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Spec Value Rating Overview Updated January 18, 2022
SV Rating: Bottom-Fish Spec Value - as of December 30, 2022: Galway Metals Inc is a Fair Spec Value rated Favorite as of December 31, 2021 based on its efforts since 2016 to demonstrate the multi-million ounce district scale gold potential of the 100% owned Clarence Stream project in New Brunswick, and to show that the Estrades polymetallic VMS system in Quebec has significant resource expansion potential at depth and that the 31 km long property can yield an entirely new VMS discovery at the Newiska target about 10 km to the east. Tracker Feb 18, 2020 describes Galway's origin as a spinout from CEO Robert Hinchcliffe's Galway Resources Ltd which was bought out in 2012 for its property near Ventana's La Bodega gold discovery in Colombia and provides background for the Clarence Stream project. Tracker Aug 23, 2021 provides an overview of Galway's recent objectives for the Clarence Stream and Estrades projects. The 60,000 ha Clarence Stream project straddles 65 km of the Appalachian Gold Trend which stretches from the Carolinas through Newfoundland and Ireland into Scandinavia. The key structural feature at Clarence Stream is the east-west oriented Sawyer Brook Fault which cuts through Ordovician and Silurian metasediments that have been intruded by various stocks that served as the heat engines for creating quartz vein hosted stockwork and disseminated gold mineralization of the intrusion related gold system style. Since 2016 Galway has drilled about 130,000 m on top of the 60,000 m drilled by previous owners, most of it focused on the cluster of new zones discovered in late 2017 about 7 km southwest of the existing North and South zones for which 9,586,000 tonnes of 2.17 g/t gold OP and UG mineable (667,000 oz) was estimated in 2017 (M+I+I). Galway established a data cutoff at the end of 2021 for the purpose of delivering an initial resource estimate for the Adrian-GMZ-Richard-Jubilee zones in Q1 of 2022. An updated resource will also be calculated for the North-South Zones. This will be an important milestone which the market hopes will tally in the 1.5-2.0 million ounce range, though given the 8-12 week turnaround time for assays one should be happy with 1.0-1.5 million ounces and wait for more in a future update. Galway plans to drill 75,000 m in 2022 split between further expansion and infill drilling of the Adrian etc zones and wildcat drilling on the various soil and till gold anomalies established through property wide sampling during the past few years as part of Galway's goal to show Clarence Stream has 10 million plus ounce district scale gold potential. The Oak Bay-Tower Hill targets will receive attention, as well as the 3 km by 7 km soil anomaly that sits on top of a gabbroic intrusive complex to the south of the Adrian-Jubilee zone cluster. Galway will also earmark 25,000 m drilling for its Estrades VMS project where Titan geophysical surveys that can see 2,000 m deep suggest down-plunge potential beneath the existing Estrades resource (2018 I+I 3,696,000 tonnes 5.7% Zn, 1.03% Cu, 0.42% Pb, 93 g/t Ag, 2.59 g/t Au) as well as a potential major new VMS system at the Newiska target within a parallel rhyolite unit about 10 km to the southeast. Galway's 2021 effort to test Newiska, which can only be drilled in winter, failed to reach target depth before a warm winter shut down drilling. Galway will drill Newiska in Q1 of 2022 and test the main Estrades target later due to year round access. The IRGS nature of the Clarence Stream project is unlikely to deliver a discovery hole that moves the market unless it is for a brand new zone, but the VMS nature of the Estrades and Newiska targets could yield intersections with big discovery implications, especially in the case of Newiska which sits in the middle of a 31 km land package straddling the Casa Berard-Douay trend which has potential for both polymetallic and gold deposits. At the end of 2021 Galway Metals Inc had about $12 million working capital left, insufficient to fund its 2022 drilling plan, so additional financing will be needed by mid 2022. Galway had 178.7 million issued and 197.0 million fully diluted with no worrisome warrant overhang at the end of 2021. Insiders, including the chief geologist Mike Sutton who is key to sorting out the Clarence Stream zones, own just under 14% of the issued stock. In terms of management Galway is a well-rounded junior that knows how to promote, fund and execute its story.
What's Next?
Updated January 19, 2022: Galway Metals Inc is a Fair Spec Value rated Favorite effective December 31, 2021 at a price of $0.64 based on the multi-million ounce district scale gold potential of the 100% owned Clarence Stream project in New Brunswick, and the potential for the 100% owned Estrades polymetallic VMS system in Quebec for significant resource expansion at depth and the potential for an entirely new VMS discovery at the Newiska target about 10 km to the east. After numerous delays Galway finally bit the bullet and declared data cutoff at the end of 2021 for the Clarence Stream project where it has drilled over 100,000 m delineating the Adrian-GMZ-Richard-Jubilee high grade gold zones discovered 3-7 km southwest of the North-South Zone in late 2017. Calculation of an updated resource for the North-South zones and a maiden resource for the Adrian cluster is now in the hands of third party consultants. The resource estimate is expected by the end of Q1 of 2022. Drilling is continuing at Clarence Stream and will pause for a one month spring thaw break in April-May. The goal is to drill 75,000 m in 2022 with 6 rigs split between further delineation and infill drilling of the Adrian cluster, and wildcat testing of the various gold in soil or till anomalies that property wide sampling generated during the past couple years. Some of these anomalies such as the one hosted by the gabbroic intrusive complex south of the Adrian cluster are stronger than those associated with known zones but the company has been largely focused on delineating the Adrian cluster. The problem with this intrusion related gold system type of mineralization is that it is difficult for the market to see tonnage taking shape so it gets tired of the endless parade of high grade gold intersections. But if wildcat testing of new gold anomalies delivers strong intersections the market will pay attention, especially if this occurs on several targets in 2022 which would support Galway's goal of proving Clarence Stream is a 10 million plus ounce gold district. We hope to see a global resource in the 1.5-2.0 million ounce range, but will settle for 1.0-1.5 million ounces. With only $12 million working capital left at the end of 2021 another milestone will be a major financing by middle of 2022, ideally at a better price than the level at the end of 2021. While market interest in Clarence Stream will track the gold price trend, discovery focused speculators will be watching the Estrades VMS play in Quebec where Galway plans to drill 25,000 m in 2022 to test deep Titan geophysical anomalies interpreted to be conductive massive sulphides. Estrades is a gold-silver rich VMS system but its tonnage is small. The zones have been chased to depths of 750 m, but these Archean VMS deposits tilted on their sides can be several kilometres deep. Galway thinks that the smoke encountered by existing deep holes coupled with the deeper Titan anomalies may indicate proximity to a deeper vent. Estrades can be drilled year round so the focus in Q1 of 2022 will be the Newiska target 10 km to the east which sits in a parallel but thicker rhyolite unit. Drilling done in 2018 without the benefit of the Titan survey appears to have been too shallow. Newiska can only be drilled during winter and hole 14B was stopped short of the target due to an early thaw in 2021. The same rhyolite unit also features a Titan anomaly south of the Estrades zones called Estrades South though it is not clear when Galway will test this target.
Milestone Timeline
Project
Program
Start
End
Milestone
Estrades
Target Testing
2022 Q1 Early January
2022 Q4 Late December
Deep drilling of Titan anomalies at Estrades looking for copper rich VMS zones down-plunge from existing zones, can be drilled year-round, part of 25,000 program for 2022.
Clarence Stream
Target Testing
2022 Q1 Early January
2022 Q4 Late December
35,000 m drilling to test new geochemical targets such as Oak Bay-Tower Hill and the gabbro complex soil anomaly to further develop district scale nature of Clarence Stream. Completed.
Clarence Stream
Delineation
2022 Q2 Early May
2022 Q4 Late December
40,000 m drilling in Adrian-GMZ-Richard-Jubilee area to infill and expand system to support another resource estimate in 2023.
Corporate Change History
#Old for New
Last Price
Prior Name
Subsequent Name
Details
Sep 16, 2013
Reverse Split
3:1
$0.04
Galway Metals Inc (GWM-V)
Galway Metals Inc (GWM-V)
Jan 27, 2023
Reverse Split
3:1
$0.27
Galway Metals Inc (GWM-V)
Galway Metals Inc (GWM-V)
Recommendation History
Edition
Date
Price
Recommendation
Gain
BF2014
1/3/2014
$0.13
New BF Buy $0.10-$0.19
-34%
BF2014
12/31/2015
$0.10
BF Technical Closeout 100%
-50%
BF2016
12/31/2015
$0.10
New BF Buy below $0.10
-5%
BF2016
12/13/2018
$0.19
BF Technical Closeout 100%
85%
SVF2020
12/31/2019
$0.34
Bottom-Fish Spec Value Favorite
0%
SVF2020
2/18/2020
$0.34
Fair Spec Value Favorite
1%
SVF2020
12/31/2020
$1.14
Fair Spec Value Favorite
240%
SVF2021
12/31/2020
$1.14
Fair Spec Value Favorite
0%
SVF2021
8/23/2021
$0.64
Good Spec Value Favorite
-44%
SVF2021
12/31/2021
$0.61
SV Technical Closeout 100%
-47%
SVF2022
12/31/2021
$0.61
Good Spec Value Favorite
0%
SVF2022
12/30/2022
$0.23
SV Technical Closeout 100%
-63%
Ranking within Company's Price Range based Group
All TSX-TSXV KRO as of Mar 20, 2023
Group Median
Company
Percentile
Score
Price Range:
$0.50-$0.75
Issued:
78,227,445
67,183,141
55.8%
58.4%
Price Group Total:
77
Working Cap:
$4,869,915
$6,754,485
61.0%
TSXV KRO as of Mar 20, 2023
Group Median
Company
Percentile
Score
Price Range:
$0.50-$0.75
Issued:
59,634,806
67,183,141
43.1%
56.0%
Price Group Total:
58
Working Cap:
$1,833,864
$6,754,485
69.0%
Group figures exclude delisted and suspended companies. The higher the company percentile the better, based on the assumptions that the lowest issued shares and highest working capital are best. The score is the average of the percentiles. A percentile is that percentage of a group that a member ranks higher than. Note that issued and WC reflect latest financials.
Ranking Color Code:
Lower than 25%
25% to 50%
50% to 75%
Higher than 75%
Charts & Financing Activity
Most recent 43-101 resource estimate Prior resource estimate PEA PFS FS/BFS/DFS
Private Placement Key
less than $500,000
$1,000,000 - $2,000,000
$5,000,000 - $10,000,000
$20,000,000 - $50,000,000
$500,000 - $1,000,000
$2,000,000 - $5,000,000
$10,000,000 - $20,000,000
over $50,000,000
Private placement financing dates and value ranges are based on transactions reported by the TSXV Monthly Review.
Past Insiders and Reported Shareholders - Current Ownership Status unknown - positions may be pre-rollback
Related Party
Occupation
Related Since
Insider Ended
Director Ended
Capacity
Ownership
Robb Doub
Investment Banker
12/27/2012
12/14/2021
6/20/2018
Director
450,000
Jaguar Financial Corp
9/4/2014
Insider
6,798,999
Jimmy S. H. Lee
Merchant Banker
9/9/2016
Insider
8,497,500
Robert W. Schafer
Geologist
12/27/2012
11/6/2014
11/6/2014
Director
76,333
Rafael Solis
Investor Relations
8/26/2021
12/14/2022
12/14/2022
VP Finance
4,330,754
Rob White
Investment Banker
4/23/2018
8/26/2021
8/26/2021
Director
0
Share positions of current insiders based on last AGM circular, ownership % based on current Issued. Share positions of past insiders and shareholders have not been adjusted for rollbacks or splits.
Active Index Memberships
Membership Start Date:
December 31, 2019
Start Price:
$0.34
KRO Favorites 2020: Features companies with Bottom-Fish, Fair or Good Spec value ratings that were designated Favorites in 2020, effective December 31, 2019.
Membership Start Date:
December 31, 2020
Start Price:
$1.14
KRO Favorites 2021: Features companies with Bottom-Fish, Fair or Good Spec value ratings that are designated 2021 Favorites, effective December 31, 2020.
Membership Start Date:
December 31, 2021
Start Price:
$0.61
KRO Favorites 2022: Features companies designated 2022 KRO Favorites, based on closing price December 31, 2021.
A Spec Value Hunter table allows speculators to identify which projects offer poor, fair or good speculative value according to the rational speculation model. The speculative value depends on the project stage, the project's implied value as calculated by the company's fully diluted, stock price and net project interest, and the dream target deemed appropriate for the project. A dream target is what a project would be worth in discounted cash flow terms once in production.
Poor Speculative Value -
Fair Speculative Value -
Good Speculative Value -
Note: narrow arrows indicate IPV is outside the fair value channel but within 25% of the fair value limits
Color Key for Target Outcome Achievability Ranges in millions ranked from most to least achievable
below $25
Should be Private: Artisanal, Placer, Mom & Pop Shop
$25-$50
Tiny Scale: underground mine or quarry - not worth the bother
$50-$100
Small Scale: junior needs to self-develop
$100-$250
Buyout Target: by Lower Tier Producers
$250-$500
Buyout Target: by Mid-Tier Producers
$500-$1,000
Ideal Target for Junior: Buckhorn, Sleeper
$1,000-$2,000
Almost World Class: Ekati, Red Chris, Brucejack, Juanicipio, Stibnite
$2,000-$5,000
World Class: Eskay Creek, Hemlo, Hermosa-Taylor, Oyu Tolgoi, LaRonde, McArthur
$5,000-$10,000
Giants: Escondida, Sullivan, Carlin Trend, Kidd Creek, Orapa, Kamoa-Kakula
above $10,000
Off the Scale District: Wits 1.0, Araxa, Sudbury Basin, Bayan Obo
The target outcome range required for the current implied project value to represent fair speculative value is based on the upper and lower certainty limits associated with the project stage. The color coding is based on the target outcome using the mid-point of the certainty range.
Net Interest: 100% WI Vested: Yes Uncapped NSR/GOR: 1.00%
Ownership Terms: Agreement Aug 3, 2017 to acquire 100% from Wolfden Resources Corp for CAD $3,250,000 over 3 years. Wolfden retains a 1% NSR which can be bought anytime for CAD $2 million. Franco Nevada has a 1% option on part of the property. Another group has a 2% NSR on a portion of which half can be bought for CAD $1 million.
Updated resource estimate for North-South Zones and initial estimate for the Adrian, GMZ, Richard and Jubilee zones - combined OP & UG. Goal is 1.5-2.0 million oz gold. Data cut off was end of 2021. Published Apr 25, 2022.
Economic Study - PEA
2022 Q2 Early May
2023 Q4 Late December
Undertake metallurgical and pit slope studies to support PEA for delivery in H2 of 2022.
Target Testing
2022 Q2 May
2022 Q4 Late December
Wildcat drilling of gold in soil and till targets outside the established zones to assess district scale potential for 5-10 million oz.
Target Testing
2022 Q1 Early January
2022 Q4 Late December
35,000 m drilling to test new geochemical targets such as Oak Bay-Tower Hill and the gabbro complex soil anomaly to further develop district scale nature of Clarence Stream. Completed.
Delineation
2022 Q2 Early May
2022 Q4 Late December
40,000 m drilling in Adrian-GMZ-Richard-Jubilee area to infill and expand system to support another resource estimate in 2023.
Base Case Resource Estimates
Project Resource Estimate - Clarence Stream - North OP
Apr 25, 2022
NI 43-101
Reno Pressacco, PGeo, SLR Consulting (Canada) Ltd
Cutoff: 0.38 g/t Au $1,650/oz Au, 1:33 CAD:USD, $10,000/t Sb
Resource Category
Tonnage
Total Rock Value
Metal
Grade
Recovery
Contained Metal
% of GMV
Indicated Resources
1,171,000
$204/t
Gold
2.28 g/t
100.0%
85,840 oz
71%
Antimony
0.480%
100.0%
12,391,616 lb
29%
Inferred Mineral Resources
1,731,000
$165/t
Gold
2.51 g/t
100.0%
139,691 oz
96%
Antimony
0.049%
100.0%
1,869,920 lb
4%
All Categories Spot
2,902,000
$181/t
Gold
2.42 g/t
225,531 oz
85%
Antimony
0.223%
14,261,536 lb
15%
Spot Gross Metal Value
Market Cap as % of Net GMV
Spot Prices Used
$524,370,572
7.1%
Gold $1,969.35/oz, Antimony $5.63/lb
Project Resource Estimate - Clarence Stream - South OP
Apr 25, 2022
NI 43-101
Reno Pressacco, PGeo, SLR Consulting (Canada) Ltd
Cutoff: 0.38/t Au $1,650/oz Au, 1:33 CAD:USD, $10,000/t Sb
Resource Category
Tonnage
Total Rock Value
Metal
Grade
Recovery
Contained Metal
% of GMV
Indicated Resources
3,190,000
$198/t
Gold
2.89 g/t
100.0%
296,405 oz
92%
Antimony
0.120%
100.0%
8,439,209 lb
8%
Inferred Mineral Resources
594,000
$223/t
Gold
3.45 g/t
100.0%
65,888 oz
98%
Antimony
0.038%
100.0%
497,622 lb
2%
All Categories Spot
3,784,000
$202/t
Gold
2.98 g/t
362,293 oz
93%
Antimony
0.107%
8,936,832 lb
7%
Spot Gross Metal Value
Market Cap as % of Net GMV
Spot Prices Used
$763,751,449
4.9%
Gold $1,969.35/oz, Antimony $5.63/lb
Project Resource Estimate - Clarence Stream - Southwest OP
Apr 25, 2022
NI 43-101
Reno Pressacco, PGeo, SLR Consulting (Canada) Ltd
Cutoff: 0.38 g/t Au $1,650/oz Au, 1:33 CAD:USD, $10,000/t Sb
Resource Category
Tonnage
Total Rock Value
Metal
Grade
Recovery
Contained Metal
% of GMV
Indicated Resources
7,761,000
$128/t
Gold
2.02 g/t
100.0%
504,042 oz
100%
Inferred Mineral Resources
9,471,000
$110/t
Gold
1.73 g/t
100.0%
526,793 oz
100%
All Categories Spot
17,232,000
$118/t
Gold
1.86 g/t
1,030,835 oz
100%
Spot Gross Metal Value
Market Cap as % of Net GMV
Spot Prices Used
$2,030,074,210
1.8%
Gold $1,969.35/oz
Project Resource Estimate - Clarence Stream - South UG
Apr 25, 2022
NI 43-101
Reno Pressacco, PGeo, SLR Consulting (Canada) Ltd
Cutoff: 2.0 g/t Au $1,650/oz Au, 1:33 CAD:USD, $10,000/t Sb
Resource Category
Tonnage
Total Rock Value
Metal
Grade
Recovery
Contained Metal
% of GMV
Indicated Resources
274,000
$267/t
Gold
4.10 g/t
100.0%
36,119 oz
97%
Antimony
0.059%
100.0%
354,583 lb
3%
Inferred Mineral Resources
1,917,000
$273/t
Gold
4.21 g/t
100.0%
259,479 oz
97%
Antimony
0.056%
100.0%
2,362,456 lb
3%
All Categories Spot
2,191,000
$273/t
Gold
4.20 g/t
295,598 oz
97%
Antimony
0.056%
2,717,040 lb
3%
Spot Gross Metal Value
Market Cap as % of Net GMV
Spot Prices Used
$597,418,345
6.2%
Gold $1,969.35/oz, Antimony $5.63/lb
Project Resource Estimate - Clarence Stream - Southwest UG
Apr 25, 2022
NI 43-101
Reno Pressacco, PGeo, SLR Consulting (Canada) Ltd
Cutoff: 2.00 g/t U
Resource Category
Tonnage
Total Rock Value
Metal
Grade
Recovery
Contained Metal
% of GMV
Inferred Mineral Resources
2,250,000
$301/t
Gold
4.75 g/t
100.0%
343,616 oz
100%
All Categories Spot
2,250,000
$301/t
Gold
4.75 g/t
343,616 oz
100%
Spot Gross Metal Value
Market Cap as % of Net GMV
Spot Prices Used
$676,700,901
5.5%
Gold $1,969.35/oz
Outcome Visualization Project as of Mar 20, 2023: Galway: Clarence Stream 7,000 tpd OP Scenario
Visualized Outcome: Galway: Clarence Stream 7,000 tpd OP Scenario
Galway Metals Inc published an updated resource estimate on Apr 25, 2022 for the Clarence Stream project for the North, South and Southwest zones that it breaks up into open-pittable at 0.38 g/t gold cutoff and underground mineable at 2.0 g/t gold. 72% of the gold resource is assigned as open-pittable. Continuing exploration both in proximity to the existing open-pittable zones and new targets on the disctrict scale property will very likely expand the open-pittable resource. This OV looks at a scenario where the resource never expands and the existing open-pittable resource is mined at 7,000 tpd over a 10 year period. The underground resource is ignored as is the antimony credit in the North and South Zones . The cost structure is based on the April 1, 2021 feasibility study for the phase 1 development of the Valentine gold system in Newfoundland by Marathon Gold. This is a series of 5 similar open-pittable deposits with a lower grade, but also a lower strip rate of 7.2 rather than the 11 assumed for Clarence Stream whose zones generally dip more steeply. The objective is to show what the Clarence Stream project is potentially worth at a minimum at different gold prices. This bridges the knowledge gap between now and a possible PEA by the end of 2023.
Visualized Outcome Summary: Galway: Clarence Stream 7,000 tpd OP Scenario
Economic Outcome (USD): Revenue Model at OV designated Metal Prices
Annual Average
Life of Mine (LOM)
LOM Stats
Recoverable Revenue:
$305,752,560
$2,862,346,565
$120/t ore Recoverable Value:
Smelter/Transport Costs:
($3,057,526)
($28,623,466)
1.0% of Recoverable Revenue
Gross Payable Revenue:
$302,695,034
$2,833,723,099
99.0% of Recoverable Revenue
Royalties:
($3,026,950)
($28,337,231)
1.0% of Gross Payable Revenue
Net Payable Revenue:
$299,668,084
$2,805,385,868
98.0% of Recoverable Revenue
Mining Cost:
($61,320,000)
($574,056,000)
52% of OpEx - $24.00/t ore
Processing Cost:
($28,105,000)
($263,109,000)
24% of OpEx - $11.00/t ore
Other Cost:
($8,942,500)
($83,716,500)
8% of OpEx - $3.50/t ore
Sustaining Cost:
($19,000,000)
($190,000,000)
17% of OpEx - $7.94/t ore
Total Operating Cost:
($117,367,500)
($1,110,881,500)
40% of Net Payable Revenue - OpEx - $46.44/t ore
Pre-Tax Cash Flow:
$182,300,584
$1,694,504,368
60% of Net Payable Revenue - $70.84/t ore
Taxes:
($41,529,417)
($385,266,267)
23% of Pre-Tax Cash Flow - $16.11/t ore
After-Tax Cash Flow:
$140,771,167
$1,309,238,102
47% of Net Payable Revenue - $54.74/t ore
Note: Concentrate transport costs, smelter treatment costs and retention are subtracted from recoverable revenue to get gross payable revenue to which the uncapped royalty rate for the project is applied. The annual average of LOM sustaining cost is expensed as an annual operating cost. Annual average figures reflect full production years.
Economic Outcome (USD): Royalty Model for 1% NSR at OV designated Metal Prices
Mine Life:
10 years
Startup
NPV 5%
NPV 10%
NPV 15%
Annual Avg NSR:
$2,996,681
Now
$20,919,229
$16,068,892
$12,666,779
LOM NSR:
$28,053,859
2027
$17,210,301
$10,975,270
$7,242,272
Economic Outcome - Discount Rate: 8.0% - CAD AT NPV: $675.0 million - Fair Speculative Value
Gross Rock Value (USD/t):
$133
Recoverable Rock Value:
$120
Payable Rock Value:
$118
LOM Net Payable Revenue (USD):
$2,805,385,868
LOM PT Cash Flow (USD):
$1,694,504,368
LOM AT Cash Flow (USD):
$1,309,238,102
USD Pre-Tax NPV:
$738,639,548
Pre-Tax IRR:
48.5%
Pre-Tax Payback:
2.0
USD After-Tax NPV:
$493,494,142
After-Tax IRR:
36.3%
After-Tax Payback:
2.6
CAD Fair Spec Value Low:
$33,740,194
CAD Fair Spec Value High:
$67,480,389
CAD Implied Project Value:
$37,171,863
Price Target if Visualized Outcome delivered by Expl-Dev Cycle without dilution: CAD $9.26
Fair Speculative Value Stock Price Range: CAD $0.46 - $0.93
MSV (Market Cycle S Curve): Market Speculative Value represents the typical market pricing pattern of a new discovery as it moves through its exploration-development cycle. The irrational pricing behavior of the yellow channel contrasts with the fair speculative value of the blue channel as defined by the rational speculation model because during the pre-economic study stages there is great uncertainty about how big the discovery will turn out.
Fair Speculative Value Ladder
USD OV NPV
CAD OV NPV
Exch Rate
Diluted
Net Interest
$493,494,142
$674,803,890
1.3674
72,886,006
100.00%
Project Stage
Uncertainty Range
CAD FSV Range
CAD FSV per Share Range
CAD MSV per Share Range
Grassroots
0.5% - 1.0%
$3,374,019 - $6,748,039
$0.05 - $0.09
$0.09 - $0.23
Target Drilling
1.0% - 2.5%
$6,748,039 - $16,870,097
$0.09 - $0.23
$0.23 - $0.46
Discovery Delineation
2.5% - 5.0%
$16,870,097 - $33,740,194
$0.23 - $0.46
$0.46 - $6.94
Infill & Metallurgy
5% - 10%
$33,740,194 - $67,480,389
$0.46 - $0.93
$4.63 - $9.26
PEA
10% - 25%
$67,480,389 - $168,700,972
$0.93 - $2.31
$2.31 - $6.94
Prefeasibility
25% - 50%
$168,700,972 - $337,401,945
$2.31 - $4.63
$2.31 - $4.63
Permitting & Feasibility
50% - 75%
$337,401,945 - $506,102,917
$4.63 - $6.94
$2.31 - $4.63
Construction
75% - 100%
$506,102,917 - $674,803,890
$6.94 - $9.26
$4.63 - $6.94
Production
100%
$674,803,890
$9.26
$9.26 - $11.57
Market Speculative Value Stock Price Range: CAD $4.63 - $9.26
Warning: while the market spec value (S-Curve) and fair spec value channels presented in project value terms track the evolving expected ultimate outcome value, when presented in stock price terms the expected stock prices are subject to dilution through future equity financings or project interest farmouts.
Alternative Metal Price Scenarios
Metal 1
Metal 2
Metal 3
Metal 4
Gold
Spot:
$1,969 /oz
OV Assigned:
$1,969 /oz
Pessimistic:
$1,300 /oz
Optimistic:
$2,300 /oz
Fantasy:
$3,000 /oz
Note: for Metal 1 pessimistic, optimistic and fantasy price scenarios, OV assigned prices are used for Metals 2-4
Economic Outcomes with Alternative Metal Price Scenarios
USD PT NPV
USD PT IRR
USD AT NPV
USD AT IRR
AT Payback yrs
Spot:
$738,639,548
48.5%
$493,494,142
36.3%
2.6
OV Assigned:
$738,639,548
48.5%
$493,494,142
36.3%
2.6
Pessimistic:
$133,712,414
16.6%
$64,347,381
12.3%
5.3
Optimistic:
$1,037,465,509
62.9%
$705,660,574
46.9%
2.1
Fantasy:
$1,670,092,676
92.4%
$1,154,825,862
68.3%
1.5
Fair Speculative Value for Alternative Metal Price Scenarios
Stage: Infill & Metallurgy - 5.0% - 10.0%
CAD AT NPV
CAD Target Price
CAD FSV Range
CAD FSV per Share Range
CAD MSV per Share Range
Spot:
$674,803,890
$9.26
$33,740,194 - $67,480,389
$0.46 - $0.93
$4.63 - $9.26
OV Assigned:
$674,803,890
$9.26
$33,740,194 - $67,480,389
$0.46 - $0.93
$4.63 - $9.26
Pessimistic:
$87,988,608
$1.21
$4,399,430 - $8,798,861
$0.06 - $0.12
$0.60 - $1.21
Optimistic:
$964,920,269
$13.24
$48,246,013 - $96,492,027
$0.66 - $1.32
$6.62 - $13.24
Fantasy:
$1,579,108,884
$21.67
$78,955,444 - $157,910,888
$1.08 - $2.17
$10.83 - $21.67
Disclaimer: A visualized outcome is one of many possible outcomes for an exploration project as it moves through the 9 stages of the exploration-development cycle from grassroots to a producing mine with failure as an outcome at any point along the way. The range of possible outcomes for the physical nature of a deposit shrinks after delivery of an initial 43-101 resource estimate. While the nature of the deposit constrains the range of mining scenarios, the cost assumptions will vary as the project moves through the feasibility demonstration stages of the cycle, which affects the economic value of the final outcome. This economic value will also vary according to the prices of the metals targeted for extraction which may change during the years it takes for a project to become a mine. An outcome visualization is thus a compilation of best guess assumptions for the key variables that drive the discounted cash flow model, the basis for assigning an economic value to a mine. An OV is not intended as a prediction, but rather as a framework that allows the incorporation of new information generated by the exploration-development cycle for the project into a valuation model on an ongoing, dynamic basis.
Net Interest: 100% WI Vested: Yes Uncapped NSR/GOR: 2.00%
Ownership Terms: Agreement Aug 18, 2018 to acquire various claims and partial interests from Mistango River Resources, CR Capital, First Qunatum, Globex and a private party for CAD $1,350,000 and 800,000 units at $0.25. First Qunatum has a 2% NSR on some claims, Globex has 1% NSR on others.
Part of 25,000 m drilling in 2022 will test deep Titan anomaly at Newiska which can only be drilled in winter. Success would constitute a new VMS discovery.
Target Testing
2022 Q1 Early January
2022 Q4 Late December
Deep drilling of Titan anomalies at Estrades looking for copper rich VMS zones down-plunge from existing zones, can be drilled year-round, part of 25,000 program for 2022.
Base Case Resource Estimates
Project Resource Estimate - Estrades
Sep 20, 2018
NI 43-101
Reno Pressacco, P.Geo, RPA Inc
Cutoff: $140/t NSR $1,450/oz Au 80% rec, $21/oz Ag 70% rec, $1.15/lb Zn 92% rec, $3.50/lb Cu 90% rec, $1/lb Pb 85% rec
Note: Minimum 1.5 m mining width.
Resource Category
Tonnage
Total Rock Value
Metal
Grade
Recovery
Contained Metal
% of GMV
Indicated Resources
1,497,000
$629/t
Zinc
7.200%
100.0%
237,620,619 lb
34%
Copper
1.060%
100.0%
34,983,036 lb
15%
Lead
0.600%
100.0%
19,801,718 lb
2%
Gold
3.55 g/t
100.0%
170,863 oz
36%
Silver
122.90 g/t
100.0%
5,915,227 oz
14%
Inferred Mineral Resources
2,199,000
$406/t
Zinc
4.720%
100.0%
228,821,619 lb
34%
Copper
1.010%
100.0%
48,963,948 lb
21%
Lead
0.290%
100.0%
14,058,955 lb
1%
Gold
1.93 g/t
100.0%
136,452 oz
30%
Silver
72.90 g/t
100.0%
5,154,072 oz
13%
All Categories Spot
3,696,000
$496/t
Zinc
5.724%
466,442,238 lb
34%
Copper
1.030%
83,946,984 lb
18%
Lead
0.416%
33,860,674 lb
2%
Gold
2.59 g/t
307,315 oz
33%
Silver
93.15 g/t
11,069,299 oz
14%
Spot Gross Metal Value
Market Cap as % of Net GMV
Spot Prices Used
$1,834,700,033
2.0%
Zinc $1.33/lb, Copper $3.91/lb, Lead $0.94/lb, Gold $1,969.35/oz, Silver $22.50/oz
Most recent 43-101 resource estimate 
Prior resource estimate 
PEA 
PFS 
FS/BFS/DFS
Flagship Play
Secondary Plays
Other Plays
