Gateway Mining Limited (GML) Earnings Call Transcript & Summary

All right. Thank you, everyone, for joining us today. We have Richard Pugh, CEO of Gateway Mining, here to talk about where the company is at currently and the recent drilling success they their Cowza prospect. As how we're going to run today is that there's ability to ask questions in the Q&A box. We have already got a number of questions that have been moved through events at JP, e-mails. So we'll try and get through most of them. But if we aren't able to answer any of them then please, on or we already get Richard to answer them after the call. As you also would have seen that the company is trading halt today and sort of raising capital, I guess we can -- we can't really go returns on the on the webinar, but we'll free to chat to us or the company about finding more information out. But it's a sad pretty positive given they've made a dollar discovery in the [ Ando Bill ]. And my understanding is that the funds are being used to wind our drilling program and get you reconcile it Richard will run for that. in his presentation. So I'll pass you over to Richard.

All right. Thanks, Jason, and thanks, everyone for jumping on the web now today. I've kind of set the presentation up for those that aren't really familiar with the Gateway story. So apologies if you are well versed on what we've been doing. But ultimately, Gateway has been around since 1957, so it's probably one of the oldest ASX listed stocks going. Before all intents and purposes, it's a brand-new company. We picked up this project from Strickland Metals Limited in August last year for $41 million in script. And at that time, we did a bit of a revolving door. So the previous Board and management's left and then we the original striking team that really pulled the project together. And I guess the main players -- at the time that orchestrated this back in 2021 was Andrew Bray. He was the CEO of Strickland at the time, and he sort of -- he;s master mind in sort of consolidating that Northeastern brand to the angle Greenstone Belt. We also have Tony McClure, who is the current Chair of Strickland Metals Limited. He is Non-Exec Director, or Gateway. And then I was the Technical Director of Strickland of -- since I left the Board of Strickland. I became CEO of Gateway back in August last year. We also have [ Peter Langworthy ] sort of helping out with the sort of the technical branch of the team, and I can't think of really a better team to take this company forward. Under Strickland, we took Strickland from a $10 million market cap up to the dizzy hikes of $600 million. And then more recently, under Gateway, we've taken Gateway from a $10 million market cap, where it's now sitting just over $200 million. Given the fact that we've just sold our Brightstar shares. We've now got over $5 million in the bank. We've made a brand-new discovery at Cowza talking into more detail throughout this presentation. We believe we have more discoveries to still to be made across the belt. So given the news flow and how sort of aggressively we want to ramp up with drilling, ends why we want to do the capital raise, I believe with the news further we have over the next 12 to 18 months, will be multiples of what our current market cap is at the moment. In terms of the major shareholders, Strickland is sitting at #1 given the fact that we did a deal with them for this project. Strickland. We have a great relationship with Stripe. I still know the guys there really well. They have no appetite in selling any shares. We also have Andrew Bray, who owned 11 capital to just under 10% of the company. Andrew, of more than $10 million of his own money at market into the company and us to take any sort of options or on rights. So it's well and truly aligned with sort of the shareholders out there, which I think is quite refreshing. We see in the junior space. And in terms of sort of the register itself in terms of the major funds, then we just have Jupiter out of London. -- they appear on the screen regularly. So that plan just summarizes the corporate snapshot. So what have we got about books? So we basically have 3 projects that we're focused on at the moment. We have Glenburgh South, which is right next to the Benz Mining. We have our Barrelmaker project, which is just north of Sandstone, which is a bit of a legacy project that we inherited from the previous Board and management team. And then we have our flagship Tier 1 Yandal Gold Project, which sits on the Yandal Greenstone Belt. And the reason that we love it so much is because the Yandal Greenstone Belt is hosted some absolute Monster Gold systems. You have to look at Jundee, Bronzewing, Thunderbox and Darlot, just to name a few massive plus 10 million-ounce gold stones. If we measure the distance between Bronzewing, Thunderbox and Darlot, it's about 50 kilometers. Other thing is coincidence that low 50 kilometers northeast of and we're unlocking a similar multimillion-ounce system. Millrose was an edit that we held under Strickland, and we converted from an unloved asset into a valuable transaction of $61 million, to Northern Star. So it's really at the experience -- I mean, Gateway has been exploring since August last year, but it's really the experience that we've gathered since 2021 and really understanding the controls of mineralization not only across Millrose, but across Horse Well as well that has led to this discovery at Cowza which is why we believe there's many more restores to be made. We also have 400,000 ounce resource, which is sitting at surface. And given the fact that we do have an operating ungromill just down the road. This is a great part of the world to be in and a fantastic project. So since August last year, we've done quite a bit of drilling. We've done over 160,000 meters of aircore. We've collected over 20,000 multi samples. And the reason we collect the multilist to really pinpoint going a handle of really what the geology is doing to sort of really nail this matic intermediate conduct. We've also collected some high-resolution magnetic and gravity data sets. And the gravity has picked up major contact perfectly and the magnetic data was picking up this thermal alteration, which just basically demonstrates the gold which fluid has been an infiltrated the rock. And from all this work that we've done, we've had basically got 2 deliverable comes. And basically what it demonstrates is there's 2 distinct gold systems play across our project. There's one orogenic and then we have display states, which I'll go into more detail throughout this presentation. So from our experience of drilling Millrose, which is roughly in this position on the map and doubling the Horse Well resource at the Horse Well Gold Camp, we've come up with 4 key criteria that we believe as a company that lends itself to a major goal system. And that is -- well, the first 1 and the most important one, my opinion, is this mafic intermediate contact between basically the andesites and the Basel and you basically -- it's the contact between the 2 will allow us to share to develop and that allows the gold to op out in a substantial amount. The second pie you need to be Northeast trending structures that create the dilation for the fluids come into the rock. And then you need evidence of fluid flow. So for us, it's really important to have a zones of demagnetization, which is where the gold rich fluid has come in and has stripped the rock of magnetite and then you need the primary deep-seated basinal structure. So there's 3 play structures in particular. We have Dusk 'til Dawn, Great Western and Great Western South that I'll touch on through this presentation, that we still like and we still think of a massive potential. But for us, our primary focus was on this orogenic target, which is the potential sort of Celia Shear. And the work that we've done over the course of the last sort of few years that has demonstrated that the Celia Shear corridor is this deep-seated basal structure. Taking a step back, Cowza, where we did all the data and we paced it all together, ticked every single 1 of these 4 boxes, which is why we sort of went out there and sort of investigated a little bit further, but let itself to basically the discovery to be put out last week. So if you imagine this sort of magnetic image gray scale and if you imagine the map were no pink dots along this blue dash line or no drilling it's all along blue dash lines. The original Cowza prospect was this collection of blue dots to the southern part of Cowza itself. It was discovered back in the '90s by Eagle Mining. They had some really good grades. We put -- they drilled underneath it. It didn't really sort of get any extension into the fresh rock. And we went out there and we sort of relook the chips, and we sent all the samples off multi-element analysis. And the results that came back basically told us that there's only one rock type there, and it's called an [indiscernible]. So for us, it demonstrated that we're only sort of dealing with a footwall shear zone. We're now actually dealing with the main primary make intermediate contract. Two are out there and we drilled 3 lines of aircore drilling. We intersected 4 meters at 3 and 4 meets at 4.7 on this mafic intermediate contact, and the result was fantastic. And what we did to demonstrate that dealing with a fertile mafic intermediate contact that we're also dealing with the fact that we've got 2 Northeast training structures. We've got 4.5 kilometers of demonetization sitting on the senior share structure. So we take every single one of these boxes. So since May, we took the Arco rig, and we've slowly sort of started mapping the structure further to the north. And the results that's come back has been absolutely spectacle. We've got 4.5 kilometers of high-grade oxide gold mineralization. We've then taken the RC rigs and we've drilled 6 holes in total, the first 2 of which we've sort of expedited due to the visuals that we saw in the alteration throughout the drilling. The Northern hole itself unfortunately dropped throughout drilling, so it ended in Matrix. We never actually tested the structure in this position, which is both the other boxes. But it did come back at 52 million is 0.3. So it does demonstrate that the gold mineralization does continue in this position, we just haven't quite nailed the structure bell. But more importantly, the main focus for us and is what we put out last week is the discovery hole. This is an absolute game changer -- for us, we have intersected 41 meters at 2, including 9 meters at 7.5%. And if we do a bit of a cross-section during this discovery hole, we were drilling into 16 meters at 1.3, which is still a great result. But the result that we got back from sea absolutely spectacular. The 9 meters at 7.5 year was just 1 meter at super high grade that we've extrapolated. This is a consistent high-grade gold discovery which is an absolute game changer for us because not only do they demonstrate that underneath the 4.5 kilometers of oxide gold mineralization, we have primary hybrid gold, but also demonstrates that the areas north and south of stats only ever been drilled without doing has the potential to also have y-grade mineralization underpinning these res too. So it's an absolute game changer for us. And that's the reason why we want to do the cap rates is because we want to get our stuck into it. We really believe it takes every single one of the boxes in terms of the targeting criteria. And this is taken from the work that we did of millers and also has well -- and we do really believe that this is going to be a multimillion ounce gold system. One area in particular that we do like our focus on focusing on at the moment with the RC drilling is this flagship. We follow the pink dots around. There is a bit of a lag -- and this dog leg is basically the greatest zone of dilation as costs being structured, and this is where we believe that was sort of the highest grade gold mineralization in more of the system is going to be. We also have 2 diamond rigs coming at the end of this month and that will be increasingly mapping out with 5 grade mineralization from the discovery of a whole 57. So exciting time to be a shareholder and we're expecting a lot of news flow over the next several weeks and months. This would be going into early next year. Target to the north. So $600 million is north of Cowza. It doesn't quite have the demagnetization that Cowza does. It doesn't quite tick all those 4 boxes, but I mentioned at the beginning of the presentation, but the same principle supply. So we have high-grade mineralization, wide space on that mafic intermediate content. It's been defined in the oxide so far. We just haven't tested it in the primary. But in all likelihood, this is Celia South. This is the 600-meter gap. We believe that Celia South from Cowza interconnect. It's also a prospect to the south world, which is to find or 7 kilometers. So collectively, it's 13-kilometer bauxite gold mineralization and we've only really tested it in the fresh at Cowza. Just for scale, we take the nor from serious South and take it to the bottom of the world, that's 25 kilometers. Take Celia Shear all the way down to the bottom of our terminal, where we have the big east-west structure, that's 35 kilometers. And you'll notice that these gaps all along this trend. That's not because we've gone out there and drilled and didn't get any gold result is because it hasn't been drill tested at all. So the mass is a potential along the structure. If I take a slice through Celia South and we're looking side on, this is kind of what we're dealing with. So a lot of gold mineralization in the oxide and then where we've only really build deep, that's where we've made the discovery of house. So as I mentioned, Cowza is the main focus for us as a company because it takes every single 1 of those 4 boxes, but that's not to say that there isn't high-grade mineralization underpinning Celia or wood or the areas in between. So this is really emerging in multimillion ounce scale gold. Moving away from that sort of Celia South trend down through to award. This is now north of Boswell, Portware sits here, which is our ports. This is now that we drill tested at the end of last year. We basically wanted to find extensions to the north of Boswell and we basically disturbed with 4 new pods of mineralization. There's a lot of buying in fruit, some really good grades in the oxide a small amount of drilling the RC will sort of really add to that sort of existing 400,000 ounce resource base. But given the size and scale of what we're doing with Cowza and why we love it so much, this is kind of in the background that we're working up, we'll get to in time. yes. Just touching on the Horse well resources. So this is really the focus of the work that we did under Strickland. We did about 12 to 18 months of drilling. And the focus of that drilling was try and optimize as much oxide and transitional material in AUD 4,000 pit, which is what we meant to do so. We more than doubled the size of the resource over 12 to 18 months. It's a really good bit of work. What we haven't really sort of tied up quite yet, is that there's an area in between 3 Central and Mawari that just we couldn't bring into resort because firstly, you can't use aircore drilling, you can't use aircore in the sources, and also the wide space nature of the drilling as well just didn't lend itself to the inferred resource. Just to demonstrate as well that it's really the observations we made here that lend itself to the Cowza discovery, both warm blood and Palomino sit on that mafic intermediate contact, and they're the 2 most sizable deposits. Each one of these is punting the north and open at depth. So we haven't actually tested the underground potential here. We could easily be dealing with 1 million ounces at base well. And then just touching on Bronco. So Bronco on that, if you remember that original map that I showed of Cowza, this is almost like the original course position. So it sits off into the footwall. It's got the most oxide, and it just doesn't have that sort of radiological contrast between thematic and the intermediate rocks, which allows for the big gold system to be -- yes, to drop out. and develop. So this is why Palomino and Warmblood, the contact with the major intermediate rocks, it then sort of lend itself to with the scope of Cowza and also the future discoveries that we're going to make along that southern portion of the end belt. Sorry, just to touch on this as well. We will be drilling this as well. I mean, I guess, every sort of -- if you look at every dollar of investment, every $0.90, I would say, would be going to Cowza, and then the $0.10 would be spent on time this area, testing the sort of the ruffling area and also tidying it with us on resource area as well. So that sort of summarizes the central orogenic gold target along with serious year structure. I'm just going to touch on each one of these structures now. They are mineralized. We just haven't really quite yet packed the code with these targets yet. The first one is Great Western. So this is a display structure that comes off from the west of our existing wholesale resource area, which is an area that we never sort of never been mapped before, never been source ample or drilled prior to our involvement. We went out there, and we noticed that there's some Greenstone Belt, which is Greenstone, which is fantastic for us, never been explored before. We some source sampling and that is up 15 kilometers of gold and solar normalism. Prospect has went out there. They found over 1,000 gold nuggets wrapping around the Western edge of this intrusion. And then we went out there and did some drilling. The drilling came back in some gold was up, but also unexpectedly. -- came back with some high silver results, too. So it's a bit of a head scratcher. We haven't sort of really hit marks a spot here. It's a developing sort of target. We do think the potential is there. We still really love it as a target. But whether the silver is a nation to the gold, we're not too sure. We're still processing the data at the moment. We've protected a lot of bottom of hole samples building up the alteration model and hopefully go back out there by the end of this year with the last rig and test as the onset places. Just to demonstrate this is what the sort of the ground looks like, like a snow field with the amount of core training. It sort of selection of the gold nukes that were found, quite angular, sort of Goldman haven't been far explore still believe this is an extremely exciting and valid target. We haven't really sort of got x marks the spot, and it's being developed in the background. So this is Great Western Spade. I just mentioned in the previous slide, there's a display structure to the south or Great Western South. This is an interesting play structure. So I'm going to cover it in the first 10 kilometers. But if you take this structure and you wrap it all the way around back to the senior this year where intersects share structure is where Cowza is position. So whether that's coincidental or where the cars is there because of the reaction of the port structures, it's kind of a working theory at the moment. But this play structure as well is mineralized. We've done some drilling just to the north of this intrusion about 12 met just a 1 gram per ton never followed up. And then the collection of high-grade intercepts just to the north of as well. So this is a live structure. This is 10 kilometers, taking it back down to Cowza's [indiscernible]. So again, this is another target sort of working on in the background and looking at programs in which to test probably either at the end of this year or more likely beginning of next year. Third-space structure that we like is Dusk 'til Dawn. This is an area that we sort of get some work on at the end of last year. A lot bottom of hole golden ores, which is probably yellow polygons are interesting pathfinder assemblage. So lots of sort of moly and business and tellurium. So it's just more of an intrusion-related setting. We do have a 100,000 resource at Dust 'til Dawn. All the drilling has only ever been completed on the southern side of a northeast trending fault. There's no drilling on the northern side. So even though it's 100,000 ounces, I believe Dusk 'til Dawn could be easily at 300,000 ounces. So again, the $0.10 to every dollar will be sort of hear sort of mapping out the size and scale of the system. But again, lots of gold ones here, no deeper drilling. We do have a solupatoid intrusion, which sort of is associated with major gold systems along the eastern gold fields. So -- it's a working model. But again, this is another play structure area that we're sort of working on in the background to come what we were targeting and factoring on where mark spot. So moving away from the Yandal Project. Now we're over into the gas going region. So this is 1 to Benz Mining. So Benz Mining is going absolutely gangbusters at the moment on the ASX. You probably would have read all about them and what they're doing. They just recently put out an exploration target of over 10 million ounces. And then market capital, I think, is sitting around $1.3 billion at the moment. We picked up ground that they were interested in, and they want, but given our relationship with Sally, shareholder, we managed to get in there before them and pick up this ground. The first thing that we did was apply an airmag survey. And this airmag demonstrates same host rocks that Home Star significant gold system is folded around onto our tenure. In addition to the type of rock type that we've got, which is folding around, we also have 2 parallel play structures. The only bit of work that's ever been done on this ground so far is a small sole sample program here, which came back with gold anomalism. So the gold is coming from somewhere. But we've gone out there, and we've started collecting so along these shaded areas. This grid in particular, on this part of the tenement is in the lab, and we should have the results from here in the next 2 weeks, but we are collecting -- actively collecting all these other 2 areas. So we should have these results for probably by the end of October at this stage. The third area that we have on our books is the Barrelmaker projects, and this is a project that we inherited from the previous Board and management team. So this is a project immediately north of Sandstone. This great sort of tenement area of tenements that the original Board of Management sold gold rights to Brightstar, which we since sold we released the market be the week. And we're sort of left with this package on to the West. The reason the Brightstar didn't grab it is because the existing resources on this ground. It's 80 kilometers of Greenstone, when, which I sort of describe this project is what we inherited with the Yandal project. So lots of really good gold grades, but no real understanding of what the gold mineralization is doing or controls on gold mineralization. So we've gone out there, we've collected a lot of bottom-up all samples. And there's one area in particular that I like, which is this Northern Banner prospect, which is associated with the 23 million at 1. And then we are aiming to get there this year, but I guess it's going to be more likely beginning of next year to sort of drill total. But I guess key sort of plans, I suppose, for this project and also the Glenburgh South project is that we're looking to sort of move it into a new vehicle and then doing in-specie distribution of the gateway shares. So almost treated like a Strictland version 3, and then that then leaves Gateway then to focus on the end product itself but also give value to existing shareholders and exposure to the other 2 project areas that we really like. And that's it. It's in the presentation.

Thanks, Rich. It looks pretty exciting. We've got just a few questions here that that is worth asking. Is there any other areas that obviously you've got. You got a large package around and really started your enrolling sites up and exploring the whole area. Is there any other areas that would look perspective and the untested that you're looking forward question?

Yes, absolutely. Good question, Jason. There's an area immediately south of Ward that has -- so as I mentioned, the 4 key criteria. So you need that demand zone, Celia structure, Northeast raining faults and the mafic intermediate content, there's an area immediately south award again, ticks all those boxes. So it looks like a similar target to CALA. The demag zone is over 3 kilometers in strike but we'll be releasing all sort of information on this target at the end of this week.

Okay. And all things going well that you mentioned you were 2 diamond rigs on Cowza. If the results coming through the booking good, where do you think you'll get to leading into Christmas?

Yes. I think we're scaling up absolutely. We've kind of been prepping ourselves, I guess, for this. We've just building a 2-man camp, which at this stage is only sort of 50% of capacity, and that sort of deals with 4 rigs. So we can say that more than double before the end of the year, which is why we want to do the rates. We want to get our destock into this.

And then going into the New Year?

Yes, same applies. So we probably won't be taking a break. We didn't take it very -- at the beginning of this year. I think we had 1 week of at Christmas. And now we've just got back stock into it, perfect time a year, January, February, up on the Yandal projects. Geos love it. But yes, no, we won't be taking the break. We'll be getting stuck into it. Keep going.