The update

Scottie Resources CEO Bradley Rourke and President Thomas Mumford provided an in-depth update on the company’s ongoing activities, particularly focusing on their 2025 drilling program, financing strategies, and environmental studies at the Scottie Gold Mine and Blueberry Contact Zone. The discussion highlighted the company’s efforts to advance resource expansion, de-risk the project, and position it for a Preliminary Economic Assessment (PEA) expected in October 2025.

Ambitious 2025 Drilling Program Underway

Scottie Resources has kicked off its 2025 drilling program with three diamond drill rigs already on-site, and a fourth recently added, signaling an aggressive push to expand and refine the resource base at the Scottie Gold Mine and Blueberry Contact Zone. According to Rourke, the drilling campaign, which began a few weeks ago, is on schedule and benefiting from favorable weather conditions. The company is prioritizing both infill drilling to convert inferred resources to indicated categories and step-out drilling to explore high-potential targets, such as the Wolf Zone.

Thomas Mumford elaborated on the drilling strategy, noting that approximately 80% of the program is focused on upgrading inferred resources to indicated to support a feasible mine design for a planned mine permit amendment. The remaining 20% of the drilling budget is allocated to hydrological and geotechnical drilling, as well as exploration at high-priority targets like the Wolf Zone. This zone, discovered last year with a 700-meter hole intersecting mineralization at around 300 meters, is a key focus for 2025 due to its proximity to existing infrastructure and its potential to extend the known mineralization.

Mumford highlighted the geological characteristics that make the Wolf Zone a high-probability target. The Scottie Gold Mine hosts pyrite-rich veins, a hallmark of high-grade mineralization across the project’s zones, from the Bend Vein in the northeast to Domino in the southwest. These veins occur in clusters with localized structural control, and the Wolf Zone aligns with the consistent vein orientation observed in other zones, suggesting it is a continuation of the main Scottie mineralization. This geological predictability enhances the company’s confidence in expanding the resource base.

Strategic Financing Bolsters Development

On the corporate side, Rourke discussed a recent $16.8 million financing, which includes a $6 million equity investment from Ocean Partners, a UK-based firm. The financing structure leverages a charitable flow-through model, allowing Scottie Resources to receive approximately $8.4 million in effective funds for the $6 million equity portion, minimizing dilution. Rourke emphasized that this financing supports the company’s largest-ever drill program and critical permitting activities, positioning Scottie for production by 2028.

Additionally, Ocean Partners has committed to a $25 million construction loan, signaling strong external confidence in the project. Combined with an existing royalty deal with Franco-Nevada, these partnerships validate Scottie’s vision and enhance its financial flexibility. Rourke noted that the company’s major shareholders, including Kevin Jennings and Ross Beaty, continue to support the financing, with Ocean Partners set to gain a board seat to further strengthen corporate governance.

Environmental and Geotechnical Integration

To support the Scottie Gold Mine Direct Shipping Ore (DSO) project’s permitting process, the company has commenced environmental baseline studies in collaboration with SLR Consulting and the Nisga’a Nation’s Growth Corporation. Mumford explained that these studies, which focus on surface and underground water quality and flow, are critical for the two-year data collection required for permitting. The partnership with the Nisga’a Nation, a long-standing collaborator employing 10-20% of Scottie’s workforce, ensures local engagement and environmental stewardship.

The drilling program is designed to serve multiple purposes, with exploration holes doubling as geotechnical and hydrological data collection points. This integrated approach allows Scottie to gather critical data for slope stability and water management while advancing resource definition, streamlining the de-risking process for the PEA.

DSO Project: Leveraging High-Grade Mineralization and Infrastructure

The Scottie Gold Mine DSO project is designed as a low-impact, high-margin operation, capitalizing on the deposit’s high-grade pyrite-rich veins and robust regional infrastructure. Mumford noted that historical production at the Scottie Gold Mine achieved a head grade of 18-20 grams per ton, with a cutoff grade of 10 grams per ton. Modern cutoff grades of 2.5 grams per ton, combined with ore sorting technology, enable Scottie to upgrade open-pit resources from 3.2 grams per ton to 7-8 grams per ton, and underground resources to above 15 grams per ton.

The project’s location further enhances its viability. A historic haul road from the 1970s, power lines from the Long Lake hydro system, and North America’s northernmost ice-free deep-water shipping port, located just 40 kilometers away, provide unparalleled logistical advantages. These factors, combined with the absence of a mill or tailings facility, reduce capital requirements and environmental impact, making the DSO model highly attractive.

Looking Ahead

In the near term, Scottie Resources anticipates receiving a bulk sample permit for a 10,000-ton sample, which could provide significant exploration upside. The company is also ramping up geotechnical and hydrological drilling following site assessments with SLR. Rourke emphasized that a steady news flow is expected through the end of 2025, driven by drilling results, the bulk sample permit, and the upcoming PEA, which will not include this year’s drilling but is expected to demonstrate significant project value.

With strong financial backing, strategic partnerships, and a focused exploration and permitting strategy, Scottie Resources is well-positioned to advance the Scottie Gold Mine and Blueberry Contact Zone toward production. The company’s ability to attract major players like Ocean Partners and Franco-Nevada underscores the project’s potential, offering investors a compelling opportunity as Scottie moves closer to its 2028 production target.

Disclaimer: This article is not a recommendation to buy or sell any shares, products, or services. Always conduct your own due diligence and consult with a financial advisor before making investment decisions.