Blackrock Silver Corp’s Post

Transcript

Thank you very much. Good to be back here at Beaver Creek. It's been about two years since we last presented up here. In that time I've lost a lot of hair, but luckily we've drilled out a lot of Oz. I'm just last week we put out an initial preliminary economic assessment on a discovery we made just four years ago At 570g per ton head grade, this is the highest head grade silver project in the world right now by a country mile, which leads to some of the lowest projected all in clash costs as we look to move forward. Lot of forward-looking statements in this one. This is going to be meaningful productions got potentially one of the largest silver mines in America. As I said, it's some of the lowest cash costs globally. So our projects Tonopah W halfway between Las Vegas and Reno, one of the most famous discoveries in Nevada mining history. It's one of the reasons why Nevada to this day is known as the Silver State. In four years with the project, we've drilled out 100 million ounces of silver equivalent. Now it's just silver and gold. That works out to about 47,000,000 ounces of silver, 577, 000 ounces of gold. Now for the PA, we've already established some really, really robust numbers. We've got a 2 to one MPV to CapEx. So we're looking at base case 19 dollars, $1900 gold and 23 silver. We're looking at $323 million after tax MPV 5. Now this is going to be a big producer. It's going to be averaging about 8.6 million. Silver equivalent oz per year over a mine life of just under 8 years. I cash cost of 1196 once again one of the lowest all in costs in the industry. IRR just at the base case is nearly 40%. Now where the project really, really shines is on the upside given the grade is not all that sensitive to costs on the way down, but on the way up we're highly levered. If we bring costs just a little closer to where they are today at 20 to 80 gold and 2760 silver, you're looking at an IRR that's. 55% after tax and the MPV escalates to just under half billion dollars. Now there's a lot of room to grow this thing. In fact, from a resource, we actually orphaned about 12 million oz from this PA, which we're thinking is going to be a big pot of gold at the end of the rainbow, which we're drilling right now to link it up and bring on some new oz, The head grade, as I said, at about 3.34g gold and 270 grams per ton silver. There's nothing like this at the industry or. Closest comp would be 50% less than this. So high grade big production and we're on private land in Nevada that so we're right next to a town right off a highway power for drilling which we've got underway right now. We're hooking up to fire hydrants for our water. It's really one hell of a setup. We've got a heavy duty drill program underway, our first in about two years and we're starting off drilling into one of the highest grade structures in the industry where we're looking to de risk through our payback period. And convert our inferred ounces to M and I. So the next few months should be quite fun. And now that we've got this palette cleanser out so people can finally discover this deposit. So the queen of the silver camps, the king would have been the Comstock load. This is much more silver rich than the Comstock was, though. That about 30 good years discovered in 1900 produced just under 200 million ounces of silver and about just under 2,000,000 ounces of gold. But all that production came from 7 and a half million tons means it's high grade. And the metallurgy there's phenomenal. So here's the metrics. 8.6 million oz annual production. This would, if we were brought online today, be the second largest silver producer in America. That production broken down would be about four to 5 million ounces of silver annually and 54,000 ounces of gold for the silver investors. If you're just looking for a free ride on silver, we're producing with the gold predate. That credit factored in at -22 cents for every silver oz produced. As I said, the upside cases things get a lot more interesting very, very quickly and certainly lowest quartile for cash cost globally. So what is the price here it is. This is a production and all in cost projected against every major silver mine in the world right now. We're given the grade profile we got. We got a lot of wiggle room to make this thing work. But if it were to come online today, this would be the lowest cost silver mine in the world. And we're not in Mexico, we're not in Bolivia or Argentina. This is 3 hours drive from Vegas. So this is really the upside potential here. What we're really after right now on our drilling is adding backfilling some nine years of my life on your probably will never have a better opportunity in the next 6 to 8 months. Drill up more Oz more quickly and cheaply than we have right now. And in terms, you know, before I used to say we're undervalued based off of our enterprise value once in the ground ratio, now we're undervalued on a Pinap ratio too. We're trading at about .13, next closest high grade developers trading at .5. So we got a lot of room to run. And I think with the our first big drill program in a couple years into our structure, it's going to get exciting very quick. So this is Tonopah today. It's one of those very charming old mining historic boom towns, which we're looking to really show some new life, but this is what it looked like. 100 years ago. We're picking up right where the historic miners left off from horse and buggy. Really this is what we've got is a consolidation of the unwind intact extension of the vein corridor. Literally right from where they stopped mining at the onset of the Great Depression were the first group to come back in. And really it's that purple claim block where the first group to to bring exploration to it since production shut down. We started drilling it. It was said to be where they start mining 24 meter thick. Again, our first drill hole hit 30 meters of a kilogram per ton, so over equivalent. Since then, we've now drilled out about four kilometres of strike. So that 100 million oz that we've got, that's in the red, those veins in the red. Now what you'll see is to the NW, it looks like we've got 3 deposits. We only included two of those in this resource we orphaned. We excluded those 12 million ounces to the northwest from this mine plan simply because we've got 1 kilometer of strike along the the vein corridor in the middle. That's going to link it all up. And we got drills there right now just on that kilometer strike. We're thinking we can add another 30 to 40% in terms of Oz. And unlock that 12 million oz at the end of the rainbow there with that pot of gold. So while we're thinking is after this round of drilling we're going to be able to bring on some serious oz going to add some significant mind life. Our CapEx ain't going to change all that much. We're looking at a 1500 ton per day operation and you know we're confident in that mill size. So what we're going to be doing is just blowing out the MPV, blowing out the IRR and having some fun de risking. Our early Oz as we go. So we've got a 50 drill hole, 20,000 meter program underway. The bulk of the drilling is gonna be in the MI conversion through the early years. We've got a 2.3 year payback period as it is based in 1900 gold and 23 silver. We're going to be drilling all of that out right now. We've had drills there since the end of July. Assays are working their way through the labs and then you'll see we've got about 10 space drill holes that's poised to link up that kilometer. Or so of mineralization to the northwest, really blowing out the numbers for us. It's very small footprint underground mine. This entire deposit is located on patented land. So it's not going to end up in permitting purgatory like a lot of projects do. There's no federal government involvement whatsoever in terms of what we're doing. 1500 ton per day mill all fits on private land. You know what we're thinking is with this drilling right now, you know, everything right now is being done in pencil with respect to the site layout because the center of gravity we think may move towards the northwest and you know, we'll see what we hit along the way. Maybe we'll hit some new really high grade zones. Long hole stopping 75% of the deposit cut and fill 25% conventional underground mining methods. We've got a three stage grinding circuit. It's going to be a Merrill Crow. This is one of the only doorway. Producers amongst the developers in the world right now. So this is going to be very straightforward. As I said, there's no letters Inc, there's nothing else in our in our equivalence other than gold and silver. So you know, it's not just silver companies that would be after us. We've got a clear path to permit a mill and process plant on private land and there's huge consolidation potential. All around us. So we might be a hub and there might be a lot of spokes, but this is a good head start. Now, as I said, we're undervalued based off of OP NAV. Now here's how we are on an on announced in the ground valuation. Once again, we're the highest grade story. We're the only high grade story that is pureplay precious metals. And right now we're trading at about 1/3 to 1/4 the once in the ground valuation despite higher grade clear jurisdiction, straightforward permitting and we're fully funded. On this drilling, we got 20,000 meters underway. We've shown the economic potential of our OZ at the grades we've got. We've got a lot of wiggle room to make this work. So with that, yeah, drills are turning some of the widest margin ounces in the industry and a clear path forward. So happy to take some questions. Questions from from the audience. Andrew, if I could ask with regard to your drilling program, what what do you expect are you able to drill this winter or, or drilling right now? You know, we we drilled for about 2 1/2 years straight. We were one of the most active junior exploration companies in Nevada at the time, something 100 and 2500 and 50,000 meters. We did in the span of about 2 1/2 years. We've taken the foot off the gas pedal last year to upgrade our resource. We 2.5 X our our last resource from our maiden. And this year we started with a scoping study and let which led to the PA. In June of this year, we got a call from Eric Sprott who wanted to double up his position. He gave us 4 1/2 out of a $10 million bought deal and that's allowed us to bring the drills back for a first heavy duty drilling we've done. What I can say is that when we've been drilling in the past, we've always commanded really, really good ounces in the ground valuation. Last time we had drills there were 250 an ounce, today were $0.50. We've we've derisked the project substantially with metallurgy on. This is phenomenal. We had Kappas and Cassidy do our PA on that side and our model now is predictive. We're going to be adding a lot of Oz on this round and converting. I think you know, the only thing that one could knock against the project as it is today is that our resources entirely inferred and the 1st 40 drill holes of this program are going to be drilling into our Bermuda vein in the resource. It's the highest grade structure on the property. It's the first van you're going to hit when you go underground. Silver equivalent is over 600. We think what you're going to be mining there one day will be N will be closer to a kilo. So lot of drilling into a high grade structure and we're drilling near surface from beyond that resource envelope too. So what we look for is on success stepping up, we might be able to shorten that pre production timeline even further on the next round. Yes. Thank you very much. What what was the CapEx projection in the PA? Yeah. So it's a we've got $173,000,000 in there, 22 million of that is contingency. Once again, the CapEx we're not expecting to change too much. So every oz we had here on is going to blow out the mine life, blow out MPV blowout IRR even at just the base case, which is one of the more conservative. Economic cases that have come recently in the industry, you know it's a 2 to one MPV to CapEx. So you know, we think with some success on the drills over the next six months or so, we'll be able to upgrade the resource next year and roll that into a new PA, which is going to be absolute blowout. Andrew and you, you had mentioned that some of your tailings will be used as Paceville. Yep. I wonder if you could talk about your tailing strategy. Yeah. So you, you know, the majority of the project is gonna be long hole stopping. We do have a dry stack tailings facility, but given the cut and fill aspect, which is a very small portion of it, we will look to I guess re infiltrate that underground and put that in there. Other than that, you know, it's not a high tonnage operation. I mean this is the highest. Red Rock that's out there right now in the industry. So yeah, it's gonna be very straight forward from that sense. Great. Thank you. Thank you, Andrew. Thank you very much. Cheers.