Vizsla Copper: High-Grade Drilling Expands the Palmer Story

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0:19Mining Stock Daily: Ever since Vesla Copper has taken the Palmer project over earlier this year, the company continues to publish some headline holes, including some latest holes here early September including 49.2 meters of 4.7 % copper equivalent and actually we're going to talk to people responsible for that senior vice president of exploration in Alaska mr. Peter Mercer Peter welcome to the podcast really appreciate it yeah how has the last few days been it's been busy holy cow it's a it's an excitement and there's a just a feeling here that it's really at the beginning of a good market but just Seeing everybody again and shaking hands and people haven't seen in a few years, it's been pretty good.

1:01Mining Stock Daily: Yeah, very good. Okay, so obviously we're going to start with Palmer. Palmer's 2026 program was built around growing that Zone 1 core, testing high-grade, stepping out into HG, and then stepping into AG. Of those three, which was delivered the most relative to you and what you expect was going on? well really like you said we've got we're looking at our high grade core in zone one which by and large of 49 meters and the type of grade we're looking at that's pretty exciting it was all like that and it'll be easy so it'll be really part of this year would be understanding why that high grade core is situated the way it is some of the reinterpretations that we've done over the last couple of years understanding some of the genetic faults that are sort of controlling some of that mineralization so we've really kind of took a step forward with our 3D modeling and understanding of what that zone was and why it's sitting the way it is.

1:57Now, a part of that and understanding is how can we apply that to other parts of the project, like on the AG deposit, which is the other resource that we have. So we'll take that knowledge and take that new interpretation and bring it over to the AG and then test that, which really haven't been drilled since 2018. It was pretty exciting for us this year. And then taking another step back and say, we've got two deposits. We've got the Southwale deposit and we've got the AG deposit. What is in between these guys? And overall in the whole property, we've got about 15 prospects, but only four of them are in our deposits.

2:28So how many of those other prospects could potentially be mineral resources or the discovery like we saw in HG? And then how can we build that up and sort of bring that into our overall thinking of what this property could potentially be?

2:41Mining Stock Daily: Okay. It sounds like you've got a number of holes still pending. You promised, I think, 15 holes for the rest of the fall, which is winding away here. What's the cadence here of news with these drill results over the next few weeks? We're getting pretty close to finishing up our project now up on Palmer. Snow is getting real close on the mountain, so we've done a great job in terms of drilling this year. Only three of our holes that we've sort of got completed now we've got announced. So we'll see assays come out over October, November, and into December. So we'll have a whole period of news results that are going to be coming in.

3:14Some will be exciting, and some more will be infill drilling, and some more will be areas that we're testing that could be lots of smoke, and then we've got to understand what that means and how that means to the overall geological model. But I think, again, for this year and part of what we've done is taking a step back, and there's been a real laser focus on just the resource areas over the last number of years. So taking that step back, looking to understand what the geological model for the whole district is telling us, what is the geological model specifically around these deposit areas, and then what else can we kind of pick up in between these two other deposits?

3:48Mining Stock Daily: What have you learned or what surprised you the most in the last few months since getting your hands on Palmer? What surprised me, that's an interesting question in terms of how you would approach it. I think, again, when it comes back to the laser focus of the two deposit areas that have already been defined. This project is situated right next to the Canadian border, but really about 50 kilometers from the Windy Craggety deposit, from in geological terms and the resource that's been defined there sitting in a park right now, but it is a pretty significant resource. So what really surprised me the most is how much focus has been just the deposit areas.

4:23And so looking at it at a very focused view, but then not stepping back and saying, what else is in the region? What is the copper cobalt that we're seeing over on the ESPN, the Gullies prospect? What is that telling us? What are some of the high-grade stuff we're seeing over on Mount Henry Clay? What is that telling us about the story? and then incorporating that in terms of the overall plan in terms of how we advance this project.

4:43Mining Stock Daily: Yeah, okay. So lots happening at Palmer. By the end of this program here, Peter, what's the story you want to be able to tell? What does the program, you know, what's the accomplishment of this? Like, what does success look like, I guess is what I'm trying to say, as I'm stumbling over my words. Success, I think, from a Vizsla Copper side, which is what we have to look at. We've really got two arms of this business. We've got the discovery arm, which a lot of it is driven off the porphyries and the new grounds that we've staked in the BC side and some of the new interpretations and the drill holes we've announced there.

5:17And then we've got the development side, which is the Palmer area. When you start looking at that and then you look at the deal that we did with Ignico Eagle, which is sort of in process of being improved, the additional pipeline project of the Delta. What I'd like to see as success on the back end of this, not just for the Alaska operations, is for everybody to understand and see how these two arms are working together, how we create shareholder value across both of these arms, both the development side with the pipeline of projects in Alaska, and then on the BC side, it's got that exciting discovery aspect to it.

5:49Yeah.

5:49Mining Stock Daily: I'm glad you mentioned Agnico Eagle. That was obviously huge news. They're taking a 20 % interest in the company, but you get two projects in Alaska from that, Delta and Helm Bay. specifically. Why are those projects there? Have you been, are you, have you, have you familiarity with these projects? Of course, of course, yeah, a big part of the discussions and the acquisition all the way through. I think stepping back to the strategic partnership we'd have with Agnico and coming in as that 19.9 % shareholder, that's pretty significant. And they don't step out, and Agnico is one of these sort of leading companies out there, they don't step out and have partnerships with everyone.

6:24But they're really looking for a copper explorer with significant portfolio or projects to get exposure onto that copper side. I think so that was one part of it that kind of this relationship really, really worked and why they were looking so interested of taking shares instead of cash for these operations or these projects. I think the other side is just when you look at Delta in itself. And Delta has been known for a long period of time. There's around eight different massive sulfide lenses that have been already brought into a historical resource. It's got lots of different potential in terms of the 40 kilometers that we can explore on the property.

6:56But I think combining Ignico's ego, want to be able to advance that project, us being set up and operating in Alaska, it was just a marrying of two great groups that came together, can advance projects on both sides. And Delta is really a longer term project. It's not something just going to be looked at and done tomorrow. It's in that 10 to 20 year kind of time frame. But it has so much potential. That 40 kilometers perspective ground, only eight of the massive sulfide lenses have been brought into the resource. the historic resource that's kind of sitting there now, but there's lots of other prospects in and around the region that just really haven't been advanced.

7:31And when you look at copper price and silver price and gold price, now all of a sudden those become very interesting. And in terms of how that can fit into the pipeline, that's what's going to be interesting as us and Ignigo kind of advance this over the next number of years.

7:44Mining Stock Daily: Yeah. Well, the company is balancing quite a lot more now than they were a year ago. And obviously, we haven't hardly talked about the projects in British Columbia. You did mention them briefly. But let's have a conversation really quick about capital allocation now. People allocation. People allocation. You know, obviously, you've got to be a little bit more strategic and establish higher priorities with all these projects. So where do you sit now with the most important priorities, I assume would be Palmer, but what kind of continues to trickle down? Well, I think just looking at what provides the most value for shareholders.

8:18We've got a great portfolio project. projects, what provides the most value in terms of the drilling we're doing this year, how we line up drilling for next year on each of these projects, and follow up on some of the interpretations and the discoveries that we've had. So that's really going to summarize as a good summary of the BC projects. We've got a lot of drilling, we've got a lot of focus areas, we've got some new discoveries, so let's bring that into our planning next year, and what is that best value in terms of shareholder value going into next year. For Palmer, or Alaska in general, the focus has to be Palmer.

8:49That's the development asset. We want to be able to get that moving over the next two to three years to that pre-feasibility stage. And if everything is successful and lines up, then start an environmental review. But you don't start another project like Delta while you're still trying to push one project forward. So you really have to start lining these up and prioritizing them. And what we have here now is a pipeline and a pipeline of portfolio projects in Alaska. We've got Palmer say in the next three years, we get that pre-feasibility done and then that will lead to the next step. But once that next step happens, then the exploration team that's set up and working Palmer right now, they can bounce over.

9:24They can look at the Delta project. They can look at the Helm Bay project and start advancing those with drilling underground. Initially, remote geophysics will work. All the compilation work, all that can be done over the next couple of years. There's some new permitting that would have to be done for both of these projects. So all of that's on our mine side, but we don't have to advance everything an inch at a time all at once. It's really about focusing on where's the best value, how are we going to move this, and where does this sit into the pipeline.

9:51Mining Stock Daily: Are you doing any specific work in British Columbia or just focus on Alaska? So I come on board with the Vizla team in December with the acquisition of Palmer. Okay. And so I've been on the Palmer project since 2023. When Craig and the team were looking at the Palmer, they're looking at a pretty great asset. But like I said earlier, one of our challenges in this industry right now is just people resources. And so they looked at a team that was on the ground, highly accomplished, done some great things in terms of advancing this. So they looked at us all and said, okay, well, we have an asset here, which is great from a mineral resource.

10:25We also have an asset in people. So to answer your question on the BC side, we've got a team of pretty smart geologists working on the BC side.

10:34Mining Stock Daily: Well, it sounds like you've got a lot of geologists under the VCU roof. If I may just kind of editorialize, there was a moment, this was a number of years ago. I traveled up to Vancouver during the summer, and I actually had a meeting up in the Inventa office. And it wasn't with Craig, but I was in the office in the lobby there, and the door just swings open, and in comes Craig Perry just straight from Wood Jam, just going, Oh, this is the best rock I've seen so long. You know, in typical Craig fashion, because he's a character in itself. but you know it's like when you put a lot of geologists in the same room you get a lot of different interpretations and nobody has the right answer so what is the dynamic like here at VCU with so many projects a lot of interpretations a lot of ideas and you know maybe who gets the final say well you're exactly right you put a bunch of geologists in a room you get a bunch of interpretations you might get a fight or two as well but overall there's an overall vision in terms of where we're going to.

11:35From my background, I'm a geologist by background, started on the exploration side, then move over to the operations. So what I bring to the table is different than what, say, Dr. Chris Leslie brings to the table, which is a much higher level of thinking and geology and interpretation. So there's different levels of geologists, different levels of people, all adding different value to each of these projects. I'm a VMS expert. I'm not a porphyry expert. So when I sit in a room with those guys, my mouth is open. It's like, wow. You're learning. That's exactly right. And then in the end, the decision gets made in terms of, okay, what is the allocation of capital, what is the allocation of people, and what provides that value for shareholders?

12:13So that question comes up on a routine basis. So it's just not a bunch of geologists drilling holes and trying to do something new. It's how is this going to impact us going forward? How do we focus our effort? And then how do we translate that and communicate it? like in conversations like this, that we have a very, we have a large portfolio, but we have a very focused effort in terms of bringing everything together. And I'm happy to have a bunch of interpretations and all of them are going to be a little bit wrong or a little bit right. And there's going to be some kind of combination in the end, but we got to get there.

12:42Mining Stock Daily: Absolutely. Okay. So a lot of drill results still pending in the weeks to come. And so we'll be covering this story here as that news hits. And I'll leave it back to Michael McRae with the correspondent on the VCU desk as well. So we will touch base with you again here, Peter. Thanks so much for your time and safe travels back home. Thank you. The information presented should not be considered investment advice. Mining stock daily and 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.

13:27Thank you.