Kodiak Copper Corp. (KDK) Earnings Call Transcript & Summary

[Audio Gap] Gold news letter in the upcoming News Orleans investment conference. Quick plug that's coming up in a few weeks October 28 to 31 here in New Orleans. We have a really neat webinar for you today. We did a webinar early in this year called built for this market, focusing on three companies, three really good companies that are not coincidentally part of the highly respected Discovery Group. And a lot has happened since then. In that webinar, we talked about the plans for all three companies. They had great projects. They were well funded and we're prepared to make big advancements, big achievements this coming year, this coming expiration season on those projects. And so we decided to have a check in to see how far we've come with each of those companies. And it is in a market environment just to reflect on the bigger picture right now for a moment. It's in a market environment that from my impression is very positive and bullish for the mining sector across the board, all up and down the food chain from the majors, through the developers to the explorers. There's a credible argument. It's a bullish and compelling argument for all three sectors along that food chain. Yet the prices don't realize or don't reflect what that potential what that reality in some cases is at the present moment. Part of that is because the metals themselves have been a bit topsy turvy on kind of a roller coaster. We had the first real correction in this bull market throughout the spring and summer. We came out of that very strongly and kind of right on schedule as a lot of us predicted in mid-August. And since then, we've given back just about all of those gains as the rise in bond deals, not just in the U.S. but around the world has accelerated to the upside. For some of that period, gold and bond yields were rising together. And for, I would argue the same reasons being the anticipation of financial repression, anticipation of lower purchasing power or an acceleration in the decline in purchasing power for currencies. Yet the Western traders and the algo traders have seized back control, I believe, temporarily, for gold and silver, the monetary metals, they kind of just reflexibly hitting the sell button because the rise in bond yields has accelerated so much to the upside. But again, I think that rise and bond yields reflects the same underlying drivers that are bullish for gold. So we're at kind of a crossroads here. The long-term picture for the metals is very positive, very bullish. I think we're in a generational market for the metals and therefore, a generational market. for the miners. And so it's an opportune time to position your portfolios in stories that have great management teams, great prospects, and upcoming catalysts. All three of the companies that are joining us today, K2 Gold, cardiac copper and prospect metals fit that description. And so without further ado, let's get into those stories, and let's see where we've come over this expiration season and where we've come since our last webinar. We're going to start off with Anthony Margaret, the CEO and of K2 Gold, which has been making a lot of news and rewarding our gold newsletter readers along the way. So Anthony, let's get started.

You bet Brian, thanks a lot. That was a great introduction. I am just going to share my screen and kick off the slide show here for a minute. Okay. We're sharing Okay. So our flagship projects, the Malawi project in California, we are currently underway on a fully funded, fully permitted drill program. It's 14,000 meters. We'll probably push to about 15,000 meters as we work through the program, we've reported 11 holes so far. We've got more on the way, and we'll kick things off here. So property overview. Currently, we are focused on the is Gold Trend drilling right now where we've had great results following up on earlier results with a highlight hole of 86.9 meters at 4 grams per tonne of gold. This is an oxide gold trend. We've done some preliminary metallurgy work that we reported a few weeks back, just outlining, we're getting 97% recoveries through cyanide solubility. So we'll take the next step into doing some boggle role metallurgy work. But it's really nice to see those recoveries and confirming that it is all oxide so far that we're drilling. All the holes we've reported to date have been from the Dragonfly target here. But what's really interesting to note is this is a 6.5-kilometer long gold trend. So up at the north end, at the Gold Valley target, we call it. We've got rocks at surface coming in at up to 375 grams per tonne down to the Newmont target area, which is that's 5 kilometers of strike to the north and another 1.5 kilometers to the east at Flores. We've never drilled for ES. We've done a lot of surface work here, increase our knowledge in honing in our targeting for future drilling, but we're seeing very high-grade rocks here at surface, higher grade actually than we've seen a Dragonfly. At this point, with as far as putting this side of the system into a box, we're just calling it structurally controlled sediment hosted gold, we'll get there and define what type of system this is through our work that we're doing right now and future work to come. But there's three distinct target areas that we're focused on right now. One is the side gold trend, the next is the Morningstar target area here. So the Cerro Gordo, silver mine sits directly adjacent to the east side of the Morningstar target area. It was one of the largest silver producers in the history of California, operated for over 40 years in the mid-1800s. We've got rock samples here grading single rock samples over 2,700 grams of silver, plus 4 grams of gold and 2.4% copper. And then the stage target area in the central portion of the property, this is more copper dominant gold trend, but part of a 5-kilometer long trend when you stretch it out to Soda Valley. So this is a true polymetallic system, when you look at this on a large scale, the potential here is immense, and that's something that we're working through defining right now and adding these other targets into play and getting ready for future drilling. So we'll move into the Dragonfly target area now. This is where we've released all of our drill results from so far. The historic 86.9 meters is from this hole here to highlight intercepts of the core of that drill hole was 47.7 meters at 6.68 grams. The first news we put out from this year was from the DFA pad. We're drilling four holes from each pad. So we released those holes. The highlight was 39.6 meters at 5.3 grams. Then we stepped 40 meters to the north of that. We've got three holes pending. Those results should be out in the next week or so. The second release was from the DFF pad. That was a 40-meter step behind that historical undercutting it, getting some better information there, had some great results to highlight being 45-point -- or sorry, 27.4 meters of 4 grams, and then the final release that we put out was from the DFG pad. And again, we've seen a high-grade 5-gram core to these structures, that's what we're really excited about here. As I mentioned, this is all oxide material we're looking at, drilled down to about 180 meters of true vertical depth from our drilling this year, and we're still on oxide, we're stepping down to the -- there is a couple of pads down to the south of Dragonfly here. We're currently drilling at Newmont. We've got 39 holes completed right now out of 88. So a lot of news to come from the drilling in this area. And now we'll move on to the Morningstar target. So this is up in the northwest corner of the property, the Cerro Gorda silver mine. You can see sits right to the east here, 3 kilometer-long trend, getting into the polymetallic side of the system here, this is more skarn CRD style mineralization. From what we know about the Cerrogordo silver mine. It was a massive CRD. But as you can see, fantastic silver numbers up here, up to 27 grams a tonne, 4.3 grams of gold, 2.4% copper. That's in a single rock sample. These are all crop samples here. We have a second drill which should be arriving in the next couple of weeks on site to begin drilling up the Morningstar target area. And then the last target area I want to talk about is our Stega target. We've done a lot of work here generating drill targets and looking forward to drilling this soon. But very high-grade copper at surface and consistent along with a nice gold association here. And on the west side, that kind of bluish outline there is more of a silver association with the system. Just very interesting to see how the minerals precipitated out of these fluids as they were being injected into the host rock here. So a lot of news to come from drilling on the east side gold trend. Two very exciting other targets, which we will be drilling in the near future. As I mentioned, that second role will be arriving on site as soon as it's finished the contract that it's currently on, and we'll get to work out here. We've got a lot of news flow to come, we'll be drilling nonstop. We'll take a break over the holidays, but be back at it shortly after that. And all in all, really happy with the results we're seeing so far and looking forward to getting the rest of the results out as they come in.

Thanks, Anthony. This is an exciting obviously, an exciting project. And you didn't even touch on the fact that it's one of a few in the company portfolio. But this is why investors in K2 stood behind the company for 5 years and why you waited 5 years to get to where you could have the necessary permits to just go at it and go at it hard, for these targets, not just Dragonfly, which was the primary source of interest here. But I mean, you raised $25 million, if I'm correct, before you got the permits or they seem to be imminent, at the market, no discount with new warrants. So that told me at the time that you had some strong and knowledgeable backers. Can you talk a little bit about that and the share structure and the kind of support you have from your investors?

Yes, absolutely, Brian. Great question. So I'll back that up a little bit further even. So the company had roughly 50 million warrants outstanding. They were all priced at $0.30. That was part of our strategy all the way along as we were financing the company at $0.10 to $0.15 through the permitting process and staying active on our other projects in Nevada and the Yukon. Our belief was that as we got closer to acquiring the permit for MOJAVE, our share price would increase and reflect that. And thankfully, it did we were trading just above $0.30 when those warrants were expiring. We brought in just shy of $14 million, I believe, through the exercise of those warrants. And I think that was a very strong sign of shareholder belief, we're trading at $0.32 to $0.34 when the $0.30 warrants came in, gave us a big cash injection in coming into this year. And then late January, beginning of February, we announced a $15 million financing and we managed to close 25.25 on that at $0.70 with no warrants. So currently, there's no warrant overhang on the company whatsoever. Really happy about that. It really cleans up the share structure moving forward. We've got about 260 million shares outstanding right now. And I think just all in all, the belief we've got a very strong shareholder group that, as you mentioned, believed in this project all the way along. I think the mineralization that we see at MOJAVE, we were confident in what we see there and our understanding of it, it was a matter of unlocking access to it. So having a permitting story behind us now and seeing the way things are advancing forward, it's been very refreshing. It's a different world right now and there are days when California is starting to feel a lot more like Nevada. So I think the big takeaway here is the consistency that we see in mineralization, the repeatability of our drill results, that 5-gram core holding together you look at Nevada right now, there's projects being put into production at an average grade in an oxide environment of 0.6, 0.7 grams. So seeing this 5-gram core hole together and it's not just one structure that we're chasing here. These are steeply dipping parallel stack structures. There's more than one. It's a 400-meter wide corridor of mineralization that stretches for 6.5 kilometers. So the potential here is large and it's a matter of us working through the program right now and executing on it.

Yes, so much to cover. And you mentioned that potential parallel structures at Dragonfly, which we didn't have time to even go into I encourage people to look into it. But the common thing that we're talking about here, it's really strong, really smart shareholder base, and that's a common theme and a common feature throughout the discovery group. These are people who have more concern about their reputations than making a quick buck, and they know a good project, they know good management teams, and they support those. So that's vitally important in this game. And another one of the companies that boast that discovery group structure and strong backing is Kodiak copper, and we're going to have Claudia Tornquist, CEO of that company come on now and give her story and it's somewhat similar. We're a strong backing and I think a very clear path toward higher valuations. So Claudia, you please tell us all about it.

Thank you, Brian. Cola gives a couple of core exploration company founded and is chaired by Chris Taylor, and we are focused on the NPD copper gold porphyry project which is located in Southern British Columbia in an existing mining district between two large copper mines, so very favorable location. And we have been consolidating the district over the past 7 years and drilled in total 90,000 meters as well over that time and reached a very important milestone at the end of last year with our maiden resource. It was a big important derisking step and milestone and catalyst. It was well received by the market. And this year really is onwards and upwards from there. And I'd like to start with the big picture first of where are we heading, what is our aspiration. And I have a comparison here of Codiak here on the left with our currently $84 million market cap. And some companies were doing us what we are doing, porpexploration in North America, but are already more advanced or either have already a larger resource or moved already into PEA stage. So these companies are where Kodiak could be can be in 1 or 2 years. And the point of the slide is that there is a big differential in valuation. Those companies such as North aisle, Cisco Metals, Verde copper, they trade at well over $1 billion. So a big difference to our just under $100 million. And why is that? This slide shows the same comparator group and the size of the resource. So bubble size here is copper equivalent pounds in the ground and the picture there is clear. Kodiak with our maiden resource, we already have 3.2 billion pounds of copper equivalent, that's quite large already. But it's still a fair bit smaller than those other guys. And for us, the main goal of this year's drill program is to increase the size of our resource. It has a lot of expansion potential. And this year's little problem is focused on showing and demonstrating that expansion potential. And the ultimate aim is to get to where those guys are in terms of resource size and of the valuation. So our current resource includes seven deposits. You see them here on the map on the right. It's the seven yellow-labeled dots. And all of those seven deposits are still wide open. Most of them are multiple directions. And this year's low program is focused on drilling all, if not most of them, with the view to expanding them and adding mineralization. What's also important to highlight is that over and above these seven deposits, we have a current count 36 additional exploration targets, that's all the smaller dots here on the map. Those are targets. Some are historically built. Some are soil or geophysical anomalies. Those are targets that could host more mineralized zones. So that's the exploration upside. That's the exploration title and discovery potential. And this is bill problem. We are fully funded and currently well advanced on our way to drill around about 16,500 meters. We started in May. And will drill until late in the year, probably December. And as I said, we will build most, potentially even all of our deposits and also test some of those new targets that offer the potential for a new discovery. We started drilling in May at the Ketchen deposit, which is the one the furthest in the Northwest here on the map. And from there, we had the first step of results. Let me speak to that a little bit more. So you see here on the map, the white outline here in the plan map, that's the current outline of the Ketchan deposit. It's round about 1.4 kilometers in length. And our drilling, we had holes all the way around the deposit to fill in gaps and expand it further towards to what it is. And we had the first batch of results from there. And I couldn't have wished for a better start. We had the best hole ever reported, including the historic drilling from the Capsilon and nice high-grade long near surface hole with 0.7% copper equivalent over 283 meters and that included over 100 meters of over 1% of copper equivalent. So really nice high grade hole and great start to our drill results. But what's exciting is just the expansion potential that we see that our results point to at the Ketchan deposit. On this map here, you see in purple the geophysical anomaly that's associated with the deposit. That's 3D IP chargeability anomaly. And with this year's work, we extended this anomaly. We did some more IP work. And the results show that to the South, in particular, but also to the north, the anomaly extends at least another kilometer and also coinciding with that, our soils on surface, that's the colored background here. That's a good we did. And those as well, just like the IP anomaly extend well beyond the current outlines of the deposit. Plus, we also have one or two historic calls, some are here where I'm hovering with the mouse, nicely mineralized, but not included in the resource simply because it was too far out, and there was not enough long-hole density. So lots of data points pointing towards extension potential, more mineralization potentially to be added to the Ketchan deposit. And we have drilled significantly more holes there. We came out with the first eight in our last news release. mobiles are being drilled, also testing the southern extensions, and those results will come fairly soon and then throughout the rest of the year. So as I said, so far, we have results from eight holes. We will have, by the end of the year still roughly, well, somewhere north of 80 holes, so we only have the first small batch of results and results from 15,000 meters will be coming over the next weeks and months and into the first quarter of 2027. So a lot of news flow to come from our build and exploration work. We will have more news flow from the K copper transaction that we announced to unlock the value of our noncore Mojave project in Arizona. So more news from that as well. And then the big important catalyst that will be coming is in the first quarter of 2027, a resource update where we take all of the low results and we'll update our main resource, and we expect to be able to present a significant increase in size of our resource. So very much looking forward to that. And all in all, lots of news to come and in the first quarter, major, major milestones and catalysts.

Thanks, Claudia. As you are talking, especially that in one of those opening slides, hit on me that there's another common thread among all the companies today. And that is a lot of targets on the property. And what's really amazing with Kodiak is that you built this resource as you mentioned, still relatively small compared to the peers that you're going to be taking on as it were. But you have so many avenues to increase that resource. I mean your current deposits are all open in all directions. But the number of targets you have and its historical targets, the classically generated geological targets your AI Verifi targets superimposed on that and other Verify targets. How do you prioritize that? How do you prioritize the drilling? And what you hit next? Do you just expand from what's known you kind of scratch that itch for some of these exploration targets along the way? I mean, it's a kind of problem you want to have, but it's still something that you have to confront.

Yes. Well, I think what you just said, it's a problem you want have. It's a good problem to have. We are certainly not short of targets and will not run out any tension enough targets to drill. So prioritization is important. And as I said, this year, the expansion of the resource is the main focus the majority of our drill budget and bill effort goes into expanding the existing targets. That's maybe 3/4 or so of our hold the largest share of our effort. But yes, it's important to also test some of these other targets. They are exciting. And if you looked at our news flow over the summer, for example, down at the South zone, we discovered with this year's geophysical work and large anomaly right next to the South deposit. A very exciting target. So some of those targets, we certainly also test, but that's a smaller portion of the system budget.

Yes. Very exciting because South is kind of mirror what you have going on at catching as well, and you're finding that near deposit expansion potential for geophysics and all the other classic methods. But it just seems, again, like a such a strong path forward for resource growth. And again, the development pathway will bring you up to those peer levels, which are multiples of your current market valuation. So we'll talk about that a little bit more as we go along, but let's get back into kind of grassroots, hair and fire expiration with prospect or metals with which we have Rob Carpenter here, CEO of Prospect Metals, which was one of the big, if not the biggest story last year with a big discovery hole, hole 31 on the test zone at property. And I can tell you from visiting that recently, that property you have Rob also a plethora of targets there. And again, the challenge to the market is you don't want to talk so much about the other targets to distract from the target you're focused on right now, but you are able in this season to get a lot of work done in developing and understanding. And so let's get into it. I know it till I'll be thunder here, Rob, talk to us about how far prospect or has come since last we talked on our earlier webinar.

Yes. Thanks, Brian. I appreciate the intro. The investment thesis on prospect or really centers on the early stage or the upside associated with Discovery. So we're still probably a couple of years away from ever putting together a resource. Over half of the project, we still haven't really walked on yet, and we're just doing preliminary soil samples. We feel comfortable that there's multiple trends. Even in the areas we've worked on, there's gold-bearing trends that have significant high grade. So the pipeline of different prospects to come here is rich as you were alluding to earlier. Brian, whenever we go to New Orleans, you do such a great educational theme with your attendees. And what I've noticed over the years is you focus on three things: the corporate structure, the project and the management. And I started thinking about that, and I put that together, what's the investment thesis for Prospector? Or why should someone buy this stock based on those criteria. And you get to the corporate structure, you mentioned the shareholder base very strong and important. Our leading shareholder is B2Gold Corporation. They own 19.9%. They're a producing gold company. We interact with them extensively. Their geologist visit site. So if you're looking for a gold deposit and you want to turn it into a mine, have people on your shareholder base that do gold mining. So that's a very big positive on our share registry as well. Also, I put quite a bit of my own money into Prospector, probably about $1 million over the past few years. Insider ownership and insider buying, I think, is a very good indicator that the company believes in what they're doing or they're drinking the coolaid, so to speak. Also in the corporate structure, by the end of this year, we'll be with CAD 33 million in the bank. So we did a large financing last year, led by B2 over $45 million. This year, we spent CAD 12 million in exploration, CAD 12 million. We were on budget, on schedule, and we completed our objectives. So going into the new year, we'll still have a very strong balance sheet, strong treasury and very significant corporate backing. Management itself, you got to make sure you got the right people doing the right things. I'm a gel just by trade, our team, our geologist, we're very technically oriented. All of us have been involved in discoveries before in YUKON and beyond. So all we're trying to do is what we've done before and follow that recipe. Identify the asset, acquire it, drill it and develop it. And we're still very much at the early drill phase. So the project, why is this project investable? Well, it's a new emerging area that has really been overlooked in Yukon. Many of your viewers and readers, Brian will know about Bannon and they're terrific intrusion-related gold discoveries further to the east. Also, you might know about the SelfCookopper or Western copper. And those are bulk tonnage or lower grade type districts. But what Prospector or ML project has is really a high-grade combination of gold and copper. This is the highest grade project for gold and copper that I've ever worked on, and it's quite exciting. You mentioned last year, Brian, a hole we drilled 14 grams per tonne over 44 meters. That included a one meter interval of 288 grams per tonne. That's over eight ounces per ton gold. This year, out of our 100 holes we've drilled, we only have results for about 14 of them so far, and those have been released. And one of our recent news releases was 43 grams per tonne over 8 meters. That's well over 1.3 ounces per tonne over about 25 feet. So we're reproducing our initial hits, and we're starting to put geometry on them and show that they can actually maybe become, hopefully, some days significant deposits. One of our -- you mentioned our test district, Brian. That's where about half of our holes went this year. So the market right now is totally fixated on this 400-meter area that we've been drilling and they're really not considering or even asking us about the rest of the project. So we still have almost 50 holes from other occurrences, other grassroots or other wildcat trends as well, and we hope to have all that information released by Christmas. Now we've done three news releases on drilling since late August. And if you go to prospectormetalscorp.ca, you can click on those news releases, and you'll also find attached to them YouTube webinar with myself and Jodie Gibson, who's our VP of Exploration. And we will go through and in very good detail, the geology and the context of those results. So I won't go into too much depth on the geology here. But if you are curious, go to our website, those webinars are available. And if you have any questions, we welcome that as well. So that's kind of that, Brian. Does that help or any questions or anything?

Yes. Just to start off, the I was really intrigued for the last drill salts, you've gotten enough data now. And first off, let me say that having stood on the drill pad for hole 31 in our recent visit and look at the geometry and the way you and Jody were able to explain the strike and the dip of tests, which you knew at the time of it and then also the North Van coming in at a different angle. It just seems like there's a lot of complicated messed up rock up there. It's structurally hosted deposits and mineralization and you're trying to figure that out. And I just think you all impressed me as Wizards to be able to stand on that and understand and look up yellow, you can see the extent of it. But it is the extent that really excited me because you could stand there and you can look into the valley, you look at Mike Lake and the like and see how far away that was. And if that mineralization extended, however, degree, you have a lot of upside potential. But in this news release, you've gotten enough data, you saw, you've defined plunging shoots of high-grade mineralization or at least structurally --

At least three.

At least three. And this is a long trend. And so there's the potential with that extending along trend. In that geometry, have you learned something that will influence next year's program. I mean are you going to perhaps try from a different angle or a different drill set up to attack those trends to see their stent and I guess, even death extent.

Yes. So on the model, again, because this project had never been worked before. No one really knew what it was. There was no model. And there actually are no obvious analogs globally. So we're out on the skinny branch here with a new deposit model and potentially new deposit type. So when we're doing that, we still use our everyday toolkit for geology, right? We look at the structural geology or trying to find where the faults are. right? That's the key to it because these gold-bearing fluids migrate up falls. So we try to understand where the faults are and what dimensions they're in and potentially rank the best ones down. Now what we found is that test is within those fault zones, they're very high grade, the ultra-high-grade like multi-aspect tonne material forms these rod-like bodies within that or hour glass looking structures within -- or zones within that structure. And what we found is that they're stacked right? So what we've learned, we still have a number of drill holes that come from this year, but we found at least three of them, and we've got our fingers crossed on a couple more. And what we found is, as you mentioned, as we go down that valley towards the lake, we know that what that tells us is we can predict the geometry or predict the shape. They usually all have the same trend. The three we have all now kind of go 45 degrees. So we're expecting that there may be additional ones along that trend. So that will help us dictate when we drill next year down towards that lake and extend this thing, hopefully, multi kilometers, it will be keeping in mind that the geometry or the trend is your friend, so to speak, and what we learned this year most definitely will help us for 2027 and beyond.

Well, great. And now I'd like to open it up to questions for all three companies. All core of our CEOs here and address some of the questions we're getting on the chat as well. And I'd like to go back to Anthony here. Anthony, K2 has reported some extraordinary drills saw some Dragonfly. You've got 39 metres of over 5 grams per tonne, 10 meters of over nearly 8 grams per tonne. You recently got 28 meters or 27 meters of over 4 grams per tonne, all along this trend and you're starting to understand not only the potential scale because you're 6.5-kilometer trend, but also the geometry. When I look at what the data you have from the targets already along that trend, it's really striking to me. And I hinted earlier that there's also the potential that Dragonfly is repeated and parallel zones. In floors kind of shoots off it at another angle. You had an extraordinary -- I don't know if I have it on my screen here, extraordinary trench result at Flores that has to be one of the best trench results I've seen in my career. Can you talk to me about what you're learning about the geometry of Dragon flying? And particular right now.

So up at Dragonfly, the structures are steeply dipping between 70 and 80 degrees, and as you move south on the trend down to Newmont, they flaten out down to about 30 degrees. So from K2's previous drilling, that was our understanding. And coming into this drill program, we want to drill about 5,000 meters off of selected pads from Dragonfly to Newmont, and get a little bit more drill density in there and make sure that, that geometry -- the understanding of the geometry that we had held true. So we just cracked about 7,000 meters now, we're confident in our understanding of the geometry. I think another piece of the story here is great. So up at Dragonfly, we know it's higher grade as you come south to Newmont. The grade drops a little bit, but it's still 1.5 grams to 2 grams, which in an oxide environment is fantastic. So we've got a strong understanding of the geometry and kind of similar to what Rob was saying, we've got one fault structure that controls the mineralization along that trend. It's called the conglomerate nasafault structure. We've got that very well mapped. Now it trend runs all the way up to Gold Valley. So there's that 5-kilometer strike length north-south. And then as you mentioned, FLORA plays off to the east. So the structural understanding of Flores was I don't want to say a mystery, but it was lesser understood by us. We've done a lot of work this year to hone in on that and map it and along the way collecting rock samples. And it's going to take some drill holes. And right now, we're contemplating some geophysics because there's two different theories for the mineralization of FRAs. One, it could be steeply dipping. The other one, it could be shallower dip and kind of like we see at Newmont. What's very interesting to see when you look at the slide that I showed there, which is on our website, non-or news releases, and we've got some news coming out on rock samples in the next few days. But what's really interesting there is the highest grade mineralization we see is, I guess I'll step back one step there. all of the best mineralization that we see, the high-grade mineralization we see is in this very calcareous siltstone. It's solicified. It's more dense. That's what's carrying the higher-grade material. And at Flores, wherever that mineralization peaks out, we're seeing the high-grade samples at surface. It's going to take a little bit more work right now to really understand whether it's flatter lying or steeply dipping. There are two different theories. We're going to have to take more samples and get a couple of drill holes into that to really give us a firmer understanding of it. But I think the big takeaway here is, the grade that we see at Flores is much more similar to what we see at Dragonfly from our surface results. Dragonfly to Newmont to Gold Valley, that trend. It's a long, linear predictable trend Seeing those parallel stack structures. We've seen them in every drill hole to date. And as we get more drill density in there, it will confirm that. But it's a 400-meter wide corridor of mineralization through there. We've got evidence of some new structures that have not been drilled, the Beazley target, we call it. We will get holes into that in the near future. And it's really a matter of building out the drill density and getting the pierce points into the targets. And I think the biggest thing that we've known this all along with Mohave, but the more we look, the more we find. So we were doing a lot of surface work right now collecting a lot of samples. The rocks that we see that are well mineralized there are very nondescript. But once you get an idea of what you're looking for, it's a lot easier to see. But keeping that understanding in mind, it's really important for us to sample everything we see because there are a lot of surprises on the project. And all the mineralization that we see from the three different target areas, whether it's Eastside, Gold trend, Morningstar or Stega they're all part of the same system. And that is -- when you look at comparable projects to what we see at MOJAVE and the potential we see there, it's difficult to find another project that has the scale and real true potential that we're looking at here. It's a matter of building it out, getting the drill holes into this, and we're on our way, and we'll continue to do that.