Domestic Metals Corp. (DMCU) Earnings Call Transcript & Summary

[Audio Gap] or the United States Bureau of Mining, Exxon, Utah International, [indiscernible] Noranda Pegasus and Rio Tinto have all explored this property, drilling 40 historical holes. The best historical annual again, I'll mention this a few times during this presentation is 109 meters of 0.75% copper was drilled in Rio by 2022. Additionally, our 2025 surface sampling returned 12 grams per tonne gold, 23% copper and 3,800 grams tonne silver. There has also been historical [indiscernible] and underground mining at Sunrise on the western side of our project. Between 1800s and 1900, the mine produced 12,500 ounces of gold at 6 grams per tonne gold, almost an ounce of silver and more importantly, for us, 1.5% copper because that's what we're looking for. This is a property with a large legacy data set that we have been leveraging directly towards this new discovery. This composite results slide is very busy, but represents the high-grade historical intercepts across the property. You can see the pattern of high-grade copper and silver values concentrating toward what we interpret as a porphyry center. I won't read through every line too much but the full data set is available in our technical disclosure. You can see that there is copper in every single trench and drill hole on this slide. This cross section shows Rio's is discovery hole in context, 109 meters points [indiscernible] included a higher grade section of 80.77 meters at 0.97% in copper and 16.76 meters at 2.2% copper, which is again very, very high grade. Our geological model sees potential here for high-grade porphyry, exotic copper carbonate and [indiscernible] carbonate replacement as skarn hosted gold and copper and structurally controlled epithermal gold all in 1 system, it's a lot of mineralization in 1 system. Zooming out, you can see that we're not chasing 1 target. We've defined 4 separate large copper and [indiscernible] exploration targets across the land package, each supported by its own geological, geochemical and geophysical rationale. On the northeastern side of the project, we have the Smart Creek PCD project target. And in the Southeast, we have Smart Creek Exotic target. On the Northwestern section, we have our Sunrise mine target. And in the Southwest, we have geological targets of radio tower. Our 2025 field sampling program is really what accelerated this project. Highlights include 102 grams per tonne gold, 23% copper and [ 3,800 ] grams per tonne silver and multiple samples above 19% copper with silver values ranging between 400 and 580 grams per tonne. These aren't marginal numbers. They are some of the highest great field results our [indiscernible] team has ever seen. This slide pinpoints the location of our standout geochemical samples from that 2025 fuel program. As I've said in the past, and I said this in the press release, these are the highest grade fuel samples I have ever been presented with in my career. In my experience, these kinds of returns are harbingers or signposts to major economic discoveries. At Sunrise, our team, including Dr. Peter [indiscernible], pictured here at the outcrop, identified an exposed porphyry dike at surface, carrying new high-grade gold mineralization. Discoveries like this at [indiscernible] are exactly -- what tells us we are working around the edges of a much larger variant system. Next slide. In 2026, we completed an induced polarized -- induced polarization, or IP, geophysical survey across the property, and the results exceeded our expectations. At Smart Creek, the chargeability anomaly extends more than 1.3 kilometers continuing below 1,200 meters elevation or over 300 meters below surface. At Smart Creek Exotic, the anomaly stretches 2.5 kilometers with values up to 42 millivolts per volt. At Sunrise, we see a chargeability anomaly extending more than 1,400 meters and that radio tower, the feature is over 1,300 meters long. Porphyry deposits come with large chargeability anomalies. These multi-kilomer chargeability footprints fit that model. Critically, these chargeability features line up directly with our previously established alternation footprint at high-grade surface sampling just described. That convergence of independent data sets is exactly what gives our geologist confidence in these -- in these as priority drill-ready targets. You can see where they overlie -- where you can see where those samples overlay exactly where the geophysics where they should be on the geophysics. This map shows the location the locations of the planned 9,000-meter drill program. Initial activity will focus on Smart Creek and then shift to the Sunrise mine area. Next slide. I'm pleased to confirm that our planned drill program at Smart Creek is officially underway. As announced on September 8, we've commenced up to a 9,000-meter diamond drill program across an estimated 6 to 8 holes testing the high-grade porphyry copper style mineralization identified through our '25-'26 exploration program. These are a few of the photos that I took last week while I was in Montana, while they were drilling. It is very exciting to be there. I took these photos with the head of the United States Forest Service, Eric Torgerson. He was on property and says that our drill is set up properly and it looks clean, and it's efficient and it's working well. The program is being executed by KP drilling of Arizona operating a board, long year LF990D-diamond drill rig at our targets were defined by the converging lines of evidence IP geophysics program, I walked you through the surface sampling historical results and 3D computer modeling all vectoring us toward the same mineralized centers. We're running this in a 2-phase program. Phase 1 targets a Smart Creek zone were 3 holes of 600 to 800 meters each, our plan expected they are expected to take about 45 days. Phase 2 moves to the Sunrise Mine District with 4 holes of the same 600 to 800-meter range expected to take roughly 60 days investors should expect a steady cadence of news flow first visual observations from the core. I'll give you a caveat on a second as it comes out of the ground than asset results, and then we expect approximately 60, which we expect to take about 6 to 8 weeks after the start of drilling for assay results. This slide shows out our plan view of the first 3 drill holes we are drilling at Smart Creek. You can see there is a triangle there of D009 D0013 and Prop 29. It's a small slide, but they're in the center there. I'm using mic or vote. There's Irene pulling it out, thank you, Irene. Next slide. OLDD009 is designed to follow up on SMCR002 drilled by Rio in 2022, which cut the longest run of high-grade replacement realization on the property. The whole is oriented to test the mineralization continuity to the north as well as an posted surface. Hole D0013 is designed to follow up on 22 and planned hole 09. It tests the intersection of bedding or layering and the East-West solicified damaged or fault zone. It will test mineralization continuity to the West Northwest. Next slide. So anticipated news flow, Phase 1 of the news flow is core recovery and visuals will follow in the same trend as BCM resources. If you look up BCM Resources, it's trading symbol is beat. They actually took core that was not analyzed yet. We saw enough visual mineralization, important mineralization and had a large enough intercept that they decided to put it over to the public, and it actually was very effective. We are going to try the same thing as long as I am -- we are seeing good mineralization. I'm now waiting for the -- for scale or intercept. Once we see that, we will -- we are anticipating putting out a core recur. But I've got to see that I've got to see more scale or a wider intercept. It could be a realization, but I got to see wider intercept. If we encounter wide intercepts of highly mineralized core, we will press release those sections. The second phase of news flow will come from the actual assay results from the ALS labs around 68 weeks after we commenced sending in the samples. Phase II is a steady flow of results from both the Smart Creek and Sunrise drill programs. Next slide. I want to have a quick conversation with you about just environmental concerns and stewardship Important that we follow the rules and environment, be environmentally sound. So the real water is truck to site, it's locally purchased and we recycle it during the process. We drive at low speeds to cut down on dust. We're using existing roads and keeping the drill pads as small as possible. We will be revegetating those areas. We pull the drills off them. we recirculate the water to reduce our overall use. So we reuse and recycle. And we are regulated by the Montana Department of Environmental Quality and the United States Forest Service and we stay within their rules. This slide from a logistics standpoint, this project could not be better positioned. The land package is fully consolidated, road access is established and importantly, for future economics, we have power on site. Next slide. To summarize the geological targets we are testing with this dual program, we are looking at high grade porphyry copper, exotic copper leach mineralization, carbon replacement and skarn systems and epithermal gold. Very few projects at this stage offer that many stacked target types in 1 district. We have also determined through a reexamination of existing core that tungsten mineralization is present in the system. It was actually Peter McGagh, who who discovered this during -- by using, let's say, called barbecue lighting, or UV, light examination of the old core. And he said there's [indiscernible], which is a precursor of Tungsten with its -- the core is full. So we will be asking our drill core for tungsten, given its recent rise in market value and its critical mineral importance. The project has good infrastructure and easy access. These 3 photos that are in our website show, I mean, the road that was right through the project is flat. There are some hilly sections in the background there that we do deal with, but they're not onerous. The Sunrise Mountain added on the bottom left photo, it goes up 7 feet. So there's a tunnel that goes -- the adds that go straight up of the mountain that had the gold, the silver and the copper in it. And you can see that the large -- the electrical tower on site goes run through the property. So for future considerations, we will have access to power. For those newer to the story, here's how the earning works. Domestic can acquire up to 60% and in the property of the property from [indiscernible], a Rio Tinto subsidiary was relative to retaining 40%. The agreement lays out a $5 million -- [indiscernible] of $5 million in stage cash in the ground exploration commitments through 2029. Rio/Kennecott has the right to claw back an additional 20%. Alongside myself and the CFO, Stuart Ross, our technical bench includes Dan McNeil and Allen Winery, both 25-year plus copper and gold specialists with track history so there was a discovery track record of projects like SK Creek, Donlin Creek, [indiscernible], Peter Magal, [indiscernible], who's CRD discoveries at Platosa, Mag Silver is [indiscernible] over him the [indiscernible] PDAC, [indiscernible] Lesley Award. My background, as you -- most of you will know for those who are new to the company. I worked with Peter and Meg Silver, was one of the founders, then moved on with Refing at Silver Corp and help him found new Pacific Metals. Both of those companies, we took from $50 million to $100 million market cap to $2.5 billion and $4.5 billion respectively. So I actually look at this. My background really is I'm -- I align myself with smart geologists. And Peter and Dan and Alan are some of the smarts in the business. And we believe, along with Rio Gino, I will say that the Smart Creek project has the potential to be another man silver, I'm hoping. So that's what we're hoping to head to take this. Our Board includes Chairman, Patricio Veris, Hank Van Alphen, John Sharon and David Reed, collectively bringing multiple decades of mine discovery finance and mining [indiscernible] experience. Full bios are available on the website, but it is a good, solid Board. On the capital structure side, we have approximately 71.9 million shares issued in outstanding with insiders and management holding 8.76% including warrants and options were fully diluted at approximately 121 -- 120 million shares. Zooming back out to the macro picture, we believe Domestic Metals is operating in the right place at the right time, over 3 bipartisan administrations. The U.S. has consistently moved to build Domestic critical metals capacity.'s first administration, critical energy strategy to over $120 billion in the Biden era investment in battery and critical metal supply chains to the current administration invoking the Defense Production Act to accelerate Domestic production. And practically speaking, the policy support shows up in permitting timelines, too, a process that can take 4 to 6 years in Montana, Nevada and Mexico is running closer to 4 to 6 months in Montana. So if they really have gone into the permitting era of this and reduce it and meet our lives a lot easier. That's it for me. Sort of -- I want to say thank you for showing up today. We're earning 60% interest in this project. We're happy to be where we are really excited to be where we are now. And we are looking to the future. I'm hoping that the next roll -- I mean hoping to be able to put out visuals on the core and after that, our assets. So I'm now going to turn it back over to Irene, and we'll answer some questions, and we'll go from there.

There's one question from Anthony. The question from Anthony, that's sort of really a forward-looking question. Will Domestic produce or derisk and then sell?

I am an exploration CEO. I certainly being involved in the path to production. And if we're right about this and as Rio is right, this will be a producing asset. But it's really too early right now to say. So I would say that -- Yes, the question is an early question. Let's get through making the major discovery first, seeing how economic it looks in terms of grade and tonnes. And then we'll have another webinar and Anthony, hopefully, we'll be able to have a better answer to your question.

Okay. So this is about the first hole, and I'm not sure how much you've seen of that course. But [indiscernible] has a question. In terms of the first whole visual, how does it align so far that Hole 22 from Rio Tinto?

I [indiscernible] going to make too many forward-looking statements or -- was it something disclosure, I can't remember what it the first word is. But selective disclosure -- to its selective group of in this webinar. I've been, frankly, a little bit shocked at some of the visual copper mineralization I've seen. It's really quite -- it's really quite astounding. And as I said earlier, what I want to see though is not only the high-grade copper mineralization, but I would like to -- you need scale, so we need to see at scale. I haven't -- it's -- we've seen a few core boxes though, but it needs to be a few more core boxes. So the answer is I've seen visually good copper mineralization. I just haven't seen enough of it yet.

Okay. The next question is partly similar to the previous question, but I think it's good to ask. [indiscernible] has a question about how deep we are on the first hole and what are you seeing in the quarter? You partly we basically answer that already. But maybe you can talk to the debt.