Mt Ida Unlocked – Ballard Mining’s Path Forward

Key Concepts

• Exploration Targets: Specific areas identified as having potential for mineral deposits.
• Mineral Resource Estimates (MRE): An estimation of the quantity and grade of mineralized material.
• Maiden Reserve: The first official estimate of economically extractable mineral reserves.
• Mine Life: The projected duration of a mining operation based on estimated reserves.
• Feasibility Study: A detailed study to determine the technical and economic viability of a proposed mining project.
• Financial Investment Decision (FID): The final decision to invest in a project based on the feasibility study.
• Water Abstraction: The process of drawing water from a source for industrial use.
• Production Bores: Wells drilled to extract groundwater.
• Greenstone Belt: A geological formation often associated with gold and other mineral deposits.
• Standalone Scale: The size of a mining operation that can function independently and profitably.
• Long Lead Items: Activities or approvals that take a significant amount of time to complete and must be initiated early in a project's development.
• De-risking Exercise: Actions taken to reduce the potential risks associated with a project.

Project Development and Timeline

The primary focus for Matt item is to understand the potential upside, particularly concerning the expiration of the project. The current plan, as outlined in the prospectus and use of funds, is to systematically explore all identified targets. Once the full potential of Mount Ida is understood, the company will then establish process flowsheets and advance a feasibility study towards a financial investment decision (FID). The timeline for this process is contingent on understanding the project's scale.

Water Abstraction Strategy

A rule of thumb suggests that one cubic meter of water is required for every ton of ore processed. Theoretically, 3.7 gigalitres (Gigs) of water would allow for the processing of up to 3.7 million tons of ore. The company is undertaking water abstraction as a future-proofing measure, similar to their approach with the processing plant, recognizing that these processes require time and investment.

Step-by-step process for water abstraction regulatory approvals:

1. Construction of Production Bores: Three production bores have been constructed.
2. Pump Testing: These bores have undergone 24-hour pump tests.
3. Data Provision to Regulator: The information gathered from the pump tests is provided to the regulator.
4. Abstraction License Approval: The regulator uses this information to approve the abstraction license.

The company is confident that the abstraction license will be received within the next few months.

Exploration and Resource Targets

Mount Ida boasts 26 kilometers of underexplored prospective greenstone belt. In line with the prospectus and use of funds, a 130,000 jewel meter drilling program has commenced, targeting 18 exploration prospects. The entire management and workforce are incentivized by achieving mineral resource estimates (MRE) of 1.5 million ounces and 2 million ounces, respectively. This target signifies the company's belief in Mount Ida's capability to become a genuine standalone operation.

Future Outlook and De-risking

The company's strategy is to continue growing Mount Ida to a genuine standalone scale. While only a couple of months into the current program, the expectation is to announce a maiden reserve at Bordock within 12 months. This maiden reserve is anticipated to underpin a five to six-year mine life, with exploration success potentially providing visibility for a 10-year plan. The 1.5 to 2 million ounce MRE targets remain a parallel focus. All other activities, including permitting and water abstraction, are considered long lead items and are being addressed proactively. This approach ensures that these critical elements are in place when the company is ready to move into construction and operations, serving as a de-risking exercise.

Conclusion

The overarching strategy for Mount Ida is to systematically explore and define its potential to achieve genuine standalone scale. This involves a phased approach, starting with comprehensive exploration to understand the project's scope, followed by detailed studies and financial decisions. Proactive management of long lead items like water abstraction and permitting is crucial for de-risking the project and ensuring a smooth transition to construction and operations. The company's ambitious MRE targets and the planned maiden reserve at Bordock underscore their confidence in Mount Ida's significant potential.