have a significantly lower cutoff than than than what we're mining now.

19:18 So, I just want to temper everyone's excitement. We have to do the work. So, we're not we don't have a high level of confidence that that that can even be a deposit. And we and we've got a low level that that could be a mineable deposit. But, it's worth doing the testing because if it's got a 5 or 600 m strike length, we're looking at about a probably a 60 or 70 m width for that area.

19:42 It it it could be something that's in the in the scale of a porphyry. So, we're we're we're excited about it. We've been waiting a long time to get back and do this drilling. However, we have to go through the gates. We've got to do the right work and try and spend the minimum amount we can to to see if there's a big win there or not. What production profile should investors reasonably expect in the upcoming PEA?

20:07 Specifically, what do you believe could be achievable for peak annual gold production and total life of mine production? It's probably too forward-looking. Yeah, it it it is a bit forward-looking and I you know, I've I've openly spoke about where we think it can run to. And I think what I'll quote is is our corporate vision is that we we have a vision of achieving that 200,000 oz annual annual production. Now, that's a corporate vision. It'll depend on the long-term planning engineers as to whether we can achieve that. But, certainly as CEO, that's what I'd like to achieve and that's what our guys are working towards.

20:45 And then, how sensitive do you believe the future operation is to changes in diesel and oil prices? At the current gold price and and our current production levels, it it isn't very sensitive at all. It's only really a small percentage of it if we were generating all of our energy out of diesel and we were flying in flying in our crews and and flying in equipment and moving drill rigs around in helicopters. Sure, it would have a massive impact, but you know, for for us it I don't think it really has has a big impact. But the general petrol price has gone up. We we do have fluctuations in that factored into our into our trucking agreements.

21:30 So we you know, we've already got that that sensitivity factored into our economics. So at this stage and sort of sub $150 a barrel it it it it doesn't really have a long-term impact considering the margin that we have with the current gold price. Of course, if the gold price comes back to 28 2500, sure it's it's going to have an impact, but I don't think any of us see that in the short-term. So certainly manageable at this stage.

21:58 Is there an opportunity to reduce haulage cost through rail utilization near Lillooet? Yes, yeah, absolutely there is. It all comes down to economies of scale and and and and the transition from from open container shipment which we're utilizing now into Rotainer style equipment. So there is an upfront capex you're required to to purchase or lease these these Rotainers. And and certainly at increased economies of scale it is a much better scenario. So that that that is something that that that Richard and Andreas our our mine management and financial team have certainly been been looking into and and we know where those thresholds are when we where we prefer to transition across.

22:46 So it is something that we're seriously looking at through the long-term not just here as as we're doing in DSO but also long-term as as we potentially are moving concentrators well in the future. And when will you be able to indicate expected production levels? I'm assuming that's with the PEA. Yeah, it'll be with the PEA. Yeah. In September. and then another question, what is the expected gold production in '26 through '28 and how much would be in your own mill?

23:17 Also, is there any silver in the ore? so look at on the guidance of been a bit loose with guidance and that's probably not good. As I'll I'll get a call from the regulators. So what I'd say is please just wait for the PEA to come out. If you're willing to give me a call, I can I I can chat about what the range of expectations we have. I've got no no problem with that. But really we can define that very clearly once the once the PEA is out. Sorry, what was the second half of that that question? How much would be in your own mill?

23:48 so we we won't expect our own mill to be in place until 2029. So '27 and '28 it'll all be through through the DSO strategy. Okay. And then is there any silver in the ore? Yeah, there is. We don't really model it as a resource. It's it's sort of an additional an additional payment we get beer money if you like. The ratio of gold to silver can vary sort of between one to one to even lower than that. So it's it's not really a large scale economic component of the deposit.

24:24 But we we do receive some extra payments of it. But it's you know, it's economic play it's probably about a a 200th of of the gold value. And when can we expect the revised permits and how many tons per day will this provide for and is that number pre or post or sorting? so our expectation from guidance from the government is we'll have the 750 ton per day permit either in fourth quarter of this year or at But case if we if we've got to readjust some things in in early in in Q1 next year, and and this will be all produced. So, this will be pre a pre-ore sorting. Oh, sorry. A a post-ore sorting amount. So, we will likely can produce mine more than that and ore sort it to a 750 maximum.

25:19 Okay. And then, some other questions that were sent in previously. what is the latest timeline for the ore sorter installation and commissioning? We're well underway on that now. The ore sorters have been ordered. the facility itself has been ordered. We're the team's finalizing some of the detailed engineering. and what what I mean by detailed engineering is integration of the automated electric system. So, obviously with with conveyors and different systems and crushing units, if something stops, everything else has got to shut off in sequence and start up in sequence.

25:58 So, there's there's quite a bit of electrical engineering design that that goes into that. we expect to have that finalized here within the next week or two. The project engineers and managers are actually in will be in Germany next week doing the preliminary testing on the sorter. so, basically seeing some of our material go through, making sure everything works. and then, that'll be starting to ship and we expect that probably it'll arrive on site probably June June or July. we'll be kicking off here in June the earthworks and and construction of the facility to to go in.

26:42 We have received the the permit from the Department of Mines back in March. We expect the completion of it sort of September-October, so relatively on track to to how we saw that. we have just completed some more testing looking at increasing the recoveries. this was over at the Saskatchewan testing facility. so the guys will likely have that compiled into compiled into good statistics here and we'll we'll we'll talk about that at a later stage with market, but every everything seems to be running on track at this stage. we haven't seen any delays with the geopolitical turmoil, so that's all all running quite well.

27:24 And what grade up lift in waste rejection rates are you seeing in the ongoing tests? And how do you think this will impact trucking milling economics and overall all in sustaining costs? In the tests that we've completed up to date across across the whole testing that we've done we can see a range of between 30 to 50% of of of waste reduction. so that has a direct impact at those same levels into our trucking and our trucking cost.

27:57 you know, it wouldn't be exactly 30 to 50 because there's always overhead sitting on top of that, but it certainly reduced that that level of material. So on a per ton basis we're expecting to see those levels. The increasing grade again in in the primary test we we saw sort of 80 to 100% you know, we welcome to take a range of of 50 to 100% if you like. so we're likely to see our grade go from 8 to 10 g.

28:29 we hope anywhere up to sort of you know, between 13 and 19 g per ton going out the door. I think that's a a reasonable test to come. we might get some more efficiencies in that. we're looking here at an an additional XRT system which will likely run first and then the waste will be rerun through the laser and another laser base system. and that's what we're looking at there is increasing their their recoveries, so bringing in lower grade material. so all in all, you know, it's it it has a very good impact on our economics, particularly while we're trucking. but important also to focus on on the long-term impact. it means that we can have a smaller mill, smaller energy requirements, and and be a lot more effective in our mining rate. so we can mine a lot faster with without being so so delicate and precise. and any overbreak or any inclusion of waste material into the dilution factor, we can manage that with ore sorting. So really great technology.

29:34 How has the Bramfa progressed since Q1, especially with the new levels now online? so in our in our Q Q1 results, I think everyone would have noticed there that we idled back our our initial initial production. currently permitted for 175 tons per day. Our average sort of in that first quarter was less than half of that at about 75-80 tons per day. and the main reason for that was conservatism and and and caution until we had the end-to-end logistics lined up to to move the material to ocean partners. so we'll be looking at accelerating that now as everyone's seen in our recent press releases, we've got that end-to-end logistics chain completed.

30:24 congratulations to the logistics team and the mining team for getting that all sorted. and now we can look to to crank that up. So we've already got stockpiles ready to go. we moved our first material yesterday down to the wharf down down to the Pembina facility down there. so now it's just the staging. We we We move material, we liberate space, we we take space from our mining stockpiles. so, we just keep moving along and and production. So, we'll likely be increasing our production rate running through there. with the ore sorter coming online, we'll be looking to increase production again. We'll be sort of hitting at 250, 300, 350 production rate.

31:08 and then with a view when the 750 permit comes in towards the end of the year, early next year, we'll just increase that up then, stage it up to 500, and then up to 750. and then, considering that's all produced, we'll be able to continue beyond that. depending on the on the mass pull with the ore sorter up to a rate to 1,000 tons per day, '27 and '28. Got it. Then, I have a few corporate questions.

31:39 >> Mhm. So, the recent capital raise, how many years runway from an internal cash burn forecast does that provide Talisker? I guess that question's asking do we think we need to go back to market for more money? >> I think that's what they're asking, yeah. >> Right, yeah. At at at this stage, no, we don't. you know, the big the big benefit of that capital coming in, you know, we're always we're running a bootstrap model and and using our revenue and cash flow to go back into the project. the the big benefit of that capital coming in is it helps us to de-risk what we're attempting to do. So, putting nearly 85,000 m into resource conversion really really really de-risks our mine plan. it means that we can also do a significant amount of development. We can look at opening up Olympus. so, really that capital was and and really driven by our major shareholders to de-risk the project. So, that's really what we're focused on now.

32:39 Assuming all goes well with the gold price, all goes well with our drill conversion, our mine planning, you know, we're really we're we're we're in a pretty good place. As a junior miner, I I can never say no we we we won't need any money or we wouldn't take any more money cuz money helps us de-risk and helps us go faster, but we always have to look at what the benefit of of that is. And you know, really we've got a 300 something million market cap company in Braelorne itself, we've we've invested about 80 million dollars. So, I think what needs to be clear to investors is when we take capital, we deploy it very well, very frugal, and we get a very good result out of that. And how average resource dollar per ounce development rates are around 23, which is about half the industry average. So, we we think long and hard about taking capital. We we know the issue with dilution, but we also know what we can provide with that.

33:38 So, it's well thought out and it has a very good result. You know, we're we're certainly well beyond three times the value of capital invested into this project, and I think that's been a very good outcome. You know, we haven't invested a billion dollars to be worth a billion dollars. We've invested under 100 million dollars to be worth 300 million dollars. Mhm. So, in terms of like after the PEA, if it supports a larger scale operation and you need to fund it, do you have a preference like in terms of internal cash flow ramp, strategic strategic partner, royalty debt, or more equity issuance, or you'll deal with it then?

34:19 Oh, look at it's really hard to say at this stage because it it it depends on available capital, depends on the market. What I can probably be clear about is it wouldn't be a royalty. You know, we we we've used royalty sales to to get to this stage, and and now we're looking at the other side of that or or how do we how do we buy back or how do we reduce those royalties? we're moving to a position now as a consistent producer that it opens up a lot more debt availability to us.

34:46 so our preferred rate there is is is probably to have a have a look at debt as opposed to taking equity. but but often often when these things are done they're they're done as a combination of multiple instruments. so there there might be a component of equity, there might be a component of of debt, there might there might be a component of of off-take. you know, everyone's aware that I you know, I like I like things like off-take, I like I like things like royalties with buybacks. They're things that can bring capital forward and then we can we can remove them later on without having having dilution at that at the front equity level because we we all know what happens when we raise capital through equity and and that is that our our market cap gets spread out and divided by the number of shares out. So it it does have that impact and it's very painful and I get a lot of nasty calls from shareholders who think we can all work magic without capital.

35:43 but the reality is I think we'll we'll we'll cross that bridge when we get there. We've certainly done what we can with what we have and I'd like to continue on that on that pathway. It has to have a a very good outcome or or a very good result if we if we're if we're going to consider equity dilution because it's a lot of hard work to get share prices up and to build market caps. And then I had a couple of questions just clarifying permitting timeline.

36:10 so 750 tons per day was mentioned for this Q4. What about 500 tons per day? So we we've changed the 500 ton per day permit to to the 750 ton per day permit. So we've redone that at a larger scale on the recommendations of the government. Okay. And then you said moving to 2,000 tons per day possibly in 2027, will that require another permit modification? No. No, so we'll only be doing two more rate changes.

36:42 and and and this first one's at the 750 ton per day. The main reason we've gone to that 750 ton per day is because beyond 750 is is a trigger for our IBA. we we're looking at starting negotiating the IBA now with our First Nation partners, but it generally takes some time. so, we'd like to have that coming in with our larger scale permit, which will include a large scale rate increase. at at at at this stage we we we don't know what that is until we've completed the mine plan and the PA. but it's probably to be somewhere in the range of of of 2 to 3,000 tons per day.

37:17 All that'll be done together. So, we'll do a rate increase, the the mill permit, the change of the tailings management plan from wet tails to dry stack, an increase in in the waste dump, and an update of all the management plan. So, so that'll really come online with the large scale permit. that's the the timeline for that is is laid out in our corporate presentation. I think that's still suitable. We expect to have that submitted by the end of this year, assuming we can get all the engineering done.

37:49 and then likely to have that end of '28 and being able to start construction and ramp up to those high levels in 2029. Got it. I believe you're at the Canaccord conference right now. Are you talking to research analysts and looking for coverage for the company? Yes, look, we're always reviewing research analysts and and and partnerships. we've been talking to of course the analyst here from from Canaccord. One of the reasons we're here. and also talking to the the groups out of Bentham.

38:29 So we're we're we're we're building our future relationships what going forward. We do have coverage right now with RedCloud, which will be continuing. And from the European side with with HG Capital. So I think that's looking really good, starting to get a concerted view on what our valuation is. And of course that'll all be supported by some BA comes out here in September, October. Are you looking at any any M&A opportunities or anything you can discuss?

39:01 look, I can just give the same broad brush that I've always given when asked that point. We're always looking for good projects. you know, things that can be accretive to the company. That things that we can either park if we want to explore them later or things that we can fast track into production that can improve our our revenue and and cash flow. So at the team, we're always looking at that. We've always got a hit list. We're a little bit constrained with with with what we can take simply because of our market capitalization.

39:33 If if we do all share deals and there's a dilution factor involved in that. So it has to have a have a good pathway. It has to be what we see as a good project. Something such as as Breelong where we can develop a camp. Something that's been forgotten or undervalued that our technical team can can unlock and bring an incredible amount of value to. So I think that's really all I can say. We're always looking at M&A.

39:58 We're looking at ways that we can grow the company, but they always always need to be evaluated at face value. And and have a long-term vision of well, how we're going to execute this with the team we have, with the capital that we have. What are of permitting timelines look like? What's the cost of of drilling some of these things, and and how much how much can we get done with with the resources that we have.

40:26 So, the simple answer yes, we're we're always looking at M&A activities. It's a great way to take your company to the next level. Certainly, we we can see in the marketplace that companies that accrete have have larger share price increases because they're accreting and having multiple producing assets help help helps to de-risk. So, we we we we aren't active at at anything at this stage, but it's always something that we keep our eyes out for either on the acquisition side on the merger side or from our side if a very good deal comes to that then we we we'd always be open to being taken out, but it's got to be a very good deal for all our shareholders.

41:08 And then switching gears to talk a little bit about the mining and the shipping. So, of the 2,675 oz sold year-to-date, roughly 70% came from DSO and 30% from concentrate. What drives that split and do you expect that ratio to shift as operations mature? Oh, yes. So, all of the concentrate was was really just hangover hangover milling this year at at Nicola. So, we we won't see any more concentrate concentrate produced from now on really until we have our own mill or until we go to another toll milling scenario, which I don't foresee at this stage.

41:45 So, really from now on everything will be DSO direct shipping. Okay. And then completing the updated agreements along full chain from Mustang mine to Ocean Partners. With these now in place, do you expect an impact to the production numbers? I was this a deep bottling neck a deep bottlenecking step for the company? Yes, yeah it was. So, we we had had stockpile underground. We have stockpile at surface. We have have stockpile at Lillooet. at at Lillooet, it needs to be covered and and secured. So, basically warehouse door material. So, we we we just can't stockpile 50,000 tons there.

42:29 we need to be able to move that, down to down to the port facility. the the port facility we stockpile up to 10,000 tons. Each shipment is 10,000 tons. So, we stockpile that down there. so we had to fill that pipeline first. and that's what we've done here in the first, sort of 3 to 4 months. Fill that pipeline pipeline. And now it's really a really a steady state. As we truck things down, load them on the ship, that opens up space at Lillooet. we truck from the mine, that opens up space underground, and then we increase our mining rate. So, it's just, staging staging this along now in the completed logistics chain, continuing to keep that pipeline, as full as we can.

43:10 Okay. And with 3,000 tons of mineralized material at Lillooet and the mine, how do you think about optimizing the material flow from mining to crushing and shipping? And is the current stockpile level where you want it to be? look, I think it's pretty optimized, right now. you know, the mine is going very well. You know, I think that, the stockpile at Lillooet it's it's around about 10 g. we're expecting the material to come in. We're we're we're you know, we'll be sitting between 8 to 10 g. so I think that that side of it's quite optimized.

43:44 we're utilizing larger trucks from Lillooet down to the port. So, they're 50-ton trucks. you know, most that's on major highway, so that can that can move fairly fast. we did did did do the campaign campaign crushing. so that the crushing will be likely every 2 weeks. So, we'll we'll we'll have probably a couple of thousand tons. We'll run that through the crusher, and then then that'll start to move down. so we we we we we do build with a thing called a holding certificate, so that's signed off at at Lillooet. so the the the the link from Lillooet to to the port in Vancouver isn't really the critical link. We that's simply just moving dirt. We've already invoiced and been paid by the time it leaves the Lillooet site.

44:31 One last question from me just on revenue recognition. so about 2.3 million of the 12.7 million in estimated net proceeds has been recorded as deferred revenue. Can you help us understand what final settlement means under the Ocean Partners agreement and what the typical timeline looks like from shipment to current revenue? Yeah, so we're we we're paid for 90% of the gold in that in the in that provisional payment. and and then there's an an an additional 10% that's that's trued up using minimums or over unders as they call them. So that's whether the final amounts of gold are over what we invoiced for or under what we invoiced for. so we we do a very high sampling rate. We're sampling about every 20 tons. so we're we're we're we're we're pretty confident in in what we think the the average grade is in the totally contained gold is. So that that other 2.3 million is is listed as a deferred revenue. so we haven't received that. That's expected to come in in the true up period, which is four months four months down the road.

45:43 So we we have it on the books, but we we don't have the money in the bank, if you like. Okay, perfect. that's all the questions I have. I I guess maybe just given the amount of Catalyst and drilling and PEA, maybe you could spell out some of the milestones that investors should be watching for over the next 6 months, cuz it sounds like it's going to be a very active and newsy period. yes, but look we'll we'll have we'll have a steady stream of of of drill results coming out. I'll I'll just caution everyone we we we don't want to flood your email boxes with with single hole news releases. So, they'll these will be compiled news releases just cuz we're doing you know, such a big volume. This is one of the largest drill programs underway here in BC. so, we we we don't want to be putting out two press releases every week. we we want to have things compiled well understood. So, we'll be looking probably big press releases sort of every 6 weeks coming out that are that are dealing with each of those areas as they're coming out. for those who have interest in our all shoots and underground, again, we'll be looking at those same sort of time frames that'll be showing those channel samples from our underground sampling and underground development. but really gives everyone a very good indication of of the grades that that we expect to see coming out of our stokes.

47:02 So, they'll be they'll be coming out regularly. on on the bigger scale of things, we we we'll be certainly major catalyst with the all sort of coming in. We're pretty excited about that. we're almost at the point of of starting all that construction. things are starting to turn up at site. so, a lot of work for the project crews. they've got to move some facilities and build that facility, get that fully implemented. and then we can commission do the testing work and get that fully operational. So, we're pretty excited about that. but really the the the biggest catalyst coming out here is is is the PEA. you know, this is really the the external validation of exactly what we're doing, of our mine plan.

47:48 an extended scope here because we we in in increased the resource from a significant amount from what we're expecting. So, there's some more mine planning, more shedding to be done. But that that's looking very good and looking on track here in September, October. And then if all our submissions go well, seeing the 750 ton per day mine mine permit which we're expecting towards the end of this year or early next year with the work. So, really a lot of catalysts coming down the pipe.

48:21 And hopefully some some really interesting exploration ones. Our first drilling here up at Congress. We're quite excited about being able to drill up there. And then perhaps at Breylon sorry at at Pioneer Deeps as well to be able to test out that that initial discovery there and and see if that's got legs to become a significant deposit for us. Oh, and the final one is producing gold and cash flow. I nearly forgot about that. That'll be coming out coming out fairly regularly. We've got that supply chain fully up fully functional.

48:56 So, we'll be invoicing here on a regular basis and seeing revenue coming in. That's great, Terry. It sounds like you are a busy man. So, thank you for taking the time to to walk us through recent news, the MRE which is super exciting. Looking forward to seeing those drill results in the PEA and continue cash flow. Thank you to the audience for your questions. If you have any additional ones, feel free to reach out. I'll get those answered for you. Or if you want a one-on-one, also feel free to reach out. And with that, Terry, good luck today in your meetings. Hope you have success and thanks everyone for participating.

49:36 Thanks very much. All right. >> >> Mhm.