$20.6M to Power Ballard’s Next Growth Phase

Key Concepts

• Exploration Drilling Program
• Resource Growth
• Exploration Target
• Resource Estimate
• Infield Drilling
• Standalone Scale Project
• Synergies
• Orogenic Deposits
• Electromagnetic (EM) Survey
• Regional Exploration Targets
• Proof of Concept Drill Program
• Structural Interpretation
• Maiden Reserve
• Geotechnical and Metallurgical Samples
• Modifying Factors

Funding and Exploration Strategy

The company plans to utilize newly acquired funds to expand its exploration drilling program. This initiative is coupled with the announcement of an additional exploration target of 1 to 1.8 million ounces, which is supplementary to the existing 1.1 million ounce resource. The primary objective for the next 12 months is to focus on resource growth for the project.

Baldock Infill Drilling and Future Focus

An infield drilling program is currently underway at Baldock, which currently hosts 930,000 ounces at a grade of 4.1 grams per tonne (g/t). This program is scheduled to conclude in early December. Following its completion, the company's sole focus for the entirety of the next calendar year will be on resource growth.

Arena Investment and Project Development

The investment from Arena provides additional optionality for the project. The company's long-standing intention, since its IPO, has been to develop the project to a standalone scale, a goal that remains unchanged. The recent placement signifies a mutual intent between both parties, demonstrating a willingness to negotiate. The company anticipates welcoming Arena as a major shareholder and continuing discussions regarding potential synergies between the two projects over the next 6 to 12 months.

Exploration Target Breakdown and Baldock's Significance

Approximately 60% of the announced exploration target is expected to originate from Baldock. Baldock is described as the primary contributor to the project, with its current resource estimate capable of supporting the first five to six years of mine life. Recognizing that orogenic deposits tend to extend to significant depths, Baldock will be the central focus for exploration both along strike and at depth.

Advanced Exploration Techniques at Baldock

To inform deeper drilling at Baldock, an Electromagnetic (EM) survey is currently underway and is expected to provide valuable insights.

Regional Exploration and Structural Interpretation

In addition to Baldock, there are 53 additional regional exploration targets. The company has initiated a systematic approach to evaluate these targets, commencing with a short, phase one proof of concept drill program at each, followed by a more comprehensive phase two program. These efforts will be advanced in parallel throughout the next calendar year.

The structural review has been instrumental, not only by providing analogies to large camp-scale projects, which increases confidence in the potential for a similar scale project, but also by refining exploration targeting. Previously, exploration targeting relied solely on the presence of historical underground workings and high-grade rock chip samples. The structural review now offers enhanced resolution for exploration targeting along the 26 kilometers of prospective strike.

Next Steps for Baldock and Resource Advancement

The immediate next steps for Baldock involve completing the infill drilling in early December. This is a crucial part of advancing Baldock towards a maiden reserve by the middle of next year. The infill drilling program is collecting the necessary geotechnical and metallurgical samples to advance the key modifying factors required for a reserve estimate. Once the infill drilling at Baldock is complete, the company's entire focus will shift to growth, encompassing extensional drilling at Baldock, resource development, and regional exploration.

Synthesis/Conclusion

The company is strategically leveraging new funding to significantly expand its exploration efforts, with a clear focus on resource growth over the next 12 months. Baldock is identified as the cornerstone of this strategy, with ongoing infill drilling aimed at establishing a maiden reserve and future drilling targeting extensions and deeper mineralization. The investment from Arena signals a collaborative approach towards developing the project to a standalone scale, with potential synergies to be explored. Advanced techniques like EM surveys and a refined structural interpretation are being employed to enhance exploration success, both at Baldock and across a broad portfolio of regional targets. The overall objective is to systematically de-risk and grow the project's resource base, paving the way for future development.