May 09, 2025

Scottie Resources – Key Takeaways From The Maiden Inferred Resource Estimate, Building Towards A PEA Which Utilizes A DSO Development Strategy

21 minutes

Brad Rourke, President and CEO of Scottie Resources (TSX.V:SCOT – OTCQB:SCTSF), joins me to review the key takeaways from the Maiden Inferred Resource Estimate at the Scottie Gold Mine Project, located in the Golden Triangle of British Columbia. We also discuss the larger Company strategy of building towards a Preliminary Economic Assessment (PEA) utilizing ore sorting to upgrade ore and then take a Direct-Shipping Ore (DSO) development strategy to metals smelters in Asia.

Maiden Mineral Resource Estimate Highlights:

Inferred Mineral Resource Estimate ("MRE") of 703,000 ounces of gold at an average grade of 6.1 g/t gold and assumes a phased open pit and underground mining scenario. Those metrics consist of 528,000 ounces at 8.7 g/t of underground resources and 174,000 ounces at 3.2 g/t in the shallow pit constrained resource, for its 100% owned Scottie Gold Mine Project, which includes the historic mine and the adjacent Blueberry Contact Zone that are located 35 kilometres north of the town of Stewart, BC, along the Granduc Road. The opportunity to further expand both the open pit and underground resources exists as the deposits are open in several directions.

Optimized for DSO Concept: The MRE was designed around mining a shallow open pit in the initial years, minimizing initial capital and using early cashflows to fund the development of the higher-grade underground resources. The high-quality ounces contained within the MRE will be further leveraged when coupled with the recent excellent ore-sorting study results (NR April 1, 2025). The pit provides a potential short ramp up phase to production, flexibility, and low operational risk. This is complemented by the higher-grade underground resource which commands higher payable terms from Asian smelters, avoiding the need for a processing plant on site. The envisioned project greatly benefits from existing infrastructure, including roads, close proximity to a deep-water shipping port, and nearby power lines. By design the DSO project will be a high-margin, variable cost model with industry leading low initial capital costs resulting in a quick investment payback.

Upside Exploration Potential: During the 2025 exploration drilling campaign Scottie will focus on converting the resources from inferred to indicated with infill drilling as well as expansionary drilling on high quality targets close to the deposits. The company notes a particular benefit in targeting the un-drilled pit-constrained envelope on the siltstone side of the deposit (a high-confidence target), as any additional ounces discovered will convert waste to resources and significantly improve the contained ounces. Exploration around the rest of the project will target zones that offer significant upside potential to provide high-grade resources near infrastructure, for example the newly discovered Wolf Zone (NR December 12, 2024).

When reviewing their direct-ship ore strategy, Brad highlighted that Scottie has one of the closest gold projects to a deep-sea shipping terminal, which based on its location is positioned in one of North America’s cheapest commercial shipping lanes to Asia. In addition to the ease of a proposed open-pit mine, which already has an existing mine permit, there is also key external infrastructure in place, such as power lines and hauling roads right to site.

If you have any questions for Brad regarding Scottie Resources, then please email them in to me at [email protected].

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