[Music] welcome ladies and gentlemen to commodity TV we are in Zurich here Denver gold forum is over but we are at the oiso group dinner and now we want to talk to osis development for update with Alex then the CFO of the company welcome Alex great to have you here thank you for having me yeah thanks for taking the time and I'm normally used to talk to Sean Rosen but unfortunately he's not here but pleasure to have you here that is fantastic I'm a shareholder in the company and for me the most important question is I think as a lot of other shareholders because I saw it in the comments we received on YouTube and uh uh via email the resource estimate for Trixie and I think there was yeah let's call it a little bit of a market disappointment I Ed it to buy cheap that was good but uh please some comments on that sure so the acquisition of tinted Consolidated Metals was done in May of 2022 uh at the time we had uh paid just under2 200 million Canadian dollars for that uh that asset the uh it is split up into um main categories there's a uh gold potential as well as a copper berey potential so on the gold side on the the mineral resource estimate that you're referring to we've only scratched the surface of expiration so the the current MRE that we uh we press released on in March uh is showing a 200,000 just over 200,000 ounces of gold grading at approximately 14 grams per ton that is only a small portion of that property the properties that we own is over 177,000 hectares so right now the the the current position and is that we need to do a lot more work at Trixie the gold deposit in order to build up the resource so a lot more drilling needs to come um originally when we uh acquired the company the intent was to have some production possibly generate enough cash flow to support expiration uh unfortunately the the uh that that production profile being that was using that reach is is not economical so we we took a step back and focusing now on the expiration potential of that side the second component at tintic as well is the the poery which is quite exciting to us the we're currently drilling uh two holes at um a site that we call Big Hill it's a roughly 2 and a half kilometers from the Trixie uh uh deposit uh we've completed one hole and uh uh about halfway on the second hole we expect to have results in early June and um as you're probably aware our neighbor is Ivano electric they're also quite excited about their uh their copper potential there so we're we're just simply at this point with tin tick is scratching the surface uh at the time there was these high expectations that we would be Revenue generating and Etc and that unfortunately that hasn't happened however we haven't lost our our enthusiasm about the uh the potential at that property as I mentioned it's a very large property with a lot of potential to go we need to do more work okay so we can say maybe it's it's it's not a because it felt in the first instance it felt like a fail but to me it looks like more okay it's a bit postponed because you have to re calibrate the direction that's exactly correct is you know plan a was you know to have a production essentially generate cash flows enough to support future exploration that hasn't worked out on the production side it has not changed the potential of the project there is a lot of gold potential as well as the copper so we still believe this is a great property the second point I'd add is capital allocation right now is are our internally our most difficult thing we have projects that require Capital so allocating Capital to the various projects we have is very difficult this leads me to Carib gold project where work uh we uh received our environmental assessment certificate in October that's perfect of 2023 uh that was a major milestone for the company our next big milestone is the mining permit which we're expecting in this summer in 2024 so we we're all resources and efforts or the majority of resources and efforts are put towards the Caribou gold project in British Columbia uh and and again because we have uh limited funds we have a a healthy treasury we've also recently a credit facility of $50 million that allows us to develop Caribou gold even further but having said that being prudent we we need to focus on Caribou project and then once we've established uh you know a good Runway with Caribou gold project we you know Trixie and and the poery tinck will is not forgotten we will be coming back yeah definitely okay let's let's stay with the Caribou shortly um where do you see let's say time wise or let's say the next big steps stand for Carrio because I also had the feeling this is a fantastic project to be brought in production and you can earn a lot of money with that that's why I'm a shareholder also yeah so we we uh we issued our our feasibility in January of 2023 the uh the economics were quite good uh it's a two-phase approach for the uh the uh the project we uh start at a 1500 ton per day uh rate and for three years and then ramp up to a 4,900 tons per day the permit uh under British Columbia allows up to 5,000 tons per day so that's how the the structure is our resource is our sorry our reserves and resource is approximately 5.2 million ounces so the the fusibility is working with 2 million ounces which is which are the reserves uh and the econom economics on that are you know of 21% the npv is north of $500 million and life of mine is 12 years I would add that given that we've only scratched again the surface a large land package at Caribou there's a lot more potential for adding ounces that will require further exploration as well but we believe that you know this is just scratching the or the first step of the Caribou gold project we believe that there are many more years to add to the life of mine and all your economic indices will also greatly benefit from that as well absolutely um maybe a little bit of a let's say a guess when could this be in production I know you cannot be precise but just to give us a feeling sure so our timeline right now is Summer of 2024 is the permit we're also um we're just commencing a bulk sample at uh caribu gold project essentially it's a 1.2 k um ramp or decline which in in order to uh test the or sorting capability so we have a technology that we're using with the project that essentially splits I'll call it in simple terms good ore and bad ore and what that does is it mitigates your your carbon footprint it reduces your operating costs and and tailings Etc that technology is actually quite well known I met a few uh investors today that understand this understand this technology quite well however North America not as well known some of the groups that we've met and potential lenders Etc would like us to test that technology and prove proof of concept so right now we're about to commence that that will intersect with the granting of the mining permit once we'll be let's assume end of June 2024 the permit is granted that the the bulk sample will still be continuing we're estimating that to be completed somewhere around the end of octo October between that June and October time frame lenders will be excited so so we'll we we will as well there will be a lot of uh discussions about the funding once the the proof of concept is shown in uh let's call it early November the uh the ramp up I construction would commence somewhere in early 2025 so if you know 18 months production somewhere in 2026 we would uh estimate our first production at car gold project that's a good two two and a half years correct I mean that's a foreseeable thing absolutely and and you know plus or minus there's always some movement but right now the the traction on the mining permit is excellent uh the government is very supportive communities our first nation Partners everyone is very supportive on getting the project moving ahead so you know when we received the the environmental assessment certificate in uh in October of 2023 uh it it was on time and when we expected it and the government uh of BC British Columbia was as I again as I mentioned very supportive in in making sure the project does come on stream fantastic as you are the CFO do you think the treasury you have is enough until you have the project Finance is that good so we we we uh we filed or we uh we presented uh just under 44 million CAD uh uh at the end of the year December 31st is our year end uh we closed on March 1st a credit facility of 50 million us that allows for the development of at the Carib gold project financing is is is key so the the large financing package will be key if I step back the credit facility of 50 million us is a bridge loan so it's a bridge to get us to the major financing so yes if we can get to the uh the mining permit and the and the next step of the financing then yes we are in good shape that's good to hear great so I would say you are on that sense really on track definitely um I think with uh the Trixie tintic thing one step back but sometimes one step back brings you two or three steps further so I think I said to uh really sometimes you cannot adjust the wind but you can adjust the sails yeah right I think that's exactly what happened there maybe some words on San Antonio because you have stock by processing here and you are also advancing the permitting for production what's is thatat just there so yes so San Antonio we we had an existing stockpile and It produced uh roughly 13,600 ounces that's been completed in 2023 um the San Antonio project has a very interesting or very you know opportunistic um deposit you know the sulfide side we haven't drilled that project a lot it's only been 27,000 meters so there's a lot more work to be done unfortunately uh at the end of uh 2022 the government of Mexico issued a moratorium on granting of open pit permits so that put a uh a stop on major investing into Mexico given that we weren't sure where that's going currently there's a project to put in law the this this um no open pit operation going forward for new mines obviously very concerning for not just us but all mining companies in Mexico uh so we are in a wait and see uh situation we are exploring our options with Mexico what we do next but on the on the the ranking it is definitely our our third priority exactly yeah yeah it's called it's the wild card yes yes okay super well perfect Alex thank you very much for the update uh I think as you said a lot of work has to be done but uh you are financially in good shape and I think when Caribou really starts to rock that helps the whole company and yeah with tintic and Trixie we will see and maybe who knows with the copper puffy what comes out of that super thank you very much thank you very much for that yeah ladies and gentlemen it was Alex Dan the CFO of oysco development yeah you heard it some hurdles you have sometimes in mining and some you can influence sometimes you cannot uh you have to wait and see like in Mexico uh with the open pit B I would call it but I think with the next government it looks definitely different um but I must say I like the Caribou project a lot this was one of the reasons why I'm a shareholder and I think they are now going here Full Throttle really forward and they have the money to execute that is important and also with tintic and Trixie I think they will come over that that will work as Alex said we scratch the surface only so let's see what more surface scratches will bring check out the company thanks for watching us and bye-bye from Z
