K2 Gold: Mojave’s High-Grade Core Continues to Hold Together

Trevor Hall (0:17)

One of the traditional highlights of Beaver Creek is the Discovery Group's pizza party on this Monday night before the event kicks off on the Tuesday. And so, I'm happy to be joined by Anthony Margarit, CEO of K2 Gold and member of the Discovery Group.

Thanks for the pizza. Thanks for the za.

Anthony Margarit (0:36)

Thanks a lot for coming by, Trevor. It was a good night. It was pretty busy.

Trevor Hall (0:39)

Yeah. I mean, it is a standard. That's what you have to do. You just go eat the pizza.

Anthony Margarit (0:43)

Monday night football and pizza.

Trevor Hall (0:44)

Yeah. It's an amazing event. Just one of the few fun things that everybody likes to do during this time of year. But you then turned around here, Anthony, put out new drill results from Dragonfly, then the Mojave Project. Two grams per ton over 53.34 meters.

Anthony Margarit (1:01)

Yeah. Nice to see that high-grade core holding together in the middle there. Fifteen meters and five grams ish. So we're really happy to see that high-grade core holding together. And these are long linear predictable structures is what we're starting to determine more and more. And I think we just cracked 30 holes, we're about a third of the way through 15,000 meters. Yeah, things are going well.

Really happy with the way things are looking. We got quite a few holes in at Newmont now. We'll be bringing the drill back up to Dragonfly. Our strategy all the way along was drill about 5,000 meters off selected pads and just make sure that our understanding of the geometry was holding true, which we have confirmed. So now we'll go back up to the north and work our way back down to Newmont again.

Trevor Hall (1:48)

Are you at all surprised with how consistently Dragonfly continues to deliver both with and great anymore?

Anthony Margarit (1:57)

Not surprised, I guess, but definitely after four years of permitting, there's always some concern that, man, I hope this thing holds together the way we expected to, but it's great to see the way it is.

Trevor Hall (2:10)

Yeah.

Anthony Margarit (2:10)

And we're going to keep building this out more and more, and I think it's just going to continue to get more impressive as we move through it.

Trevor Hall (2:16)

Well, the more, you and I have been speaking quite frequently here the last couple of months, which is a great thing, because that means you're actively drilling at Mojave, but I think I've, I know I've asked you this a couple of times, but I'm going to ask you again, we've talked about whether these individuals, if these are looking like individual structures or beginning to be a coherent mineralized system, now that with your three drill pads, now producing multiple stacked structures, do you finally have enough information to answer that question?

Anthony Margarit (2:45)

Yeah, I think we're pretty confident that, you know, that main core structure any 30 to 50 meters in width, that five gram core, but the width of the entire, you know, corridor of mineralization, I guess we'll call it now, it's about 400 meters. And, you know, seeing these stacked structures, seeing, you know, I call them happy surprises now, I think in almost every hole that we've reported, we're seeing evidence of a new structure that we didn't expect to be there. The second release, we had three meters around about 17 grams high up in the hole, we didn't expect to be there.

The first pad, the first three holes we released, we saw mineralization at surface. There's a potential that that mineralization we saw at surface and the high-grade three meter 17 gram interval, that might be the downward projection of that surface mineralization. So, you know, I, it just keeps delivering. I don't know what else to say.

Trevor Hall (3:39)

What do you learn about the geometry?

Anthony Margarit (3:42)

So, it's deepened up a little bit on us between the historic 2020 hole that was 86.9 meters at four grams.

You know, it was only 40 meters to the north, but it's deepened up about 10 degrees on us. So, we're seeing that definitely down at Newmont. There's way more density of drilling historically as well as K2 zone drilling down at the Newmont target area. The structure flattens out there to about 30 degrees and from, we don't have any assay results back from that yet, but between visual observations and what we're seeing with the XRF, that geometry is holding true. I think it's more just these stacked structures that as we get more pierce points into the system and into this corridor, we just keep finding more. And we've had a lot of really interesting meetings here this week. And one thing that's kind of came to light for me is, if you think about projects in North America that are out there, I don't know, I really can't think of one that has the potential that Mojave has between 6.5 kilometers of oxide gold mineralization. Plus the Morningstar target and the polymetallic nature that we see up there. A very dominant silver trend with 2,700 grams of silver, 4 grams of gold, 2.4% copper. That's a single rock sample.