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Thesis Gold

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September 16, 2024 at 1:00 PM (MDT)|Broadmoor Hotel & Resort

Ewan Webster

President, CEO, and Director

+10 years professional expertise in the mining industry, specializing in exploration and business development for various public and private enterprises throughout the Americas. He previously held the position of Chief Geologist at Benchmark Metals.

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.

Very intriguing assets track. So, kicking off this track, we have with us from thesis gold, President and Ceo Ewan Webster. And for those of you that don't already know Ewan, he has over 10 years of experience in exploration geology, including as chief geologist that benchmark medals which was acquired by thesis. And I, I think I would take this moment to welcome you Ewan to Colorado Springs and you, and we look forward to hearing from you about thesis. Please come to the stage, the podium is all yours. Hey, good afternoon, everybody. Yeah, welcome back from lunch and thanks for attending. I'm going to be making some forward looking statements. So I'd encourage you to have a look at the disclaimer on our website or presentation. So over the last like this has gone through a pretty transformative year. We're focused in North Central to go and British Columbia. And about a year ago, we merged with our neighbors to the South benchmark and put together a district scale and position where just a little over 500 square kilometers and we're advancing our lawyers ranch gold silver epi the deposit, the plan that we put in place post merger was threefold really. And the first, the first aspect of that was putting together a new global resource across both projects for the first time. And that came out in early May of this year, just a hair under 5 million ounces, 4.7 million ounces, 4 million ounces of that was in the measured and indicated category. So there's a lot of confidence in this resource. The next aspect was really looking at met allergy. One of the deposits is a high sulfur system. One's a low sulfur A got a lot of questions about how are we going to make that work, but arguably that the results have demonstrated, not only does it work very well, but they're kind of complementary to one another and silver recoveries have improved a lot. And then the third aspect was a newly updated pe A that we put out about a week ago now with some phenomenal numbers and I'll run through that with you in a couple of slides time here. So we started working on or me specifically started working on these projects and about 2018. And at the time, we had about 100,000 Os proven up. And over the last six years, we've drawn that to the 4.7 million ounces that I mentioned that we put out earlier this year. But in my mind, that's very much a starting point. I think there's a very clear pathway here to many more ounces in the years to come. And hopefully, I can demonstrate that over the course of this presentation now, just to quickly run through the, the highlights from the P A last week. I'm extremely proud of these numbers. There's a few columns on the screen here, but if you look at the middle column here at 2022 that was a P A that benchmark put out purely looking at an open pit only scenario. And we've completely transformed that by bringing in an underground component and also adding an additional ounces from the ranch project and a couple of things to highlight here. If you look at the commodity prices, we've used 1930 for gold and 24 for silver. So very conservative, I think 1930 was a three year trail on average at the end of July. And that's why we picked that. But what that translates to is an after tax N PV of basically 1.3 billion irr of 35% and a two year payback, incredible numbers. And if you look at those compared to the 2022 pe a huge improvement. So not an incremental gain but transformative for the project. And that's really the value that we saw on the project when we were looking at doing this merger. Now, a lot of that really comes from 2 million ounces turning into 3 million mable ounces in this new p And as I said, that comes from including the underground and ranch. The underground accounts for about 600,000 ounces of that and the head grade of that's about 3.5 g. And then about just over 400,000 ounces from the ranch project to the north that translates to a 14 year mine life where we're producing on average 215,000 ounces a year. Although in the first few years of the mine life, the it's more like 275,000 ounces for the first few years. And the underground comes in very early on year two. We wanted to get that underground and right at the start of the mine life to improve the grade and really drive the economics of this project. And I think what you can see here is that's certainly helping. Ok. They all in sustained. Oh, sorry. The Capex here is just under 600 million as well. So this is a very realistic number. There's about 90 million in contingency here as well. And it gives us a very strong 2.1 to 1 N PV to Capex ratio. Now, we've just been discussing the base case scenario here. But if you look at that with arguably today's numbers where with $2500 gold and $30 silver, the project economics on this are phenomenal. We're, we're looking at 2.25 billion after tax N PV, 53% and a 1.3 year payback, then even if you look on the kind of pessimistic end of things and look at the lower case scenario where we use 1750 gold and 22 silver. You know, we're just shy of a billion N PV, 29% irr with a 2.4 year payback. So really strong, even in a downside. And I think that just demonstrates how good this project is and how far it's come now to take a bit of a deeper dive into the project and where we are, you can see here north Central British Columbia road accessible part of the region. And we're about, let's say, 300 kilometers inland from the coast. And that is a number of advantages. We don't have to deal with a kind of rugged topography of coastal British Columbia. There's no glaciers. We don't get 30 ft of snow a year. I think last year in camp through the winter, we had about 50 centimeters on the ground all year. Why does that matter? Well, if you think in terms of building the main, you can construct your own, we can operate an open pit, your own very simply. So the topography here also works in our favor. It's basically sub alpine to alpine plateaus with broad rolling valleys between them. It's just a easy part of British Columbia to operate in and the project itself is actually a brownfield development site. The lawyers project here, you can see it was operational in the late eighties and early nineties as a high grade underground gold and silver mine and it just shut down due to depress prices at the time. And the nice thing here though is that the infrastructure is in place. And we've really been working on improving that over the last few years, we've upgraded the road network. We've put in six new bridges, they're all ready to 70 plus tons. So they're, they're future proofed for any mining scenario as well. We've got an airstrip here just to the south of us that we use for moving in, moving in and out personnel and really the last element of infrastructure that's required for the project is extending the power line here from center gold copper gold p free deposit. That's about 45 kilometers to the south of us. Pretty turnkey infrastructure for a remote part of British Columbia. Now looking at the projects independently, the lawyers project has seen more work than at the ranch project at the north. It is primarily made up of three main open pet deposits. We have a GB over here, Dukes Ridge and Cliff Creek and I structured this slide in a way to really demonstrate how much confidence we have in this resource. So the block model has been divided into measured and indicated and inferred ounces and you can see here, the lion's share of the the mineralization is in the measured and indicated category of the 3 million mable ounces. Only 9% of that is inferred. And from my perspective, that's great because we don't have to go back and do 100,000 m infill program to get this to feasibility level. In addition to that, you can see the the model pits on here. And more importantly, you can see the blog model, the mineralization extending below and that forms the foundation of the underground development. And you could, the the the nice thing here as well is that the the mineralization is wide open at depth and all of these zones. Now I mentioned the topography and how advantageous that is. And this image I think gives you a good idea of of what I was talking about. You can see from the very limited vegetation that it's in the sub alpine to alpine. It's essentially flat lying broad plateaus with valleys between them. And that is a couple of advantages for us. I'd say first and foremost, it's just easy to operate. Secondly, we can use that to advantage. You can see the conceptual underground access here coming off the plateau a few 100 m of elevation. And then we can just drive a very simple cost effective decline in underneath these two deposits allowing us to bring in that high grade mineralization vary in the early in the main life for limited Capex. I've taken a look at that underground workings. If I spin this around a little bit here, the pits are obviously in gray. The block model is in orange and then the sts are are underneath in purple and the decline. This is the area where the main entrance would be. And you can see from the pit, you know, we've lost a few 100 m of elevation and that will simply just come in underneath the Duke's ridge deposit, continue on underneath underneath Cliff Creek. And you know, this is effectively what we're looking at bringing on underground in addition to the 2 million ounces that are coming from the pits, ok. This the footprint of this deposit is spatially very compact and the nice thing here as well is that the design for the infrastructure associated with the mine is spatially advantageous. I mean the the proposed mill site here is right in the center of these pits. So the trucking distances are very minimal. The tailings are basically just going to be pumped around into this main tailing storage facility back here, which is just one of these big broad valleys and at the time of assessing less and you know, think about a 14 year my life, this can accommodate that no problem with some room for growth. But when we were evaluating TSF storage facilities, I think we have another six or seven different options. So as this project continues to grow. There's a lot of optionality there. Waste rock is just on this gentle slope on the backside of the mill. And then the ranch project is about 26 kilometers to the north. The bulk of the deposits in the main zones are up in this area and trucking to the mill is about 26 kilometers but topography lending a helping hand here as well. It is flat to downhill the hallway within just a gentle incline up to the mill site, small footprint, easier to permit and just environmentally better. Now, post merger. That was our our plan. So we completed the pe a what's next? Now, I think this project as well is is it's not recognized for how advanced it actually is. By basically the end of this month, we will have completed all of the on site work to feasibility level, whether it be geotechnical drilling, hydro geology test pits geo chem, all of that work will be done by the end of the month. Then in addition to that, all the baseline work is now complete on the lawyers project and at ranch, it will be 90% complete by the end of this year. As I mentioned, we don't have to go back and do a major infill program here to get to feasibility level. So thinking about the next 12 to 18 months, we'll begin working on the PFS in the next month or two. And we're looking at completing that by the end of 2025 early 2026 we're going to begin the permitting process early Q one next year. with initial project description, in addition to that, we're, you know, I think this is very much going down the development pathway, but we've got a lot of opportunity here to avoid this becoming just a pure development story. Sure, we're going to continue moving it forward and de risking it and unlocking the value. But at the same time, the Ranch project holds so much value yet in terms of resource growth and making new discoveries that we can scale up and down that exploration depending on market conditions as we move forward. So as I mentioned, just a hair shy of 5 million ounces, but I think a very clear pathway to more ounces and then on the lawyers project, that system remains more open at depth as well. So the economics I think could improve substantially even here from what is a very, very strong p now if we move to taking a deeper dive on the ranch project, and hopefully, I can demonstrate what the upside is here, but it's made right now is made up a number of small deposits and of the 4.7 million ounces, about just over 700,000 comes from the Ranch project, these mineralized zones and the resource very much remain open. And I think what you'll see over time is that these zones are going to start to coalesce and grow and expand. Arguably what's more important than that though is that these mineralized domains and zones are within a much larger high sulfur, a structurally controlled epi the mal field that's about 40 square kilometers in size. We've just scratched the surface of this and I think the footprint of high salvation epi the systems is very correlative with the golden down. And if you check our presentation on the, on the website, there's another slide in there that looks at a number of other deposits around the world. And if you know, with a 40 square kilometer alteration footprint, the potential here is for many millions of ounces looking at the projects as a whole. I mean, we're up to over 500 square kilometers now. I think we've really, we're just starting to expand that land position as well as ground becomes available. But the takeaways for me are, you know, we're in a fantastic jurisdiction. The infrastructure is in place. We're just shy of 5 million ounces with a lot of upside that remains in the project. The project economics as it stand are fantastic and we've got very strong first nations support here as well. Just a quick corporation snapshot, 100 196 million shares outstanding. Our market cap has been creeping up. We're just over 160 million as of today. And I mean, even I think if you benchmark that against our peer group for the pe that we put out last week. I mean, we're trading out about 0.1. Now, there's a lot of potential for continued growth here and a significant re rating opportunity. We got a very strong shareholder base with over 65% institutional support and some phenomenal shareholders. Now, I won't run through everybody's bio here. I just wanted to point out that we've been actively strengthening the board management team over the last 12 months. Our latest addition to the team is be light here. He is currently the coo on VP for B two gold. He's been there for the last 25 years and help them build all of the recent minds. He's currently gonna leading the charge and developing their goose project that they recently acquired from Sabina. And I think he's really going to help us bridge the gap between advanced stage exploration and development as we transition. And I think over the next 6 to 12 months as well, you're really going to see us start to expand our team as we continue to grow and advance this project. Now just to tie this all together really again, fantastic jurisdiction, great infrastructure in place a resources, very strong, high grade, great economics around that, very good first nation support. There are not a lot of projects like that in Canada, even in North America alone. So I think this is a strong project is starting to get the recognition it deserves and a runway to a very bright future with that. Thank you. And I don't know if there's any questions I'd be happy to entertain you and thank you very much for the presentation. We have time for one or two questions. If any of you would like to ask one, please raise your hand. Otherwise, II I would ask one which is you mentioned the potential synergies with the Kass Power Line. Are there any other potential synergies with that asset? I mean, so it was a copper porphyry deposit and they were the mall theres 50,000 tons a day. They, they stripped about half of it. So it's now about 25,000 tons a day. So it's not really fit for purpose for what we have. They could retrofit it, but it would be significant cost associated with that to the point where I think we'd be much better off actually just building our own mill and then we don't have to deal with the 45 kilometers of trucking additional trucking distance as well. So really beyond the power line, there's not a lot of synergies there. OK. Thank you for that. I don't see any other questions in the audience. So you and thank you very much for the presentation today. Thank you very much. OK.


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