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.

To get in the door here. But I had to create a story that was obviously good enough to get the Guernsey. So, thank you very much and thanks for turning up to listen to the story. following in the footsteps of James there, he set me up quite well. This is another turnaround story in West Australia. I actually know his asset pretty well at the Plutonic Belt, incredible infrastructure there. Great Hall Road running right through the middle of all those assets. So he's certainly got some pretty good potential in front of him and some infrastructure to go back to that plant. Well, we have it's spartan much shorter distance back to the plant. We literally have found almost 2 million ounces of over 8.5 g a ton right in front of a processing plant, just a bit of metrics there just to let people know where we're sitting at the moment. And I suppose if I just hark back to February last year when I recapitalized this business at 10 cents now, sitting at a dollar 37 hopefully, the market hasn't opened in Australia and made me a li just yet but very healthy market cap 1.5 billion remedies. Resources came onto our register a couple of months ago because they obviously like what we're building only 65 kilometers from their flagship operation. Our flagship operation, Do Ranga right here, Mount Magnet Romeus West gold now, vault minerals down here. So very close. We're surrounded by some very profitable gold miners that have had long lived operations with high grade goldfields Greenstone belts. One of the things I learned when I came into the company was that we were in a low grade Greenstone belt. I'd never actually come across a low grade Greenstone belt before. So I asked a few questions about what the GEO S wanted to do. There was some, let's say unrealized information there and we went and drilled and now we're sitting on 2.5 million ounces at 4.8 g a ton on that one central project mineral resources. I like to sit and dwell on these numbers because it's been, you know, a good couple of years building these numbers and drilling some incredible drill holes. I've never seen drill holes like this in over 20 years of doing this. I worked for Northern Star, I built, helped build that first asset into, you know, $6 billion market cap. Before I left. I'd seen 56 world-class deposits bought and still operated by Northern Star and to me looking at what we've managed to build here in such a short frame of time is pretty incredible if I do say so myself, we found every one of these ounces at 1650 Aussie, which I think is pretty cheap, especially if you convert it to us dollars. We've made two high grade discoveries literally in front of the plant that is the process plant in the foreground there. I shut that down in November 2022. We'd made a discovery, the green Ellipse on the right hand side, but we had about 80,000 ounces at that stage. So things looked a bit shaky. We were mining the blue oval which is the Gilbey's open pit at the time, it was producing a head grade of less than 1 g a ton and recovery less than 90%. So pretty sad times by August 2022 I realized we only had 12 million bucks left in the bank and I needed to turn that plant off to take away the operational risk and try and build that high grade system that we'd found. Our discovery hole was 54 m at 6.5 g a ton. And that really blew our hair back because you were looking at a 1 2 g system, 3 g was considered high grade there. And to d absolutely double that. And across an Olympic size swimming pool was pretty amazing. and what's followed on from there is some of the best drill holes I've seen. We've grown this very, very systematically and steady. And again, harking back to James's comment about building the trust back in the market about an asset, Gascoigne resources. Our predecessor, the, the preceding company, we were still called Gascoigne on most of this ride. And I wanted to do that deliberately to bring the Gascoigne shareholders that were still there. The, the few of them were there. I wanted them to, to know that this was under that Gascoyne banner. And then once we got to this conference or just before this conference last year, we changed the name to Spartan because we wanted to represent what we'd done, which was a small group of people taking on a lot of adversity. Some of that was coming back to us from fund managers which I was happy to receive and address. and some of those fund managers are now major shareholders. So 1832 asset management, Rob Cohen gave me a lot of grief. And now he's a 7% shareholder. So we've brought that trust back from the market and we've just kept going and building this, we d we put out an expiration target early this year. We then found pepper in April and we smashed our expiration target. That expiration target is around about 1.87 million ounces at 8.65. So we pretty much did exactly what we said we were gonna do at the upper end of the grade envelope in less than six months. And as my coo Craig sitting in the crowd likes to say, we, we put a million ounces at 8 g into this system in six months. These are the drill holes that you see in front of you. The colored ones are the new pepper discovery that we've made in about a year and a half one point ha 1.5 million ounces at 9 g a ton at Never never, which is an incredible story. But the five colored holes there are knocking five of the top 20 holes that we hit at P at never, never off the table. So pepper is actually higher grade than never. Never and never, never was pretty impressive. This is what it looks like. I apologize. I'm gonna scribble here, Geos love crayons. It's basically a Shred Democratic sequence which is cut by shears that Shred Democratic sequence is very consistent, 30 to 50 m wide. It's a volcanic plastic unit that's been turned into a shift which happens to be very permeable where you cut that with a orthogonal shear, you introduce high grade gold mineralization, it then permeates into that Strat graphic sequence. That's our model. The previous model was a low grade porry associated gold model which I haven't seen too many of in W A. So I was always a little bit intrigued as to how that would be the case. And it turns out once we found that never, never deposit, which sits next to the blue line there, we found more high grade in the pit. So these are two parallel shears sitting just to the south. And now you know why they were processing 0.8 g a ton because they were mining a lot of waste and two high grade shoots we then predicted based on a GEO coming to me and saying, mate, I think there might be another one in between. It looks like a bit of a frequency. And what do you know? There's another one? So pepper sits in the middle here. Unfortunately, we can't drill it too far up dip because of the shadow of that historic pit there. But that's one of the reasons why we raised 80 million bucks at 58 cents in April. And we're putting in a drill drive right now and I was just sitting there thinking about how I was gonna phrase this with James on the stage talking about how much we're putting into exploration. We're putting 36 million Aussie into that drill drive and we're gonna be drilling 65,000 m of drilling from it. So there's probably a number north of 50 million bucks that we're gonna put into our exploration efforts and pre-production capital to put in a mine access for what surely will be one of the best high grade mines you've seen. This is just to change that image a little bit. That's to show the resource the gold area is indicated, being drilled obviously dense enough to put into that indicated classification. One of the things that happened with the previous company is they weren't, let's just say diligent enough about how they estimated their gold. There was too much metal in that previous estimate. We're being very systematic and quite conservative about what we're doing. So we've drilled over 20 holes into pepper now, but we're still calling it inferred until we can drill that down to a sufficient spacing. Even though we can see massive continuity and a heap of grade through there. We will be drilling that out to indicate it by the end of this year and growing it. So we've got three rigs on it right now from surface. This is the answers per vertical meter in the resource that we put out middle of this year. We will update this at the end of this year with all that pepper information. Obviously, we will increase from zero the indicated component of pepper. We're aiming north of 75% conversion. And when I spin this into 3D, you'll see from a mining engineer's point of view. This is just gonna be a playground right through the middle here. 3800 ounces per vertical meter. If you can advance 100 m vertical at that kind of ounces per meter. You're looking at some pretty serious production. Now, I need to put a feasibility study. I'm dancing around the numbers at the moment, but there is a feasibility study that will come out in the first half of next year underpinned by a very solid reserve. One that I have delayed and I'll be open about it. I delayed it because we found almost half a million ounces at 7.6 g a ton. And then every drill hole we've drilled into it since then has been higher grade than that resource number. So I can guarantee you on this stage that the grade of pepper will go up. Now, this is just the site layout. This is to put some stuff into context processed plants right there. Never never is right there. Pepper is right next to it. The two high grade shoots in the pit, we're calling them four pillars in West winds. And if you're wondering, they're all named after Gin. That is, I'm hoping I'm pronouncing it properly. The white spirit that ladies used to like and now has become a favorite of some men including myself. This area is crossed up by a number of shears. Now, these are really important to understand because there is a huge gold system sitting next to us called mount magnet 6 million ounces of gold. And everyone loves to say someone's near me. That's why I'm gonna find all this gold. We've already got 2.5 million ounces. So we've proven that there's gold there. But what we've worked out is exactly what we've got structures that crosscut sequence and I'm just gonna scribble everywhere but through just the pet and the never, never environment, you've got four high grade systems between never and never and pepper. You've got 2 million ounces. We can see these structures sitting to the north of existing gold deposits. That one down the south is called Sly Fox. We don't talk about it too much because it's only 2.5 g a ton or thereabouts. But we can certainly imagine a central processing system which we have already in the middle here will be able to use these different deposits as option. But as I go further north, we hit 10 m at 20 g on that. She, it was called Patient Wolf another gen. So we're drilling that with an RC rig right now. And weirdly enough, there's another gold deposit up here, Golden Wings, which was turned into a Tailings Dam before I turned up. But there's a structure cutting right through that and weirdly enough more high grade and we're drilling that as well. So we've got four eggs on site. Three are doing pepper because we want to push that indicated component. We wanna put that into reserve because we want to come out with a really strong reserve next year. But we've got all of this regional potential. And when I say regional that's within five kilometers of that plant, our granted mining lease runs right around this whole area here. So I've just prioritized it guys. Let's just focus on everything within that blue area because it's easier and faster to permit. Now, the drill drive that I spoke about 36 million Aussie, we're gonna be putting it in from the West wall and we've just put that development into play. Now with the last, the first few cuts with Barmen mobilized the site with all the services run down the pit wall with all that surface support in place. We're back to mining an underground system here for the first time. And just so, you know, I am an underground guy so I don't like flies. I would much rather be underground away from the flies. That's our drill drive. You can see our two main deposits here. I apologize if you get vertigo. Mhm. That's never, never. That's pepper. So you can see we're actually running almost across the top of these two systems and we will end up 100 m away from Never, never. And there's no way that I'm gonna stop. We're calling it an exploration drill drive at the moment, but we're putting it in at six by 5.5 to allow it to become the backbone of what will be one of the highest margin gold mines in Australia. But that's not all, there's still some steak knives in here is an area called West Winds. That's the broadest area that was sitting in that open pit that noone really understood what was happening. But in January 22 we mined that area and had a record quarter of production. So you don't have to listen to me talk about potential. The facts speak for themselves. This is an incredibly high grade system and we believe we've cracked that geology code. I'll just move quickly into the next now. And this is why it's an engineer's dream 6570 degree dip, 14 m wide average scopes. The grades are, let's just say north of 8 g. In most cases, there's some really high grade scopes through there. And at the moment, you know, with the MS O shapes, we've been able to put around it with loose metrics. And as I said, we're working on a pfs with reserves. That's a conceptual mind design that's to try and bring it home to people. That's what this will look like just with what we have. But we are drilling this area right now and we will hit mineralization and make this system bigger. So we're gonna go north of 2 million ounces of, you know, 8 g of ton dirt very quickly. We'll also be able to drill this area here, which is the up dip of pepper. We can't drill it at the moment because of the shadow of the pit and a waste dump behind us. This just unlocks all the potential. And as I said, we have that regional potential there. We are drilling underneath this pit here. No one was allowed to drill under that pit. I couldn't quite believe it. But once we had worked out what was happening with never, never. And built that 2 million ounce high grade resource, I took the GEOS aside and I said, look what else is not being tested here. And when you look at it across and I'll present in a long section in the coming weeks that talks about how under drilled this whole zone is sitting on this mining lease. We've done GEOPHYSICS, probably five different types of geophysics. We've correlated all that together. We know that gravity and Magnetics work really well and where they correlate where you got a low gravity signature and a magnetic signal from the volcanic plastics, you can actually see and predict where the gold is gonna be. These are our existing targets. I don't talk much about arc. This is this one sitting just out to the north here, but we are prosecuting all of these stars at the moment, all of them have high grade essays on them. And if you if you come back to what the origin story of this, the turnaround story as James calls his project exact same thing here. We followed up 8 m at 3.9 g a ton from 24 m down a long strike from a pit and now we're sitting on 2.5 million ounces at 4.8. You can't tell me that there isn't more high grade gold in this system strategy. We've drilled over 100 kilometers of drilling. We're gonna do 25,000 m of surface that's underway with four rigs. We are gonna put that drill drive in, it's already been cut and we're progressing that right now. We will be drilling from underground and we'll do 65,000 m of underground drilling from that drive maiden oil reserve and a feasibility study. First half of next year. If it's not one of the best margin gold mines around, happy to take some feedback. We will put out a resource estimate at the end of this year, we do it every six months again. I don't talk much about potential even though there's an absolute basket of it in this area. What I like to talk about is facts. I needed to bring the market back to us after gas coin blew up. And I think now people are backing the spartan story and it's because we have high grade and infrastructure. We've got the growth, we've already proven it, you know, 1400% return on investment for our shareholders from 10 cents in February last year. Our team proven discoveries. We are mine renovators. This is what we do. I love having my feet in the fire, did it with Northern Star did it with Silver Lake, done it again with this, this company, but this is by far the biggest turnaround are catalysts. We just drill like crazy. We've got four eggs sitting there. We've already delivered amazing catalysts and we're gonna keep doing it. And the future define drill, discover, develop, deliver and develop. That's it. Questions from the floor. I think we have one at the back. Simon, something that you touched on. There was the evolution of your register. I guess you've had a major corporate turn up on your register setting that aside. Is it evolving? You know, is there more institutions coming on? Is it migrating to North America? I guess you can't say too much specifically, but in general general comments would be great. Oh look, I'm, I've been very systematic and, and deliberate about getting in front of the right institutions and then conducting raisings when people don't expect it. But allowing those people to come in those, you know, really long institutions that hold on to stocks that aren't just gonna create a liquidity event if you like. And I'm, we're sitting around 75% long only institutions at the moment and they've proven that they're long only mainly because our share prices ripped so hard. They can't find a spot to sell cos they feel like they're gonna miss the bus. So yeah, we've, we've been very systematic, systematic about it. Yeah, we have had interest from Romeus. But I wasn't really surprised to be honest because we have an amazing deposit that's 6 60 65 kilometers from their flagship operation. So they're good miners. We're good explorers. Looks good. Other questions. Frontier. Thanks Simon. That drive that you're putting in. It's not really an exploration drive, but what kind of capacity can you get out of that drive relative to the surface infrastructure at the mill? Good question. It is an exploration drive. The mines department tells me it has to be an exploration drive, but I am putting it in at dimensions that make sense from a mining perspective that will allow us to pull and my coo is sitting here probably cringing that I might even attempt to answer this question. I'd like to think we can pull a million ton minimum up that decline. We have achieved that together at other mines that have smaller declines at steeper incline angles. So we, we feel like we can easily achieve that. We are putting it in it in as a dual dri drive you would have seen it's a dual decline. We're putting ventilation down one of them. So we don't have to put a shaft up, but we can still use all that infrastructure to drill from. So it's almost a perfect situation. What's the capacity of the sort of the milk of the plant? So when I shut it down, 2.5 million tons is its name plate. It was operating anywhere between 2.7 to 3 million tons per annum because it was trying to just push tons through because the grade was so low to try and meet costs. But eventually we, we lost that race costs just escalated after, you know, everyone uses COVID as an excuse, but the labor costs just went completely mad. So we just shut it down to take the operational risk away. And I think that was the right decision. Thanks., just to follow on that from me, I think you've passed the point of establishing this will become a mine., sort of, when do you see a amongst the studies coming up when you know, studies going on? When do they come? When's your final one? And when do you hope to get your first production? Well, I hope to never have a final one. Look, we're just gonna keep drilling, but at the same time, I've brought on a highly experienced mining engineering, Craig Jones, to execute the, the operational side of this. And all the study work is being managed by Craig and myself as well. We're using external contractors, cos again, to me, we will create these studies internally but have them peer reviewed by some external contractors. Because again, back to that very deliberate walking the market backup to our opportunity, we have to do it that way we will deliver a pref feasibility study or a feasibility study might even be a definitive feasibly feasibility study in the first half of next year. And the reserve that comes out of what we end this year with will be considerable. Ok. So all eyes on that study coming out. Thanks very much for that. Simon there. Well, that concludes.