Thesis Gold Lays Out Feasibility and Permitting Timeline | Ewan Webster

Key Concepts

• Lawyers Ranch Project: A gold and silver development project in the Tuda Gold District, British Columbia, owned by Thesis Gold (TSXV: TAU).
• Epiothermal Gold Deposit: A type of gold deposit formed from hot, aqueous fluids circulating through fractures in rocks.
• Pre-Feasibility Study (PFS): A comprehensive study evaluating the economic and technical viability of a mining project.
• Net Present Value (NPV): A financial metric used to evaluate the profitability of an investment, considering the time value of money.
• Internal Rate of Return (IRR): A financial metric representing the discount rate at which the NPV of an investment equals zero.
• All-In Sustaining Cost (AISC): The total cost of producing an ounce of gold, including operating costs, capital expenditures, and exploration costs.
• Brownfield Development: Developing a mining project on a site with existing infrastructure or previous mining activity.
• Parfree Potential: The possibility of finding deeper, underlying sources of mineralization feeding surface deposits.
• First Nations Equity Investment: A unique situation where local Indigenous communities have invested directly in the company.

Investment Trends with Thesis Gold - Detailed Summary

Introduction

This discussion, hosted by Paul Harris of KitKo Mining, features Dr. Yuan Webster, President and CEO of Thesis Gold (TAU), focusing on the company’s Lawyers Ranch gold project in British Columbia. The conversation centers on the project’s history, recent pre-feasibility study (PFS) results, development strategy, and future outlook, particularly in the context of a strong gold market.

1. Project History and Thesis Gold’s Involvement

The Lawyers Ranch deposit was previously an active, high-grade underground mine in the late 1980s and early 1990s, ceasing operations due to depressed gold prices. The project remained dormant for two decades before being acquired by the predecessor to Thesis Gold, Benchmark Meadows, in 2018. Recognizing the potential for a larger system beyond the previously mined high-grade veins, Thesis accelerated exploration, concurrently developing the Gold Ranch project to the north. A merger in 2023 consolidated the two projects under Thesis Gold, with a focused plan to demonstrate the asset’s scale and economic viability, culminating in the 2024 PFS.

2. Pre-Feasibility Study (PFS) Results & Economic Highlights

The PFS, released in late November/early December 2024, outlines an open-pit and underground mining operation projected to produce an average of 187,000 ounces of gold equivalent per year for 15 years. Key financial metrics include:

• Initial Capital Investment: $736 million CAD
• All-In Sustaining Cost (AISC): $1,185/ounce
• After-Tax Net Present Value (NPV) @ 5% Discount Rate: $2.37 billion CAD
• Internal Rate of Return (IRR): 55%
• Payback Period: 1.1 years
• Base Case Commodity Prices: $2,900/ounce gold, $35/ounce silver

An “upside case” scenario, using current gold prices of $5,000/ounce and $90/ounce silver, projects an after-tax NPV of $6.6 billion, an IRR of 118%, an NPV to CAPEX ratio of 9, and a payback period of less than six months. Dr. Webster emphasized the project’s simplicity, favorable jurisdiction (British Columbia), and relatively light capital expenditure due to its brownfield nature.

3. Project Economics & Sequencing

The strong project economics are attributed to the relatively high grade of the deposit (approximately 2 g/t gold equivalent on Ranch, 1.33 g/t globally) and the optimized mining sequence. Specifically, the integration of the high-grade underground deposit (3.5 g/t) with the open-pit development on Lawyers Ranch significantly enhances the overall economic profile. The PFS demonstrates a robust project even at conservative commodity price assumptions.

4. The Tuda Gold District vs. The Golden Triangle

Dr. Webster highlighted the Tuda Gold District as an emerging exploration district with similar geological characteristics to the more well-known Golden Triangle, but with significantly less historical exploration investment. Historically, the Tuda district was perceived as hosting smaller, higher-grade deposits lacking the scale for significant development. Thesis Gold’s success in outlining 5.2 million ounces of gold equivalent demonstrates the potential for larger deposits, and recent discoveries by other companies (e.g., Amark and Freeport) further validate the district’s prospectivity.

5. Development Strategy: Build or Sell?

Thesis Gold’s current strategy is to advance the project towards production, with a plan to complete a feasibility study by the second half of 2027 and a construction decision by late 2028. However, Dr. Webster acknowledged that the company would evaluate any potential offers to acquire the project, prioritizing shareholder value. A data room is open to potential suitors.

6. Permitting Timeline & Government Support

The permitting process commenced in mid-December 2024, with a budgeted timeline of approximately three years. The company is optimistic that the permitting timeline could be reduced due to provincial and federal government initiatives to streamline the process and support resource development in British Columbia. Mount Milligan, another project in the region, was recently selected for expedited permitting.

7. Exploration Upside & 2026 Work Programs

Thesis Gold has a $62 million budget for 2026, including approximately 10,000 meters of exploration drilling. Recent drilling results at the Steve Zone, which was not included in the PFS, have demonstrated significant potential for resource expansion. The company is also investigating the “parfree potential” – the deeper sources of mineralization – to further enhance the project’s long-term prospects. The feasibility study will likely incorporate these new findings.

8. Strategic Relationship with Centa Gold

Centa Gold holds a 9.9% equity stake in Thesis Gold and has a strategic interest in the region, with its KS project located 45 kilometers away and Mount Milligan further south. The companies maintain regular technical meetings to share knowledge and explore potential synergies, including the possible utilization of Centa’s existing infrastructure (mill, tailings facility, power line) at KS. While no formal scoping study has been conducted to combine the projects, the potential exists.

9. First Nations Partnership & Equity Investment

Thesis Gold has cultivated a strong relationship with local First Nations communities, awarding approximately $50 million in contracts to nation-owned businesses over the past seven years. Notably, the First Nations partners have made a direct equity investment in Thesis Gold, demonstrating their confidence in the project and its potential benefits. The EA contract was also awarded to a nation-owned company.

10. 2026 Goals & Catalysts

Key goals for 2026 include:

• Advancing the feasibility study to over 50% completion.
• Progressing through the initial stages of the permitting process (EA readiness decision).
• Expanding the resource at Ranch, particularly at the Steve Zone.
• Investigating the parfree potential.

Conclusion

Thesis Gold’s Lawyers Ranch project presents a compelling investment opportunity in a strong gold market. The robust PFS results, favorable location, strategic partnerships, and exploration upside position the company for significant growth. The company’s commitment to responsible development, including strong relationships with First Nations communities, further enhances its long-term prospects. The focus for 2026 is on de-risking the project through feasibility study work, permitting advancement, and continued exploration, with the ultimate goal of bringing the project into production.