What a Difference 40 Years (and a Quarter) Makes

Almost 3 months to the day we sent out our last Underneath the Radar. A lot has happened in that time – not just in markets, geopolitics and commodities but also for G50.

White Caps

In late January 2025 we began our maiden RC drilling program at White Caps in Nevada. As a reminder – White Caps was a historical gold mine in the 1950’s. Freeport McMoRan (FCX) executed a short vertical only drilling program in the early 1980’s. We are not sure of the geological model they were testing – however the prevailing gold price at the time was U$300.00 an ounce.

At about this time Grasberg in Indonesia was completing an expansion and we guess management time and capital were focused there. Subsequently White Caps was left by the wayside.

Fast forward to 2025 and gold is almost 10x higher. Under G50 direction White Caps has seen significant first principles workflow, a new geological model to test and a completed maiden shallow RC program. Results due in the next few weeks.

Our program was testing the shallow “low grade” halo concept of the project potential. Historically the old timers chased the high grade gold of circa 20 g/t….leaving all else behind. We are looking for the “lower grade” 1- 2 g/t halo across the 3 km of structure. The maiden program was designed to test only 800m of strike…..with results determining the next phase of drilling and targeting.

What does success look like? In this gold price environment;  1- 2 g/t gold in a shallow discovery would be a fantastic result. Let’s see what the assays deliver!

Golconda

This quarter is full steam ahead at Golconda. On Friday we announced that drilling has commenced for our Phase 2 RC drilling. The aim of the program is 3x fold:

First – to increase our understanding of the gallium halo including both depth and strike extension. We have a strong understanding of the structural controls, yet little data or visibility to the limits of the mineralisation. Considering the size of the geochemical anomaly at surface we have plenty of targets to methodically follow up.

Second – In the early 1900’s Golconda was a zinc / lead mine with very high grades of gold and silver reporting to the base metal concentrate. We are aiming to follow up our significant gold and silver discovery from 2023 in the middle part of this RC program. Towards the southeast of the property the 2 main structures (Golconda and Tub Veins) meet. Shallow vertical holes (by others) historically have proven strong mineralisation exists – our deeper angled holes aim to support the work completed in the 80’s.

Finally – we head up the property to the north west. These targets will test high grade precious metals and gallium targets. All in all, we expect this will be a 2 + month program with assays beginning in the next 6 weeks. The current drilling will test an additional 1 km of strike as we look to add potential strike and depth extension to known mineralisation across the main targets.

Mineralogy test work with SGS in Canada has begun, an update is due here in the next 2 – 3 weeks. Metallurgical test work to follow.

Golconda is an absolute treasure chest for G50 with a significant discovery of precious metals announced in June 2023 and historical (early 1900’s) production of high-grade zinc, lead, gold and silver to its name – the gallium halo discovery at surface provides an exciting value proposition in the overall development of the project.

The gallium market is growing fast and early indications by down stream consumers point to an 8x increase in demand out to 2032. New primary supply will need to be found, particularly in the USA where the bulk of the mineral is consumed. We believe Golconda in Northwest Arizona is well placed to potentially meet this market demand.

Critical Minerals and Materials for Selected Energy Technologies – Updated March 5, 2025

On March 5^th 2025 the Congressional Research Service released an updated Report titled “Critical Minerals and Materials for selected Energy Technologies” R48149 – Version 5 – Updated. (https://crsreports.congress.gov)

In light of growing geopolitical tensions governments around the world (including the United States of America) are pursuing alternative energy sources as a substitute for or supplement to fossil fuel energy sources. Various factors have contributed to the changing perspective of critical and strategic minerals and their importance in energy generation and infrastructure.

Recent congressional interest in critical minerals and materials has focused on potential policy interventions across the supply chain. These include reforming domestic mining laws, incentivizing research and development of critical mineral recycling and alternatives, forming critical mineral task forces, expanding international partnerships and investment in mineral resources, and related strategies.

2 points to note from the research:

That makes for a very tight and sensitive market.

Source: CRS using data from U.S. Geological Survey, Mineral Commodity Summaries 2023, January 31, 2023, https://doi.org/10.3133/mcs2023 and U.S. Department of Energy, Critical Materials Assessment, July 2023, https://www.energy.gov/sites/default/files/2023-07/doe-critical-material-assessment_07312023.pdf.