AGC Expands Achilles with Powerful Silver-Gold Hits

Key Concepts

• Achilles Deposit: A mineral deposit with significant gold, silver, and base metal mineralization.
• High-Grade Northern Zone: A specific area within the Achilles deposit exhibiting exceptional grades.
• Maiden Resource: The initial estimate of the quantity and grade of mineralized material in a deposit.
• Silver Equivalent (AgEq): A metric used to express the combined value of different metals (gold, silver, base metals) in a single unit, typically grams per tonne of silver.
• Drilling Programs: Exploration activities involving drilling to extract core samples for geological and metallurgical analysis.
• Diamond Drilling: A drilling method that produces solid core samples, suitable for detailed geological studies.
• Reverse Circulation (RC) Drilling: A drilling method that uses compressed air to bring rock cuttings to the surface, faster and more cost-effective for broader exploration.
• Aircore Drilling: A shallow drilling technique used for initial geological reconnaissance.
• Down-Dip Plunge: The direction and angle at which mineralization extends downwards within the deposit.
• Achilles Shear Zone: A geological structure identified as a potential host for mineralization.

Achilles Deposit Exploration and Results

The discussion highlights very positive results from recent drilling at the Achilles deposit, particularly in the context of a strong silver market. The company is pleased with the outcomes, which demonstrate significant potential for the deposit.

Key Findings and Data:

• Northern Zone: Drilling underneath the high-grade Northern Zone has yielded exceptional grades and widths of gold, silver, and base metals.
• Central Deposit Holes (70 & 71): These two holes, located in the center of the deposit, are expected to significantly enhance the grade of the upcoming maiden resource.
  • Hole 70: Intersected 14 meters at 220 grams per tonne (g/t) silver equivalent (AgEq), which included 2 meters at 1,670 g/t AgEq.
  • Hole 71: Intersected 16 meters at 240 g/t AgEq, including 2 meters at 1,100 g/t AgEq.
  • These results are situated within the central portion of the deposit, underscoring their importance.

Technical Terms Explained:

• Silver Equivalent (AgEq): This metric is calculated by converting the value of other metals (like gold and base metals) into an equivalent amount of silver, allowing for a single grade to represent the overall metal content. The exact conversion factors are not provided in this transcript but are standard in the mining industry.
• g/t (grams per tonne): A unit of concentration for precious metals, indicating the weight of the metal in grams per metric ton of rock.

Next Steps and Ongoing Exploration

Exploration activities are actively underway, with a clear strategy for continued drilling and resource definition.

Methodology and Framework:

• Two Drill Rigs Deployed:
  • Diamond Rig: Focused on completing deep diamond holes directly beneath the recently reported high-grade intersections. This strategy aims to test and extend the mineralization down-dip.
  • RC Drill Rig: Engaged in drilling new targets along the Achilles shear zone, indicating a broader exploration approach to identify additional mineralized areas.
• Aircore Program: A small aircore program is planned to be completed, which was deferred from earlier in the year. This suggests a phased exploration approach, starting with shallow reconnaissance.

Strategic Rationale:

The decision to drill deep holes underneath the high-grade results is a logical step to capitalize on the confirmed mineralization and explore its down-dip potential. The company's objective is to ensure the maiden resource is "relevant" and not just a large, low-grade deposit.

Resource Potential and Outlook

The company expresses excitement about the potential for the upcoming maiden resource, emphasizing its quality and strategic location.

Key Arguments and Perspectives:

• Mineralization Profile: The mineralization is observed to be near surface and shows an increasing trend at depth, suggesting significant upside potential.
• Maiden Resource Quality: The focus is on defining a resource that is not only substantial in size but also possesses good grades, making it economically viable.
• Timing: The maiden resource is anticipated to be released later in the current year or later in the current quarter.

Supporting Evidence:

• The "long section" visualization (though not provided in the transcript) is referenced as evidence for the near-surface and increasing-at-depth mineralization.
• The high-grade results from the recent drilling directly support the argument for a valuable maiden resource.

Conclusion and Main Takeaways

The Achilles deposit is showing highly promising results, with recent drilling confirming exceptional grades and widths of gold, silver, and base metals, particularly in the Northern Zone and the central part of the deposit. The company is actively pursuing further exploration with two drill rigs, focusing on extending high-grade mineralization down-dip and testing new targets along the Achilles shear zone. The strategic goal is to define a relevant maiden resource that is both significant in size and high in grade, with mineralization showing potential to increase at depth. The upcoming maiden resource is expected to be a key milestone, with a release anticipated in the near future.