G3 Goldfields: Dan Noone Begins the Next Chapter in Guyana

0:16Mining Stock Daily: All right, so we're actually I'm going to treat this interview as more of a company introduction, although our guest is no stranger to the podcast. In fact, he's done this a couple of times. Coming off the G2 and G mining transaction, we are now introducing G3 with the CEO, Mr. Daniel Noon. Dan, you and I, I think, had this chat last year here at Beaver Creek. It's been an exciting time. Congratulations on that transaction. You emerged with those Peruni properties in Guyana,$45 million cash Canadian, contingent value right potential up to$200 million. dollars. That was a hell of a transaction.

0:58Mining Stock Daily: But it feels like this is almost automatic in your playbook anymore. You know, is this just going down the checklist and continue to provide shareholder value? That's the idea. When we start out, the idea is we're going to make our shareholders more money than they put in. And we do that by systematically and methodically exploring. And then once we have a geological success, make it into a financial success. and that is really as strong a discipline as the exploration itself. Yeah. Well, you did a great job of really introducing these properties when you was G2, right, and holding on to those.

1:33Mining Stock Daily: And we had those conversations over the last couple of years. But G3 is essentially a brand-new company, still private. We can talk about that public listing here in a minute. But give us the elevator pitch. What assets came into G3 and what exactly are you trying to build here that's any different? Yeah, so what we kept was the assets to the west of the CUNY district, so the Peters Mine, the Tiger Creek and Aramu West, which is 32 ,000 acres. So everything within basically about 25 kilometres of the Oco project stayed with G2, and that was sort of like the truckable distance. So we kept the rest.

2:10The key asset there is the Peters Mine, which was historically mined from 1905 to 1909. They mined 41 ,000 ounces at 41 grams a tonne. It's on the main road which goes past the G Mining mine and then off towards Arras' Torroparu. Historically, the British Geological Survey mapped that over 4 kilometres of mineralisation which is not dissimilar to what we see at Oko Oko West which is 5 kilometres long along that shear zone along which you get high grade, low grade and no grade but in general it's mineralized, so that's what we see as our main thing here in G3 to start with.

2:49Mining Stock Daily: Okay. Does the geology that you know of now suggest these properties could host something similar that you saw when you were working building G2? Absolutely, and I think we learned a lot about Oco. We were coming from Aurora where we were hosted in a foal hinge, and we went there looking for the same thing at Oco and found out that really it was a shear zone that controlled the mineralisation. And just as you went through different rock types, the mineralisation displayed itself differently, from being really high-grade chutes in the sediments to disseminated breaches and the magnetite-rich volcanics.

3:23At Peter's Mine, where they basically mined that 41-grammeton material early, that was in three high-grade chutes. But we drilled a hole last year in between two of those shafts and hit 75 metres at 1.5 grams, which was comprised of 60 metres at 0.8, then under football and the shear was 15 metres at 6 grams. So that's not dissimilar to the concept we had at OCO, where you just keep drilling along the shear, and no matter what rock type you're in, the shear's there, but if you're in the silts and sandstones, you get nothing. If you're in the mudstones, you get those beautiful high-grade shoots, and if you're in the metamorphosed volcanics, you get these magatite-rich bretches, which run 2-3 grams.

4:00So that's what we tried to test last year with that proof-of-concept drilling. I think we've had success on that. I won't say proved yet. I've got another four kilometers to drill out. But basically, that mineralization surface is there and certainly been mined historically. So we're pretty excited about it.

4:16Mining Stock Daily: Well, and you kind of answered my follow-up question about what part of the OCO playbook of exploration works here. But what part of it doesn't work here? Like that maybe you need to, I think you need to be reinterpreted as far as how you're going after this thing. yeah okay so the work the shear zone focus on the sheer and so that's definitely it what is different here a bit is the mineralization that we've come across to date is hosted in a sandstone like a dirty sandstone so nowhere near as much quartz vaining and not as much sulfidation either so we'll have to think about that certainly there are controls along that shear zone which are different to what we had at Oko and when we've got a two different plungers bit same as Oko but different directions and when we get out into the intrusive we see mineralization there as well so there's going to be you have to think process not exactly what happened at Oko just think of the processes what's controlling the fluid flow what might have happened here and so you got to be you get embarrassed every now and again like I was a bit of Aramu and I think I think Gene Wynum is going to have a lot of success up there.

5:28I was chasing the veins and not the sheer. I think they understand that now. But you just keep learning. Keep your eyes open. And, you know, our job is to read the book, not write the book. And sometimes we like to write the book and just read it.

5:42Mining Stock Daily: Well, it's a book that continues to – chapters continue to be added here. Absolutely. But, listen, as you know, most junior explorers start their life worrying about where the next financing is going to come from. But you started with$45 million. Canadian here with G3. How differently can you approach exploration because of a healthy purse? Well, the good thing is you don't need to have that initial bam, we've hit a hole and get the market excited day one, right? Which is always when you do it first, initial raising in a company, it's like, well, we've raised X million. We better find something to raise the next million.

6:17You know, so here we've certainly got a bit of lead time. It allows us certainly at Kusun and in the Aramu West and Tiger Creek to go out and systematically and methodically build up drill targets. But at Peters, I think it also allows us to go to the second phase of that discovery like we had at Oko, where we had the high-graded Oko, go along Gany, it's covered in tailings and muck, just drill 100-metre space holes. And without the worry that if I miss, holy hell, the bloody, you know, this chair price is going to tank. It's like we're sort of beyond that, which is good. So we've got that$45 million.

6:56I'm allowed to go out and make a few misses. I can get brave at Tiger Creek and Aramoe West, which those ridges are lateralised ridges with lots of gold shedding off them. But you can't stand on it and go, this is exactly what's happening. So you need to start and drill a few lithological holes. I hate to say that. But you're allowed to miss and build something up geologically rather than going, hell, I better hit something first. tell me. Yeah.

7:22Mining Stock Daily: We take it back and think about the transaction you did with G Mining and these properties that you retained, you know, Tiger Creek, Peter's Mine, other Peruni assets. Was G Mining just not interested in those early stage projects? Or was it something that you were, this is the next step of this business, we need to retain these to continue adding life to them. Absolutely. And in reality, first of all, we're just going to spin out or sell the OCO concessions, which were the OCO North and South out to Tracy. And we were keeping Aramook. We thought, you know, we could find another OCO out there.

8:03And so, you know, for them it was like, no, we want that whole district. We want everything within trucking distance. And we were like, well, you know, you've got to pay us for it. Then this is where that continued value right came from. It was like, it's not so much, okay the incremental ounces they added ok which they will it's aramu hasn't really had a fair crack yet and so we were like i think patrick's call was to me i know you like aramu dan but i'm not blowing up a deal on the back of that yeah and so that had to come across into uh into the transaction and so we got left with peters aramu west and tiger creek we wanted more than that in reality, right?

8:41But we accepted that anything within trucking distance had to go with the transaction. Yeah. Was it a tough negotiation? It took a fair while. But I think at the end of the day, because we were always debating value, and value is what you get and price is what you pay, and it was a relative thing. They had the other half of it. So you had to sort of say, okay, what's Tokotansinho worth? But in general, because you could sit there and say, you got A and you got B and when you put them together all it's you know one plus one didn't equal two and equal four yeah so there was a lot of wiggle room there and you got things like contingent value right which allowed us to say okay we're giving our upside but we're getting it back into G3 so those things sort of helped but knowing everyone being well educated about their asset and the other person's asset made the transaction lots simpler I think yeah and I need

9:35Mining Stock Daily: This follow-up question, I need you to explain it to me like I'm a 12-year-old. So you own that contingent value right potentially worth up to$200 million. How should shareholders think about the asset without assigning a speculative value to it? That's a good question. So the deal is when the transaction happened, there was 3.5 million ounces in indicated and inferred. on the claims owned by G2. Now, once up to 200, for every half a million ounces moving forward that they add into indicated in the mine, we'll get paid$25 million into G3. So how do you value that? Obviously the first one's a lot easier, probably going, yeah, I don't think we'll get there.

10:26I'd be surprised if we got there first quarter next year when they put out the new feasibility, but I'd be surprised if we weren't there 12 months after that. How big does this thing keep getting and they've got to keep drilling it off as the mine goes? What's their incentive to do that? Well, I think they've got a target on their back anyway. So I think they need to show as much ounces as they can. It's got a 10-year limit on it. I'm sure people will start getting the black shoals here out of my league. So where do you put that number? Actually, there's smarter people who can figure that out.

11:01I mean, basically, but you've got to think, will I get another half million, million, two million? I think here there's going to be a lot more answers found. And the CVRK, it's about the incremental gain at Oko, but a discovery at Aramu puts that right into the mix. You can get there quickly. So that's the speculative side of it, and I think Aramu has a real chance. Okay.

11:26Mining Stock Daily: Again, you started out with a healthy balance sheet. Any objectivity of looking and adding projects into G3? We've always looked in Guyana. I mean, Patrick went down there 30 years ago. I've been there the last 20. You know, it's getting harder at the moment in this part of the cycle. Yeah. Certainly there's been deals done in the CUNY district recently. It's expensive too. I was about to say that. People probably paid more than we're used to paying. I mean, obviously we're coming from, you know, we were there in the low times. We've got a healthy land package. We're always looking for more. But at the moment it's getting pretty competitive.

11:59It's a double-edged sword. It means if you find something, it's a lot easier to sell it. You get a better price. But to pick stuff up, it gets harder.

12:06Mining Stock Daily: A lot of people want to replicate somebody else's success, right? They see it done, so they think they can do it themselves. And that's not to say they shouldn't. You know, I'm happy that people do that. But with success, it breeds more success, right? And you guys have done such a wonderful job down there over and over again. So I think it's a testament. it. You guys opened the book with this. So, you know, job well done. Well, that said, you still remain private today. I think a lot of people are wondering when that public listing IPO kind of launches here, Dan. So what's the timeline there?

12:39Well, we're guiding our fourth quarter. We're hoping in October. We're listing on the CSE. It's probably taken longer than we expected. You know, there's probably a lot of listings happening at the moment, but we were hoping it'd be up by now but you know our lawyers are telling us it should be trading mid-october yeah we'd like it to be trading now but it'll be certainly in the fourth quarter I look forward to next year hopefully we can do this maybe

13:06Mining Stock Daily: not sooner than than 12 months from now but you know congratulations on the deal this year a lot more success to come here from G3 the new entity a lot of shareholder value still to be created look forward to watching stories and hopefully catching up with you here in the next few months. Thank you very much, Trevor. All right, there's your update from G3, everybody, and Mr. Dan Noon. We've got more coming here from Beaver Creek Precious Metals. Stay tuned. The information presented should not be considered investment advice. Mining Stock Daily Yen's affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein.

13:43Mining Stock Daily: Please do your own research or speak with a licensed financial representative before making any investment decisions.