Goldsky Resources

So from an investment highlight perspective, who are we? Well, we’re a multimillion-ounce gold resource company in Sweden and Finland. We have $58 million in the bank that we can deploy for our growth development. We raised $80 million last year, September. We have access to carbon neutral power and great infrastructure in the Nordics and a proven management team. We were part of the LionOre stable, Mantra Resources, that was our nickel copper business, Mantra Resources, our uranium development, we sold for $1 billion, and Asanko Gold, the mine that was built in the Ashanti, Ghana, 230,000-ounce gold mine.

So where does Goldsky come from? Well, essentially, we merged First Nordic Metals, which was the 45% owner with Agnico Eagle of the Barsele project. That’s the largest undeveloped gold project in Sweden, and with Mawson Finland, the Raippaluoto project in Finland. That was announced in September last year. We merged those two companies together, raised the $80 million. I came on as CEO, and in December last year, we elected a new board, and then we approached Agnico Eagle with the concept of buying out their 55% of the Barsele project. That transaction was announced the end of January. Included in that transaction was Agnico Eagle taking a 32.5% equity stake in Goldsky. So a real endorsement for the asset, the team, and the concept of being a Nordic developer.

As it stands right now, our market cap is roughly $840 million, and we are fully funded right through to the end of next year, at least, with the 58 million we have in the bank. Corporately, we’ve been pretty inactive in marketing because we’ve had so much corporate activity with merging companies, raising money, and getting the Agnico deal over the line. We’ve now started our marketing drive. We’ve got now research coverage from Canaccord, from Desjardins, and there’s two other investment banks that will be initiating coverage in the coming weeks.

Our management team and board, Peter Breeze. I’m sure some of you know Peter from all the successes we’ve done with LionOre, Mantra, and Asanko. I’ve worked with Peter for over 25 years. Our project team have been together for over 25 years working on those various projects. The board, we have Mark, an executive from Agnico, 40 years. Geoff Couch, based out of London, with Orion on the capital markets, and myself and Nora as exec directors, and then Darren Morcombe out of Switzerland, who is our special advisor.

So let’s quickly look at the asset. This is a granodiorite-hosted orogenic ore body. So it’s basically been broken up. That’s created those conduits. That’s where the quartz-hosted gold is flowing through into the ore body. So that’s essentially the high-level look of the geology. Nice thick widths. The metallurgy, we announced just last week, we confirmed the met work that was done by Agnico. We were getting 90% recoveries on straight CIL, so gravity gold and CIL. So there’s no refractory gold, no Preg Robin, which is great.

This part of Sweden, it’s been designated as a national interest for mining purposes, and that’s been a big statement. That was in 2021. And the gold line belt, which we own the entire gold line belt, and I’ll show you that just now, has been designated as an area of significance for exploration by the Geological Society. So we’re in a great address in central Sweden.

Just look at the ore body. You have the Avon, that’s an open pit, central open pit, and then Skuttersen, that’s the underground portion. The last time a resource was declared on this asset was 2018. That was just shy of 2.2 million ounces, pretty decent grade. As Goldsky, we are now taking new information. There’s new drilling from right up to ’25. We’re updating that resource, and that will be published in the coming weeks. And that’ll be Goldsky’s maiden resource. This area as well has been given a exploration and exploitation permit. So it’s well up the curve in terms of development.

In terms of its position and infrastructure, we have access to power. You can see the power line. It goes actually right through the project. It’s all hydropower. The two white lines you see in the northwest, that’s the road and rail coming from the town of Storuman. So in terms of infrastructure and risk capital, it’s absolutely zero. We don’t need to build camps. We don’t need roads, airstrips or anything like that. It’s actually the most unremote place that I’ve worked in my life, so I’m very pleased.

Let’s just look at some of the historic work that’s been done. Agnico have been operating here for ten years. They’ve drilled over 174,000 meters. What I like about the work that’s been done, the soil and the bot drilling, which has been great for exploration. If you look at the diagram on the far right, that is a geochemical map of the entire Barsele camp. Why that’s been important is because they’ve been able to target bot drilling and more importantly then targeted exploration drilling. There’s the Barsele deposit you can see.

We’ve initiated a 25,000-meter drill program. The rigs are actually on site right now. That was announced last week Tuesday. So we’ll be drilling Barsele, and I’ll get to that just now. And then those two targets you can see, Rasbaget and Nora, that is exploration targets that Agnico have identified through their great work and we’ll be applying a 10,000-meter drill program to that next year as well. That picture you can see is the ore body. They’ve taken the till off the top, and you can see that is the central zone. So we’ve got exposed mineralization there. So it’s a great tool for the geologist to understand the structurally controlled gold veins.

In terms of our strategic land package, now we own 100% of Barsele. We’ve tied up the entire gold line belt in Sweden. So we have a significant strategic land package in that central part of Västerbotten where we operate. That was the announcement that came out last week. We have drills on site. That picture was taken last weekend. We have one drill at the moment. A second drill’s coming next week, and by the end of October, we’ll have three drills. And that will go right through to the end of April 2027, and then we’ll pull the rigs out as the snow starts to melt. So we active now in terms of continuing our project development.

The drill program, there’s two aspects to it. If you look on the left, the short-hole drilling, that is essentially to continue to define the open pits, so the Avon on the central zone. And then the long-hole drilling, that is really to understand continuation of mineralization at depth. The ore body’s open at strike and at depth. Agnico have confirmed that. That is just a section of the ore body just demonstrating the widths. But more importantly, the depth drilling we’ll be doing. They the deepest holes that Agnico did, so we wanna go deeper than that because the ore body is still open at depth. So we wanna get a good understanding of that. So these are the type of, let’s say, the continued ore-based knowledge that we’ll be creating over the next year.

Part of the acquisition is there you can see in the middle, that’s the core storage facility. On the left is the geology offices. We have core logging facilities, offices, X-ray facilities. We took on the Agnico staff, so technicians, geologists, and support staff, apartments, vehicles, the goodwill of the community. It’s not just an acquisition where we’ve gone ahead and bought a piece of ground. We’ve got a lot of other additional facilities that not only have saved a lot of money, but it’s the time factor as well. To drill 174,000 meters, you don’t do in a year. That’ll take you a couple of years. So in terms of Goldsky, we ride up the curve when it comes to development. We’re right in a proper development phase now for this project. We’re not exploring anymore. We’re in development.

So where we operate, the town of Storuman, there you can see the Barsele project, the red and black and white line. That’s the rail link and the road. So as I was saying, in terms of infrastructure, Storuman, the town in the middle there’s got schools, houses. That’s where everybody lives. It’s a twenty-minute drive to Barsele. There you can see at the top, that’s a picture of one of the hydro plants. So all the power that we’ve got access to is all hydro. In this part of the world, 2.6 cents a kilowatt hour, so some of the cheapest power in the world, and that’s all hydro, and it’s supplemented by wind as well. To get to site, fly to Lickselee. It’s an hour twenty drive to Storuman. Drop your bags off, and you’re on site in twenty minutes. So as I say, normally these type of projects, you’re flying around in helicopters trying to find out where you’re gonna put the camp. Well, this is not what we’re seeing here.

Environmentally, again, Agnico have done a fantastic job with their environmental baseline studies. So all of that we’ve inherited. We’ve appointed Geosyntec and Palladio in Stockholm. They’ve done a gap analysis. I was in Stockholm two weeks ago going through that with a team, and by next month, we’ll have a schedule that will integrate with the feasibility and engineering work. So yeah, again, not only technically and a resource perspective, but from a ESG, we ride up the curve with community engagement. Just this last weekend, we had representatives from Västerbotten county board and Storuman on site with Agnico, with Goldsky, and they, we’re in mining country, so very happy with the progress that we’re making on the mine development, and they’re very happy that Goldsky developers have now come on board.

Let’s move to Finland ’cause we also have just shy of a million ounces of Finland. This was the old Morsen Gold deposit, grade just roughly 2.8 gram per tonne. This has a cobalt credit as well, which is significant. There’s been 120,000 meters already drilled on this project. We drilled 10,500 meters this year. That was all infill drilling, and we’ll continue to do that next year. We wanna get a reserve, and that’s important for permitting. A PEA was cut on this project in 2023 at 1,700 gold. We will update that PEA this year at 3,500 gold, and we will get that PEA published by the end of this year. And you can imagine the economics change significantly based on the new world that we live in today.

So from a cobalt perspective, obviously, that’s got a bit of an EU spin. It’s a strategic critical mineral, and we certainly are pushing that cobalt recovery and program, and that will all help with permitting. The ore body’s essentially four pods, Pallin, Pallokkas, and Rea. So five meters from surface, get in, mine it, get out kinda thing. This deposit here is essentially a 70,000 to 80,000 ounce a year mine for ten years with a cobalt credit, CapEx of $200 million.

And if you look at Barsele, the size that we’re thinking there is roughly 3.5 to 4 million tonne mill. We’ve modeled 600 million CapEx, and the size is between 150,000 and 200,000 ounces a year. So that’s kinda the vision that we see ourselves, and that’s the development path we’re going through over the next five years. Obviously, the resources have to support that, but we’re seeing the size of both those resources that certainly that’s the kind of phase that we’re in, the vision that we can see.

So let’s look at these milestones. At Barsele, we will be publishing our Goldsky maiden resource coming in the next couple of weeks. That’s being worked on and finalized right now. That’s important because then we can announce we can kick off a PEA, and we can actually start to wrap some economics around the Barsele project. And that’ll be done and completed by mid next year. And we’ve spoken about the drilling that was announced last week. We’ve got rigs on site. We are expanding infill drilling, and also then we’ll get another 10,000 meters into that exploration program next year.

And then in Finland, with the drilling we did this year, that resource will be published mid-October. That’s infill drilling, so we’re producing more and more M&I. The PEA, that updated PEA at 3,500 will be published before the end of the year and will then start to drill it again in January and just continue to develop that M&I category. Get a reserve. That’s how you put your application in for your permit.

On a benchmark matrix perspective, I think what’s in the graph at the bottom there, these are all companies that are at a similar development stage. We’re currently sitting about $174 on a EV per ounce basis, and we like to look at what Rupert was acquired for and G Mining with G2 resources as well. So we believe there’s some good upside in terms of shareholder growth with Goldsky.

So in summary, there’s a really experienced team. We are developers. We’re not explorers. This is why it’s a great fit for everybody. We’ve come on board. We’ve got the team. I’ve got the team in Finland, the team in Sweden, and then the project team that’s executed, the LionOres, the Mantras, the Asankos, and built and operated mines around the world. We believe Barsele and Rea Pallat are fantastic assets, two great teams in the countries, and we know that there’s opportunity to continue that growth in the Nordics.

We’re well-funded. We raised that 80 million. The biggest cost we had this year was the 20 million we paid to Agnico as part of the deal. We’ve still got 58 in the bank. If you look at our projected spend, by Q4 next year, we’ll still have between 15 and 20 million in the bank. So we’re well-funded for that. And my shareholders have been very supportive in that 80 million raise that we did, and I know that my shareholders will continue to support Goldsky as we go through.

We operate in Finland and Sweden. As we all know, not only great mining companies operate there, Agnico’s, Anglo’s, Boliden’s, LKAB, but also great mining technology as well, which is significant. Sandvik’s, Outokumpu’s, ABB, these are great mining companies, and we’ll be applying all their latest technology into our design. The new analyst coverage, that’s important, and we’ve had really good response from our analysts, and I’d like to say I think Canaccord, Desjardins, and others have done a fantastic job for us. They’ve really been engaging, and they’ve helped us a lot in getting this new story out to the market. And we were added to the GDXJ just last week, so I think that’s a nice little tick as well. But yeah, there’s a lot more to come. It’s very exciting. We love this part of the world. We’ve got two cracking assets, a great team, and we look forward to seeing what comes out this next year. Thank you very much.

Congratulations, Russell. I think I have to pick myself up off the floor. That was a very impressive presentation. The Barsele resource update in the next month or so—

Yes.

—is the focus there on growth or on converting some of that inferred?

Well, what we want to do is just take all the information. The last resource was published in ’18. We wanna just take any additional information, put that into that, verify it, and then put a stamp on it as Goldsky. The drilling that we’re doing was obviously then for growth and for category uplift. So yeah. We wanna grow, and we want to drill this deposit for the next three years. So another 75,000 meters of drilling. We get 25,000 meters out the way, plus the assay time, that’s a ten-month cycle.

Can you drill 12 months of the year, or when are you restricted then?

We drill through winter ’cause everything’s frozen. We like to get the rigs out in April ’cause the snow melts, gets a bit muddy. Get the rigs out, and then July in the Nordics is holiday season, so start again in September kind of thing. So you’ll have a break between end of April, September, and then you’ll start drilling again.

All right. Listen, please come and list on the ASX. I’d love to cover you. Thank you very much for the presentation.

Thank you. Thank you very much.