Silver, Strategy & Drilling Ahead at Mammoth

Key Concepts

• 3D Underground Survey
• Surface Sampling
• Drilling Campaign
• Buster Trend
• Resource Estimation
• Metallurgy and Geochemistry
• Portfolio Upscaling
• Data Consolidation
• Shareholder Value Creation

3D Underground Survey and Surface Sampling

The 3D underground survey has been instrumental in revealing the extent of mining and excavation that has occurred in the area. It provides crucial insights into the orientation of the ore bodies and the nature of the geological system being dealt with. This survey offers a clear understanding of the historical operations and the potential opportunities that exist.

Complementing the underground survey, surface sampling has confirmed the presence of significant grades. While not primarily silver, the sampling has identified elevated levels of gold, antimony, zinc, and lead. This indicates a complex mineralized system, described as a "mixed bag," which highlights the substantial opportunity present. The presence of these grades suggests that a considerable amount of metal can be accumulated rapidly, underscoring the potential of the site.

Drilling Campaign Objectives

The primary objective of the first drilling campaign along the Buster Trend is multifaceted:

• Validation of Older Drilling: To confirm the accuracy and reliability of historical drilling data.
• Extension and Infill: To expand the known mineralized zones and fill in gaps in existing drilling coverage.
• Foundation for Resource Estimation: To gather sufficient data to support the planned resource estimation towards the end of the year.
• Structural Information: To acquire more detailed information about the geological structures influencing mineralization.
• Metallurgical and Geochemical Analysis: To collect rock samples for metallurgy (study of the composition and properties of metals) and geochemistry (study of the chemical composition of the Earth's crust) to inform future exploration strategies beyond the resource definition phase.

Strategic Approach and Portfolio Upscaling

The company is accelerating its activities by leveraging existing work and applying a strategic approach across its portfolio. Where previous drilling has already taken place, it is easier to upscale that work, thereby increasing confidence and facilitating the placement of resources.

A fundamental aspect of the strategy involves consolidating all available data. Historically, the data from these projects has not been properly integrated, hindering the full realization of the identified opportunities. This consolidation is considered the first step in a series of initiatives aimed at creating value for shareholders.

Conclusion and Main Takeaways

The video emphasizes a strategic and data-driven approach to unlocking the potential of mineral assets. The integration of advanced survey techniques like 3D underground surveys with detailed surface sampling provides a comprehensive understanding of the mineralization. The current drilling campaign is designed to validate historical data, expand known zones, and lay the groundwork for resource estimation, while also gathering crucial metallurgical and geochemical information for future exploration. By consolidating previously fragmented data and leveraging existing work across the portfolio, the company aims to efficiently increase confidence and ultimately create significant shareholder value.