Kingsmen Resources: Connecting the Dots Across the Parral District

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0:27kingsman resources is an exploration company focused on mexico the company is growing its colorado's silver gold discovery in tuala mexico with recent step-up holes confirming high grade mineralization to a vertical depth of 155 meters along a growing strike length scott emerson is president and ceo scott welcome to mining stock daily thanks michael firstly uh talk about why you're focused on uh in mexico you described the areas being a tier one state sure so in order to do that i think michael i just have to give you a brief overview of the company in the sense that once covid we traveled to mexico we reviewed a number of projects in a number of different jurisdictions our states within mexico and we came across a short list which was three projects two of those happened to be located in the pera nimal district which is in the state of chihuahua which is very stable, both the money.

1:36And we spent approximately a year consolidating two fragmented districts. So when I say that, we looked at one project. And then what we looked at is how do we build this out to make it size and scale? Because that's what's important in our industry. So we went with that focus. and from that we acquired what we are now working on, which is called the Los Coloradus Silver Project. And that had an old past producing mine called the Los Coloradus Mine, ironically, that produced from 1944 to 52. But it was all, the district itself was all broken up. So a number of small holders. And what we were able to do was consolidate and meet with all those owners, there was a four team of them, and bring that package together as one.

2:28And we did this thing at our second flagship project, which is called the Kamaloya. In the same district, they're 30 kilometers apart from one another, but they're very different geologically, where Las Colorado is a high-grade silver area, where Kamaloya has a gold look to it. And we can get into the historic work that was done there and some of the results. So I say that because we managed to put it all together. We then went about a systematic exploration program, meaning we sampled it, we mapped it, we did ground geophysics, and then we embarked on our first drill program, which was last year in 2025.

3:10And we drilled a 12-hole, 3 ,300-meter program. program. So shallow holes, but our analogy was the best place to find a mine is where there was one. These types of analogy I use. So we stepped out from the old mine, 50 meters, 300 meters, and we had a 12 for 12 success rate on those holes. Some of them ranged anywhere from a thousand rounds over three and a half meters solar equivalent which is about 600 grams of solar um and i say that because let's fast forward to where you want to go which is 2026 we uh over the course of the period when silver was performing we as a company raised additional capital so we currently sit with approximately 15 million dollars in cash we have 34 million shares outstanding and I think that's important because we've got a very tight shareholder base and we were able to raise money on all of those milestones that we met being you know the mapping sampling the success to drilling and our last race was done at$2.25 and$25 Canadian for 13 million dollars so that brings us to where we are today and that's this news that we have recently released.

4:37We started to drill in April of this year and our drilling program was such that we went back to those areas where we had success, being in those 12 holes. And again, I'll have to put this, Michael, it's hard for your listeners. You'd have to go to the website to visualize. The project is three miles by three miles square. So what we did is where we saw searches, where we had surface sampling, the high grade that we could see on surface, we plunked a hole underneath it. So it wasn't a consolidated focus drill program like you'd see when somebody's developing a resource and have 25 meter step outs.

5:20One of our furthest step outs was a mile away from the old mine. And again, we hit mineralization.

5:28Scott Emerson: So that brings us to where we are today and the news that we had put out on August 20th, which is a hybrid intercept. And that was, again, a step out from what we call the mind zone. So we followed up on holes that we had drilled last year for them. And we drilled another four, stepping up 50 meters, 100 meters. And now we can say we have a fence of holes. So for your viewers, think of three vertical lines on a piece of paper, an inch of cart, or horizontal lines, or vertical, sorry, and drawing three holes on the center, two holes on the top line, two holes on the bottom line. So we're starting to capture that mineralization and outlining it.

6:19We're starting to understand the geology. we have released like i said three of the 19 that we draw so drilling is ongoing and we've stepped out you know to another area called the libiona area which is a half a mile away and we've done the same thing following up on past for past results so that's my long answer to your short question uh it talk about the program a little bit more uh is this a purely resource definition or is this exploration this is still 100 exploration we're not at the resource stage i think that will be within the next 18 to 24 months that uh that will be in that position so again it's stepping out on these big step outs and seeing if the geology and whatnot that we can bring it together to to basically create one big area if you know that's a simple way to look at it You said that you have three of 19 holes that have been reported, and then that was the August 20th news release.

7:26When are you looking at more news releases to be published? Right now, our turnaround time on assays from the last two holes that we just received is roughly three weeks. So we'll see a continuous news flow every three to four weeks now. I'm not going to tell you it's going to be one hole at a time or three holes at a time. It's how the lab delivers them to us. We'll then, you know, analyze them and then we'll put them out to the marketplace. And that is that's really what shareholders are going to see or hear over the short term. Now, in the April, you're talking about 6000 meters in a first pass and then another 5000 meters.

8:13I guess bring that up to 11000. 7 ,000. Where are you in total meterage right now and when does the program end? So right now we're sitting at about 4 ,600 meters. We have one drill on site, a very dedicated team obviously and our plan is based on you know results that we should get over the next two to two and a half months. We'll increase that to drill rates. Where do you want to be at the end of this program, what will be the end? You know, when you get started, you started that when you announced that back in April, it was to delineate civil memorialization that you discovered during the 2025 program.

8:57What are you thinking? What are the major themes that have kind of come out right now and where do you want to be at the end of it? So right now, as I mentioned to you, we have different locations within that property block that we've identified for drawing. and just to name a few of them, we've got the mine zone, the DDD zone, the Aguilara zone, the Leona zone, the Sal Tardin. So our vision here is to drill all of those and then follow up to your point on the 11 ,000 meters. Not to delineate a resource, but just to demonstrate the size of the district. Don't worry. And then hopefully, you know, we'll be able to connect the dots to tie it all together.

9:43So, you know, the big question is, we drill at EDD and we drill at a mine zone. There's a half a mile distance between that. What's there? What's sitting out there that we haven't drilled yet? And that's what this program is designed to do. Now, you announced in 2025 that you acquired the other asset, I believe that you said that was about 40 kilometers away that was uh the almoya um uh asset i think i saw on your deck that you had 10 000 meter program for it uh where are you with that right now so we have not started that yet we have been in the field doing groundwork getting prepared for a drill program i think that's going to be in the latter part of this year so i'm saying november december of this year will be on that project.

10:36Have you had headlines in terms of right now what you've seen at least for doing surface work? Yes, we've published some gold samples from surface and like I said earlier in the conversation, this is in the same district, so it's in the pro-mineral district, but the geology is a little different looking and it's predominantly gold as opposed to silver. At least that's what we're finding right now. And for your listeners, I think what's important here is when I talk about two consolidated districts, there were operators in those areas, whether it be at Las Coloradas or at Amaloya. And I can, you know, tell you some of the names they'll know, which is Hemacod, Coor, Hamlo.

11:24But not one of those companies ever controlled the entire district. And I think that's something that people have to recognize, because what I was able to do was go back and get that historical data. So in the case of Amaloya, we have historical data. The hem hole was there in the 90s. They had drilled seven holes, which were RC, which had reverse circulation holes, which I think your listeners will know that that's when you get broken up pieces of rock. But they had some fantastic grades. They're on our deck on our website. And we're going to follow up and basically step into their shoes, but we're going to do HQ drilling, which is solid core drilling, which is what we do at Lost Color Round.

12:14That gives you a better indication of mineralization and what's there. You mentioned a$50 million raise right now. What is your cash position and what might you need to raise again? So our cash position is we currently have$15 million. My fault, Scott. Yeah. No, no, that's okay. Like I said, we have 34 million shares outstanding. At present, we have no need to raise additional capital. I think we have to, you know, execute for those shareholders that have participated in those placements to get us to where we are. And hopefully the results will drive, you know. I always say the drill bit drives value.

12:59And, you know, we could look at it probably, you know, early part of next year or, you know, whenever we see the requirement or if, you know, we continue to be in this, you know, and I'm biased. I think we're into a commodities market here with gold and silver and copper. You know, so if the opportunity came, we probably, you know, we're entertaining that if it was strategic. But right now, there is no need for any further dilution to the company. During the last administration at Mexico, Mexico was proving to be a bit of a challenging place for being a resource company. What's the climate like right now?

13:40So I'm going to tell you that it has changed dramatically, Michael. When we entered post-COVID, there was still the narrative around Mexico. It's difficult. They don't use permits. And that's state by state. But what we've seen since we've been there and since Claudia's come into power, the administration there is now more receptive to exploration and mining in general. You see companies like Silver Tager, which is another TSX-listed company, Go Gold, Hilo Silver. They've all received permits in the past 18 months. So, again, it didn't really scare us just from an exploration standpoint. That was always allowed.

14:33It was the development side that was difficult. the one thing that they have not still addressed is you could not go out and stay grounded in Mexico. So all of our claims had owners. So those claims were in good standing. They were still registered within the mining directorate. And that's what takes time is to put those pieces together. So I'm going to tell you we're extremely bullish on Mexico. And we've seen a lot of good things as you have because you've interviewed some of those companies that are also active in mexico um it's a good place to operate and it's got you know good technical people availability is good um i can't say enough about mexico lastly scott uh talk about uh news catalysts uh for uh the remainder of a 2026 and into 2027 uh you're talking about uh draw results uh possibly uh every three weeks coming out from the program that you have.

15:34Yeah, so we're going to have those catalysts. We're going to have the continued drilling that's going. And we're also going to have news on Amaloia and the start of the program at Amaloia. So that, for your listeners, those are the milestones for us to deliver. And, you know, I'm going to knock on wood, you know, that these results continue to demonstrate what they've done so far, and that's giving us mineralized loans. Scott Emerson, thanks to speak with Mining Stock Daily. Thank you, Michael. 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.

16:22Please do your own research or speak with a licensed financial representative before making any investment decisions.

16:56Thank you.

17:26Thank you.