Radisson’s O’Brien Project Shows C$500M Value, Expands at Depth

Here's a comprehensive summary of the provided YouTube video transcript:

Key Concepts:

• O'Brien Gold Project: Rison Mining's flagship asset, a former producing gold mine in Quebec with high-grade potential.
• Preliminary Economic Assessment (PEA): A study outlining the economic viability of a mining project based on current resources.
• Net Present Value (NPV): The current value of future cash flows, discounted at a specific rate.
• Capital Expenditure (Capex): The cost incurred to acquire a capital asset.
• Operating Expenditure (Opex): Ongoing costs associated with running a business.
• Resource Growth: The process of increasing the estimated quantity of mineralized material.
• Drilling Program: The systematic exploration and definition of mineral deposits using boreholes.
• Step-out Drilling: Drilling conducted at a distance from known mineralization to extend the deposit.
• Milling: The process of crushing and grinding ore to liberate valuable minerals.
• Hub-and-Spoke Model: A mining strategy where ore from multiple smaller deposits is processed at a central mill.
• Brokered Financing: Raising capital through an investment bank or broker.
• Hard Dollar Money: Investment capital not subject to warrants or flow-through provisions.
• Assay Results: Laboratory analysis of rock samples to determine mineral content.
• Geological Trends: Patterns of mineralization within a deposit.
• Misothermal Gold Deposit: A type of gold deposit formed by hydrothermal fluids.

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Rison Mining's O'Brien Gold Project: A Celebratory Outlook at Explore 2025

Matt Manson, President and CEO of Rison Mining, expressed a celebratory tone regarding the company's progress on the O'Brien gold project in Abibbe, Quebec, during Kitco Mining's coverage of Explore 2025. Rison Mining holds 100% ownership of this project, characterized by Manson as "high value, low capex, small footprints and big upside."

Project Overview and Strategic Positioning

The O'Brien project is a former producing mine renowned for its exceptionally high grades. Its strategic location on the highway, adjacent to the town of Cadillac and situated between Val-d'Or and Rouyn-Noranda, offers significant logistical advantages. The project currently boasts a growing resource of approximately 1.5 million ounces, with an aggressive drilling program underway to further expand this figure.

Rison's strategy for O'Brien is centered on a "small footprint" approach. This is due to the project being surrounded by existing mining operations and mills in the Abitibi region, which have been operational for decades. Manson articulated that the company envisions O'Brien's ore being processed at an off-site mill, integrating into a "hub-and-spoke" mining operation. This eliminates the need for Rison to construct its own mill and tailings facility, thereby significantly reducing capital expenditure. The company's primary focus remains on aggressive drilling to grow the resource.

Preliminary Economic Assessment (PEA) and Project Valuation

In July, Rison Mining published a Preliminary Economic Assessment (PEA) for the O'Brien project. This PEA, described as a "snapshot PEA," aimed to establish the current value of the asset based on the 2023 resource estimate. The study also incorporated technical criteria for processing Rison's ore through the Dénain mill of Iron Gold Corporation, a neighboring mill.

The PEA projected an 11-year mine life based on the initial resource, with an annual production of 70,000 to 80,000 ounces. Key findings from the PEA include:

• Net Present Value (NPV): Approximately half a billion dollars, using a gold price of $2,550 per ounce for valuation and $2,000 per ounce for mine design.
• Mine Life: 11 years based on the initial resource.
• Annual Production: 70,000 to 80,000 ounces.
• Profitability: Very high margins.
• Rate of Return: 48%.
• Capital Expenditure (Capex): A modest $175 million.

Manson emphasized that this PEA is a "what if" scenario, as no formal agreement is in place with the Dénain mill. However, it provides a solid foundation with real data and pricing, allowing Rison to establish the current worth and potential of the project. The company acknowledges that other milling options and partnerships may be explored.

Financing Environment and Capital Raise

Rison Mining recently secured $25 million in a brokered financing earlier in the month. Manson described the current financing environment for junior mining companies as a "window" that has been open for approximately six weeks, allowing many companies to raise capital.

The rationale behind Rison's financing includes:

• Use of Proceeds: To fund the ongoing, successful drilling program and resource expansion.
• Valuation Metrics: The company is currently valued at approximately $150-$200 per ounce, while its discovery cost is around $40-$50 per ounce, making further investment highly sensible.
• Investor Quality: The financing attracted solid institutional investors, with no warrants or flow-through components, indicating a preference for "hard dollar money" to be invested directly into exploration.
• Timing: Recognizing that financing windows can close, Rison acted decisively to secure capital on favorable terms before potential market shifts.

The financing was oversubscribed, and Rison exercised discipline by not accepting all available funds. The proceeds will support an aggressive 140,000-meter drilling program, the largest in the company's history, utilizing eight drill rigs.

Drilling Program and Resource Expansion Targets

The current drilling program is the company's primary focus, aiming to significantly expand the O'Brien project's resource. With 1.5 million ounces currently defined across all categories, Rison's exploration target is to reach 3 to 4 million ounces if the current mineralization extends to a depth of 2 kilometers. Most of the existing resource is located above 600 meters.

The drilling strategy involves "big step outs" to determine the overall scale and scope of the deposit, rather than focusing on resource quality at this stage. Manson highlighted recent success, with a press release two days prior announcing further positive drill results. The thesis is that the misothermal gold deposit, like others of its kind, extends downwards, and O'Brien is demonstrating this trend.

Latest Assay Results and Geological Insights

Recent assay results from 15 new step-out drill holes have demonstrated a very high hit rate, reinforcing the company's geological model. A key highlight was a drill hole completed 500 meters below the bottom of the old mine (which closed in 1957 at a 1-kilometer depth). This hole, the first to explore this depth in 70 years, returned 1 ounce per tonne over 8 meters. This has led to the definition of a 250m x 500m area below the old mine showing consistent mineralization.

Further results from the western part of the old mine and the eastern section below newer resources also yielded significant intercepts. One notable hole in the east returned 10 grams per tonne over 6.5 meters, filling a gap between two geological trends. This intercept is geologically significant as it implies connectivity between trends, suggesting a substantial number of ounces in that area.

Across three different locations below former mining and drilling areas, Rison has achieved positive results. Approximately 13 to 15 of the recently released holes provided "resource grade, resource thickness intercepts" that will contribute to future resource updates. This consistent success rate has been observed throughout the year. A compilation of deeper holes across four press releases visually demonstrates the infill and expansion of mineralization at depth.

Looking Ahead: 2026 and Beyond

For 2026 and the upcoming winter period, Rison Mining's strategy remains focused on aggressive drilling. While the initial strategy involved integrating O'Brien into a larger operation, the project's increasing size and potential may lead to a re-evaluation of this direction, potentially allowing the project to stand on its own.

The company will continue to invest approximately 90% of its financial and time resources into the drill program, as this is deemed the most beneficial activity for shareholders and the project's future. Alongside drilling, Rison will undertake de-risking activities, including environmental baseline studies, community consultations, and engineering optimization.

The operational plan includes:

• Continued Drilling: Maintaining eight drill rigs.
• Infrastructure Expansion: Expanding the core shack.
• Personnel Growth: Hiring additional geologists and geotechs.
• Broad Exploration: Casting a "wide net" to fully delineate the deposit over the next 12 months.

Manson anticipates regular news flow from the drilling program, with potential results expected every few months.

Conclusion

Rison Mining is experiencing a period of significant success and optimism, driven by the aggressive exploration and resource expansion at its O'Brien gold project. The company's strategic approach, combined with positive drilling results and a strong financing position, positions it for substantial growth and value creation in the coming years. The focus remains firmly on unlocking the full potential of the O'Brien deposit through continued drilling and de-risking initiatives.