K2 Gold: Making Mojave Too Big to Ignore

0:17Mining Stock Daily: Welcome back into Mining Stock Daily, everybody. Let's head over to California here with K2 Gold and the Mojave project. K2 Gold does trade on the Venture Exchange with KTO and on the OTCQX with KTGDF. Just quick note, I am a shareholder of the company. They are also a partner of the podcast. The company did publish new drill results yesterday. Four new holes coming out of the Dragonfly Zone and confirming the presence of multiple stack structures hosting really nice grade, high grade oxide gold. Happy to welcome in Anthony Margaret once again, CEO of the company. Anthony, you knew drill results are going to keep coming and coming and coming.

0:59Mining Stock Daily: This is great. Another batch of results. Still early days here at Dragonfly.

1:03Anthony Margarit: Yeah, no, thanks a lot, Trevor, and happy to be back on the podcast. I guess very happy to see the results we released yesterday. I think they correspond very well with the results from a couple weeks back, our first news release on drilling at Mojave. So, you know, good to see the grade continuing. One thing that was really interesting, I think, from our perspective is in the first release on the first three drill holes, we noted that we saw surface mineralization unexpectedly in a couple of those holes. And in the drilling that we, in the holes we released yesterday, hole 24 in particular, we cut a structure higher up in that hole than we had expected to.

1:45Anthony Margarit: And, you know, it runs, yeah, that was three meters at 17.5 grams. I guess, you know, it's going to take a couple more holes and pierce points into that structure as we move along through the program. But there's a possibility that that structure could be the downed extension of that surface mineralization we saw in the previous holes that were released. So exciting to see that and just get a confirmation. I mean, you know, we continue to confirm that these structures are long, linear, predictable structures. And, you know, just really happy to be drilling this thing off and advancing the property as we move through the program.

2:28Anthony Margarit: Yeah.

2:29Mining Stock Daily: Last time you and I chatted, it was just a couple of weeks ago around the last batch of assays here. You emphasize that Dragonfly isn't just one structure. It's a series of parallel stack structures. Yeah. You kind of went into that there. This release reinforces that interpretation, obviously. Are you now getting to the point where you can maybe correlate individual structures from hole to hole and start building maybe a coherent 3D model of the system?

2:56Anthony Margarit: Yeah, for sure. And definitely by the time we're finished this 14 ,000 meters of drilling on the east side, we'll be at that point. You know, I think from where we're sitting, we've got a strong geochemical correlation between the XRF arsenic results that we see and the gold values that we're seeing in assays. So the way we have things set up, I guess you'd say logistically on site, is the material that's drilled today, we've got XRF results on tomorrow morning. and it's giving us the ability to call an audible, if you will, occasionally to change the dip or the ozimuth of these holes in order to increase our confidence in our targeting.

3:33Anthony Margarit: So it's the first time that in my career that we've been able to have that information at our fingertips that rapidly. So I think that's really helping things from a targeting perspective. And then I think we're eight holes into the Newmont trend at the south now. So the biggest part of what we're trying to accomplish in this phase of drilling at Mojave is to more pierce points into the bodies, grow our knowledge of the system and get to the point where, yeah, I think at the end of this program, the 3D model is going to look pretty compelling. Maybe by the time we get our next release out here with some more dragonfly results, we'll see where we're at there and start to draw interpreted structures onto these sections that we're showing and get to the point where we've got a long section where, you know, it's quite obvious with what we're dealing with on the continuity of these structures.

4:26Mining Stock Daily: One observation is that these structures from the latest rumors, it seems like the structures are widening the deeper they go.

4:33Anthony Margarit: Yeah, that's definitely some welcome news from our side of things. And it's really a matter of more data, increasing our knowledge. But yeah, to see these structures appearing to be widening at depth is very positive news.

4:52Mining Stock Daily: Yeah. So potentially, obviously it needs more follow-up and more drilling, but it seems substantial that they widen the further away you remove from service. I mean, that is a meaningful thing to be paying attention to with more in the future drill holes, right?

5:10Anthony Margarit: Yeah, absolutely. Like if you look at the width of the structures we're dealing with, the grade that they're carrying and the depth extent of them, like the math is pretty compelling when you start to do that. So, you know, I don't think we're going to move towards a resource evaluation at this point. From my perspective, personally, it's really more important for us to really prove the strength and robustness of this system we're dealing with. So we are focused on the Eastside Gold trend right now. We will be adding a second drill to the program as soon as one's available and be able to get out there and test some of the other target areas that we're very interested in getting some holes into and getting that news out there as well.

5:54Anthony Margarit: because this is, you know, the east side gold trend that we're drilling right now is just one part of the story at Mojave, although it is a very compelling part of the story and probably the biggest trend on the property as we know right now. You know, the grade, like I said, the grade is that we're seeing in an oxide environment is very, very interesting. We're running cyanide solubility on all of the assay results that come back greater than 0.1 gram per tonne gold right now. so you know looking forward to getting that news out in the near future proving that this is oxide material and uh and looking at what we're going to see for recoveries from that standpoint but uh there was some previous work done by k2 on the 2020-2021 drilling that was very compelling like 94-96 % recoveries on those so yeah i i don't i would not expect that to change but uh i you know getting that news out there is going to be a big addition to the story as well.

6:50Anthony Margarit: Yeah.

6:50Mining Stock Daily: So this is only the second batch of assays out of Dragonfly, still early days, but two weeks ago, I did ask you about the spectacular high grade nature of this oxide gold system, but obviously you're accumulating more holes here at a Dragonfly. So is it at all changing the importance of how you approach Dragonfly or what is most important, reproducing those high grades moving forward, or is it maybe demonstrating enough width and continuity that Dragonfly could start looking like its own resource? For sure.

7:22Anthony Margarit: It could be. You know, as we move through the program, I think you nailed it with everything you said there, basically of what we're trying to accomplish. So yes, definitely proving out that this grade is continuous. It's not one load that we managed to tag into that's running very high grade, showing the continuity of grade throughout the system as well as demonstrating the scale, building out that strike length, building out the corridor of mineralization that we're tracking here. And as we move through it, it's nice to see that, I think I mentioned, these structures are quite predictable. I'm not saying that makes our job easier because there's always bits and bobs that get in the way, but it's very, very...

8:08Anthony Margarit: continuous from what we're seeing right now. And it's a matter of getting the Pierce points into it, getting those assays out and proving that to the market. So, you know, what we're seeing right now, the continuity, the way things are falling into place and holding together, it's a super exciting time for us.

8:26Mining Stock Daily: Yeah. I'm going to put you on the spot here because just this morning, I had a one hour conversation with George Ogilvie. And we talked about his foundational playbook of going into companies and getting them on track to the point that we're obviously selling to the highest bidder, having a great track record of success. And so I'm going to put you on the spot because one of the things he said in that interview, which will air tomorrow morning, foreshadow, he said, one of the mistakes a lot of management teams and exploration make is overly promotional using the terminology tier one or world-class for the deposit when it doesn't necessarily fit the bill of what that actually stands for.

9:10Mining Stock Daily: You've used that. Our friend Chris Taylor has used that for Mojave. Obviously, that shouldn't be taken for granted. But it's a very high bar, right? So as the CEO of K2, what evidence do you still need before you become more confident using that terminology at Mojave?

9:31Anthony Margarit: Well, I think it's going to be really important to, like I said, the Eastside gold trend at Mojave is one part of three high potential targets that we see at Mojave. So that's my personal belief. I think in order to get Mojave to a world-class deposit, it's going to be bringing all three of those factors into play. And I think that's what we will be moving to accomplish over the next year. And by year, I don't mean the calendar year of 2026. I'd say from this point forward to this point of next year. And I think we're in a position, we're getting to be in a position to do that. But from all indications that we see at surface and through the work, the technical work that we've done, And, you know, we would, there's a lot of success behind us in the discovery group.

10:31Anthony Margarit: If Mojave was an average project, we would not have spent four years getting through the EIS process to get, to open up access to it. I think, you know, a lot of people know this project. You don't get to pick where mineralization lands on the planet. And, you know, this project's in California. It was a little bit more difficult than other places to open the door to it. But we're at that point now. And getting through this 14 ,000 meter program on the east side, getting up to the Morningstar target, getting the first modern exploration holes into that, and getting that story to become part of the project, or getting that target to become part of the larger story at Mojave, as well as the Stega target down to the western central part of the target, of the property, bringing that into play as well.

11:24Anthony Margarit: I think once we get to the point where we've got modern data on those target areas, including the Eastside gold trend, that's what it's going to take for us to confidently say that, you know, this is something tier one, world-class, whatever you want to call it, a very high-ranking project. And that's our goal. I think, you know, from our perspective, growing, I don't want to throw the resource word out yet, but growing the demonstrated mineralization across the property to a point where it becomes too big to ignore is, that's my goal right now. Sure.

12:07Mining Stock Daily: Instead of looking back, let's look forward here. And I was watching the market reaction yesterday when these new results were published. The thing went up to about$0.95, but that$0.90 mark continues to be some stiff resistance for your stock here. um what's that next question k2 needs to answer that what have you heard the last you know 24 hours that would actually substantially change that value proposition uh for mojave what gets

12:36Anthony Margarit: you to that next level on your stock i think people want to see continued good results right like there's i when we put out the first release we're super happy with the numbers um but you know I was hoping to see a stronger reaction in the market, but at the same time, I completely understand it, right? This is the first three holes reported on a property that hasn't been drilled in years. So, you know, that was confirmation for us that we stepped out, mineralization continues. The holes we released yesterday builds on that story. And I think as we continue to move through this drill program that we are underway on right now, you know with continued good results it it's how do you ignore something when there's kilometers of strike length putting out high grade results and proving that it's it's real and I think it's just getting to that point where here's the data points this is real the grade's real the strike length's real I think that's what we need to do so we'll get there and it's just a matter of getting through the program, getting the news out to the world and waiting for the response on that side.

13:47Mining Stock Daily: All right, Anthony, thanks so much for your time. Congratulations on more drill results. Probably a few more in your pocket here for conferences coming up. We will see you up in the mountains in Beaver Creek. Thanks so much. And, you know, safe travels to you next week.

14:01Anthony Margarit: Thanks a lot, Trevor. And thanks everyone for listening. Please give us a follow on our socials and check out our website. Put your name on our subscriber list. You'll be the first to see the news as it comes out and we've got a lot coming. So look forward to getting it out there. All right.

14:16Mining Stock Daily: Thanks, Anthony. Talk to you soon.

14:17Anthony Margarit: You bet. Cheers.

14:19Mining Stock Daily: The information presented should not be considered investment advice. Mining Stock Daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.