Talisker Resources

Thanks very much. Very exciting year for Talisker Resources, really, as we build the foundation for growth this year to support our ramp up. We were able to bring our project, the Bralorne Gold Project, a historic producer that produced over 5 million ounces, much of that hard rock at a very high grade, above 17.7 grams per tonne. It still holds a position, although being closed for about 50 years, as the largest gold producer in Western Canada. So a very exciting project to bring back into production.

We implemented a low CapEx and rapid startup for the project. We utilized initially ore sales, then ton milling, and now we have a long-term DSO or direct shipping agreement with Ocean Partners. So that gives us a long runway and a good revenue base as we build the mine and then later transition to our own mill.

Our share structure and market capitalization. We’ve got just over 200 million shares out, about 250 million fully diluted. Market capitalization around the $300 million Canadian mark. We listed both on the main board in Toronto, Toronto Stock Exchange, and the OTCQX boards in the US. Our share price range. We’ve gone from about 30 cents around this time last year, had a very good run as we announced production and then a tailwind of the increase in gold price, up to about 2.30. So very good returns. Pullback slightly since then.

A very strong institutional shareholder base. Over 50% held by institutions. So very good support as we’ve been going on. Insider base of just over 4%. Myself as CEO with about 3% of that base.

Our vision as a company is quite clear. We want to become a multi-mine or multi-asset gold producer by developing the Bralorne District, a plus 40-kilometer strike length gold belt. And our vision is to produce more than 200,000 ounces of gold annually. We’re well on track here with our first mine coming into production around this time last year, the Mustang Mine. We currently developed across to our second producing area, the Bralorne West area, and we’re in the permitting phase of our third operational area, the Olympus Mine, which we expect to come online in 2031.

As mentioned, our PEA came out early last week. We’ve taken the strategy to come into production at a small scale and follow the ramp up while we complete our economics. The PEA was not a comparable PEA. It was based on our actual economics and all of our costs and our actual mine plan that we’re implementing. Using a $3,500 base case gold price, we return an NPV of just over a billion dollars, IRR of 31.3%, an average production rate, including our ramp up and DSO period, of 110,000 ounces per year.

Over the first five to six years, we’ll require about 416 million in CapEx, which includes the mill processing facility, new tailings facility, waste storage facility, new camp, and our development underground. Our all-in sustaining cost, including the first ramp up period, averages 1,900 US per ounce. And after milling, it drops to about 1,700 per ounce with post-milling cash costs about 400 per ounce after mill construction. Our annual cash flow projected 170 million and a 2.2-year payback at a $3,500 gold price. Of course, this increases greatly using spot or increased. Our NPV moves up to beyond 2 billion, IRR nearly 70%, and cash flow of in excess of 300 million. So a very exciting time for us as we bring this project through the ramp up phase.

Our production profile takes a conservative approach early on. Looking at about 25,000 ounces of production next year, moving to 50 in ’28, then on to 60 in ’29, and working our way up to 100,000 ounces. At 2031, we finish the commissioning of our mill and we’ll transition from our DSO model across into our own mill and start to build a hub-and-spoke scenario. We’re [laughs] currently ramping up to 750 tonne a day with a mine permit expected to come of that increased rate in January of this year. We’ll be submitting a larger scale permit that we expect to receive at the end of ’28 and early ’29 and then initiate the construction of our mill. We’ll be continuing production throughout this time, using our DSO model to generate revenue and cash flow.

Part of our ability to execute a rapid ramp up and use alternative milling is related to where we’re located in British Columbia. You’ll see Vancouver there in the bottom left-hand corner. You’ll see many of the major mines that have been in operation for a long time in British Columbia are located within driving distance on major highways from the Bralorne Gold Project. So we’re able to execute first ore sale and then toll milling agreements to utilize these existing facilities and then transition to a DSO where we truck directly out of the Vancouver port.

It’s a very high infrastructure area. In the valley where we’re located, the Bridge River Valley, there’s several hydroelectric facilities and about 15% to 20% of British Columbia’s electricity comes out of that valley. A very good access to a skilled workforce out of main mining centers like Kamloops and Kelowna and also out of Vancouver [chuckles], the largest city. A very good operational climate, something very important in Canada. We sit in the rain shadow of the coastal ranges. So we only get two to three foot of snow and can operate, either drilling or in the mine, all year round. No real problems there, so a great place to be working.

And British Columbia has last year become one of the best permitting jurisdictions in Canada with nine mines permitted, the fastest of those in just seven months. The next closest province was Ontario with just two mine authorizations. So a very proactive government there.

Having a look at our resource estimate. Our initial resource released in 2023 was about 1.66 million ounces. We’ve effectively doubled that with our mineral resource estimate released in May of this year. It’s in two main operational areas, the Mustang Area and the Olympus Area. We do have the majority of our material, about 3.15 million ounces, in inferred at a grade of about 8.73 grams per ton. We’ve got about 200,000 indicated. We’re currently executing a drill program of over 100,000 meters, with the majority of that for resource conversion. So about 200,000 ounces in M&I at an average grade of 8.9. And you’ll note our measured grade gets quite high, around 10 grams per ton.

Looking at our production overview, this is where we’re currently in production now. On the left is the Mustang Operational Center. We’ve so far got ten levels active. In the Mustang area, we’ve got three main veins, the BK, BK 9870, and Alhambra veins. So on each level, we basically have six working faces. We’re continuing the ramp development down to the 1000 level, so we’ll have about 100 meters of vertical development as we follow these high-grade ore shoots.

This year we’ve been focused on developing across to Bralorne West. Bralorne West is our second operational center. It was about a 650-meter straight shot decline to get across there. The main reason for that was it was a faster pathway than permitting a new portal. So we’re using shared infrastructure for the Bralorne West area, and we’re currently in our lateral development phase and our spiral ramp phase. So we’re developing the blue four-by-four ramp. As you see, it’ll give us access to about six levels. And we’re currently in our first cross-cut of the 1060 level. That’s the top green line there. We’ve got about 500 meters of strike length along those veins. Bralorne was always known for very continuous structures, up to two and a half kilometers. So we’re able to capitalize on that in our lateral development and really focus on identifying and mining some of the high-grade ore shoots that Bralorne has always been renowned for.

And here’s a picture of some of our production ore. You can see here a lot of free gold, a lot of coarse gold, and some very wide, high-grade ore shoots that we’re intersecting in our development. So on the 1030 level, for example, the BK vein, 60 meters intersected across... 60 grams per ton, sorry, intersected across 79 meters continuously. On the next level up, the BK vein, 27 grams per ton across 60 meters. In the parallel BK 9870 vein, 28.5 grams per ton developed across 127 meters. And 1105 level, our Alhambra vein, 14 grams per ton average across 132 meters. And the M1 vein, a third order structure, 27.88 grams per ton across 36 meters.

So this is the main reason we look to get Bralorne back up and into production. Very high-grade, robust ore shoots with long strike extent. So very good mining. This is one of the reasons why Bralorne was mined for 40 years continuously and why it still holds a position as the largest historic gold producer in Western Canada.

We look at our 2026 mineral resource update. So important here to highlight the footprint of this resource update. Along strike, it’s about five and a half kilometers, and Bralorne was developed at depth down to two kilometers. So a very large footprint here. You’ll notice the grade on the right-hand side. We are drilling now below the Mustang area. You’ll notice there’s been very little previous work either on drilling or exploration drift development underground. We were able to bring in about 25,000 historic drift assays to be able to build out this 3.4 million ounces. Our view has remained the same from when we acquired the asset, that the real potential of this continues significantly down deep, and we expect here that we can double or triple this resource. So add another three or six million ounces on top of what we have by going directly underneath where we’re currently mining. So a lot of upside potential right here in the core of the camp.

However, you’ll recall that our vision is to build a mining district. And really what we have here is a 40-kilometer strike length on the tectonic suture that hosts the Bralorne gold deposit. Bralorne sits right in the middle of an orocline bend in the perfect geological location for a large deposit, and that’s why we believe there could be a world-class to a giant deposit still sitting there. But it sits in the middle of the entire belt. You’ll see on this slide here, each of the black dots is a historic vein producer that’s been drifted on and sampled. Previously we had about 50. Now we’ve got about 60 of these earlier stage targets that we’d like to drill and take forward in our exploration plan.

The first one of these is the Congress area. It’s a historic resource, about 186,000 ounces at 9 or 9.1 grams per ton. But just drilled to 200 meters from surface. And we know that these veins, orogenic veins, are continuous for at least two kilometers. So we think a lot of upside here. We’re planning to drill about 12,000 meters at this project over the next 12 months. And we’d like to grow this to half a million to a million ounces, and then work towards the permitting process to bring this online. The red line that you can see is the highway. This is located right next to the highway. And when we implement our hub-and-spoke centralized milling scenario, we hope this will be the first project that we truck into the centralized facility.

The next one that we’ll be looking at is the BRX. Several years ago, we did our first drilling there before the markets got tough. We were fortunate to intercept a nearly 11-ounce intercept, 329 grams per ton. So we’re excited to get back and start to drill BRX, which we hope will be our second satellite operational center. So a lot of upside here, and our view is to try and develop four to five satellite deposits that truck into the central processing facility where we’re now mining at the Bralorne Gold Mines.

So we believe a very compelling value proposition, really robust district-scale, multi-year growth story. Bralorne was in production for 40 years historically, and we believe that it’ll certainly be in production for another 40 years, if not more. Strong project economics here with over a billion NPV, above 30% IRR and 170 million free cash flow at a base case of 3,500. Large exploration upside. We see more than 5 million ounces directly below where we’re currently mining and over 40 kilometers now along strike length of that untested mineral district. High-grade resource. We’re looking to expand that over time with this over 100,000-meter drill program currently underway. A really growing production profile as we systematically ramp up over the next four to five years, and then look to build our mill and transition to on-site milling.

It was a low CapEx for us to get up and get started by utilizing innovative off-site processing. And we now have a long-term DSO agreement, 1,500 tons per day, with Ocean Partners over a seven-year period. So that gives us a lot of flexibility in our build phase if we have any delays with financing, any delays with our permitting. We can remain in production and generating revenue as we go forward. Thanks very much. That’s Talisker Resources. [audience applauding]

We do have a minute or two for questions, so if you do have a question, please raise your hand and the microphone can be brought forward. Maybe just a couple quick ones from me then, Terry. So you mentioned that BC has decided that they’re open for the mining business. They’ve permitted a lot of mines. How has that affected the labor dynamics? You’ve mentioned you’ve been able to get the skilled labor in that you need, but obviously new mines, new people. How are you finding getting people in?

Yes. Look, it’s always a challenge in the upcycle. We had very fortunate timing around the time that Core Mining took over New Gold. They stopped a lot of operations on the K Zone development. So that team was let go, consisting of about 80 [chuckles] skilled miners, engineers, geotechnical surveyors. So we were able to handpick a lot of really key, very experienced people out of that team that was let go. So we’re very fortunate to be able to build out our team very early on in the process.

As time goes forward, I expect there to be a lot of competition to find a very skilled workforce. We’ve implemented good systems within the company to help us compete against the larger companies who can often pay a lot more than us, by adding a lot of benefits both on the pension side and on the share purchase matching side. So I think that can help us compete. Also, where we’re operating. Bralorne’s relatively in civilization, very close to very good skiing, very good mountain biking. It’s a great place to work with a lot of things to do after you finish your shift. So we have a lot of benefits there in being able to attract a very skilled workforce.

And unless there’s any questions from the audience, please join me in thanking Terry. [audience applauding]