Confidence Builds at Baldock as Ballard Eyes Maiden Reserve

Key Concepts

• Orebody Width: Crucial for underground mining efficiency, with 5m+ considered ideal for stooping.
• Gram Meters (g/t x width): A traditional metric for economic intercepts, with >20 g/m often considered economic.
• Infill Drilling: A program aimed at converting resources into reserves.
• Reserve Material: Quantified ounces of gold that can be economically extracted.
• Modifying Factors: Geotechnical and metallurgical studies essential for reserve estimation.
• Stooping: An underground mining method.
• Mechanized Mining: Underground mining utilizing machinery.
• Extensional Drilling: Drilling focused on expanding the known mineral resource.

Boodok Project: Drilling and Reserve Estimation

Orebody Width and Economic Intercepts

The discussion highlights the importance of orebody width in underground mining operations, particularly for Boodok. A width of 5 meters or more is considered a "pleasing result" and ideal for underground stooping. While traditional economic intercepts are often defined by "gram meters" (grade in grams per ton multiplied by width), the speaker expresses a preference for a wider, lower-grade intercept over a narrow, high-grade one. Specifically, a 5-meter width at 4 grams per ton is favored over a 1-meter width at 20 grams per ton. This preference is attributed to the suitability of wider orebodies for "underground mechanized mining," which implies greater efficiency and lower operational costs.

Infill Drilling Program Progress

The Boodok project is approximately 60% complete with its infill drilling program, indicating it is "just over the halfway mark." The results from this infill drilling are described as positive, and there is confidence in converting an estimated 400,000 to 500,000 ounces of material into reserves.

Advancing Key Modifying Factors

Beyond infill drilling, progress is being made on "key modifying factors" which are crucial for reserve estimation. These include geotechnical and metallurgical studies. These work streams are "underway" and are acknowledged as significant time-consuming components of the overall process.

Timeline for Reserve Announcement

The project timeline remains unchanged, with the target for the reserve announcement set for "the middle of next year." This timeline is contingent on the completion of not only the infill drilling but also the MET (metallurgical) and Geotech (geotechnical) studies, which are expected to take a "significant amount of time."

Drilling Program Scope and Future Plans

The company had committed to an 80,000-meter infill drilling program at Boodok as part of its prospectus and use of funds. The total drilling program for the project is 130,000 meters, which includes regional exploration drilling. The immediate focus is on completing the planned infill drilling program. Following the completion of infill drilling, the company will transition to "extensional drilling at Bordock." This extensional drilling is aimed at "adding more resources at Bordock," as opposed to the current focus on "conversion" of existing resources into reserves.

Conclusion

The Boodok project is progressing well with its infill drilling program, which is crucial for converting resources into reserves. The project's economics are strongly influenced by orebody width, favoring wider intercepts for mechanized underground mining. While the infill drilling is on track, the final reserve announcement, targeted for mid-next year, also depends on the completion of essential geotechnical and metallurgical studies. Future drilling efforts will shift towards expanding the known resource through extensional drilling.