K2 Gold: Making Mojave Too Big to Ignore

0:00Welcome back into mining sock daily everybody. Let's head over to California here with K2 gold and the Mahave project. K2 gold does trade on the venture exchange with KTO and on the OTCQ Axle KTGDF just quick note. I am a shareholder of the company there also a partner of the podcast. The company did publish new drill results yesterday for new holes coming out of the dragonfly zone and confirming the presence of multiple stack structures hosting really nice grade, high grade oxide gold happy to welcome in Anthony Margaret once again. See you the company Anthony. You knew drill results are going to keep coming and coming and coming. This is great another batch of results still early days here at dragonfly.

1:03Yeah, no thanks a lot Trevor and happy to be back on the podcast. I guess very happy to see the results we released yesterday. I think they correspond very well with the results from a couple weeks back our first news release on Drillian Mahave so you know good to see the grade continuing. One thing that was really interesting I think from our perspective is in the first release on the first three drill holes we noted that we saw surface mineralization unexpectedly in a couple of those holes. And in the drilling that we in the rules in the holes we released yesterday whole 24 in particular. We cut a structure higher up in that hole then we had expected to and you know it runs. Yeah, that was the three meters at 17.5 grams. You know, yes, you know, it's going to take a couple more holes and purest points into that structure as we move along through the program. But there's a possibility that that structure could be the down to extension of that surface mineralization we saw in the previous walls that were released. So exciting to see that and and just get a confirmation. You know, we continue to confirm that these structures are.

2:17Long linear predictable structures and you know just really happy to be drilling this thing off and advancing the property as we as we move through the program. Last time you and I chat there was just a couple of weeks ago around the last batch of assays here. You emphasize that dragonfly isn't just one structure. It's a series of parallel stack structures. Yeah, you kind of went into that there. This release reinforces that interpretation. Obviously, are you now getting to the point where you can maybe correlate individual structures from hole to hole and start building maybe a coherent 3D model of the system. Yeah, for sure. And definitely by the time we're finished this 14,000 meters of drilling on the east side will be at that point. You know, I think. From where we're sitting it's we've got a strong geochemical correlation between the XRFR SNIC results that we see and the gold values that we're seeing in assays. So the way we have things set up, I guess you'd say, logistically on site is the material that's drilled today we've got XRF results on tomorrow morning.

3:22And it's giving us the ability to call an audible if you will occasionally to change the dip or the osmos of these holes in order to increase their confidence in our targeting. So it's the first time that you know in my career that we've been able to have that information at our fingertips that rapidly. So I think that's really helping things from a targeting perspective. And then you know, I think we're eight holes into the new montrend at the south now. So the biggest part of what we're trying to accomplish in this phase of drilling at Mojave is to more pierce points into the bodies, draw an allege of the system and get to the point where yeah, we'll I think at the end of this program the 3D model is going to look pretty compelling. And maybe by the time we get our next release out here with some more dragonfly results, we'll see where we're out there and start to draw interpreted structures onto these to these sections that we're showing and get to the point where we've got a long section where you know it's quite obvious with what we're dealing with on the continuity of these structures.

4:27One observation is that these structures from the latest stories seems like the structures are widening the deeper they go. Yeah, that's, you know, definitely some welcome news on our from our side of things. And it's just a it's really a matter of more data increasing our knowledge, but yeah, to see these structures appearing to be widening at depth is is very positive news. Yeah, so I mean, potentially obviously needs more follow up and more drilling, but seems substantial that they widen the further way you remove from service. I mean, that is a meaningful thing to be paying attention to with more in the future holes right. Yeah, absolutely. Like if you look out. The width of the structures we're dealing with the grade that they're carrying and the depth extent of them like the math is pretty compelling when you start to do that. So, you know, I don't think we're going to move towards a resource evaluation at this point.

5:28From my perspective, firstly, like it's it's really more important for us to really prove the strength and robustness of this system we're dealing with. So, you know, we are focused on the side goal trend right now. We will be adding a second drill to the program as soon as one's available and be able to get out there and test some of the other target areas that were very interested in getting some holes into and getting that news out there as well. Because this is, you know, the side goal trend that we're drilling right now is just one part of the story of Mojave, although it is a very compelling part of the story. And probably the biggest trend on the property is we know right now. You know, the great like I said, the grade is that we're seeing in an oxide environment is very, very interesting. We're running sign-ites all the ability on all of the assay results that come back greater than point one or point one, Grand Prix, ton gold right now. So, you know, looking forward to getting that news out in the near future proving that this is oxide material and and looking at what we're going to see for recoveries from that standpoint. But there was some previous work done by K2 on the 2020 2021 drilling that was very compelling like 94, 96% recoveries on those. So,

6:41yeah, I don't I would not expect that to change. But I, you know, getting that news out there is going to be a big addition to the stories. Well, yeah. So, this is only the second batch of assays out of Dragonfly still early days, but yeah, you know, two weeks ago, I did ask you about the spectacular high grade nature of this oxide gold system. But obviously you're accumulating more holes here at a Dragonfly. So, what's the, is it at all changing the importance of how you approach Dragonfly or what is the most important reproducing those high grades moving forward or is it maybe demonstrating enough with and continuity that Dragonfly could start looking like its own resource. For sure. It could be, you know, as we move through the program, I think you nailed it with everything you said there, basically of what we're trying to accomplish. So, yes, definitely proving out that this grade is continuous. It's not one load that we managed to tag into that's running very high grade showing the continuity of grade throughout the system, as well as

7:42demonstrating the scale building out that strike length, building out the corridor of mineralization that we're tracking here and, and, you know, as we move through it, it's nice to see that I think I mentioned like these structures are quite predictable. Not saying that makes our job easier because it never there's always bits and bobs that get in the way, but it's very, very continuous from from what we're seeing right now and it's a matter of getting the pierce points into it, getting the Zasez out and proven not to the market. So, you know, what we're seeing right now, the continuity, the way things are falling into place and holding together, it's super exciting time for us. Yeah. I'm going to put you on the spot here because just this morning, I had a one hour conversation with George Oglevy. And we talked about his foundational playbook of going into companies and getting them on track all to the point to we're obviously selling to the highest bidder having a great track record of success.

8:47And so I'm going to put you on the spot because one of the things he said in that interview, which will air tomorrow morning for shadow. He said one of the mistakes a lot of management teams and exploration make is overly promotional using the terminology tier one or world class for the deposit when it doesn't necessarily fit the bill of what that actually stands for. You've used that our friend Chris Taylor has used that for mahame obviously that shouldn't be taken for granted. No, but it's it's a very high bar right. So as the CEO of K2, what evidence do you still need before you become more confident using that terminology at mahame? Well, I think it's going to be really important to like I said, the East side goal trend at mahame is one part of three high high potential targets that we see at mahame. So that's my personal belief. I think in order to demonstrate in order to get mojave to a world class deposit. It's going to be bringing all three of those factors into play. And I think that's what we will be moving to accomplish over the next year.

10:04And by year, I don't mean the calendar year of 2026. I'd say from this point forward to this point of next year. And I think we're in a position we're getting to be in a position to do that. But from all indications that we see at surface and through the work, the technical work that we've done. You know, we would there's a lot of success with behind us in the discovery group. If if mahame was an average project, we would not have spent four years getting through the EIS process to get to open up access to it. I think, you know, a lot of people know this project. You don't get to pick where mineralization lands on the planet. And, you know, this project in California, it was a little bit more difficult than other places to open the door to it. But we're at that point now. And getting through this 14,000 meter program on the east side, getting up to the morning start target, getting the first modern exploration holes into that and getting that story to become part of the project or part of getting that target to become part of the larger story of Mojave, as well as, you know, the stegga target down to the western central part of the target day or of the property, bringing that into play as well. I think once we get to the point where we've got

11:29modern data on those target areas, including the east side gold trend. That's what it's going to take to take first confidently say that, you know, this is something to your one world class, whatever you want to call it. A very high ranking project. And that's our goal. I think, you know, from our perspective, growing. I don't want to throw the resource word out yet, but growing the demonstrated mineralization across the property to a point where it becomes too big to ignore is that's my goal right now. Sure. Yeah. Let's, instead of looking back, let's look forward here. And, you know, I was watching the market reaction yesterday when these new results were published a thing went up to about 95 cents, but that 90 cent market continues to be some stiff resistance for your stock here. What's that next question K2 needs to answer that may or what have you heard the last, you know, 24 hours that would actually substantially change that value proposition for majave. What gets you to that next level and stock.

12:38I think people want to see continued good results, right? Like there's one we put out the first release, we were super happy with the numbers, but you know, I was hoping to see a stronger reaction in the market. But at the same time, I completely understand it, right. This is the first three holes reported on a property that hasn't been drilled in years. So, you know, that was confirmation for us that we stepped out mineralization continues. The holes were we released yesterday builds on that story. And I think as we continue to move through this drill program that we're we're underway on right now. You know, with continued good results. It's how do you ignore something when there's kilometers of strike length putting out high grade results and proving that it's it's real. And I think it's just getting to that point where here's a data points. This is real. The grades real, the strike lengths real. I think that's what we need to do. So we'll get there. And it's just a matter of getting through the program, getting the news out to the world and waiting for their waiting for their response on that side.

13:47All right. Anthony, thanks so much for your time. Congratulations on more drill results. Probably a few more in your pocket here for conferences coming up. We will see you up in the mountains and be very creek. Thanks so much. And you know, safe travels to you. Thanks a lot, Trevor. And thanks everyone for listening. Please give us a follow on our socials and check out our website. Put your name on our subscriber list. You'll be the first to see the news as it comes out. And we've got a lot coming. So look forward to getting it out there. Thanks, Anthony. Talk to you soon. Cheers. The information presented should not be considered investment advice. Mining stock daily and affiliates are not responsible for any loss arising from any investment decision. And connection with the material presented herein. Please do your own research or speak with a license financial representative before making any investment decisions.