Please disable any adblockers if the video is not showing below.

Strickland Metals Limited

View Company Profile

September 17, 2024 at 3:10 PM (MDT)|Broadmoor Hotel & Resort

Paul L'Herpiniere

Managing Director

Mr L'Herpiniere is a seasoned exploration management and project generation expert with a robust track record spanning over two decades and more than 20 countries. As the former Head of Exploration at Fortescue, Paul has honed his skills in leading extensive mineral exploration initiatives globally.

In addition to his extensive field experience, Paul was a founding partner at Ibaera Capital, a resource-focused private equity firm that manages assets worth USD 150 million. Since 2019, he has played a pivotal role in the development and strategic direction of the Rogozna project, contributing his vast knowledge and industry insights to ensure its success

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.

Le Le her N is here to discuss trickling and with that, the floor is yours, Paul. Sorry about the name. Alright, so Strickland, I'm Paul Le Pina, by the way, I don't know this guy Paul Le Herpin. Yeah, but Strickland Metals A sx listed company. Currently, we are about a $200 million market cap company. We see ourselves as a fairly unique oppo proposition on the A SX. So most A sx juniors are pretty happy if they've got one good quality project. Well, at Strickland, we've got two, we've got serious scale. We've got 5.7 million ounce gold equivalent in JK resources. As you'll see through this presentation, we have a heap of exploration upside another really rare aspect of the business. We've got almost $50 million in cash and Northern Star shares. So all the work programs that we're currently doing, we're fully funded for at least the next two years. In terms of the team, we've got about 40 people across two projects, plus a really strong experienced board of really heavy hitting geologists and in terms of location, two well-established mining districts, one in Serbia, one in Western Australia. And over the next 12 to 15 months, we've got 80,000 m of fully funded drilling and we're gonna do multiple resource updates over that time. So we, you know, really just started a period of really strong growth just a little bit about the company in terms of snapshot. 200 to $220 million market cap is where we're sort of trading over the last few weeks. As I said, 50 million, roughly in cash and Northern Star shares. Top 20 shareholders own just over half the company. We've got about 20% institutional ownership. OK. The A Gosner project in Serbia. So this is a established mining district in eastern Europe. What people don't really realize about Serbia is, it's actually Europe's second largest copper producer. So now that Zygi mining has invested multiple billions of dollars in the board district, which is oop in the east of the country, they've recently developed Chikara Pei, which they paid $2 billion with the take out of Nevs. We are in the Southern Trapper Mineral District in Serbia. TRP was a historical lead, zinc, silver mining district, one of Europe's largest lead zinc silver mining districts back in Yugoslav times, over 30 million tons of ore produced there where we are is really the heart of trapper and we are in a major anomalous position within the Western Tian Belt. Other good things about Serbia that we enjoy there is, it's got fantastic infrastructure and it's actually a fairly low cost operating environment. So our drilling costs, there are about 100 and $10 a meter all in sustaining costs. So, geologically what we've got here is a massive porphyry related system. We've got four deposits, two of which have the 4.6 million ounce Shana and 800,000 ounce gold equivalent Copper Canyon. That's just from two of the deposits. We've got another two that currently don't sit in resource and we're currently drilling those at the moment. This system, we have about 100 and 80 square kilometers of tenure covering this p magmatic system on the east of the project. The area is underlain by copper carbonates which form the sc deposits through the central part of the license. We've got younger volcanics. So the geochemistry doesn't see through those. But as we'll see afterwards, we get a lot of geophysical targets underneath those over 100,000 m of drilling historically, and we're drilling 60,000 m with four rigs as we speak. So, geologically what we've got here with our four deposits, they're all similar but same, same but different. So gold across the board makes up about 60% of the metal, 20% is copper and the other 20% is zinc lead silver. When we're drilling these sinks. Yeah. When we're drilling these things, we get thick zones of polymetallic mineralization. Generally up to three or 400 m thick, running 1 to 2 g, gold equivalent. But importantly, within those, we get these multiple high grade zones which are structurally controlled, generally anywhere from 10 and up to 100 m thick on their own. So it's Shanaz, which we've recently intercepted almost 300 m at 2.5 g, gold equivalent including 90 m at 4 g. So that's a new high grade zone and we're currently drilling follow-up holes into that. You can see what the core looks like in the top, right. This was the highest gold grades ever encountered at the project. You know, these sorts of grades, 20 g 40 g are quite rare for the project. Generally, you get, you know, nice gold grades of five or 10 g. So this was totally something new and it's a new structural position that hadn't really been tested before. Medeva. Similar theme here, we've hit over 350 m of continuous mineralization including a high grade core of almost 100 m at 5 g. Gold equivalent. Medeva is a slightly different deposit. It's got a higher base metals content. So 60% of the metal there is copper and zinc with the rest. Gold. Gradina is our most gold rich. It's 90% gold. Here we, we get zones up to 50 m thick at roughly 5 g. Copper Canyon is the most copper rich of the deposits. Roughly 5050 copper gold. Here we've got a 50 m thick blanket running 1% copper, 1 g gold. But again, you still get the plus 100 m zones of mineralization. OK. So Shana's currently our largest deposit. It's had the most drilling back in the day. This used to be owned by Eldorado gold. They, they drill probably 30,000 m into this deposit. It starts at about 80 m depth at the southern end. The current resource is just the southern footprint that you see on this map. You know, that's 4.6 million ounce gold equivalent through the core of that, we've got almost 14,000 ounces of gold equivalent over a 300 m vertical distance. So there's a lot of metal in this deposit. Currently, it's the footprint of the deposit is almost twice as big as what we've currently got in the resource. So we're currently looking at expanding that resource. We're drilling. We've got two rigs on this central domain at the moment. The central domain is this high grade zone where we're facing stuff like 90 m at 4 g. That's really the focus. So we when we do a resource update for Shatz, the next resource update will include a higher grade component at a 1.5 or 2 g cut off, which will form the focus of more selective mining studies mo moving forward just in section. What does it look like on the right here? We've got a cross section which shows the new drill hole at that 90 m at four in the upper zone in the lower zone was a copper gold scan. We got multiple zones of massive chalcopyrite in there. So that, that zone itself was over 100 m at 2.5 gold equivalent. And then we get an epi the zone in the volcanics sitting above it. In long section. On the left hand side here, this is a relatively narrow, long section across that central dike. You see the roughly 90 m at 4 g at the left hand end. So that structural position is completely open over 600 m. We've only got one other drill hole and we're, we're drilling that now as we speak, Copper Canyon. This is the one that sticks out of the ground. This was the focus for Phelps Dodge back in the early two thousands when they were exploring this project, they were looking for a, a copper porphyry. They found a really nice gun deposit at surface. It's about 800,000 ounces in a $2000 optimized pit at about a 2 to 1 strip ratio here. So really nice grades at surface. It's really clean metall over 90% copper recovery into a 25% con. The other interesting thing about Copper Canyon is there's actually another deposit sitting underneath it. We call it Copper Canyon South. It's gold only and we've got drill hits into there. Of almost 40 m at 3.7 grand which is totally open. So copper canyons nice but Gradina is nicer. So Gradina is only 500 m from Copper Canyon. All of these deposits are really close. So basically Shanaz to Copper Canyon is about a kilometer. Copper Canyon to grade is about 500 m. Shanaz to Medeva is about three kilometers. So from a development scenario, what we're looking at here is a, a number of developments which will feed a central plant Drina has basically been drilled over a kilometer of strike. It's got multiple high grade loads. You can see from these numbers on here, 10 m to sort of 30 40 m running 3 to 6 7 g, gold because it's only gold, it's got the best met recovery, almost 87%. We also get a nice gold rich con out of this project as well. One of the interesting things about gradina is it actually hasn't been drilled near surface. And that's because historically, where you see those drill traces coming from in that valley, that was the easiest access. So previous explorers including Iberia before Strickland just drilled from this valley. We've got Geophysical data that shows the density anomaly which is associated with the mineralization extends all the way to surface. We've got all grade soil samples that surface. So we've just been putting in a road up the hill and in the next few weeks, we'll start drilling this from a shallow position. If we hit it from a shallow position, that'll obviously really improve the prospects of mining for this deposit. Cos it potentially bring open pit into the equation or a very shallow underground. And Medeva is the fourth deposit. So this one was discovered back in 24,021. Previous explorers had recognized this as a a really good target at surface. You've got really strong hydrothermal alter alteration. The volcanics are all white. You've got a massive geochemical anomaly which runs two by two ks. Previous explorers had drilled a number of shallow holes around it but hadn't hit it. We took the Geophysics data that Eldorado gold had generated. We had that 3D inverted. What came out of that was a big anomaly. We got some other anomalies from airborne Z 10 which you can see on this map. These are remnant magnetism anomalies we drilled through the guts of the gravity anomaly. That's where we hit 350 m of continuous mineralization running about 2 g, gold equivalent in the core of that, we hit almost 100 m at 5 g, gold equivalent. There's two other parallel zones of mineralization. At Medeva CSME Eldorado Hole drilled a hole underneath that back in the day hit over 100 m of mineralization including 30 m of higher grade. And at Kot Lovi, on the left hand side of this image, we've recently drilled our first exploration hole into that. And we're drilling a second follow up hole as we speak. We're also drilling a deep hole to test the top of that remnant. Zte anomaly where we've got the copper porphyry target. So a lot of interesting news flow to come out of a denova this currently isn't any in any resource. But the goal here is to put a maiden resource on this by early to mid next year. And just to summarize the overall exploration picture here, as I said, 100 and 80 square kilometers around the east and south of the project, it lights up with geochemistry. That's because the volcanics that surface there were sin mineralization. So the underlying scan mineralization leaks through into the volcanics. So you get really strong geochemical anomalies in the central part of the license. However, the volcanics are a Y one or 2 million years younger. So the geochemistry doesn't see through it. So we flew airborne Z 10 and those anomalies that you see there, they're the same anomalies that we have associated with mineralization on the main license. We've recently also done IP and gravity over the Rido Potok and JSA targets on the central license and a massive IP anomaly has shown up over Rido Poto. So we'll start drilling there next next month as well. All of this is gonna be part of our 60,000 m drilling program about 35,000 m of that is on resource drilling and the other 25,000 is just testing this pipeline for exploration. Ok. So that was Serbia. So I think you'll agree. We've, we've got a lot to chew on there, but over to the Yandall project. So historically, Yandall was the focus of Strickland. Last year, Strickland sold a project called the Melrose Gold Project down in the South. Roughly 350,000 ounces. Strickland sold that for 61 million to Northern Star at a price of about 100 and $76 an ounce. That sort of that shows the high value of ounces next to a hungry meal. Happily for us, Strickland at the time, kept the rest of the lamb package. So over 1700 square kilometers, over 70 kilometers of strike on the main shear zone. This year, we've been focused exploration on the horse well gold camp, historical oxide resources of about 100 and 50,000 ounces and we've been getting some really good results. This map on the right here is an is an updated interpretation recently completed. What it really shows is all the historical work in the south of this gold camp is where we get outcropping geology. So all these deposits were found by geochemistry but immediately north of that, you go into covered terrain as shallow alluvial cover about 5 m thick. And all the historical drilling north of there is mainly 50 m deep rab holes. So most of it was ineffective. So we've got a lot of good targets there in the north. But as you'll see from these slides, as we're drilling underneath the historical oxide resources, we're heating some really significant primary mineralization. So anything from sort of 5 to 15 m, rough thickness at sort of 5 to 10 g. We've got, we've got free gold in this stuff. So it's free milling and all of these drilling we've done this year is outside of the current resources. So we've at least doubled the footprint along strike on this deposit and we've doubled the depth extent. And we're looking at updating resources for this in the near future. Same theme at warm blood, warm blood is one of the other deposits within the field. You know, this one's got over a kilometer of strike. The average drilling depth is about 50 m. We've put out a few new drill holes where we've tested the primary mineralization and we've been getting sort of 8 to 14 m at 6 to 10 g to put this into context where Northern Star are at. Jundi at the moment, their head grade is around 3.5 4 g in our oxide. We've got 2 g dirt. So that sort of material just goes through the plant plant like gravy. And you know, as we move forward, we look to take this project, the next step, start looking to grow it from sort of half a million towards a million ounces in terms of what we're going to deliver over the next 12 to 15 months. We've got a fairly productive period ahead, 80,000 m across both projects. We'll get three resource updates out of Serbia. an updated Shana's resource including the high grade domain. We'll get a maiden mineral resource for Medeva maiden mineral resource for Gradina and look to deliver a scoping study by the end of next year in W A. We're gonna just keep drilling that project systematically with the, with the aim of releasing a resource by the end of next year. And importantly, all of that work is fully funded. So in summary, why invest in Strickland? Well, we, we think we're a very unique situation on the A sx junior market with big resource base over 5 million ounces, almost 50 million in cash. We're on a growth trajectory here where we're looking to double resources over the next 12 to 15 months. We've got probably more leverage to discoveries than any of our peers. And we think all of this combined is a clear pathway to create value over the long-term. Thank you. And with that, we'll open it up to questions. You may have covered a covered this before Paul. But on one of those slides, you had a drill pad with, with three holes coming off it and you mentioned that there hadn't been much work you saw sampling and whatnot. How many saw samples do you think you'll need to conduct a, you know, a decent area to say that there is some open p potential from that Serbian asset. I forgot the name of it, mate. Yeah, that, that was Gradina. So there actually is soil sampling all above it, 50 by 50 m grid and we've got all grade gold in those soil samples. So that's why we're fairly confident the mineralization either gets to surface or fairly close to surface. So really what we've got planned at the moment is 10,000 m of drilling of the upd position. And you know, obviously if we're successful and get it towards surface that, that brings potential open pit into play. That great thanks Paul. Yeah, I was just a little bit curious about discovery cost and how that compares from W A into Serbia and balancing those two between each other. Yeah, that's a good question. I look at that a lot really to try and figure out the best bang for buck with the exploration. So discovery cost in Serbia is about $10 an ounce. So you when you're drilling these sort of 300 m thick zones of mineralization, it doesn't take many holes to get big big tonnage. So yeah, $10 an ounce for Serbia W A is a bit trickier because a lot of that work was, you know, at Yan or has been historic work but we think it's probably around the 50 to $100 per ounce mark for W A obviously W A's quite a high cost jurisdiction these days. So, yeah, we always sort of balance the budget, you know, in terms of our budget at the moment, two thirds of that is into Serbia and one third for W A excellent. Yeah, thank you. And with that, we have about another minute. Any other questions? Ok. Well, thank you Paul.


NOTICE

The Denver Gold Group does not make any express or implied condition, representation, warranty or other term as to the accuracy, validity, reliability, timeliness or completeness of any information or materials in general or in connection with any particular use or purpose presented at the Gold Forum. Denver Gold Group cannot accept responsibility for sourcing variances, mistakes, errors or omissions or for any action taken in reliance thereon. Use of this data is governed by Denver Gold Group's Terms of Use.

The Denver Gold Group does not represent or endorse the accuracy or reliability of any third party advice, opinion, statement, information or materials received during the Gold Forum.

INVESTMENT ADVICE - NO OFFER OR RECOMMENDATION

The Gold Forum and the information and materials presented at the Gold Forum do not, and shall not be construed as, making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of any regulated gold related products or any other regulated products, securities or investments, including, without limitation, any advice to the effect that any gold related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated gold related products or any other regulated products, securities or investments should not be made in reliance on any of the information or materials presented or obtained during the Gold Forum. Before making any investment decision, prospective investors should seek advice from their financial, legal, tax and accounting advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.