Stephen Soock

You know, call it a month, two months already within our our pit shell design. Beyond that though, now we've released our first batch of drill results showing uh a stepout drilling from that corner reserve area showing the exact same style of mineralization. You know, broad widths starting near surface and about.3 g a ton up to 200 m away from the current edge of the open pit. So, we think, you know, we're on track to show probably another let's let's call it 12 to 18 months of my life extension beyond what's in reserves.

uh we just after we acquired the asset um at at Creston did show underground potential. Um so you know just to kind of go back and recap that we got grades like 9 m at 25 g a ton uh 8 1/2 m at 5.5 g a ton 5 m at 18 g a ton.

with a new geological model and with 3,000 meters of drilling added 300,000 ounces to the the high-rade resource base

that will help us vector towards potentially much larger uh or body

we've just put out some drilling that shows that the the high-grade does continue at depth

you you just completed that kind of gold strike um acquisition. It has like you know million ounces into M&A category which and some antimony exposure as well.

Anapala I think is top of the list. So that's our uh flagship development asset. Uh we put out a PEA in early December that shows 100,000 ounces a year over a 9-year mine life

That'll add again another round number 100,000 ounces a year um that we'd be able to to bring online before the end of the decade

Veta Madre will fund the stripping of the larger Creston open pit and that gives us another four years of mine life at uh you know about 50,000 ounces a year

that'll unlock about 6 to 8 months of production from Beta Madre at 7 g a ton versus the 0.2 grams a ton we were stacking through 2025 and through Q1 this year.

that'll unlock about 6 to 8 months of production from Beta Madre at 7 g a ton versus the 0.2 grams a ton we were stacking through 2025

in the high-grade zone it's 5,000 ounces of vertical meter uh which is one of the the highest by that metric

It's the rare combination of uh bulk tonnage high-grade underground uh that really makes the economics just just really sing for that project

Uh we we have 14 months of mine life on the books from St. Augustine.

Something we could action with a basically a zero capex build to become a producer in 2025.

Uh we did uh $4.6 million uh in exploration uh expense exploration spending in the quarter and then another $4.8 million advancing in Apollo that we're capitalizing

we're looking at 300 million capex uh for a mine

shows 100,000 ounces a year over a 9-year mine life at a $1,000 all in sustaining cost

at a $1,000 just a hair over $1,000 all in sustaining cost

made about $25 million doing it.

So if we have an extra year's worth of production, that's an extra 50 million beyond our kind of baseline uh you know internal assumptions in cash flow generation.

Um so, again, we're we expect to see those creep up a little bit once once we're through this this one-time byproduct credit from carbon fines. uh as but still very comfortable with our uh with our guidance range of uh you know just around uh $2,100 an ounce. It's all in sustaining cost for full year 2026.

Uh which is really great for us at an all sustaining cost of uh just under $2,000 an ounce.

Um so, again, we're we expect to see those creep up a little bit once once we're through this this one-time byproduct credit from carbon fines. uh as but still very comfortable with our uh with our guidance range of uh you know just around uh $2,100 an ounce.

Uh 38 million cash on the balance sheet plus 12 million in receivables.

Uh we're sitting on about $50 million cash in the bank. us as of the end of the quarter.

for gold strike our payment structure pay $10 million up front plus 2.5 million in cash it's uh 10 million in 12 months 10 million in 18 months 15 million on the receipt of water permits and $25 million on either a construction decision or 5 years.

funded with our uh cash flow and uh the ability to do that growth without issuing any additional equity

our ability to internally finance uh a step-wise progression without having to uh dilute shareholders along that growth path

we did net income of just over $14 million uh about 5 cents of EPS. So generating uh you know some some pretty good profitability because of that combination of strong gold price and increasing production. Um adding to the treasury uh we we increased our working capital position from 40 million on December 31st uh to about 70 million uh end of March 31st.

Uh we did see a notable step up in production quarter of the quarter uh having recently brought our St. Augustine mine back on back online. We took the first blast in December. Uh poured gold late January.

as you mentioned uh we're through all the stockpile material. Um that was a great cash flow generator. Something we could action with a basically a zero capex build to become a producer in 2025.

that's going to start in in late July this year. It take about 6 months of stripping

we're a growth and development company uh with 50,000 ounces of production this year

We're drilling you know more this year than I think we did in the entire rest of the company's history

growing to 300,000 by the end of the decade

we'll kind of roll that right into a full uh FID uh in a in a year or so

we're going to restart that work in the second half of this year

for about a about a 9-year mine life that's showing the pea

that's going to start in in late July this year. It take about 6 months of stripping and that'll unlock about 6 to 8 months of production from Beta Madre at 7 g a ton versus the 0.2 grams a ton we were stacking through 2025 and through Q1 this year.

aim to bring it online in the second half of 2028, ramping up to that 100,000 ounce a year uh, mark

Um and we expect to generate about 10 to 12,000 ounces this year. Uh included in our guidance from that injection leeching that bridges the gap in production while we do the waste stripping at Veta Madre

Um so, we are on track to hit that uh 50 to 55,000 ounces of of production. That that is our guidance.

pushing to uh get the PEA out, do the technical work, uh, put a mine plan together, and now we're moving uh directly from there to a full feasibility study that'll be out in the first half of of next year

the recent events in Mexico uh both in in Sinaloa and the turmoil in in Haliscoco over the last couple of uh couple of weeks um where we operate, we're largely unaffected

we're fortunate to operate in very very stable areas near major cities

part of that 300 million in initial capex does include 50 million for a bioxidation plant, a bio plant

our our 90% recovery target is is realistic

of that subund,000 ounce a year producer um uh peer group, we we are one of the lowest uh lowest cost producers there.

Anapala with the lowest uh cash cost and the lowest 10 percentile of the the global cost curve will will survive any cycle

going from 30,000 ounces a year to 300,000 ounces by the end of the decade.

We're about 50/50 uh with just over 50% of our register is is institutional uh institutional money

a plan to go from 30 to 40,000 ounces in 2025 to 300,000 ounces by the end of the decade