Metals Investor Forum Presentation

June 11, 2022

Transcript

Cherie Leeden, CEO of Gold Bull Resources (TSXV: GBRC | OTC:GBRCF)

June 11, 2022

Gold Bull Resources is a relatively new company. We were born in December 2020, and we acquired the Sandman project from Newmont, post the Nevada Gold Mines merger between Barrick and Newmont, which left a couple of non-core assets available and Sandman was the best of our pick. I’m located in Nevada, our entire exploration team is in Nevada. We’re all very much boots on ground exploration team. Our value is underpinned by the fact that we have just shy of half a million ounces, and I’ll go into details in this presentation about why we think that’s growing.

Currently, we have a market cap of less than $10 million Canadian, so absolute bargain when we’ve got half a million ounces sticking out of the ground, $3 million in cash, and has really been impacted in the last couple of months. We’ve seen that value destruction in the market and the gold stocks.

Craig Parry and I go back to Rio Tinto days about 20 years ago. We’ve been working on and off ever since and Craig and I aren’t interested in small gold deposits. We’re looking for multimillion ounce deposits, and we see that potential in any of the projects that we bring into the fold here.

We’re supported by a great technical team, bit of an Australian invasion in Nevada with our technical team of Regina, David, and I. Our board is further bolstered by the expertise such as Walter Cole, CEO of Skeena, and what they’ve achieved is really what we are modeling Gold Bull on.

So this is the timeline and what we’ve achieved to date. After the acquisition, we went through the data room, $30 million worth of data, and that’s really going to become apparent in permitting because all of the expensive baseline studies have been done courtesy of Newmont. We’ve got biological, cultural surveys. These things cost millions of dollars and take years, so when it comes time to permit Sandman, we are really going to be fast tracked because of that wonderful work that Newmont did.

And then last year we grew our resource by 60% to 494,000 ounces. And subsequent to that, we’ve been drilling. We see that the current four small resources are open in every direction. And there’s also immense exploration potential at the project, which is located in mining friendly Nevada. We’re about half an hour out of the mining town of Winnemucca, and that mining town services some of the world’s largest gold mines. So we’re in the place you want to be to develop a project.

We’ve currently got the drill rig on site. We’ve got a couple more holes in this program left, and then we’ll look at a resource estimate increase. And previously to that, we’re just going to keep on going until we got to over a million ounces, but the market is what it is today and given we’ve got gold sticking out of the ground that we could essentially mine with an excavator.

I’ve convinced the board to initiate a scoping study that will look at the economics of essentially doing just that, generating cash flow, so we’re not diluting our shareholders and we could generate cash flow via a small scale operation that essentially is reinvesting into the project. 

We’ve currently got the drill rig on site. We’ve got a couple more holes in this program left, and then we’ll look at a resource estimate increase. And previously to that, we’re just going to keep on going until we got to over a million ounces, but the market is what it is today and given we’ve got gold sticking out of the ground that we could essentially mine with an excavator.

So more to follow on that in quarter three and based on the outcome of that, we’ll look at commencing a feasibility study this year as well.

So this is our location. We’re a long strike of the Sleeper deposit, which was one of the richest gold mines ever discovered in the state, multimillion ounces. And we’ve got the same rocks at Sandman. It’s a long strike of Sleeper.

As the name suggests Sandman is covered by sand, and because of that reason, we see immense exploration potential under that sand. David Johnson, our VP of Exploration is a geophysicist. So we’re using geophysics at the project like it has not happened ever in the past.

IP (induced polarization survey) is proving very effective at identifying where the goal bearing fluids have gone through. So essentially all of our drill targets have had geophysics and geochem that our company’s conducted.

Although the projects had a couple of thousand drill holes historically, only 1.7% of those have gone deeper than 250 meters. So that’s quite critical because, when you’re looking for these high grade feeders, that’s where they’re going to be located. So it’s essentially untested for the high grade feeders such as Sleeper. And what we’re seeing is a combination of low grade oxide at the surface with some very high grade bonanza hits.

And I submitted this presentation before our announcement just a couple of days ago, where we got the best drill hole of the program from surface, we hit 1.5 grams a tonne over 85 meters depth and contained within that was three meters at 15 grams a tonne just from 1.5 meters below the surface.

So this is our location. We’re a long strike of the Sleeper deposit, which was one of the richest gold mines ever discovered in the state, multimillion ounces. And we’ve got the same rocks at Sandman. It’s a long strike of Sleeper.

As the name suggests Sandman is covered by sand, and because of that reason, we see immense exploration potential under that sand. David Johnson, our VP of Exploration is a geophysicist. So we’re using geophysics at the project like it has not happened ever in the past.

IP (induced polarization survey) is proving very effective at identifying where the goal bearing fluids have gone through. So essentially all of our drill targets have had geophysics and geochem that our company’s conducted.

Although the projects had a couple of thousand drill holes historically, only 1.7% of those have gone deeper than 250 meters. So that’s quite critical because, when you’re looking for these high grade feeders, that’s where they’re going to be located. So it’s essentially untested for the high grade feeders such as Sleeper. And what we’re seeing is a combination of low grade oxide at the surface with some very high grade bonanza hits.

And I submitted this presentation before our announcement just a couple of days ago, where we got the best drill hole of the program from surface, we hit 1.5 grams a tonne over 85 meters depth and contained within that was three meters at 15 grams a tonne just from 1.5 meters below the surface.

These Abel Knoll examples are great, but they’re not as exciting as what we’re currently drilling. We have hit the high grade feeder zones. We’ve got high grade within, … you call it low grade 1.5 grams a tonne, but it  isn’t that low grade in Nevada, where Marigold’s currently mining 0.3 grams a tonne.

So why go Bull? At the moment, our ounces are valued at about $18 Canadian an ounce, and to discover ounces in the U.S. generally costs more than that. So right now, just the dollars per ounce is unbelievably cheap at the moment.

We’re a team of mind finders and mind builders, and we intend to do the same thing at Sandman. The question is at what point do we press the button? Do we keep going to a million ounces or do we press it basically after this drill program and start looking at the economics? And the scoping study is going to flesh that out. We keep the market well informed with our updates and with our thinking. And I look forward to exploring that in quarter three. I hope to be able to release the scoping study results in around September just depending on the lab results that we’re still waiting for from the current drill program, which is going to wrap up at the end of this week.

Nevada’s a great place to work. It’s a great place to permit. We know because of all our baseline studies that we don’t have any weird and wonderful little critters or rare plants. So that’s, again, a real positive in the fact that we’re basically ready to permit as soon as we work out what our production scenario is going to look like. Please come say hi at the booth. I’ve got some rocks to show you, and I can go into more detail about some of our other pipeline projects, but for now the focus is very much on Sandman. Thank you.