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.

Going to start today with. Now after we've got our project financing in place, and we're really moving from an exploration company into a developer and and eventually an operator, we decided to do a little bit of a rebrand. So from this time forward, Schena resource is going to be known as Schena gold and silver. I'd like you to have a bit of a look at this cautionary statement. I certainly will be making some forward looking statements today gonna start. So Sk Creek Skeena flagship development project is gonna be a cash generator. It's gonna have large scale production 450,000 gold equivalent ounces over the first five years of production. It's a very high grade deposit, 5.5 g gold equivalent grams per ton over the first five years, it's got extremely low operating costs certainly in the in the bottom quartile robust cash flow as I was mentioning, but it's also got a big silver component and I'm going to talk quite a bit about that today. It's fully funded production and I'll start by really going through that right now. So in late June, we announced a project financing package with or resource financing we went with or really for, for three reasons, the package that they put together for us gave us great optionality, flexibility and certainty and what do I mean by that? So the four main components of the pro the financing package are to start with 100 million US equity. So it really puts Ryan in as a, as a, you know, aligns it with our shareholders, they've put in 75 million us of equity. So far, there's another 25 million coming in. That equity was done at a premium to market, not a big discount. Like if we had done a bank led financing, the next component of it is a, is a stream 200 million us stream that gives us good certainty. So there's a lot of work that Schena wants to do on this ahead of final major mind permits. This funding along with the equity really gives us the ability to do that work. So it gives us a lot of certainty. as well, it provides, you know, through the, the debt 350 million us of, of debt gives us, you know, the certainty that we're gonna, we've got our funding already right through, into production optionality. So the stream was, was able to give us a two thirds buyback provision on this. So, in the first year, we can buy that back at an 18% irr So if gold price goes up, of course, we'll certainly be looking to buy that back. But if gold price was going to go down, we'd probably leave that in place in terms of the 350 million debt package. That's something that there's a 1% availability fee on, but we can replace it tomorrow if we find a, a cheaper option for that. And then finally, there's 100 million stream cost contingency provision. And again, tomorrow, we can go out and we can find a replacement for that if it's cheaper. Now, where, where, where is the project located? So it's located in the Golden Triangle of BC, fairly well known. a couple of significant operating mines there right now, Bruce Jack and Red Chris. both now Newmont properties. We have both Sk Creek and Snip, another satellite mine nearby. And then there's some big projects in the area as well, some good copper gold projects as well. I'll point out that this is Tal 10 Terri territory, that's the first nation in this area. They're an excellent group to work with. We really consider them partners. We've been working with them for over a decade. They're a mining nation. They understand mining. They were a good part of Snip and Sk Creek before you know, a lot of a lot of people. Now, senior members of of the nation had parents that had worked there before and they understand mining going back, you know, 1000 years. So Skate Creek when it operated from 1994 through 2008 was a bit of a a unique one where it was the highest grade gold deposit in the world. So 3.3 million ounces of gold, another 160 million ounces of silver remind at grades of 45 g per ton of gold and over 2200 silver. So it was unique back then. And it was, it's gonna be another unique situation now that we, we make it into an open pit. One of the things that s Gate Creek has going for, it is a lot of really great infrastructure. It starts with a paved road that goes up and then finally a gravel road all year round excellent road brink going into Sk Creek site. That was all there. But the biggest thing I want to point out are these three hydroelectric facilities that were put in after Sk Creek had closed down in, in 2008, about 2 billion Canadian was put into those facilities and it situates the closest 117 kilometers away from Sk Creek. It's important because those tie to the BC hydro grid. And so we've got ample power. We'll connect in with a 17 kilometer road that provides its excellent cheap hydroelectric power and it's also very clean. Looking at the economics from the feasibility study, definitive feasibility study that we put out in late November last year. We see excellent economics on this at today's spot price, we would have over a 3.4 billion and after tax M PV, 60% irr and a 0.8 year payback. So metrics are incredible after tax free cash on this, as Ed mentioned earlier is gonna be astounding at today's prices. We'd be over 700 million average free cash over the first five years of mine life with over about 850 million in the first year of operation alone. Just quickly looking at the the site overall, we see that the main pit in the foreground here, the ore basically plunges down towards the north. We've got the processing plant adjacent to the stockpiles and the, the rum and the waste dump. The one thing I'm really going to point out here and draw out for you is this permitted tailing facility here. So Barrack was kind enough to permit this before the mine closed and they used it for about 18 months prior to closure on it. So that's a significant savings to this project. I estimate about, you know, a savings of over 100 and 50 million Canadian if we had to put in a new facility there. If we move in and, and start really looking at the circuit. So this is the circuit that we've, we've now designed for the mill flow sheet that we're starting to, to really move ahead with. It's a crushing, followed by three stages of grinding. So what we had found in, in some of the recent test work, we really needed to grind down to a 35 micron level in order before we did a, a rougher flotation to get the the proper combination on it followed by then a rougher floatation or re down to 10 to 15 microns. So from this, we'll produce a bulk sulfide concentrate that will be trucked down to the port of Smithers and from there on to world markets, this is what the production profile is going to look like. It in the first five years, as I mentioned, about 450,000 ounces of production average grade over that time is excellent, about 5.5 g per ton gold equivalent. And then the back end kind of the grade falls out. And we, we looked at this when we were designing it, knowing that we want to, you know, optimize that front end because we have a number of things that we will put into this plan including snip and, and deepening the pit walls in order to drive down deeper and, and get more resource out on this. So we're confident that going forward, the production profile will stay well over 400,000 ounces a year and extend the mine life out right now. It's currently 12 years. We are really our expectation on this is that it'll be more like a 15 year mine life again. really great all and sustaining costs $538 per ounce all in sustaining costs in the first five years of production. So looking at where, where s Gate Creek really sits on the world scale. So we have a, a reserve proven probable of 4.6 million gold equivalent ounces that's broken down into 3.3 million ounces of gold and 88 million ounces of silver. When we look at the gold equivalent grade in the first five years, it situates us right in one of the highest grade, open pits in the world. even even over the life of mine average, which again, I think that the grade will, will be able to bump up through things like snip, but it still puts us on the, you know, world scale class in terms of grade. Another thing I'd like to point out about 80% of the reserve is in the proven category with only 20% of it being in the in the probable. And that really gives us an excellent kind of confidence on on that reserve. Now, I'd like to talk a little bit about the silver. So as a stand alone silver mine without the gold Esk Creek would actually be one of the biggest gold silver producers in, in the world today. In the first five years of production, it averages 9.5 million ounces per year, 7.7 million ounces over the life of mine that puts it in a category just the silver without the gold in, in terms of you know, similar to Greens Creek that Heckle has and some of the bigger silver properties around. So this is really important for us to going forward. We really are believers in the silver price and what it's really going to do over the next few years. I just want to touch on the critical minerals in, in SK as well. Starting with antimony. There's about 28,000 tons of antimony that are going to be produced over the life of mine, about 4.5, 4500 tons produced in the first three years average. And, and there's a lot of zinc and there's a lot of lead. None of these have gone into any of the economics, even though we are certainly you know, gonna get paid for some of those looking at the antimony alone though. We're, we're gonna start doing a little bit of work, see if we can at the back end of the circuit. Do another floatation, see if we can produce an antimony rich concentrate so that we could ship that separately to the other concentrates. So that work is, is something that we're embarking on now over the next few months. So we'll spend a little bit of time on this. Everybody knows the Lasan curve. We've certainly had our challenges in, in this previously, we had hit a peak before, before we really embarked on feasibility study and defend the feasibility study. We believe we've now, you know, reached the bottom of, of that trough and have started moving up as we deris this project. So going through, we, we, we're looking at catalyst, the first catalyst, we're, we're gonna have short term is, is our bulk technical sample permit in the next month to two months, followed by, you know, an impact benefit agreement with, with the Tul Town first nations followed by then eventually, you know, major mines permits that we expect in by the end of December of 2025. And, and then really, we get into the, the building of the project. So all of those going into de risking the project and bringing us up into this, this where we believe we'll eventually achieve at least one times. Now for the project, we compare this with some of our peers, a cisco mining acquisition that was just done. We believe that, you know, we compare very favorably with that but as well, we're looking at a company like lending gold, lending gold is producing a very, very similar metrics right now and reserves about very similar with, with what Skate Creek has as well. So we believe that once we get this project into production, we'll have a significant re rating on this and be looking at much much, you know. So we're looking at big multiples of where we're at right now. We're about a 1.2 billion company right now. And we expect to be significantly more than that when we get into production. I want to just touch on the, the final point here with which is really the silver. And what does silver do we look at the silver valuations for companies price to nav we see that silver companies significantly have bigger multiples than, than gold companies, gold. It average is about 0.8 down here with silver companies significantly more with the median about 1.3. So that's why I point out that we're a significant silver producer and actually produce percentage wise quite a bit more than many silver companies alone. So we expect that eventually our re rating should take this into consideration. As I said, we're big silver bugs. About 35% of our revenue today is based on silver. If the silver price goes up, that's gonna go up further as well. Just wanna kinda the, the capital structure, we're about 70% owned by institutions. We have a very good holding or resource partners now is our biggest shareholder just under 15%. We've got another long term holder in Deutsche Balaton in the, in the 10% range. A lot of people have been with us for, for some time, we've got good, good shareholder backing. We've got excellent analyst coverage. take a look at the list there. We've got about 100 million, just over 100 million shares outstanding. Like I said, market cap today is in the 1.21 $0.3 billion range. That's it time for questions. Ok, great. Thank you, Randy. Is there any questions in the audience? No. OK, Randy. Do you wanna just maybe talk about the time the timeline just to first production? It sounds like permits by the end of 2025. How long to build, how long to commission? Sure. Sure. So one of the reasons why we wanted to do get, get the financing that ahead of final permits. So we want to do a big amount of work probably about 30 to 40% of the work ahead of final permits on this is a Greenfield or brownfield site. So we do have existing permits, we can make amendments on those that we have been been doing. And along with that with the bulk technical sample, it really allows us to do quite a bit ahead So when we get our final permits in the end of 25 the expectation is to have the build done, have the mills starting to turn the end of Q one of 27 with ramp up following that. So really mid 27 for, for production. OK. OK. And, and maybe just AAA follow up then on the on the execution, will you do an E PC M contract or how are you planning to build this project? So a lot of it, we're actually doing ourselves. So all the earthworks,, we're, we're doing most of that ourselves. So a bit of work this summer,, we've shown that, that we can do that work and, and,, do it quite a bit cheaper than if we were using contractors. So that's all going very well in terms of the mill build itself. We've got an engineering partner that we're working with., and then the management, we're probably going to split with them on it., in terms of whether we go full E PC or, or use subcontractors managing themselves. We haven't yet decided that we'll do that in the next few months and, and maybe just a final question and the production drops off pretty sharply in year six or whatever it was on that chart. So would, would snip, be able to kind of fill in that gap or would you need something more than Snip and does the execution of the Snip integration kind of coincide with that drop in production. Yeah, that's what, that's what we look at putting snip in there primarily. So to start, you know, Snip has a resource right now of 823,000 ounces at 9.6 g per ton. So it's a, a good amount and it, and it's, you know, good grade. So we expect to be able to convert at least about 500,000 ounces of that. So if we look at mining that over, you know, six or seven years at the end, it gives us a pretty good bump of production and a very good grade bump of production in, in that time frame. Yeah. Ok. Ok. And the tailings that's been permitted by Barry is that large enough for all of the tailings that you anticipate in the mine plan including snip. Y yes. In fact, it's, it's not only large enough for the, the tailings. What I, you know, didn't mention is we put actually all of the potential acid dreary waste in there. So one of the things that we did early on with working with the tall tan was really look at things that were important to them and they were concerned with having potential acid generating waste in a dump, an open dump. And so we made a, a decision at that time to put it on sub aqueous disposal. So the bulk of the material that is actually going into this tailing facility is, is going to be,, waste, not just tailings. Ok. Ok, great. Well, if there's no other questions, then I think it's probably a good point to stop and we'll just thank Randy for that presentation.