Scottie drills 22.35 m of 8.28 g/t Au at Scottie

Executive Summary

• Scottie Resources Corp. released initial assay results from its 2025 drilling program at the Scottie Gold Mine Project in British Columbia, highlighting high-grade gold intercepts at the P-zone and O-zone.
• The company recently released a Preliminary Economic Assessment (PEA) outlining a Direct-Ship Ore (DSO) operation with strong economics, including an after-tax NPV of $215.8 million at $2,600/oz gold and an IRR of 60.3%.
• The PEA also evaluates a toll-milling scenario using the nearby Premier mill, which significantly improves project economics with an after-tax NPV of $380.1 million and an IRR of 89.9%.

Key Details

• Drill Hole SR25-378 (P-zone): Intersected 8.28 g/t gold over 22.35 meters, including a higher-grade interval of 20.2 g/t gold over 7.55 meters.
• Drill Hole SR25-383 (O-zone): Intersected 7.76 g/t gold over 3.0 meters.
• Drill Hole SR25-385 (O-zone): Intersected 4.08 g/t gold over 6.00 meters and 8.99 g/t gold over 3.00 meters.
• PEA Base Case (DSO):
  • Gold Price Assumption: $2,600 USD/oz.
  • After-tax NPV (5% discount rate): $215.8 million.
  • Internal Rate of Return (IRR): 60.3%.
  • Initial Capital Cost: $128.6 million.
  • Payback Period: 1.7 years.
  • Production Profile: Average annual production of approximately 65,400 oz gold over seven years.
  • Strategy: Shallow open pit on the Blueberry zone starting, followed by underground production from Blueberry and the past-producing Scottie gold mine. No gold processing plant or tailings facility required.
• PEA Toll-Milling Scenario:
  • Gold Price Assumption: $2,600 USD/oz.
  • After-tax NPV (5% discount rate): $380.1 million.
  • Internal Rate of Return (IRR): 89.9%.
  • Payback Period: 0.9 years.
  • Note: No agreement is currently in place for toll milling.
• PEA Sensitivity:
  • DSO NPV ranges from $215.8 million to $668.3 million at gold prices of $2,600 to $4,200 USD/oz, respectively.
  • Toll-milling NPV ranges from $380.1 million to $831.7 million at gold prices of $2,600 to $4,200 USD/oz, respectively.
• Current Resource Estimate: 703,000 gold ounces at an average grade of 6.1 g/t (Inferred category).
• Exploration Focus: 2025 drilling targets expanding the resource and converting inferred to indicated classification. Additional follow-up drilling on the Wolf zone (discovered in 2024) is ongoing, with results to be released as available.
• Technical Reporting: Dr. Thomas Mumford, PGeo, President of the company, is the Qualified Person under National Instrument 43-101 who reviewed and approved the technical information. The NI 43-101 technical report on the PEA is expected to be filed within 45 days.

Notable Quotes

• "The first holes back from our 2025 Scottie gold mine drill program are very encouraging," stated Brad Rourke, chief executive officer of the company. "The P-zone intercept in hole SR25-378 highlights the strength of the system and the opportunity to add ounces to the existing resource. With our PEA now released, we are focused on continuing to demonstrate the growth potential of the deposit and the value that additional ounces bring to an already compelling economic project."