Dreadnought’s Illaara Shift: High-Grade Upside

Key Concepts

• Infill Drilling: Drilling conducted within a known mineralized area to increase confidence in the resource estimate.
• Metallurgical Test Work (Met Test Work): Laboratory testing to determine the recoverability of valuable metals (in this case, gold) from the ore.
• Resource Estimate: An assessment of the quantity and quality of mineral deposits.
• Extensional Drilling: Drilling conducted to expand the known boundaries of a mineralized area.
• Burn Rate: The rate at which a company spends its cash reserves.
• Non-Dilutionary Funding: Funding that doesn’t require issuing more shares, thus avoiding dilution of existing shareholders’ ownership.
• Shallow Open Cut Resources: Gold deposits close to the surface that can be economically extracted using open-pit mining methods.

Infill Drilling and Metallurgical Test Work at Mekis Find

The initial phase of infill drilling at Mekis Find has yielded results consistent with expectations, bolstering confidence in the existing resource estimate. Crucially, this drilling has also provided material for metallurgical test work. This “met test work” is a key component of the economic studies for Mekis Find, specifically determining the amount of gold that can be economically recovered from the ore body. The speaker anticipates positive results from this testing, drawing parallels to the successful results achieved at Star of Mangaroon. The expectation is that the metallurgical tests will further validate the resource as it progresses towards updated resource estimates and feasibility studies. Both the infill drilling and met test work are actively reducing the risk associated with the resource.

Expanding Resource Potential – Extensional Drilling

Extensional drilling at Mekis Find has revealed significant potential to increase the shallow, open-cut resources. Specifically, the company plans to follow up on a 250-meter extension to the north with further drilling in the coming weeks. A significant shift in strategy involves drilling at shallow depths (0-20/30 meters). Previously, shallow drilling was avoided due to concerns about encountering old, historical workings. However, the success of shallow drilling at Star of Mangaroon – which significantly increased the resource – has prompted a re-evaluation. The speaker emphasizes that adding shallow ounces to the Mekis resource would have a “profound impact on cash flow and cash generation.”

Financial Strategy and Cash Flow Projections

Dreadnot currently holds over $20 million in cash, with a consistent burn rate of approximately $2.5 million per quarter over the past two years. The company anticipates Star of Mangaroon will enter production within the next 12-24 months (pending approvals and processing/mining rates). Production is projected to generate an additional $40-60 million in cash, dependent on the prevailing gold price. Simultaneously, the rapid advancement of Mekis Find throughout this year is expected to contribute further cash flow. This combined strategy aims to establish a “clear pathway of non-dilutionary funds,” enabling Dreadnot to fund further exploration and discovery without issuing additional shares.

As stated, “And that's what's really driving force behind advancing messies as quickly as possible.”

Long-Term Vision and Growth

The overarching goal is to leverage these cash flows to fund further exploration and discovery, ultimately aiming to become a “billion dollar company.” The speaker highlights the importance of the “finding more gold faster” strategy and becoming a “self-funded explorer.” The focus on Mekis Find is therefore paramount, as its rapid development is seen as critical to achieving this financial independence and driving future growth.