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Snowline Gold Corp.

View Company Profile

September 16, 2024 at 10:20 AM (MDT)|Broadmoor Hotel & Resort

Scott Berdahl

Co-Founder and CEO


Scott Berdahl, MSc, MBA, P.Geo
Director, CEO, Co-Founder

Scott is a professional geologist with over 15 years’ industry experience. Born and raised in Canada’s Yukon Territory and based in Whitehorse, he brings a strong technical grounding to discovery-stage exploration alongside in-depth local knowledge. He has business development experience with several private and listed exploration companies focused on gold and base metals. He studied at the Massachusetts Institute of Technology, earning two degrees including a BSc in Geology, and he went on to gain his MSc in Earth Science & Engineering from KAUST in Saudi Arabia and an MBA from INSEAD in France and Singapore.

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.

Awesome. OK. Well, thank you everybody for coming. We're Snow Line Gold Corp. We're a relatively new three year old company, four year old company coming up in the Yukon focused on gold, focused on grassroots gold exploration and really overlooked part of the territory. I just a cautionary disclaimer and I will be making some forward looking statements throughout this presentation. That's kind of why we're here. But first starting with a backwards looking set of statements here, just on the origin of the company, you know, I, I mentioned we're just over three years old as a company, but this has been a long effort in the Yukon starting with my father's prospecting efforts in the 19 eighties. And then, as you can see, dragging me and my brother and our dog out into the the Yukon Wilderness kind of season after season building a portfolio and his private prospectors, our competitive advantage was always to go where other people weren't. And so really that led to a lot of true Greenfield exploration trying to come up with brand new ideas where there's just no competition. And so, you know, with my father, Ron Bert's effort starting in in 1988 we have well over 30 years of exploration in the, in the territory coming up quicker than I'd like to admit on 40 years. And and yeah, and so that was the foundation that we launched the company from and through those efforts, we ultimately staked an option. Now, more than 1% of the surface area of the Yukon territory, you know, that's over 4000 square kilometers. A lot of it just not looked at before with new ideas tested. And you know, a lot of very good data came back from that. And so just a quick look at that sort of business model, you know, as prospectors, we were out there to find projects and to vend them basically a project generation business model. and that went fine, you know, for, for several decades. But, you know, when 2012 came around, things started to come back to us and, you know, desperation started to, to climb the axis is kind of flipped there. But but, you know, really from 2012 to to 2018, it was very difficult to vend a project as a prospector. So we came up with a new model. and that was short lived, but it didn't really work, you know, really just trying to get these projects going in some way or another. But really, it's been it's been tough and so, you know, scraping the bottom of the barrel in in 2021 we came up with sort of the absolute worst business model possible and we launched a junior mining company and our company is stolen. And you know, fortunately this you know, revenue free model has has worked out because obviously, it does provide capital and we can get in there and and test these targets. And so we focused on an area in the eastern Yukon territory. And we, we have a large land position now, a lot of it based on that early work and the the work that we did and that our early options did on those claims. And we have over 3600 square kilometers in the territory and you can see clustered several projects in the Eastern Yukon. So Anderson Rogue Cynthia Ursa kind of form our, our flagship area. And and within that, in those three years, we've come up with a deposit measured and indicated and inferred, actually, there's no measure yet but indicated and inferred combined at close to 7.3 million ounces, an average grade of of 1.45 g per ton. And that's so that's at our value deposit, you can see in that rogue project which is in a cluster of these reduced intrusion related or also known as Fort Knox style intrusions. We have a strong treasury with $59 million at the start of the month. And that's really enough to see us through an aggressive exploration season like this year with, with five drills. And we're now past 30,000 m and a new camp build, et cetera. a lot of good regional work that should see us through to the end of 2025 at least. So, in a good place there. And we're very happy that we've to be recognized last fall with the Robert Lecky Award for Environmental Stewardship, which is awarded by the Yukon government as well as Yukon first nations. So to get that recognition at such an early stage, you know, speaks to the kind of company that we're trying to build and that's been from the inception even before the inception of the company. We've really wanted to set a high bar for the way that we approach things. And and some lofty discussions with our chair Craig Hart, prior to launching the company, we, we kind of corralled all of those into four things that we wanna do. You know, operating in an environmentally respectful man manner, build community as you saw. I'm, I'm born and raised in the Yukon and then now raising a family there myself, skipping to the fourth one doing things right. You know, this is just the obligatory esg slide if we're not actually holding ourselves to these standards and not just when it comes to environment and community, but also scientific integrity, use of our shareholders funds and, and ultimately safety. You know, we've,, we've so far, pulled off for the better part of a five drill program with well over 100 and 20 days of of work out there without a single lost time in incident. So really proud of that, especially, you know, as a company just starting out and getting our legs under us to have that commitment and that kind of accomplishment is something we're very proud of. And then, and, you know, the third bullet that I skipped over is going big and we're not out here to find, you know, a small resource that may or may not see production one day and just to kind of keep raising money and keep drilling it. We see world class potential in the rocks. That's why we started focusing the company in the eastern Yukon there. And and ultimately, you know, that's I, I think what we've shown to be there with our, our Valley discovery and, and hopefully with more and when it comes to exploration and investment in exploration. You know, a lot of people talk about betting on the jockey., just so happens, we have a very good horse but,, we've, we've corralled a whole stable full of very good jockeys here. And,, you know, I'm betting on all on all of these people and they're delivering really just a that we don't have time to go into case by case I would love to actually. But but just what the, what snow line has accomplished in its short tenure so far speaks to the contributions of all these people and just at the board level as well. You know, we have a, a really driven involved and and purpose built ultimately board with each person bringing in a lot of relevant expertise in their relative fields of knowledge. And I'll just point out Callum Morrison. He is here at the conference as well. He was with tech for a while and as well as great sorry, great bear resources who were you know, acquired as, as most people know a couple of years ago, he was CEO of their royalty spin out. So he has a lot of really good experience on sort of both sides of the M and A desk and as well as, you know, strong capital markets experience. So if you do see him feel free to corner him and and talk shop. And so I, I mentioned, you know, what we've done in a short amount of time, you can see the Greenfield discoveries were made at Valley in 2012, like this was just a blank spot on the map prior to and and ultimately, that dotted line represents a lot of work trying to bend these projects and give them away. And ultimately, you know, snow line came to fruition in in 2021 with the modest rays. And and with that, we did soils geophysics on valley while drilling another target called Jupiter interesting orogenic system with some good numbers. But ultimately, in September of that year, we drilled the first four holes at at Valley for about 800 m and some decent results. But our real discovery holes came the next exploration season. We built a 50 person camp out there nearby and then, you know, drilled 410 m at at almost 2 g from surface right out the gate. And that has just continued, you know, getting intersections of hundreds of meters of gram plus often multiple gram per ton with the highest grades right near surface and, and we'll get into that. And you can see just in basically two full exploration seasons, 2022 and 20 23 the consistency and the grade of the deposit is such that we were able to put together that resource. That initial resource of of 4.1 million ounces indicated 3.3 million ounces inferred. On the back of 28,000 m of drilling, we've since built a second camp. And just last week, we had a drill hole out 245 m at 4.1 g from surface. There's a 6 m stretch within that averaging 100 and one or sorry, 100 and 1 m stretch averaging 6 g per ton. And you can see from the inception of the company, we've also been aiming to, you know, to do things right and to abide by our principles. And and we've done a lot of things including you can see in late 2022 when we drilled those big discovery holes, we started baseline environmental monitoring at Valley. You know, we really wanna not only have the relevant information to ensure that we can progress the project responsibly, but also we want to reduce those timelines and, and that's very top of mind for us. really anything we can do to not only to explore but to bring down the the time to production is a, is a huge win for us and for our shareholders. And so without further ado this is a plan map of our Valley deposit. This is drilling up to the start of this season, 28,000 m there and you can see there's just a very coherent, it's roughly 700 m by 500 m. where at surface, you know, you're hitting good mineralization. commonly one or 2 g per ton plus. you know, there's some stretches there from surface, I think 100 and 32 m at 5 g, 265 at, at 3.6 I mentioned 245 at four. just to highlight holes coming from a big area of very three dimensionally continuous high grade mineralization with essentially no internal solution. You can look at those holes and you can look at that, that assay scale on the bottom, right of the figure there where you have you know, the the purple is more than 2 g per ton, red is more than a gram per ton. And you can look at some of those holes when you get into the high grade mineralization, you don't get out of it like, well, you do eventually, obviously, but you know you're in it while you're through it. And and so it's just very nice consistent mineralization. which is one of the reasons we were able to produce such a robust resource on on 28,000 m of drilling, it behaves a lot more like a poor free system than, you know, a typical say a structurally hosted gold deposit where you might have to drill hundreds of thousands of meters to, to get the kind of understanding that we have in in very short order here. And I'll just call your attention quickly to the two cross sections on there. A to a prime or that's a cross section and then a long section B to B prime. And so you can really kind of get a three dimensional sense of this. It really is close to a pit shaped body of mineralization and that, that also helps. So, you know, there's the, the resource I went over the numbers briefly, but yeah, 4 million indicated 1.663 0.2 million inferred 1.25. And so now just switching 90 degrees from this view to the long section, you can see it's basically the same, you know, really, just a, a pit shaped block of mineralization sitting out surface there with some very nice high grades. You can get an idea of the consistency on the left side of that figure just looking at those assay tags, anything pink. And that one is actually greater than 5 g per ton, red is greater than 2 g. And yeah, ee essentially, you know, the, the resolution is not there, but you're hard pressed to find a sample there below a gram per ton. Actually, I'm I'm not sure that there is one in that stretch. And that's the case for a lot of the high grade zones. And on the flip side, there's not much for you know, high assays that are blowing things out. So, you can look it up in our releases and so on, but we'll cap our intervals at 10 g per ton. for the resource. It's capped at 30 just as, you know, there's no statistical reason to cap it at 10. But but it barely changes these intervals even at, at that low grade. So like the, the 6 m just because it's top of mind. For me, the the 101 m at 6 g that I mentioned earlier. There are only a handful of assays that are above 10 g per ton. The highest is 20 there's a 16 and a couple of 12 and 13. It's you know, it's mostly just basically 6 g per ton mal organization. And similarly, in that stretch, there's only one assay below a gram and that's 0.9. So very yeah, very consistent. And one thing you'll notice on this long section too is that, so that that blue revenue factor 0.72 shell, you know, it's a conservative approach to estimating that we're not blowing it out till the costs start to go negative. We're just looking at really like the very quality of what we have here while we explore the open edges and, and hopefully push that out further. But we, you can see we've broken it out into these sub pits as well just to kind of give an idea of what we really stumbled into beyond just, you know, 7.3 million ounces combined at an average of 1.45. So,, so this table on the left here, you can see,, we've broken it out between each of those shells. So between surface and shell one, shell, one to shell two and so on with the total in bold there at the bottom of the table. And just, you know, in looking at that and looking at the indicated to the waste, we've also put the waste out as part of the resource which, you know, isn't too common, but we don't have you know, we don't have a strip ratio yet because it's early stage. But just in terms of looking at what that could be like, you know, we need a proper optimized pit design before we can really start talking strip. But nonetheless, you can get a sense, a qualitative sense call it of what's there by looking at the amount of waste that we have in these conservative 45 degree pits and and looking at the amount of indicated tonnage or indicated inferred tonnage there. And so there that works out to a life of mine ratio of a 0.9 to one. So, you know, that's that's a fantastic place to start again at that average grade of 1.45 overall. And then, you know, and so this is not you know, again, more of a qualitative measure, but if you look at the assumptions we made to calculate our cut off grade for the resource, we're looking at a mill scenario, we're looking at, you know, fairly realistic benchmarks, costs in terms of our assumption from other projects and really not stretching anything too far. Or at all, if you take that 25,000 tons per day, which around right now is just a thumb suck. But, you know, that works out to about 17 years to get through that tonnage. That's a single shovel operation working on the on the ore to start out and then, you know, bringing in shovels later on to, as that strip, you know, climbs to do an ultimately one or 0.9 to one or that, that ratio anyway. And and again, using these very crude numbers, you know, just to get through that if, if you were to go with 25,000 tons per day to get through that much material. and you process that, you'd basically be looking at a life of my production of 425,000 ounces a year. And similarly looking at that first pin again, I'll just hop back to it quickly. You can see there's basically no non mineralized material in that pit and it's a big pit. It, it holds combined well, 2 million ounces indicated 900,000 ounces inferred with only 3 million tons of waste material in that in that pit shell that holds, you know, 42 million tons of material. So that works out to a waste to minimization ratio of 0.08 to one. So obviously, it's, it will work out to a low strip kind of environment. And again, using that same 25,000 tons per day assumption on that start, you know, you're looking at 4.3 years of production averaging somewhere around 689,000 ounces a year. And again, these are very qualitative. We don't know that 25,000 tons per day is gonna be the optimal ratio, but this is just to give flavor of, you know, what we really dug into here just looking a little bit beyond the the headline numbers here as to what this actually means when we put this all together. So we're obviously very happy with what we found. This is an initial resource we're working on growing it, we're working on infilling it. And and hopefully, you know, upgrading a lot of that indicated in or sorry, inferred, indicated this season and finally just on that table on the right, I'll just make a quick comment that, you know, it's fairly resilient to to cut off grades as well. Which means it's fairly resistant to changes in the gold price. So there's a lot of enthusiasm given the, the gold price lately, understandably, but, you know, this isn't a deposit where, you know, this, you know, gold's at 2500. Therefore, it's starting to get interesting. This is something that if gold drops to, you know, much, much below our, our assumption here of $1800 it's still interesting. So for example, that I if gold were to drop at to 1350 keeping all other factors the same, which admittedly they some of those would change too and the whittle optimization would change. But but just looking at the inputs there, you know, a cut off grade, not the average resource grade, but the cut off grade at at 13 50 is 0.6. And we still have, you know, close to that 7 million ounce is basically 3.9 indicated three inferred. So this is something that, you know, if we get an unexpected huge bear market in the in the gold price, you know, we're still pretty happy with this deposit and we're still moving forward. So, conversely, you know, if gold stays at at 25 $2600 or goes higher, this becomes very attractive. And just one more look at the one more way to look at the resource. is, you know, this, this metric of just looking at at benches. And so this is a 20 m bench elevations through that through that resource model through the p constrained resource model. And you can see those 1st 28, 1180 1160 those are just influenced by the topography of the valley bottom, fairly gentle, but you're in the full valley bottom at 1160. And you can see from there, you go through seven consecutive 20 m benches where you're averaging basically 600,000 or more per bench. And so, you know, just really robust realization where every 20 m you're pulling out another 600,000. Again, it's not a mind plan. It's it's just kind of interpreting what we've put together so far with the resource. But understanding why, you know, this is not your typical deposit of this scale and grade. It really comes down to the geometry and it also comes down to the metallurgy, which is fantastic like these systems. I I mentioned a Fort Knox style system at the start of the talk and that's really what this is. And Fort Knox, you know, it's a big low grade system, but it works because the metallurgy is there, the continuity is there and the scale is there. And you know, those three things have allowed this sub gram deposit to produce. I don't know what the exact production numbers are but, you know, it's a 10 or 11 million ounce,, deposit now and, and going on to year 30 fairly soon here. So,, you know, that's been a staple,, in Alaska for, for decades now. And,, and the grades have dropped to, I think, 0.3 0.35 in there in recent resource and reserve estimates with a 0.1 cut off and they're still mining that. And so, you know, we have that same metallurgy, we have the same scale, we have the same consistency and continuity, but we also have grades that are well beyond what you see at at Fort Knox and sorry, same sort of metallurgy where the gold is occurring primarily as as native gold along grain boundaries. And and so, you know, that's, that's when you break the rock, it preferentially exposes the gold and it's relatively easy to get out of there. So initial metallurgical testing looks very favorable across a range of different methods. You basically have 94% recovery recovery on, on water assignation, 95 on floatation and 95.7 on cil. And so, you know, it's quite robust. And a lot of options are on the table again, for the resource estimate we're envisioning for cost assumptions, et cetera, looking at a mill based scenario and certainly the 95 flotation, 96 cil are very,, permissive to,,, milling kind of scenario. And I think with those kind of grades that we're seeing, you know, we'd be leaving on the t a lot on the table if we went some other way., and finally, you know, when we stepped out in the eastern Yukon Valley was just a showing. And we, it was really about the district. And when we launched Snow Line, it was trying to explore this package of rocks that have a lot of strong parallels to Nevada. A lot of strong parallels to some of the best gold camps in the world. And, you know, Central Asia, parts of Australia. And and yet, they just have not been looked at like some of the most recent geological maps on here were done by a guy on horseback in a four month expedition in 1952. And that's it. That's the digitized shape file that's now in the government database. That's the last time someone looked at these areas and we're finding these things sticking out of the ground. So when we launched the company, it was more about this district, the fact that we found Valley so quickly speaks to the potential of the district and we're still finding new targets out there. And again, in that release, last week, we had a new organic target called Galatea and a new reduced intrusion related gold target in this road Platonic complex, which is a 60 by 30 kilometer feature filled with valley like and valley age intrusions that you know that we're just getting started in. So it's a pretty exciting place to be. And with valley in hand, we have essentially a you know, a tool when it comes to our cost of capital as an explorer to to push ahead with regional exploration. But that said, as I mentioned earlier, we're very keen on, on pushing ahead with Valley itself. Bird in hand is worth probably several dozen in the bush in this industry, if not hundreds. And so, you know, we, we don't wanna lose that opportunity either and we want to progress that very quickly. And so just as a as a final note here, a look at the structure of the company, we have 100 and 58 million shares outstanding. We have 100 and 69 fully diluted again, treasury around 59 million enough to see us through 2025 an aggressive season of exploration. very happy to have a number of analysts pick us up some, some really good work down on those fronts. So if you care to dig deeper and don't take my word for it, you can ask,, any of these people,, management and insiders have a strong position., and,, yeah, and growing institutional ownership as well. So I'm out of time here, but I'll, I'll leave it at that. And,, do we have time for questions? Unfortunately, we won't have time for any questions. It's a great story. It's tough to tell in 20 minutes, obviously, but I'm sure Scott's around. If you just pigeonhole him out in the hallway, I'm sure he can give you an update if you have a question. Thank you very much, Scott.


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