Discovery

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, no, if I could ever. I suppose it doesn't Ladies and gentlemen, thank you. please join me in welcoming Mr. Mark Otting, senior vice president with Discovery. Mark. Just waiting to see my. Slides are coming up. There we go. OK, there we go. great to be here. I haven't been here in a, in a couple of years, and, We fully realize how important Europe is and Switzerland and Zurich in particular. I started out yesterday and actually somebody very astute investor as all of you are, said to me, you know, I look at your name and I see Discovery Silver and. So are you a gold company with a silver project or are you a silver company with a gold production in your portfolio? and I said it's a good question. We get it a lot. we did a renaming exercise last year and what you can tell from the slide is. We decided we're keeping Discovery because after all, every mine started with a Discovery. We will look at the back part of the name. But when you think if you ask the question what are we what I say is what we are is a North American precious metal company. With one of the world's most compelling growth stories in the gold space through our porcupine assets in Northern Ontario. And one of the world's most attractive development stories in the silver space with our Carero project in Chihuahua State in Mexico. And at the end of the day, regardless of what you produce, what it's really all about is generating returns and creating value and boy we think that those assets create a very solid foundation for doing that and if you've seen our share price, we've we've been doing very well and expect to continue to. I'll get into the details, but just before I do, I'll, I'll go through the cautionary language slides. They're on our website. You, you can look at them at your leisure. Go to slide 4. I'll start really at the end. Because we get asked a lot, OK, you've got all these opportunities. What does it roll up to? Well, as we sit here today, we're working on things, projects that will take our production in Porcupine in, in around Timmons, Ontario from 234,000 ounces last year. To 5 to 3/4 of a million ounces a year within the next 3 to 5 years. at the same time, we expect to develop our Cordero project, so right around that same 3 to 5 year period we expect to start producing 14 million ounces of silver. All our production, regardless of the precious metal, will be in the lowest half of the cost curve, and our goal is to continually run down those costs. And everything you're seeing here, I want to tell you we're approaching from a very strong position of financial strength. We ended 2025 with over $400 million in cash, and these are all US dollars I'm using, no debt, $250 revolving credit facility with a $100 million revolver, so we're very well capitalized to achieve what we want to do. We have 2 technical reports outstanding right now. One is, Porcupine. It was a PA level report we did with the acquisition announcement, and by the way, we acquired these assets from Newmont, as part of their divestiture program. we didn't do a lot of work. This, this report really drew heavily on their mind plan. We did some, but really none of the major investments and none of the ups, very little of the upside that we have were included in this report. But even with what we have. At $4000 gold, you get an MPV of over $4.5 billion. Cordero has a feasibility study that was done in 2024. I mentioned the 14 million ounces a year of silver production. You're also getting over 200 million pounds of zinc and 150 million pounds a year of lead. very low cost and using $60 silver, we're also have an MPV based on that study of over $4.5 billion. I mentioned that because those numbers are important because yes our stock has performed very well in fact we're the top performing stock on the Toronto Stock Exchange last year. but if you look at those reports and those studies on these projects, you can use whatever price you want, but using those prices, you know, we still have significant long way to go in terms of, of getting the value we have reflected in our share price, and that is without all the improvements that we are currently making at the existing operations at our key growth projects around Timmons with exploration, and I'll tell you I'm gonna review it very quickly, but I will. You know, if we had nothing else other than the expiration rates in this camp, we're probably one of the world's most valuable exploration companies, we think. And then we just announced an acquisition of of Glencore's Kid assets around Timmons, and this is a very important development I'll talk about. This is the production profile from the technical report on porcupine that was released last year, as I said, drew heavily on Newmont's plan. A lot of our investments and enhancements aren't included, but what you see is solid growth and improving unit costs. Couple very important things here we're already beating these numbers. We beat them last year. we're on track to beat them, this year with production targeted to be close to 300,000 ounces. And you'll see just based on the report, Isaac is is scheduled to come down significantly, but I'll tell you, if Tony was here right now, Tony Makuc, our CEO, he would say if by 2031 if we have Isaac of 1,275, somebody's in a lot of trouble. we will continue to drive those costs down. The arrow on the right is really where we expect our two biggest projects, Dome and TVZ and Timmons, to come on, and that they are critical to that reaching 3 quarter of a million ounces. I'm going to get in very quickly to what exactly it is we bought from Newmont. And we paid, by the way, $200 million in cash and $75 million in equity. They have since sold that equity. There are some deferred payments starting in just under 2 years to go with it. The three operations included in last year's technical report are Hoyle Pond Borden and Pammore. Hoyle Pond and Borden are underground mines. Hoyle Pond is one of Canada's highest grade gold mines. It started in 1987 with about 60,000 ounces. To date they've produced 4 million ounces of gold and counting, and I'll show you, based on drilling we're doing, we expect to be producing at Hoyle Pond. That track record of replacing reserves and ounces in the ground will continue. Borden at one point was Newmont's largest land position in its global portfolio. It's 1000 square kilometers. Almost all the drilling's just been on the one mining trend that is currently being produced. We've already extended that mining trend. This is the old probe, project that they had that they acquired. But we see a very good growth opportunity. Tony likes to say that this is the mine that has the potential to become a camp, and we are getting drills, doing district drilling here. And then Pammore is a historic mine, but we're ramping up a new open pit. In the technical report it was 150,000 ounces a year for 22 years. That was largely driven by anticipated milling capacity. Miling capacity is a key. subject that we talk about because it's one thing was clear to reach 3/4 of a million ounces, we needed increased milling capacity and that's really where kid comes in and DOM, which I'll get to in a moment. We called Dome kind of the game changer, and the reason for that is we get very little value for it from the analyst community. It's got 11 million ounce inferred resource on a site where there's been 17 million ounces of production since 1910. we're doing studies there now to upgrade that resource and put the plan in place to resume mining at Dome again in the next 3 to 5 years. TVZ is a large zone adjacent to Hoyle Pond right beside it. and I'll show it to you in a moment. And then Owl Creek is a very good exploration target 3 kilometers along trend from Hoyle Pond, where we already are getting very good exploration success. And then Hollander McIntyre won't spend a lot of time on, but it has potential to be something very special. These two mines are adjacent to each other, as you can see right here. They produced 30 million ounces of gold between them. There hasn't been mining there other than the project in the Hollinger pit, but the larger projects in the underground in decades, we think there could be tens of millions of ounces there. This isn't in our three quarter of a million ounces, but this could be a super pit opportunity sometime in the future. And then Kidd, we announced on March 2nd the acquisition of Glencore's Kidd operations in Timmons. I'll show you where they're located, but I mentioned the issue around milling capacity. With these operations comes the KidMed site and tailings facility, which is a processing facility right beside Hoyle Pond. Also, it's a large tailing facility, could have up to 50 million tons of additional capacity. We also get the Kidd Creek mine. copper, zinc, and silver, which actually last year was Glencore's most profitable mine. And there's lots of synergies and other opportunities for us. We're getting very important infrastructure, land, power, 90 megawatts of power and water that we need for porcupine to reach its full potential. And here's excuse me, here's dome. I told you that it, it's, we call it a game changer because we get very little value for it. You know what you see here is the existing pit. The mill is in yellow, including a three stage crushing that goes around the, the existing pit. We're working on a concept that dome. The 11 million ounce pit shell is the purple. We're working on a concept which is the red pit outline that would get us 5 to 7 million ounces of that in our view. And would not require us to move the mill, and that's very important. So we're doing a study on this that'll be done late this year in terms of bringing Dome back into production again. It's a a large resource on an existing mine where there's already a pit and the mill's right beside where we're gonna be mining, so clearly it's got a lot going for it. And getting to the milling question because we get asked about this a lot, there is a study on our milling strategy going on and, and the dome mill specifically. You know, one scenario we're looking at is taking dome to 15,000 tons a day. We had talked about going to 30. And then dedicating Dome Mills specifically to process ore from Dome Mine. At KidMed site, it is a large milling facility that gives us a lot of optionality. It's got 4 independent circuits. What we're looking at doing is putting a conventional gold circuit in circuit A, which is idled right now. Which would allow us to process everything else we're doing right now except Dome. B and C are are used for processing Kid Creek, and Kid Creek, Glencore was going to close at the end of this year. We're not closing it at the end of this year. We're gonna continue to do work and drilling, and we'll make a determination, but right now those circuits are dedicated to that. And then we're gonna look at putting a gold flotation circuit where the nickel flotation circuit is now in D because TVZ has some refractory elements to it. But that's another thing that we get by virtue of this acquisition we get access to existing flotation circuits to do refractory or. And just in terms of. Catalysts and what all this means. I'm gonna just run you through some 3Ds very quickly. But we've already had two exploration releases. They were very positive. Virtually everywhere we're drilling, and we're gonna continue to have updates during the year. We're doing the study on bringing Dome back into production on Dome Mill and the KidMed site to put our milling strategy together, updating the existing technical report, and launching an initial 43101 resource for TVZ. All of these studies likely come together or very close to together at the end of this year. And then Cordero, obviously if you know Cordero, you know, permitting is the key question, and I'll talk about that shortly. But once we get the MEA approval and we think we're gonna get it soon, we'll be updating the capital and cost estimates from the feasibility study, and that'll take about 3 to 6 months after we get the permit, and that will be released, obviously, we believe sometime this year because we think we'll get the permit soon. And then the big deliverable for us. To release our first multi-year guidance. in February next year when we release our full year-end results just, prior to the BMO conference. And that's where we'll be able to lay out both the ramp up in production, driving down costs and the capital that's going to be involved in, in getting us to 3/4 of a million ounces. I mentioned the exploration and just how attractive the exploration upside is this year we're doing about 280,000 m of drilling. We've already had two press releases as I've indicated. Our budget is somewhere between $55.75 million dollars. I won't run through these specifics, but what I'd like to give you is just kind of a sense of what the upside is and, and where we're drilling. This may take just a second. This just gives you a sense of where everything is located. As I mentioned, Kid Creek is out here, right beside Hoyle Pond. Palmore is there, domes here. Owl Creek that target. Kid Creek Mine is up here, by about I believe 10 kilometers. everything's very closely located, within a very short distance, and if we can take things from Hoyle Pond and Pammore to Kid Creek, excuse me, Kid Met site instead of Dome, that saves us a lot of money in transportation costs. I'm going to show you Hoyle Pond first. Again, 4 million ounces have been produced here since 1997. We are getting very good success continuing to extend the S zone, the deep zone where the bulk of the mining is right now. Our plan this year is also to drill out a number of zones mid-mine that were just more or less left behind. And we're, we're undertaking that now. And we're also doing some mining and going to be doing drilling in the upper part of the mine. This is TVZ. We have 3 drill rigs turning there now. As I mentioned, it is right beside Hoyle Pond. You talk about the benefits of the kit acquisition. We will look at all options here. I mean, Hoyle Pond and Borden, I didn't mention, were really capital deprived for a long time, and, and what that did was make them operate well below capacity, and we're committed to getting them back up to capacity. Also, they didn't invest in ventilation and proper truck fleets and really the essential infrastructure as you go to depth. So we will look at all options. We are putting internal vent raises in now. But the one thing about kid, if we decide to put, say a vent raise to surface or do a shaft to produce everything from it, which would take care of all the ventilation issues, we didn't own the surface rates before Glencore did. So but through this acquisition we also get the ability to look at optionality here as well. And this is quickly just Owl Creek. It's 3 kilometers away and we're getting very good drill results from surface to about the 650 level at Owl Creek. And really what I mean by showing you all this about Hoyle Pond is when we sit here and tell you we think that track record of replacing ounces is just gonna continue and we're gonna be mining at Hoyle for a very long time. I'm gonna go to Pammorere now. And This is, it's a three-phase pit design, as I mentioned, 150,000 ounces over 22 years in the technical report. These are just some of the results that we've gotten. But what I really want to focus on here is. When we talk about that mind plan in the technical report, this is the shell that's gonna do it. There's been lots of drilling here with very good results all around this area, and a lot of this isn't drilled. And if you, if you veer, go out, you'll see that there's the Palmore West, target, and there's drill results extending far to the east and west. When we say that Palmore can get a lot bigger, believe me, it, it can, and we're gonna look into that. And then I mentioned Dome. The only thing I wanna talk, I showed you this visual already, but just to give you a sense of the optionality of DM, yeah, we, we have the 11 million ounces, but again, this is drilling since 1990. And we not only have the opportunity to continue to grow this as an open pit, we will revisit underground mining at Dome again. And then just finally, I, I'll show you a quick visual of Borden. Again, on a 1000 square kilometer land position, almost all the drilling's been along this one trend. We've extended this trend. In fact, we've proven the, mineralization extends at least 1 kilometer further from the end of the resource, and we're back filling that in. We're also going to be drilling at at a district level. And then I'll just quickly say about Cordero, I mentioned it sooner. Basically what's happened at Cordero is everything is done in terms of our permit. You may have seen in Mexico Silver Tiger got their permit. There's been a few permits. We know that the project was reviewed with the president in late January as one of several key projects for the country. We understand it was basically green lighted at the executive level. Semerna has told us there is no additional work to be done, that we have came through well in all the studies. No more information is needed. It is our understanding, basically we're looking at a government administration exercise. So when we say that we are confident we're gonna be permitted very soon. That is the basis of that optimism, and I'll say once we get the permit. We will be paying a fee, $90 about $80 million dollar fee for the change of land use we have to do. We'll also be finalizing our financing, doing advanced engineering, and we could be ready to go shovels in the ground if we get this in the next few weeks or next couple months by early next year. And with that, maybe I'll stop right there. Thank you. I'm sadly we're out of time, but please thank me, join with me to thanking Mark for that presentation. Thank you. Thank you.