K2 Gold: Mojave’s High-Grade Core Continues to Hold Together

0:05Music

0:17One of the traditional highlights of Beaver Creek is the Discovery Group's pizza party on the Monday night before the event kicks off on the Tuesday. And so I'm happy to be joined by Anthony Margaret, CEO of K2 Gold and member of the Discovery Group. Thanks for the pizza. Thanks for the za.

0:36Anthony Margarit: Thanks a lot for coming by, Trevor. It was a good night. It was pretty busy. Yeah, I mean, it is a standard. That's what you have to do. You just go eat pizza. Monday night football and pizza. Yeah, yeah. It's an amazing event. Just one of the few fun things that everybody likes to do during this time of year. But you then turned around here, Anthony. I mean, you put out new drill results from Dragonfly within the Mojave project. Two grams per tonne over 53.34 meters. Yeah, nice to see that high-grade core holding together in the middle there. Yeah. 15 meters, five grams-ish. So, you know, we're really happy to see that high-grade core holding together.

1:11Anthony Margarit: And, you know, these are long, linear, predictable structures is what we're starting to determine more and more. And I think we just cracked 30 holes, so we're about a third of the way through 15 ,000 meters. Um, yeah, things are going well, uh, really happy with the way things are looking. We got quite a few holes in at Newmont. Now we'll be bringing the drill back up to dragon flyer strategy all the way along was drill about 5 ,000 meters off selected pads and just make sure that our, you know, our understanding of the geometry was holding true, which we have confirmed. So now we'll go back up to the north and work our way back down to Newmont again.

1:48Are you at all surprised with how consistently dragon fly continues to deliver we're both with and great anymore?

1:57Anthony Margarit: Not surprised, I guess. But, you know, definitely after four years of permitting, there's also always some concern that, man, I hope this thing holds together the way we expect it to. But it's great to see the way it is. Yeah. And, you know, we're going to keep building this out more and more. And I think it's just going to continue to get more impressive as we move through it. Well, the more you and I have been speaking quite frequently here the last couple of months, which is a great thing because that means you're actively drilling at Mojave. But I think I've asked, I know I've asked you this a couple of times, but I'm going to ask you again.

2:30We've talked about whether these individuals, if these are looking like individual structures or beginning to be a coherent mineralized system. Now that with your three drill pads now producing multiple stacked structures, do you finally have enough information to answer that question?

2:45Anthony Margarit: Yeah, I think we're pretty confident that, you know, that main core structure, 30 to 50 meters in width, that five gram core, but the width of the entire corridor of mineralization, I guess we'll call it now, it's about 400 meters. And seeing these stack structures, seeing, I call them happy surprises now, I think in almost every hole that we've reported, we're seeing evidence of a new structure that we didn't expect to be there. The second release, we had three meters around about 17 grams high up in the hole, we didn't expect to be there. The first pad, the first three holes we released, we saw mineralization at surface.

3:23Anthony Margarit: There's a potential that that mineralization we saw at surface and the high grade three meter, 17 gram interval, that might be the downward projection of that surface mineralization. So, you know, it just keeps delivering. I don't know what else to say. What do you learn about the geometry? So it's steepened up a little bit on us between the historic 2020 hole that was 86.9 meters at four grams. You know it was only 40 meters to the north but it's steepened up about 10 degrees on us so we're seeing that definitely down at Newmont there's way more density of drilling historically as well as K2 zone drilling down at the Newmont target area.

4:01Anthony Margarit: The structure flattens out there to about 30 degrees and from you know we don't have any assay results back from that yet but between visual observations and what we're seeing with the XRF, that geometry is holding true. I think it's more just these stacked structures that as we get more pierce points into the system and into this corridor, we just keep finding more. And we've had a lot of really interesting meetings here this week. And one thing that's kind of came to light for me is if you think about projects in North America that are out there, I don't know, I really can't think of one that has the potential that Mojave has between six and a half kilometers of oxide gold mineralization plus the Morningstar target and the polymetallic nature that we see up there.

4:44Anthony Margarit: Very dominant silver trend with 2 ,700 grams of silver, four grams of gold, 2.4 % copper. That's a single rock sample. We've got a lot of those. It's a three kilometer long trend as well. The Stega target, we're doing a lot of work on developing our targets there. and we just, I think the 25th, we've got a crew of eight geologists showing up on site. They're going to do a lot of surface work and just hone in our targeting for future work going forward here. You and I have talked a number of times about the high width of oxide mineralization and about a week ago, a little over a week ago, you did show some metallurgical recovery test work across 211 samples, 97.1 % soluble gold to fire assay ratio.

5:32How sweet is that? Oh, my gosh. What more is there to do, Anthony? Just keep drilling this thing off, honestly.

5:39Anthony Margarit: Yeah, we knew we were going to get good recoveries there. K2 had done limited cyanide solubility in 2020, but never published anything on that. So the way we set things up now with the lab, Any sample that comes back that's greater than 0.1 grams per ton goes in a cyanide solubility loop. It's going to give us great data going forward. We're also going to step forward into real metallurgical work, do some bottle rolls, and see how that comes out. So this is a very good proxy for recoverability and leachability. So it just adds to the economics of what we're seeing. Okay. So about three weeks' time, you and I chat again.

6:17What's on the docket?

6:18Anthony Margarit: Yeah, I think we'll have, not next week, the week after we should have more assays coming out, another drill pad, so at least four holes. And then, yeah, I think they will be from Newmont. Don't quote me on that, but I think we'll start to see some Newmont holes showing up. How important is that? It's very important. Like, you know, the Newmont trend, it's lower grade. We know that. It's one and a half to two grams, which we're kind of spoiled at Mojave with these multigram, four, five, seven, 17 gram intervals. We know Newmont's lower grade, but the structures are flatter lying there. And what I'm really looking forward to, like I mentioned, we have more density of drilling there.

6:56Anthony Margarit: So in the modeling, there's the projected panels of mineralization. And as we build out the density of drilling at Newmont, those panels are going to start to look pretty impressive. And you'll start to see those in our news releases just based on the historic drilling that's out there, plus the new holes that we'll be adding to that. So it's going to start out at ounces, plain and simple. We're publishing all of our assay results, every sample on our website, you know, so people can go there and have a look at it and see how consistent these things are. Yeah, just keep following the story. I think it's only going to get better.

7:32The best is yet to come. How many times did you have to answer questions about California this week?

7:38Anthony Margarit: You know what? As this gets bigger, the California conversation is starting to fall off the table more and more. Really? Oh, that's great. Right. Yeah. But, you know, seeing the interest, you know, I think a lot of the majors out there in the corporates are kind of sitting on sidelines. One, to see what the consistency and continuity was going to be as we move through the program. And the other was I think everyone was just waiting to see if we could actually get a drill turning in California. And now that we are, you know, seeing the interest inbound is impressive. Is there a strategic or some sort of partnership kind of on the horizon?

8:13Is that something you need to be interested in doing?

8:16Anthony Margarit: I think it would give the market a significant amount of confidence if the strategy came in. I don't know if that's the direction we'll go right now, but it's early days. I think we'll get this 15 ,000 meters drilled off and see how those conversations evolve. Okay, very good. Nice to see people following, though. Yeah. And nice to see a lot of interest in our SITU project in Nevada as well. Oh, yeah. Are we going to see any more news from that? No drilling. We just completed a gravity survey out there. So, you know, we are, we do have a couple of NDAs signed on that property and we'll see how things advance over the next couple of months and going into the end of the year.

8:49Yeah, very good. Okay. All right. That's a wrap here with an update from K2 Gold. They do trade on the venture with KTO and on the OTC QX with KTGDF. Anthony, thanks again for your time once again. And we'll talk to you again in a few weeks.

9:01Anthony Margarit: You bet. Thanks a lot, Trevor. And everybody out there, please follow our socials. Check out our YouTube channel. We got a lot of good information out there on how things are moving along. Thanks. 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