This is an automatically generated transcript. Denver Gold Group cannot accept responsibility for mistakes, errors, omissions, or any action taken in reliance thereon. Use of this transcript is governed by Denver Gold Group’s Terms of Use.

Like to invite to the stage. Benoit Lasalle. President and Ceo Ben Wa was appointed President CEO via gold and silver in April 2020. Bringing with him over 25 years experience, notably Mr Lasalle founded Canadian based Seho, which grew from a junior explorer to a 250,000 ounce per year producer in West Africa and also established the Seho Foundation in 2008 to support local communities. Welcome. Thank you, Don. Thank you to the Denver conference for inviting us. Thank you all of you for staying at such a late time of the day. I have a very interesting story because we're at the first inning of mining in Morocco outside of government involvement. And that is extremely important. Don mentioned that we created Se Fo in 1995 we went into Burkina faso and we obtained permit number three, up to permit number 21. And we discovered the Hyundai Belt and we took our market cap from 10 million to 3.5 billion. We build four mines became a up to 450,000 ounce producer. And of course, then there were issues of security in the country, things got a bit difficult and we ended up selling some fo to endeavor for 1.6 billion. But it was a great journey. And as we ended this journey, well, we got involved in this company called I and I will tell you why it's very similar because you're at the very beginning of discoveries in Morocco forward looking statement. You're familiar, we we will be using some forward looking statement. What's great about Morocco is you're in the Atlas Mountain 2000 m. There's nobody around, there are no trees, there's no issue. You're the, it's extremely easy to operate the ESG approach. There is extremely easy and very fast to put together. And you have like, it's, it's a candy store. Geology is that surface and all that geology was discovered 2000 years ago by the Roman. That's where, you know, when they came i into the Mediterranean, they went to Spain as we all know. And they also went to Morocco and they were, they have, they had mines there. Our mine, the first one that we're gonna talk about is Gun. There was discovered 2000 years ago. So this just quickly why? Because a lot of people don't know Morocco, it's complicated. So what we have as a management team is a se fo 2.0 team and people from O CPO CP is the largest phosphate producer in the world. 20,000 employees. 26,026 mines and Mustafa Wafi, who was a local president was the coo of OCP. So we have a very strong team, very strong board and why I'm showing it to you right now at the beginning is just, it has a very special situation at the board. We control 47% of this company though, it has a 2.3 billion market cap. We do control 47%. Our history. This company was started in 2010. Really when Moroccan assets were turned into a a we were not involved. We were running se four at the time, we actually had put bids in to buy those assets, but they were sold to a gentleman. He rolled them into a and in 2020 after not really doing any work the way we would do work, he was, you know, asked by the board to leave. We came in that MFO 2.0 team and, and the OCP team and we started developing the assets. So very, very interesting company, extremely strong balance sheet. We have 100 million in the bank. We have, as I mentioned to you, Strong Register with 47% of the shares within the board, 30% in institution, 20% in retail. And because we are in Morocco, we qualified for an ESG loan which is costing us around 8%. And it's, it's a soft loan from the European Development Bank. So we did not borrow from, you know, the regular funds we borrowed from Ebrd at a very low coupon with very low condition. And today we've borrowed from them 100 million and they will be there for us on any other projects that we want to develop. A is a pure, pure play silver because Morocco is something very unique. The mines are pure silver. The one, the gunder mine that we have is pure native silver mine. So when you look at all the other companies, they always have, you know, base metal gold and because the geology is polymetallic, we are pure silver. Morocco quickly people were saying best jurisdiction. Absolutely. One of the best in the world to operate. Permitting is a matter of weeks or months, access to energy, access to internet, access to water and people is very easy. The growth rate of the GDP is 4.6%. They are ready to work, they want to work and the mining code is extremely positive for us and there's no view on changing that. So extremely good place to operate. Royalty rates. 3% doesn't change tax rates, 32% no free carried interest depreciation on your Capex, extremely competitive mining code and jurisdiction. But what's most important is we are the first guys in. If I told you, you want to come with us 1950 we're going to the Carlin trend. I think there could be some good deposits there or we're going to the Cadillac break in Quebec, you know, that's discovered 300 million ounces. The, the, the line, the black line that you see there is 1600 kilometer long. It is a geological fault. 65% of it has never been walked and we're finding or gold, copper, silver at surface. So we are after state owned enterprise, we are the largest and only player in the country. We currently have 600 square kilometers of ground on that belt and we expect to be close to 2000 by year end. So it's like going to Fifth Avenue when nobody is interested in real estate, we're taking everything that is available that we believe has potential because we're growing our footprint. Now. We just did a quick spin out at the beginning of last week, we've created a gold company. It's private, we'll come back to that in the future, but it's, it's it's quite interesting, I'll move to the discovery. So, so Aya is an exploration company. We have 16 drills turning we have 55 G Os and we spend 35 million a year in exploration. We are an exploration company that has positive cash flow that doesn't need to come to market that is fully funded. But the real story is exploration. And since we took over, we multiplied our ounces by 10 and our discovery cost is 10 cents per ounce of silver. That's our discovery cost So today we're at 450 million ounces of silver and silver equivalent. And the discovery cost is 10 cents and that will continue and I'll show you why because we have made the discoveries. We're not hoping to make a discovery. We've made a discovery and grade. Look at Zunder in the top 50 hits of our industry. Gunder has got 15 of the top 50 you see 21 m of 4000 g per ton. So this is not a vein system. This is a stock work system. It's a loaf of bread and it's well mineralized. We're never outside of mineralization. We're always hitting mineralization. So we of course, we did a resource update and then we decided to that we would build a third plant. So production has been steady. We it's a small operation at the right now, but it's gonna quadruple, triple or quadruple next year as the third plant gets into production. But you know, very, very good, you know, recoveries, plan availability, very good cost because the other important thing in Morocco is your cost is one third of what you see anywhere else. One third may be less but one third is the maximum on construction on people on drilling on development. It is one third. So we decided to build a third plant that and in that third plant, we priced it in Canada. It was gonna be between four and 500 million. We did it in Morocco for 140 million. Same plant plant will have a cash cost of 750 an ASIC of 950. A little bit of inflation recently on on consumable, maybe we will be at 10, 10.5, but low quartile on cost, beautiful construction and look no trees, no bushes, no snakes, nothing you start building and you can build very, very quickly and we are, we will be ready in about two months to get into ramp up. And as we will, you know, get into commercial production in Q one of next year. So we're very well advanced and it's, it's something that we've done in 14 months. The other interesting thing in Morocco, the green, the, the grid is green. So we are hooked to the grid 15 megawatt green solar and wind and we are, you know, we have a 20 year PP a seven cents and it's green. So our CO2 emission is really coming down scope two emission because of the grid. But the reason you are here today and you're with us as shareholders is about the exploration. I mean, as I mentioned to you, we're drilling as a company this year. We're going to be drilling 160,000 m this year. So John Brzezinski was the king of drilling before and, and now I think we are close to him with that kind of drilling and it is extremely profitable drilling because we're drilling known structures. And so we have, we're drilling 100 and 20,000 m at our boomed Zin project and we're drilling 40,000 m at Zgunda. So what I mentioned to you, this is our first deposit. You see, it's 1.4 kilometers long. It's 20 m thick, 700 m deep to the granite. And that when we arrived, they understood 2% of that. We've been drilling for the past years and we've grown the resource to, you know, 90 million ounces and we keep drilling and that's where we hit these channels or cathedrals where we mine 2 3 4000 g. It's not all like that, but it's extremely rich and it's native silver. There's nothing else and, and I'll go back one minute, you know, we all talk about the greatest place, the greatest mine, you know, where's the greatest silver mine in the world? It's in Morocco. Iit that you see right there in Black. Iit is the mine that's owned by the royal family. They've produced 400 million ounces of silver, pure silver, 5 million a year for 50 years or that they've been in production and they went more than 5 million per year, pure native silver. This geology is absolutely phenomenal. Who supplies Cobalt to BMW Morocco, who supplies, you know, phosphate to the world. Morocco who supplies by right to the, to the drilling world Morocco. It is a mining country but nobody was able to operate there for many years except now it's open for business. So this is our first project and the beauty of it today is we, we, we're by ourselves. So we have 400 square kilometers of that geology that has received the mineralization 2035 million years ago. And, and we are drilling, you know, side structures, you know, that are not too far away. And, and we have the main structure that is giving us an 11 year mine life of a production of 7 to 8 million ounces a year. Our targets to grow this production to 10 per year, 10 million ounces for 1015 years of mine life. But the whole district in North America, you'd have 50 companies here. You have us. That's it. There's nobody else around us. We own all of it, but that's the small project. The big project is this one. So we started with this, we start to look at that. And then we realized against the blue, the, the intrusion was a slab of mineralization. We started drilling this, we understood the mineralization. We put 94,000 m of drilling in 14 months and you know how many ounces we discovered 352 million ounces in 14 months of drilling of silver or if you want it in gold equivalent 4.1 million ounces of gold at 5 g per ton. So we said, well, and there's a table that resumes this. So we said, ok, well, is there's, there's much more and you know what? We looked around 40 kilometers this way, 40 this way. 14 0 north, 40 south. We're by ourselves. So what we did is we'll show it to you very quickly cause time flies. It's great. We are in an area where we're by ourselves. We have power, we have five G internet. We have water dams and water reservoirs. What we, we put the brakes last summer. And we said, you know what? We have to buy all the ground because we had discovered, if I can do this, we have discovered a structure here that we drilled on four kilometers and we found 352 million ounces of silver equivalent. So we told our guys go and walk the ground, take your pickup trucks, go and walk the ground and there's nobody, there's 40 by 40 there's nobody go and see what you, what you find because it's outcropping, it's coming to surface. We can walk on the mineralization and they came back and they say, oh, we saw the same thing here there, here, here there and like this poor free being somewhere over here, we went to the government said to the government, you know, we think we have a district but we don't have all the permits yet. But we'd like to buy as many as we can. We only had the two at the time. But he said, would you mind if we do the geophysics? Very sophisticated geophysics on all of it. Said no, no problem. We did the Geophysics. We bought 18 permits since and we're buying everything that we can and we're adding beautiful flat nobody around. I told you crazy prices, drilling, everything included essays, mob, the mob, everything. 100 and $50 a meter core, drilling, not RC, drilling core drilling $150. And I wanna, you know, I'm sure you're all familiar with po with its $1000 drilling cost it. It's, it's unique in Morocco. So I'll skip a few. We have great infrastructure, our original permit, we saw that we have a beautiful structure. The geophysics showed it to us like clear crystal clear that the slab is there six kilometer long up to 20 m wide. A piece of plywood fully mineralized 5 g per ton s gold equivalent 500 g per ton silver equivalent start drilling. This put 94,000 m of drilling on the first four kilometers. We didn't have enough time. It's extremely high. And now today we have done more geophysics and we can see one kilometer deep and this structure is still open at depth. It's open to the north, it's open to the south and that's plywood piece of plywood is mineralized all the way. So this is the long section. This is, you see in the purple is 1000 g per ton, silver equivalent. And this is already 5.4 kilometers. This morning, we announced that the structure was now 5.4 kilometers up to recently. We were at 4.2 and our resource calculation is at 4.2 we put tons of drill holes into this. Did the block model completed the whole approach on mining because we wanted to know if we could mine this correctly. So we did the block model. We really did all the work because we are doing a pe a that's gonna take maybe two years because we need to know how big this system is gonna be because right now we don't, we know it's well mineralized. We know it will be about one third, open pit, two third underground. The cost of mining in Morocco is extremely reasonable and open to the north, open to the south, open a depth and mineralize. So this is the ground, this is the structure, it's continuing. But what's really interesting is now our new geophysics reads down to a kilometer underground German technology with a helicopter and we can see exactly what we have. So the inversion you can see gives us that you see the slab, you see it there in in in orange 94,000 m in the slab hit mineralization. We did the Geophysics when we got the Geophysics back. Our our head geo said, I think we were mm let me come back, I'll come back to this Yy, you, you see the structure to the west. How big it is in white. This is what we've been drilling to the west is a new system. Same rock. We went, we did some grab samp samples. We looked at the rock, same rock, same geology, same mineralization. And we're gonna start drilling to the West in the next few weeks. Very interesting. Again, I would recommend you take a look at this morning's press release that gave very good results, drill results and extremely interesting geological information on the geophysics cause the geophysics works because it is in the pyrite and the pyrite shows. So here is what's most interesting you see these on, on on this side at the top, we've only drilled the very, very shallow surface 250 m and it comes all the way down. And then there's a major system that is around 600 m underneath that seems to be mineralized. So we are starting the, this, you know, the the investigation of what we have a dept but we already know that that structure on the main zone is six kilometers and fully, fully mineralized. And this is now what we see adept. So it is extremely, extremely, extremely interesting. So this is what I is all about. It's a major exploration of side play. No dilution risk, no construction risk, no financing risk, no change of management risk board is very much involved. I mean, as, as owners not in management with their, with the ownership at 47%. And Morocco, I would bet you with you anything you want any wine, you want one of the best jurisdiction in the world permitting. We calculate that in weeks or in months, but everything I've shown you is already permitted. So we have the mining permit. That's good. There, we are in operation. We have the mining permit at booed in and everything we've shown you is, is a mining permit. So very unique, very competent people, extremely good environment to operate in. And three flights a day from Montreal, three flights a week from Toronto. Many flights a day from New York, best food, best lodging and it rains at least five days a year. Otherwise it's 32 degrees. Thank you very much. Well, I'm afraid we're out of time, but thank you very much, Ben Wa for that detail.