0:00

you All

0:16

right, everybody. Happy Thursday. Welcome back into

0:18

Mining Stock Daily. We are going to

0:20

get a corporate update here from a

0:22

company that's been a while since they've

0:24

been on the podcast. That's

0:26

Maritime Resources. They do

0:28

trade on the TSX Venture

0:30

with MAE and on

0:32

the OTC with MRT. M

0:35

F the company's coming off

0:37

a big finance around 20

0:39

million dollars and we have

0:41

reported some of the drill

0:43

results that are coming out

0:45

of the project there within

0:47

the last couple of weeks here. So meaningfully,

0:50

it's some really good grade drill intercepts

0:52

as well. So happy to welcome in CEO

0:54

Garrett McDonald. So Garrett, good to see

0:56

you once again. Yep. Now

0:58

you're doing good. I'm doing well. You

1:00

know, it seems like Maritime is back in

1:02

action here. It's been a little bit. It

1:04

was a quiet couple of years here for

1:07

the company, but you are back on the

1:09

Hammer Down Gold project, doing a lot

1:11

of drilling on the back of that raise. And maybe

1:13

let's start there. $20 million into

1:15

the bank to get you back into

1:17

action here. Tell me about the

1:19

financing and really, you know, that's a

1:21

hefty chunk of cash here that

1:23

you brought in. Yeah,

1:26

know it's been great. Great

1:28

to see that level of support for the

1:30

company. Over the last few years, we've been steadily

1:33

working our way in

1:35

Newfoundland and Labrador, advancing

1:37

the high -grade Hammerdown

1:39

Gold project that we have. That

1:42

was a former mine that was

1:44

operated back in early 2000s by

1:46

Richmont. We've taken it

1:48

through from concept,

1:51

through feasibility, through permitting, and

1:53

we bought We actually

1:56

own two process plants including the

1:58

Pine Cove Mill which we acquired

2:00

a couple years ago from Signal Gold

2:02

and we've got that mill running

2:04

again. We're processing some stockpiles

2:06

that are around the mill

2:08

and we've hired a good workforce

2:10

back to work there. So

2:12

things are lining up really nicely

2:14

and the next item for

2:16

us is to develop hammer down

2:18

this summer and start working

2:20

our way into that generating some

2:22

cash flow right away. And

2:25

as you saw with the draw

2:27

results that we've been announcing recently, that

2:29

was from a grade control drilling

2:31

program. And that was really

2:33

meant to test the first year

2:35

of the proposed mine plan. So a

2:37

really good program to do gave

2:40

us that extra confidence that we can

2:42

see these grades and widths, testing

2:44

the position of the underground workings. All

2:47

of that is very good to

2:49

be risking, you know, work to do

2:51

ahead of any development so we've

2:53

been very pleased with the results and

2:55

I think then the you know

2:57

the 20 million financing that we arrange

2:59

with our major shareholder Dundee, Brandon

3:01

and Eric Sprott, several other institutions into

3:03

the deal is great timing and

3:06

then really will allow us to push

3:08

rapidly now into developing hemerdom. Yeah,

3:10

you know tell me the timing of

3:12

all this I mean obviously we're

3:14

in a much better gold market and

3:16

gold mining market than we were

3:18

you know just a couple years ago

3:20

a little a year ago Garrett

3:22

I think that's even fair to say

3:24

but tell me the timing all

3:26

this and really that quiet period the

3:28

last couple years the work still

3:30

was ongoing it just kind of wasn't

3:33

you know that that big headline

3:35

flashy. Flashy headline type news that a

3:37

lot of people expect to see

3:39

but what did you do during that

3:41

period to kind of get you

3:43

to now? We're in a much better

3:45

market. There were things are more

3:47

favorable and you can bring in the

3:49

likes of an Eric Sprott and

3:51

a Dundee to raise 20 million Yeah,

3:53

like I said, we've just been

3:55

making steady progress over the last few

3:57

years You know, we did focus

4:00

as a company on developing this project

4:02

and bringing it into production and

4:04

cash flow So we completed you know

4:06

the non -sexy kind of things like

4:08

environmental work and then engineering work

4:10

you know that doesn't get a lot

4:12

of headlines but it's necessary to

4:14

to advance projects we took advantage of

4:16

you know an opportunity to acquire

4:18

a recently operating process plant that will

4:20

reduce our capital cost greatly and

4:22

really help us get into production quickly

4:24

so we've been moving along steadily

4:27

and I think that the change in

4:29

gold price certainly has put the

4:31

the the spotlight on your term production

4:33

and your term cash flow stories.

4:35

You know, we're definitely one of them.

4:37

No, that's, I think what's changed

4:39

in the last couple of years is

4:41

the tension away from or more

4:43

on cash flow rather than scale. So

4:46

I think maritime is sitting in that,

4:48

you know, that little sweet spot at

4:50

the right time here right now. What

4:53

can you share about the cash flow? You've

4:55

been publishing financials or when do you start

4:57

doing that? Yeah

4:59

so we've like i said we've

5:01

been processing stockpiles at our

5:03

pinecone mill probably since the last

5:05

part of february so it's

5:07

been going really well. We

5:10

have focused on that mill just

5:12

of getting this plant reliable working on

5:14

all the little things to get

5:16

it running again hiring the team doing

5:18

some training and we're really recommissioning

5:20

that plant that was. been on

5:22

care maintenance for about two years so

5:24

we did two cleanup programs there we

5:26

scrubbed that mill down to down to

5:28

the bare metal to get every ounce

5:30

of gold we could out of it

5:33

and you know we've recovered probably about

5:35

a million and a half dollars of

5:37

gold just from the cleanup which is

5:39

great so now we're starting to get

5:41

it going again using the stockpile low

5:43

-grade material to recommission the plant and

5:45

yeah as that goes on we intend

5:47

to then transfer over to hammer down.

5:49

uh kind of mid -year work our way

5:51

into into the open pit that's where

5:53

these great control drilling results are really

5:55

important because we can see some some

5:57

beautiful grades on surface over you know

6:00

pretty wide intervals which really gives us

6:02

that confidence that uh there we're going

6:04

to be in some positive cash flow

6:06

pretty quick Okay. I want to go

6:08

back and talk to you about the

6:10

financing. You know, it'd been a

6:12

while since you guys had a big raise like that,

6:14

but this one, $20 million. It was,

6:16

you know, just based on the

6:18

outstanding shares the company had out, it

6:20

was very dilutive. Over

6:23

266 million units were sold at

6:25

seven and a half cents. It

6:27

obviously came with a warrant. the

6:31

outstanding shares now are over

6:33

800 million shares. But

6:35

there's an opportunity here as

6:37

hammer down continues to get

6:39

progressed. And sometimes getting

6:41

a mind up and running, the solution is

6:43

delusion, totally get it. And so it's

6:45

one of those things we have to deal

6:48

with. But what is the opportunity here,

6:50

any sort of catalyst on the horizon that

6:52

would allow you to perhaps roll that

6:54

share count back? Yeah,

6:56

I mean the last AGM we

6:58

approved the rollback or a consolidation

7:00

up to 10 to 1 so

7:02

we're gonna look closely at doing

7:05

that soon Catalysts generally are

7:07

for things like that could be

7:09

a project financing or Or something

7:11

else but with the 20 million

7:13

that we have raised plus what

7:15

we're expecting to To make on

7:18

the stockpile processing. We're in a

7:20

really good position to fund You

7:22

know the majority of hammerdowns development And

7:25

what we're looking at with Hammerdown is

7:27

probably a capital spend of maybe 15

7:29

to 20 million. And that's a

7:31

lot different than the study back in

7:33

2022 for many, many reasons. And

7:35

the big one is this new mill

7:38

that we acquired a couple of years ago

7:40

is now operating. We could,

7:42

you know, when we're ready, begin

7:44

trucking ore to that mill virtually in

7:46

the next couple of months. So

7:48

that brings that capital cost down

7:50

dramatically. We're going

7:52

to start small with contractors. This

7:54

is going to be, you know, a

7:57

high strip, relatively high cost

7:59

open pit, but with a fantastic open

8:01

pit grade of, you know, probably

8:03

four to five grams per ton as

8:05

we look back at our reserve

8:07

estimate from the last study. So at

8:09

these gold prices, you know,

8:11

it's a fantastic little project. And we always wanted

8:14

to get something started because we do have

8:16

a lot of exploration upside in the area, but

8:18

this is just the first step. And don't

8:20

forget, we do have a second process plant that

8:22

we own called Nugget Pond. So

8:24

long term, I want to

8:26

see both mills running and CS

8:28

growing into that larger production

8:31

profile. But we're going to start

8:33

this way. And it's a

8:35

good way to get going here now.

8:37

And I think that's what investors are

8:39

interested in, the cash flow with a

8:41

project that's largely de -risked, operating mill

8:43

permits in hand, open pit, four

8:46

to five grams. That's

8:48

a rare find. Yeah,

8:50

it's getting exciting now. We're

8:52

looking forward to it. You mentioned

8:54

some of the grades in

8:56

that pit and recent drill results

8:58

are obviously showing that just

9:01

yesterday headline hole was two and

9:03

a half meters of 49 .4

9:05

grams per tonne gold. About

9:07

a week before that you had

9:09

some 30 meters of five and a

9:11

half grams per tonne gold. So

9:13

you're obviously seeing the high grade nature.

9:16

of hammer down here. Can you kind of

9:18

describe to us, you know, what you're doing

9:20

with this drill program, what it's being used

9:23

for and the continued de -risking? Yeah,

9:25

so the great control program,

9:27

we drilled about 273 new diamond

9:29

drill holes into the upper

9:32

part of the hammer down deposit.

9:34

So from surface down to

9:36

about maybe 40, 50 meters vertical

9:38

and on a 10 by

9:40

10 meter pattern. So that's

9:42

done on top of all of the extra

9:44

drilling that we've already done to get it to

9:46

a reserve stage. So it's

9:48

an extra step to de -risk the first year

9:50

so that we're confident in the production profile

9:53

that we're looking at. Now

9:55

great control drilling is one de -risking

9:57

step. There's some other things that we've

9:59

done along the way such as metallurgical

10:02

testing. We did buy a second

10:04

mill and we wanted to make sure how

10:06

the recoveries are going to happen or

10:08

are going to be achieved at that plant.

10:10

It's looking very good as well. So

10:12

along the way it's just been steady

10:15

de -risking progress and like you saw

10:17

in the Great Control one thing that

10:19

popped up to me which was really

10:21

interesting was that some of the widths

10:23

that you just you mentioned in fact

10:25

we had you know one really nice

10:27

one of 12 grams over 28 meters

10:29

early in the program very close to

10:31

surface that would be where several veins

10:33

kind of come together and you're able

10:35

and hopefully in this case be able

10:37

to take out wider zones uh, rather

10:39

than chasing, you know, small, high -grade narrow

10:41

veins, which is still a good opportunity,

10:44

but it's a lot easier to mine

10:46

28 meters than it is to mine,

10:48

you know, two. Right. Um,

10:50

that's okay too. So what I also

10:52

noticed in the program, which provided some

10:54

great information on the underground workings, uh,

10:56

Richmond did a great job of mining

10:58

this deposit, but when they were here,

11:00

they had a cutoff creative 8 .5 grams

11:03

per ton. back when gold

11:05

was 300 to 400 dollars an ounce

11:07

and that's okay they were very good

11:09

miners and what they did with a

11:11

small cut in fill mine were noticing

11:13

great actually in the backfill and around

11:15

the old underground workings so that's another

11:18

opportunity that we're going to try to

11:20

capture you know things like backfill

11:22

are going to come out in the

11:24

open bit no matter what and if

11:26

we can make a bit of money

11:28

on that too then that's just a

11:30

bonus for us but so we're taking

11:32

all of that information now updating the

11:35

mine plan we're out talking to contractors

11:37

about mobilizing we're looking at equipment as

11:39

well for the mine a couple pieces

11:41

of equipment up at the mill to

11:43

optimize that plan for hammer down

11:45

things like that and that's why i

11:47

think we're in that 15 to 20

11:49

million canadian we'll get this project started

11:52

and then we intend to kind of

11:54

grow and optimize you know as we do

11:57

it through cash flow. So

11:59

that's really good news. All

12:01

right. You know, Garrett, obviously

12:03

boots on the ground hard at

12:05

work there at Hammerdown and, you

12:07

know, watching some of, you know,

12:09

obviously watching this. Raising rising gold

12:11

price. We've seen a lot of

12:13

obviously producers Having a much better

12:15

action in their in their shares

12:17

a lot of the developers real

12:19

well -known Developers have had a nice

12:21

move higher. In fact, you're even

12:23

I mean you're up after your

12:25

seven a half cent raise you're

12:27

up to trading about 12 cents

12:29

now. So obviously that share

12:32

price is appreciating, good to see. But,

12:34

you know, your conversations that you're

12:36

having with investors, people kind of watching

12:38

this gold space, you know, how

12:40

would you sum up kind of where

12:42

we are in this cycle specifically

12:44

talking on the gold equities? Yeah,

12:47

like I said, I think that

12:49

investors that we've talked to are more

12:52

interested now in cash flow than

12:54

ever before, regardless of scale. And it

12:56

used to be maybe a few

12:58

years ago that Merit's time to get

13:00

a lot of attention because of

13:02

its, you know, small considered to be

13:04

small project 15 or sorry 45,

13:06

you know 50 ,000 ounces a year

13:09

But at these gold prices with a

13:11

low capital, you know way to

13:13

get started Cash flow cash is gained.

13:15

So I think that's what people

13:17

are looking for. That's why we've had

13:19

a lot of interest recently You

13:21

know, we just did a rights offering

13:24

back in September at 3 .4 cents

13:27

I think it was an $8 million

13:29

right offering back in September of

13:31

2024. So we've had

13:33

a lot of good progress and

13:35

success since then. Hopefully that

13:37

continues. I think that the guys that

13:39

are backing us up, the investors that

13:41

have jumped into the story, like

13:44

what they see with low

13:46

risk, good

13:48

jurisdiction, good grade, all the

13:50

things that are checking the boxes to generate.

13:52

some cash flow with lots of upside that

13:55

we still have yet to touch. There's

13:57

a lot of exploration potential that we haven't

13:59

really had a lot of capital to

14:01

go after because we have focused so much

14:03

on developing, like you say,

14:05

just, you know, getting this plan ready. And

14:07

yeah, it's caused some solution. But here

14:09

we are as one of the only, you

14:11

know, near term cash flow stories out

14:13

there. So anyway, it's been

14:15

great. I think that, you know,

14:17

the market definitely is keen

14:19

to see this. Start up it

14:21

opens the door for all

14:23

kinds of different options for us

14:25

after You know strategically or

14:27

corporately whatever could happen to that

14:29

share order value It's certainly

14:31

a lot easier to do that

14:34

once you're once you're producing

14:36

All right Garrett get to connect

14:38

with you once again. It's

14:40

been it's been a while good

14:42

to see the company moving

14:44

forward and hammered down in

14:46

progress to get to where it rightfully deserves

14:48

to be. Maritime Resources does

14:50

trade on the TSX Venture with

14:52

MAE. Garrett, thanks so much. Talk to

14:54

you soon. Yeah, thanks very much.

14:58

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