Gold Growth Story Emerging at Duke of York

Key Concepts

• Orogenic Gold System: A type of gold deposit formed by hydrothermal processes in metamorphic rocks, typically associated with structural deformation.
• High-grade Shoots: Concentrated zones of high-value mineralization within a larger, lower-grade system.
• Fresh Rock: Unweathered bedrock, as opposed to shallow oxide zones, indicating the potential for deeper, more stable mineralization.
• Structurally Controlled Lode Gold: Gold deposits where mineralization is localized by geological structures like faults or shear zones.
• Assay: The process of testing a sample to determine its metal content (e.g., grams per ton of gold).
• Geophysical Gravity Survey: A non-invasive exploration method used to map subsurface density variations to identify geological structures.

Drilling Results and Mineralization at Duke of York

The recent drilling campaign at the Duke of York prospect has confirmed the persistence of a mineralized system at depth, characteristic of an orogenic gold system. Key findings include:

• Shallow Intercepts: 4 meters at 14 grams per ton (g/t) gold starting at 24 meters downhole.
• Deep Intercepts: 8 meters at 3.1 g/t gold starting at 242 meters downhole.
• Depth Extension: Mineralization at Duke of York has been extended by 80 meters beyond the previously identified 150-meter depth, confirming that the system remains open and viable in the "fresh rock" zone.

Strategic Development and Economic Evaluation

The company is transitioning from testing shallow oxide targets to exploring deeper, fresh rock environments. The next steps for the Duke of York and Duchess projects include:

• 1-Meter Assays: The company is awaiting 1-meter assay results to replace initial composite samples. This will provide higher resolution on grade distribution and refine future drilling targets.
• Economic Study: An economic study is being initiated to evaluate the viability of the project, utilizing the updated assay data to determine the best path forward for resource advancement.

Exploration at Sir Lawrence

The Sir Lawrence prospect is being prioritized due to strong indicators of a significant deposit, despite a lack of deep-level testing.

• Current Indicators: A 2-kilometer-long footprint with gold grades exceeding 1 g/t at the base of a paleo-channel. Previous drilling by King West identified 1.2 meters at 13.9 g/t gold in fresh rock.
• Methodology: A geophysical gravity survey is currently underway to map structural controls. This data will be used to optimize future drilling campaigns, ensuring that exploration is targeted effectively rather than relying on broad, untested drilling.

Future Outlook and Methodology

The company’s exploration strategy relies on a multi-faceted approach:

1. Integration of Data: Combining geophysical surveys, soil sampling, and drilling results to prioritize prospects across the Gungarry district.
2. Iterative Learning: The company emphasizes a "learning as we go" framework, where initial results inform subsequent target generation and economic modeling.
3. Market Communication: The company intends to provide regular updates, specifically focusing on the upcoming 1-meter assay results and the findings from the Sir Lawrence gravity survey.

Synthesis

The exploration program at Gungarry is successfully shifting from shallow, oxide-based exploration to deeper, structurally controlled orogenic gold targets. By extending mineralization at Duke of York and utilizing advanced geophysical surveys at Sir Lawrence, the company is systematically increasing its metal inventory. The combination of upcoming high-resolution assays and economic feasibility studies suggests a transition toward more rigorous resource definition and project advancement.