K2 Gold's Dragonfly Zone Delivers Another Major Gold Intercept

0:16Trevor Hall: All right, moving right along here, really been anticipating this conversation with Anthony Margarit, who is the CEO of K2 Gold Corp, trading on the venture exchange with KTO and on the OTCQX with KTGDF. The company last week published a whopping drill hole from the Dragonfly Zone within the Mojave Project in California. Headline 83.82 meters of 3.4 grams per ton gold including and there was almost 20 meters of seven and a half grams per ton. Anthony congratulations. Congratulations. Man, the market responded favorably. I wish I would have stuck favorably as we kind of hit these volatile times.

1:01Trevor Hall: But man, exploration success, really.

1:03Anthony Margarit: Yeah, absolutely. You know, like, good to see the market reaction. You can tell that people are paying attention when you bounce 25 % on a news release. So that was great to see. And, you know, a little bit frustrating with that highlight hole. We lost the hole and the last meter and a half ran 9.72 grams. So we will re-drill that and get across the structure, but it was a ripper. And then another hole, 100.58 meters at 1.01 grams. So, you know, two plus 100 gram meter intercepts in one news release. Pretty happy with that.

1:37Trevor Hall: Yeah.

1:37Anthony Margarit: Another 27 holes, probably over 30 actually right now as we're recording this, in the lab from the Newmont target area. Starting to see assay results trickle in from those. so we'll have news out on Newmont first. That'll be the first release of this year on the Newmont target, which is three kilometers south of Dragonfly. So, you know, the Seaside Gold Trend, it's six and a half kilometers of strike length. We had our directors down last week and all of our advisors. Chris Taylor was down. You know, Chris hasn't been down there for 13 years since he held the property in Great Bear. So it was great to hear his insights and just get some ideas.

2:16Anthony Margarit: uh you know this it was great we had the majority of the brain power of the discovery group down

2:21Trevor Hall: there for four days so yeah yeah that's amazing let's so let's talk about what did you learn what are the takeaways from this hole at dragonfly that maybe you didn't know before i mean obviously why i mean this is a huge interval and as you mentioned losing it at depth so there's even more to go to be found so what else did we learn so as we've moved through the drill program um

2:43Anthony Margarit: you know, there's always some hesitancy, like, is this going to hold together the way we expect it to? And everything that we've seen to date, it's, you know, the, I've been saying this for a while now, they're long, linear, predictable structures, and the predictability is beautiful to see. The continuity with the grade is excellent. You know, that five gram core is really holding together and in an oxide environment, man, like, that's, you know, the numbers add up quick. What is there not to like about this? No, and as we build out down to Newmont, we've put some from the historic drilling and the drilling K2 did in the previous drill campaign there.

3:23Anthony Margarit: There's more density of drilling down at Newmont. So we've put some, we had conceptual panels, but we're going to start to build those out with these news releases that are going to start dropping on Newmont. And I think it's going to start to look more and more compelling for investors. These are big panels of mineralization that we're looking at here. We post all of our assay results online. There's a couple analysts that are already starting to play around with those numbers and come up with conceptual resources. So I think we're just going to keep moving through the program, putting out the news.

3:55Anthony Margarit: We've had an orgrade intercept on every news release and every drill hole that we've drilled at Dragonfly so far. So we're incredibly happy with the program. It's been a success so far. We're going to keep building on that. And as we move through the program, news all through the holidays and into next year.

4:12Trevor Hall: How important is it to have the same success at Newmont?

4:16Anthony Margarit: Oh, it's critical, right? Like that's, does this whole trend hang together? And that's what we're going to start to demonstrate that it does. We know the grade's a little bit lower down at Newmont, but it's still one to two grams. And, you know, we're always happy to get a surprise. and it seems like we have been getting happy surprises all the way along through this drill program.

4:39Trevor Hall: So where are we at with the Dragonfly program? Are you going to continue to allocate resources to Dragonfly while you're still working Newmont or are you going to step away from Dragonfly and go strictly to Newmont?

4:50Anthony Margarit: So the drills, we drilled off, I can't remember how many pads, at least eight down at Newmont. The drill has now moved back up to Dragonfly. So we're targeting, we've got, I think there's one, two, three, four pads left, five pads left up there. Three of those are to the south in the central target area. So yeah, a lot of work to come. You know, it's getting late in the season. So eventually here we're going to have to pack things up a bit for the holidays. But we're going to push as late as we can into the darkness of winter here.

5:24Trevor Hall: How do you kind of foresee a 2027 exploration program?

5:28Anthony Margarit: We've got another drill on the way. The drill is built. We're waiting for the air package, so the compressors and the boosters to be finished up being built. A lot of those parts come from Europe, so they're taking a little bit of time, but expect to see that late November, third week, fourth week of November, and that drill is going to be moving up to the Morningstar target area, which is going to be very exciting. I've been wanting to drill this thing for the last four years. We've got patent claims up there, we're going to drill off the patents and we have BLM land up there as well. But there's some historic work up there but that target area sits directly adjacent to the historic Cerro Groto silver mine and it was one of California's largest silver producers in the mid-1800s.

6:12Anthony Margarit: Not a lot of modern work done up there but it's completely different style of mineralization and that's with Mojave. You know we've got the Eastside gold trend six and a half kilometres of strike length there, three kilometer long strike length up at Morningstar. It's a polymetallic trend, so silver dominant, high grade gold, high grade copper. It's more scarring CRD style mineralization. And we're also going to start to talk about the Stega target, which is down in the south central part of the property. It's more sediment hosted copper gold, but I think people should keep their eyes peeled for news coming out about that in the next couple of weeks as well.

6:49Anthony Margarit: So rapidly advancing targets. I know I have had some questions recently about like what comes after this 15 ,000 meter drill program. And I can say that, you know, we don't expect to stop drilling or we don't intend to stop drilling at Mojave anytime soon. We'll be drilling continuously here. We're looking like we'll end this calendar year with about 20 million in the treasury still. So, you know, spent 15 roughly just shy of that this year, but about two, almost three of that went to the SI2 drill program earlier this year. So, you know, we got a lot of, a lot of runway ahead of us as far as we're well-funded, fully permitted, and a lot of targets to drill off.

7:30Yeah.

7:30Trevor Hall: You had a few smart people on the ground there last week, sounds like, you know, Chris Taylor, obviously being one of them. Yeah.

7:36Anthony Margarit: We had Rob Carpenter down from Prospector as well. Very cool. Jody Gibson's one of our advisors.

7:40Trevor Hall: I would have loved to have been a fly on the wall. It was awesome. I'm sure. But what, you know, I mean, so when you get a bunch of people like that into the room that obviously have a ton of success, a lot of ideas and scientific way of approaching these things. What was your takeaway? Anything you like maybe new ideas that maybe you hadn't thought of as a CEO of the company? You know, maybe different approaches or something you might take away and adjust or anything like that, anything you learned?

8:08Anthony Margarit: There's a lot of strategy involved, right? Yeah. John Robbins, Chris Taylor, Rob Carpenter, you know, all of our directors, Jim Patterson. And there's a lot of strategy involved with how to advance these projects, both from the market perspective, but also from the technical perspective. So kind of combining those two different aspects and bouncing ideas off each other. And a lot of times it's the little things, right? Like there's no big conceptual changes to the style of mineralization we're looking at here. It's more the little nuances about different ways that we can attack things, different ways that we can maybe model things, different ways to view things, different ways to market things.

8:47Anthony Margarit: So it's, you know, I'm so happy to be part of Discovery Group. It's where I always wanted to end up in my career. And to be here now is awesome. And I think last week was just a prime example of that. You put a lot of brain power in one spot, bounce a bunch of ideas around and noodle on things and come out on the other side with some new ideas and a new way to approach things.

9:10Trevor Hall: I do want to ask you about the market here. That was a little bit of a gut punch, I guess. As a shareholder, I was excited to see the exploration results. I was excited to see the market actually buy the positive news, but then we go into the volatility of the week and I'll say c 'est la vie. It wasn't meant to be. But give me a sense. What are you hearing from your market? What are you hearing from shareholders as far as the expectations? It definitely feels like we're in some sort of tax loss selling kind of going on right now. Not that, but I don't, but if you're down on K2, I don't even know how, like you can't be down much.

9:47Trevor Hall: But, you know, what are you hearing from the market right now?

9:50Anthony Margarit: I think, you know, I think we're all looking forward to getting these midterms behind us. And I think there's some hesitation there. I you know it's just there's volatility I don't know where it's coming from if you know being part of this industry we're all buyers as well so you know like I look at our story and I can't see why anyone be selling right now so it's been all good news and more to come um yeah I wish I had an answer for that Trevor but I ask myself that every morning somebody's gonna somebody's gonna have to answer that question sometime yeah all right Anthony uh good to see you I'll probably

10:25Trevor Hall: to be seeing you out and about uh with the shows coming up this fall uh obviously a lot more drill results coming down from mojave i mean but that was a excellent excellent hit yeah yeah like all you know 100 gram meter interval or intercepts are as good as they are and we've had like that one highlight was 280 gram meters like that was a great intercept it was uh better than we expected

10:52Anthony Margarit: and the fact that we lost a hole and we're still in very high grade. When you look at, I push people to go look at the assay results and look through all the drill holes because you'll see the continuity. There's no smears going on here. These are like 4 grams, 5 grams, 7 grams, 9 grams. They're just back to back to back to back to back. So it's real and it's there.

11:15Trevor Hall: All right, Anthony. Thanks so much. We'll see you again. That's your update from K2 Gold Corp, everybody. We'll have more coming down here from New Orleans. Stay tuned. Thank you very much. Have a great day. 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. Please do your own research or speak with a licensed financial representative before making any investment decisions.