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Goldstorm Metals Corp. — Management Reports 2025
Feb 26, 2025
48435_rns_2025-02-26_8ba7288f-7f6c-4478-a905-248bda64d082.pdf
Management Reports
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GOLDSTORM METALS CORP.
Management's Discussion and Analysis
For the nine months ended December 31, 2024
(Expressed in Canadian Dollars)
Introduction
This Management Discussion and Analysis (this "MD&A") of Goldstorm Metals Corp. (the "Company") has been prepared by management in accordance with the requirements of National Instrument 51-102 ("NI 51-102") as of February 25, 2025 and should be read in conjunction with condensed interim financial statements for the nine months ended December 31, 2024, the audited financial statements for the year ended March 31, 2024, and the related notes contained therein which have been prepared under IFRS Accounting Standards. The information contained herein is not a substitute for detailed investigation or analysis on any particular issue. The information provided in this document is not intended to be a comprehensive review of all matters and developments concerning the Company.
All financial information in the MD&A has been prepared in accordance with International Accounting Standards ("IAS") 34, Interim Financial Reporting, and all dollar amounts are quoted in Canadian dollars, the reporting and functional currency of the Company, unless specifically noted.
This MD&A contains forward-looking statements. Please refer to the cautionary language at the end of this document.
Historical results of operations and trends that may be inferred from the following discussions and analysis may not necessarily indicate future results from operations. The Company is currently engaged in exploration and development of mineral properties and does not have any source of revenue or operating assets. The recoverability of the amounts shown for mineral properties is dependent upon the ability of the Company to obtain necessary financing to complete exploration, technical studies and, if warranted, development and future profitable production or proceeds from the disposition of properties.
Overview
The Company was incorporated under the British Columbia Business Corporations Act. The Company's head office is located at Suite 789, 999 West Hastings Street, Vancouver, British Columbia, V6C 2W2. The Company is listed on the TSX Venture Exchange ("TSX-V") under the trading symbol "GSTM". The Company is a junior resource exploration company that is involved in the acquisition and exploration of mineral properties in Canada.
In November 2022, the Company completed a plan of arrangement with Tudor Gold Corp. ("Tudor"), whereby the Company issued 49,847,966 common shares as consideration in connection with the spin-off of Tudor's six semicontiguous mineral properties located in the Golden Triangle Area in northwestern British Columbia ("Crown Property").
QUALIFIED PERSON AND TECHNICAL REPORT
All scientific and technical information relating to the Company's mineral projects in this MD&A has been reviewed and approved by Mr. Ken Konkin, P.Geo., the Company's President and CEO, who by reason of education, membership in professional associations (as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101")) and past relevant work experience, fulfills the requirements of a Qualified Person as defined under NI 43-101.
Crown Property
The Crown property is comprised of the contiguous Mackie West, Mackie East, Orion, Fairweather, Delta and High North claim groups, as well as the Electrum claim group located 6 km to the southeast, totalling 16,469 hectares. The property lies directly south of Seabridge Gold's KSM property, which contains one of the largest undeveloped
GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
copper/gold resources in the world, and Newmont Corporation Inc.'s Brucejack gold mine, where mining from the Valley of the Kings deposit produced over 347,000 ounces of gold over the full year 2020 (latest production information available). Brucejack's reported Probable Reserves as of June 2023 were 3.7 Moz gold and 14 Moz silver, at 8.4 g/t Au, 32 g/t Ag.
A significant amount of exploration has been undertaken by various operators in several different areas of the Crown property, from 1930 to present. The most advanced exploration has taken place in the Electrum area, which contains historical underground workings, and has received about 100 diamond drill holes. A 3.8 tonne bulk sample collected at Electrum by Tudor Gold Corp. ("Tudor") in 2017 from a 5 m wide zone of veining averaged 2.82 g/t Au, 539 g/t Ag, 1.96% Pb, and 1.97% Zn.
Elsewhere, within various parts of the Crown property, localized reconnaissance drilling, prospecting, soil and rock sampling, and geophysical surveys have historically been undertaken in three primary target areas, Orion, Delta and Fairweather. Numerous surface showings have returned promising results from rock grab samples, with elevated values in Au, Ag and Cu. Wider intervals include a 13.0 m continuous chip sample averaging 2.54 g/t Au in rhyolitic breccia at Orion, and a 7.0 m chip sample averaging 4.05 g/t Au in pyritized agglomerate at Fairweather. Two drill holes in the Delta area in 2011 had reported values of 3.0 g/t Au over 5.8 m and 0.41 g/t Au over 55.5 m. Mineral showing areas are typically underlain by altered volcanic and tuffaceous rocks cut by multiple narrow quartz-carbonate veins, ranging from 1 to 20 cm wide, with abundant pyrite and local minor chalcopyrite, galena, sphalerite and arsenopyrite, with associated gold and silver values.
The Electrum claim group, in the southeast part of the Crown area, is located between the past-producing Silbak Premier mine, some 25 km south, and Newmont Corporation Inc.'s Brucejack mine some 20 km to the north. An access road connecting the Granduc gravel road to the mineralized discovery zone on the Electrum property was completed by Tudor in 2017, providing a truck route to the all-season deep-water port at Stewart, BC. Additional important infrastructure nearby includes Long Lake Hydro Power infrastructure, Highway 37 and the Stewart Airport. In 2018, environmental studies and sampling were undertaken as part of the required data collection for additional permitting. These included a water quality sampling program and biological reviews of wildlife and vegetation in the proposed work area.
At Electrum, detailed chip and channel sampling was undertaken in 2022 by Tudor in the Blast Zone trenches. More than 30 of the 116 samples returned gold values between 0.5 and 14.1 g/t, and silver values from 10 to 1490 g/t over lengths of 1 to 2 m, with copper enrichment noted in a few samples.
Mineralization on the Electrum claims is controlled by two major fault trends that locally host bonanza gold grades, as well as broader stockwork zones, within a complex geological model. Similar to the nearby Brucejack Mine, gold and silver mineralization occurs as coarse electrum in several generations of quartz-carbonate veins and vein breccias hosted within a deformed volcanic-sedimentary sequence. Intermediate-to-low sulphidation gold and silver mineralization is present in many of the veins, accompanied by pyrite, sphalerite, galena and chalcopyrite. Precious metal mineralized veins have been traced on surface over lengths of several tens of meters to more than a hundred meters, pinching and swelling along strike.
Drilling at Electrum by previous operators encountered gold-silver mineralization at depths of up to 200 meters from surface with several holes intersecting relatively wide zones containing narrow quartz-sulfide stockwork veins that returned moderate precious metal values, along with localized veins containing electrum and silver sulfosalt minerals that have returned significant silver and gold values over narrow widths. These intercepts are located beneath surface exposures that were subsequently blasted, trenched and bulk sampled in an area referred to as the New Blast Zone.
In addition to high grade gold and silver mineralization targets, Electrum hosts untested geophysical anomalies at depth beneath the main vein zones, as well as an area at the south end of Electrum that shows evidence of potential porphyry-style mineralization.
Goldstorm acquired the Crown property from Tudor in November 2022.
GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
Goldstorm’s 2023 exploration program in the Electrum area included 11 diamond drill holes (2,581 m) that focused on historical high-grade intervals reported from previous drill programs by several different operators. In previous programs, several of the drill-tested targets returned high grade results, including 31.40 g/t gold, 19.0 g/t silver over 2.0 m, and 440.8 g/t gold, 400.0 g/t silver over 0.52 m.
Drilling also targeted areas of gold-bearing surface samples collected in 2022 within the historical East Gold Mine area, where intermittent small-scale, underground production between 1939 and 1965 produced 3,816 ounces of gold and 2,442 ounces of silver from 45 tons of hand selected ore. A verification chip sample taken by Tudor in 2020 within this mineralized area returned values of 101.60 g/t gold and 20,334 g/t silver.
Results from Goldstorm’s 2023 drilling program at Electrum are summarized below.
EZ-23-01: Intersected 61.5 m of 1.13 g/t Au and 6.02 g/t Ag, within a broader 111.0 m envelope of 0.77 g/t Au and 4.43 g/t Ag.
EZ-23-02: Intersected 37.3 m of 0.78 g/t Au and 1.65 g/t Ag; and farther down hole, 149.0 m of 0.45 g/t Au and 3.20 g/t Ag. This hole ended in mineralization.
EZ-23-03: Intersected 0.51 m of 1.29 g/t Au, 266.00 Ag, 3.14% Pb, and 2.44% Zn within 3.02 m of 0.73 g/t Au, 105.64 g/t Ag, 0.78% Pb, 1.04% Zn, at 4.98 m down hole, in an epithermal-style quartz-sulphide vein.
EZ-23-04: Intersected 3.05 m of 0.89 g/t Au, 125.31 g/t Ag, 0.48% Pb, and 0.95% Zn, at 6.20 m down hole, in the same epithermal vein seen in EZ-23-03.
EZ-23-05: Intersected 1.90 m of 2.47 g/t Au, 126.00 g/t Ag, 0.36% Pb, and 0.38% Zn at 31.15 m down hole, in an epithermal vein.
EZ-23-06: Intersected 0.65 m of 0.81 g/t Au, 44.66 g/t Ag, 0.57% Pb, and 1.04% Zn at 28.2 m down hole, in an epithermal vein.
EZ-23-07: Intersected 1.55 m of 5.17 g/t Au, 68.02 g/t Ag, 0.32% Pb, and 1.04% Zn at 29.40 m down hole, in an epithermal vein.
EZ-23-08: Intersected 0.50 m of 233.50 g/t Au and 756 g/t Ag within 4.50 m grading 27.00 g/t Au and 111.09 g/t Ag at 8.0 m down hole, in a series of epithermal veins. Further down hole, 1.50 m of 4.59 g/t Au, 234.00 g/t Ag, 0.39% Pb, and 0.46% Zn was intersected in an epithermal vein.
EZ-23-09: Intersected 1.50 m of 0.98 g/t Au and 46.79 g/t Ag at 100.50 m down hole, in an epithermal vein.
EZ-23-10: Intersected 1.50 m of 0.19 g/t Au and 66.99 g/t Ag at 6.00 m down hole, in an epithermal vein.
EZ-23-11: Intersected 1.75 m of 8.70 g/t Au, 238.00 g/t Ag, 0.15% Pb, and 0.39% Zn within 17.75 m grading 1.17 g/t Au, 29.40 g/t Ag, 0.05% Pb, and 0.30% Zn at 107.25 m down hole in epithermal veining and breccia.
In the summer of 2023 Goldstorm undertook a reconnaissance program across various Crown Concessions. This work was comprised of mapping and sampling with particular emphasis placed on several freshly exposed outcrops revealed by recent glacial recession. The work at Crown included a total of 1,057 rock samples consisting of 7 channel saw-cut, 284 chip, and 766 grab samples. Some very promising mineral discoveries were found within the Orion area along a prominent north-trending silicified and gossanous ridgeline that measures 900 meters (m) wide by 6,500 m long.
Within the Orion area, the Copernicus Zone is a gossanous area that spans a 200-m-wide by 800-m-long concentration of sulphide mineralization containing copper, silver, zinc, and cobalt. Observed mineralization and textures closely resemble those found in volcanogenic massive sulphide (VMS) deposits. Within this zone, 229 samples were collected, including a 0.25 m chip sample (A0519298) that yielded 0.67 g/t gold, 320.0 g/t silver, 11.96% copper, 0.088% cobalt, and 0.55% zinc, as well as a 0.5 m saw-cut channel sample (OR-23-01) that yielded 0.28 g/t gold, 226.0 g/t silver, 6.95% copper, 0.079% cobalt, and 0.37% zinc. A continuous channel sample
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GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
line, comprised of six samples (OR-23-02), averaged 0.14 g/t gold, 57.0 g/t silver, 1.71% copper, 0.015% cobalt, and 0.15% zinc over 5.15 m.
Work was also undertaken in 2023 in the Fairweather and Delta areas of the Crown Property, focused on prospecting outcrops exposed by recent glacial ablation, and building upon historical discoveries made on the property. Reconnaissance sampling totaled 720 rock samples, with highlights including grab samples from Fairweather that returned 1.18 g/t gold, 2,656 g/t silver, 0.55% copper, 7.65% lead, and 5.03% zinc, as well as, 11.30 g/t gold, 89.02 g/t silver, 0.82% copper and 1.37% zinc, from narrow, steeply dipping structures that may be associated with large bulk-tonnage, intrusive-related systems.
Reconnaissance in the eastern area of the Fairweather concession led to the discovery of three significant polymetallic mineralized zones, referred to as the Launch, Galileo and Triton zones.
The Launch Zone contains fracture-controlled mineralization along well-defined shear zones, and pods of semi-massive sulphide mineralization within siltstone-mudstone host rocks, close to the contact area with Texas Creek intrusive rocks. Representative chip sampling within this area returned 1.95 g/t gold, 15.09 g/t silver, 0.12% copper over 3.0 meters (m) and 4.6 g/t gold, 118.5 g/t silver, 0.83% copper over 2.0 m.
The Galileo Zone is a polymetallic, silver-rich sulphide vein system containing conjugate gold-rich quartz-pyrite veins/veinlets within volcaniclastic rocks believed to be part of the Hazelton Formation. This zone can be traced approximately 500 m east-west by 200 m north-south and remains open in all directions. Galileo is considered a priority target for future exploration.
The Triton Zone is comprised of a northwest-trending belt of recently exposed volcanic rocks containing gold-silver-bearing, shear-hosted veins and veinlets trending along an east-west structural corridor. The highest-grade grab sample assayed 8.3 g/t gold and 48.8 g/t silver.
Sampling in the western area of Fairweather concession returned samples up to 3.34 g/t gold over 0.65 m associated with a zone of phyllic alteration in metamorphosed Triassic volcaniclastic rocks. Veining was found within a large gossanous colour anomaly measuring 600 m x 200 m along a northwest axis.
On the Delta concessions, crews collected grab samples within strongly quartz-sericite-pyrite (QSP)-altered volcanic rocks during a preliminary reconnaissance traverse, which returned values of up to 2.4 g/t gold and 36.2 g/t silver.
Mapping and prospecting work undertaken in 2023 on the Crown Property discovered several significant mineralized zones that resemble multi-pulse events, which are typical of peripheral hydrothermal systems related to magmatic activity that may produce large porphyry-style targets. The Company stated that it plans to focus its efforts in these areas with continued sampling and mapping, with the goal to develop and fast-track drill targets that may host not only high-grade precious and base-metal targets, but also much larger porphyry-style systems.
In May 2024, Goldstorm announced that crews had been mobilized for the 2024 exploration program on its 100% owned Electrum and Crown gold, copper, silver projects. The exploration camp was established at the nearby former Granduc mill-site. Drilling was planned at Electrum to attempt to expand the potential bulk-tonnage gold-silver hydrothermal stockwork breccia system laterally and at depth. Reconnaissance crews also planned to further evaluate and trace the numerous newly discovered zones throughout both Electrum and Crown.
On July 31, 2024, Goldstorm announced the commencement of diamond drilling at the Electrum project, beginning with three drill holes to follow up on a potential bulk-tonnage gold-silver target in the southern portion of the Property. The primary goal of the 2024 program was to expand the known mineralization at the 'Dome target', which is a conspicuous silicified topographic 'high' that may host a large gold-silver-bearing quartz stockwork zone, possibly related to the outer shell of an intrusive-related or porphyry-style system, common within the Golden Triangle. The first hole was planned to re-align on the previous year's drill hole EL-23-02, to lengthen this hole approximately 200 m deeper, as it appears that it did not extend past the significant gold and silver mineralization.
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GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
In addition to the drilling program, geological crews planned to continue prospecting and mapping traverses at the Crown property, to the northwest of Electrum, to take advantage of the rapid recession of the glaciers and snowfields. The Crown claim area hosts geological potential for various types of mineralization, including epithermal/low-sulphidation, high-grade Au-Ag veins, bulk-tonnage Au-Cu-Ag porphyries, and VMS-style massive sulphide deposits. These claims lie immediately south of, and adjacent to, Newmont's Valley of the Kings Au-Ag deposit and along the same geological horizons and regional structures that host the Treaty Creek Goldstorm Deposit and the Seabridge KSM porphyry Au-Cu-Ag deposits.
On October 17, 2024, the Company reported that exploration carried out during the 2024 program on Electrum included seven diamond drill holes totaling 2,233 m, as well as surface sampling and mapping. The extensive surface programs undertaken by crews on both Electrum and Crown provided a total of 702 rock grab, chip, and channel samples. Highlights from the mapping and sampling reported below are from various mineral zones on the Crown Project.
Crews significantly expanded the dimensions of the recently discovered Copernicus, Orion, Triton, Launch and Fairweather zones. Mapping and prospecting delineated numerous trends of mineralization for hundreds of meters that appear to be both structurally and lithologically controlled. Samples containing high-grade gold, silver and copper values suggest that this area may have undergone multi-pulse mineralizing events. The goal is to fast-track and develop drill targets that may host high-grade precious and base-metal mineralization, and additionally may point to the source of mineralized structures that could be related to a much larger disseminated and veinlet system occurring peripherally and/or at depth.
On the Orion Concession, crews delineated multiple stratiform mineralized trends within volcaniclastic rocks at the Copernicus Zone. Three structures trending to the north, and one trending to the northwest, have been identified over 1,500 m of length, and may continue under the Frank Mackie Glacier. Mineralization at Copernicus is potentially of VMS-style and is associated with an anomalous magnetic high. At the nearby Cat in the Hat Zone gold-bearing veins trending northeasterly within rhyolitic rocks have been discovered, extending into previously unsampled glacial ablation zones.
Sampling highlights from the Copernicus and Cat in the Hat Zones include:
- Grab sample (C969903) returned 30.9 g/t gold and 42.39 g/t silver from the Cat in the Hat Zone
- 1.9 meter continuous chip samples (C969719 and C969720) averaged 2.53 g/t gold, 54.7 g/t silver and 3.3% copper, located 290 meters south of the original Copernicus showing
- 1.0 meter chip sample (C970612) returned 8.76 g/t gold and 7.62 g/t silver, located 650 meters south of the original Copernicus showing
- 16 samples taken within the Copernicus Zone returned greater than 1% copper, with one sample (C969842) assaying 0.58 g/t gold, 625 g/t silver, and 6.57% copper at the original Copernicus showing
- Mineralized samples were found to correlate with a magnetic high geophysical anomaly
On the Fairweather Concession, reconnaissance was conducted on three significant polymetallic mineralized zones known as Triton, Launch and Galileo. Sampling at the Triton Zone identified a 400-meter-long trend of gold-bearing veins within pyroclastic volcanic rocks. At the Launch Zone, crews found northwest- and west-trending polymetallic mineralization, characterized by pods and veins within siltstone beds, as well as crosscutting the formations. At the Galileo Zone, crews observed mineralization trending west over a length of 800 meters, with multiple parallel polymetallic veins hosted by volcanic rocks and mudstones.
Sampling highlights from the Launch, Galileo, and Triton Zones include:
- Grab sample (C969905) returned 55.2 g/t g gold and 82.71 g/t silver at the Launch Zone
- Semi-massive sulphides within siltstone were discovered 650 m north of the Launch Zone, highlighted by grab sample (C969892), which returned 2.42 g/t gold, 345 g/t silver, 0.68% copper, 12.22% lead, and 27.29% zinc
GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
- Grab sample (C969829) taken at the Galileo Zone returned $0.29\mathrm{g / t}$ gold, $925\mathrm{g / t}$ silver, $3.38\%$ lead, and $2.32\%$ zinc
- Analytical results of 38 samples collected at the Triton Zone had a calculated average of $0.88\mathrm{g / t}$ gold
On the Mackie West Concession, initial sampling discovered molybdenum rich boulders and traced them to source in basalt outcrop. Mineralogy of some of the boulders indicates there may be a molybdenum-bearing porphyry zone nearby associated with a buried felsic intrusion. Sampling highlights include:
- Float samples with high molybdenum (C969920) returned 8916 ppm molybdenum
- Traced to source with grab sample (A0839824), which returned 2159 ppm molybdenum
Table 1: Select Rock Sample Results for the Orion Concession
| Sample | Easting UTM09 | Northing UTM09 | Elev. (m) | Sampled From | Sample Type | Width (m) | Au (g/t) | Ag (g/t) | Cu (%) | Pb (%) | Zn (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| C969903 | 422305 | 6246054 | 1565 | Outcrop | Grab | 30.90 | 42.39 | 0.00 | 0.02 | 0.00 | |
| C969901 | 422288 | 6246046 | 1557 | Outcrop | Grab | 14.30 | 67.66 | 0.00 | 0.02 | 0.00 | |
| C969842 | 421734 | 6247798 | 1657 | Outcrop | Grab | 0.58 | 625.00 | 6.57 | 0.18 | 1.10 | |
| A0905084 | 421966 | 6247168 | 1616 | Outcrop | Grab | 10.40 | 3.67 | 0.11 | 0.00 | 0.00 | |
| C969902 | 422290 | 6246046 | 1558 | Outcrop | Grab | 10.00 | 15.36 | 0.01 | 0.00 | 0.00 | |
| C969695 | 421928 | 6247203 | 1609 | Outcrop | Grab | 9.64 | 8.90 | 0.01 | 0.00 | 0.00 | |
| C970612 | 421929 | 6247200 | 1559 | Outcrop | Chip | 1 | 8.76 | 7.62 | 0.01 | 0.00 | 0.01 |
| C970675 | 422205 | 6246022 | 1488 | Outcrop | Grab | 7.44 | 11.11 | 0.03 | 0.00 | 0.00 | |
| C969760 | 421946 | 6247179 | 1605 | Outcrop | Grab | 6.89 | 10.32 | 0.13 | 0.00 | 0.00 | |
| A0839840 | 422314 | 6246089 | 1550 | Outcrop | Chip | 0.5 | 5.13 | 17.05 | 0.00 | 0.00 | 0.00 |
| C969904 | 422321 | 6246067 | 1569 | Outcrop | Grab | 4.71 | 12.02 | 0.00 | 0.00 | 0.00 | |
| C969994 | 421733 | 6247659 | 1670 | Outcrop | Grab | 0.14 | 273.00 | 3.85 | 0.09 | 0.71 | |
| C969720 | 421678 | 6247516 | 1602 | Outcrop | Chip | 1 | 3.09 | 59.90 | 3.02 | 0.00 | 0.11 |
| C970703 | 422178 | 6245942 | 1487 | Outcrop | Chip | 0.1 | 4.33 | 5.48 | 0.00 | 0.00 | 0.00 |
| A0905091 | 421736 | 6247773 | 1706 | Outcrop | Chip | 0.15 | 0.62 | 153.00 | 5.22 | 0.03 | 0.22 |
| C970619 | 421930 | 6247200 | 1559 | Outcrop | Grab | 2.34 | 93.46 | 0.03 | 0.08 | 0.03 | |
| A0839845 | 422219 | 6246032 | 1481 | Outcrop | Chip | 0.65 | 3.48 | 4.92 | 0.01 | 0.00 | 0.00 |
| C969719 | 421677 | 6247516 | 1602 | Outcrop | Chip | 0.9 | 1.98 | 49.55 | 3.04 | 0.00 | 0.06 |
| C970667 | 421969 | 6247095 | 1602 | Outcrop | Grab | 3.17 | 2.98 | 0.10 | 0.00 | 0.00 | |
| C969686 | 421726 | 6247421 | 1609 | Outcrop | Grab | 0.38 | 91.85 | 4.55 | 0.00 | 0.73 |
Table 2: Select Rock Sample Results for the Fairweather Concession
| Sample | Easting UTM09 | Northing UTM09 | Elev. (m) | Sampled From | Sample Type | Width (m) | Au (g/t) | Ag (g/t) | Cu (%) | Pb (%) | Zn (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| C969905 | 429601 | 6246010 | 1502 | Outcrop | Grab | 55.20 | 82.71 | 0.01 | 0.07 | 2.09 | |
| A0905336 | 428668 | 6244043 | 885 | Float | Float | 0.18 | 1306.00 | 0.08 | 17.90 | 0.01 | |
| C969829 | 429102.1 | 6244042 | 881 | Outcrop | Grab | 0.29 | 925.00 | 0.12 | 3.38 | 2.32 | |
| C969806 | 428781 | 6245886 | 1610 | Outcrop | Grab | 11.30 | 10.01 | 0.00 | 0.06 | 0.11 | |
| A0905315 | 429947.1 | 6245833 | 1397 | Outcrop | Chip | 0.3 | 8.88 | 51.31 | 0.60 | 0.11 | 0.07 |
GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
| C969831 | 429124.5 | 6244030 | 878 | Outcrop | Grab | 0.24 | 700.00 | 0.05 | 7.49 | 3.44 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| C969910 | 429514 | 6246233 | 1476 | Outcrop | Grab | 7.25 | 27.87 | 0.10 | 0.92 | 4.07 | |
| C969892 | 429646 | 6246268 | 1475 | Outcrop | Grab | 2.42 | 345.00 | 0.68 | 12.22 | 27.29 | |
| C969838 | 429946.4 | 6245831 | 1441 | Outcrop | Grab | 4.62 | 118.00 | 0.52 | 0.94 | 2.41 | |
| C969908 | 429482 | 6246223 | 1484 | Outcrop | Grab | 4.60 | 81.09 | 0.18 | 2.49 | 2.47 | |
| A0905334 | 428616 | 6243956 | 878 | Outcrop | Chip | 0.3 | 1.87 | 252.00 | 0.79 | 0.77 | 0.32 |
| A0839801 | 430062 | 6245994 | 1379 | Outcrop | Grab | 0.03 | 384.00 | 0.80 | 19.14 | 33.86 | |
| C969839 | 429946 | 6245832 | 1398 | Outcrop | Grab | 4.43 | 32.93 | 0.28 | 0.18 | 0.75 | |
| C970583 | 429290 | 6243961 | 936 | Outcrop | Grab | 4.56 | 5.74 | 0.07 | 0.01 | 0.12 | |
| C970554 | 429514 | 6246231 | 1464 | Outcrop | Grab | 4.16 | 11.78 | 0.01 | 0.24 | 0.09 | |
| A0905328 | 429618 | 6246270 | 1451 | Outcrop | Grab | 1.45 | 220.00 | 0.25 | 7.20 | 13.70 | |
| A0905308 | 429103 | 6244042 | 881 | Outcrop | Chip | 0.9 | 0.21 | 308.00 | 0.06 | 1.86 | 1.72 |
| C970605 | 429380 | 6243882 | 813 | Outcrop | Grab | 3.36 | 5.16 | 0.22 | 0.02 | 0.01 | |
| A0905331 | 428670 | 6243953 | 868 | Outcrop | Grab | 1.82 | 101.00 | 0.41 | 0.17 | 1.20 | |
| A0905314 | 429311.1 | 6243993 | 872 | Outcrop | Chip | 0.3 | 3.03 | 1.41 | 0.01 | 0.01 | 0.01 |
| A0905345 | 429367 | 6243949 | 849 | Outcrop | Chip | 0.35 | 2.82 | 5.35 | 0.07 | 0.00 | 0.01 |
| C969836 | 429255 | 6244023 | 869 | Float | Float | 2.33 | 29.04 | 0.57 | 0.01 | 0.33 | |
| C970580 | 429365 | 6243957 | 922 | Outcrop | Grab | 1.68 | 45.65 | 0.12 | 0.01 | 0.03 | |
| A0905335 | 428616 | 6243956 | 878 | Outcrop | Grab | 0.15 | 166.00 | 0.10 | 2.21 | 0.51 |
Table 3: Select Rock Sample Results for the Mackie West Concession
| Sample | Easting UTM09 | Northing UTM09 | Elev. (m) | Sampled From | Sample Type | Width (m) | Au (g/t) | Ag (g/t) | Cu (%) | Mo (ppm) | Pb (%) | Zn (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| C969923 | 418049 | 6245878 | 1314 | Float | Float | 26.50 | 1028 | 0.05 | 28 | 18.28 | 0.00 | |
| A0905076 | 417653 | 6245444 | 1506 | Float | Float | 2.21 | 419.00 | 1.13 | 10 | 5.29 | 0.01 | |
| C969920 | 418007 | 6246009 | 1247 | Float | Float | 0.04 | 6.81 | 0.01 | 8916 | 0.05 | 0.01 | |
| C969922 | 418011 | 6246016 | 1271 | Float | Float | 0.02 | 5.09 | 0.04 | 3522 | 0.01 | 0.00 | |
| A0839824 | 418156 | 6246261 | 1297 | Outcrop | Grab | 0.00 | 0.21 | 0.02 | 2159 | 0.00 | 0.02 |
On November 6, 2024, the Company reported results from the 2024 drilling at Electrum, which totaled $2,233\mathrm{m}$ in seven drill holes that tested epithermal veins hosting precious and base-metal mineralization. Phase 1 drilling was undertaken at the Dome Zone and was followed by Phase 2 drilling on the newly discovery LP Zone where visible native gold had been identified at surface.
The objective of the Dome drill targeting was to expand known stockwork mineralization that occurs throughout a topographically distinct dome-shaped knob. The initial 2023 drill campaign discovered significant gold and silver mineralization within a quartz stockwork that may be related to intrusive activity. Drill hole EL-24-17 identified a 48-meter intercept of brecciated volcanic rocks that contain pyrite-filled micro-fractures associated with quartz carbonate veinlets that returned $0.47\mathrm{g / t}$ Au with $5.00\mathrm{g / t}$ Ag over the $48\mathrm{m}$ interval. This intercept suggests that the system may be centered further to the southwest of the Dome target.
The best drill hole results clearly came from the LP Zone, where reconnaissance crews had previously discovered fine-grained visible gold associated with narrow shear-hosted quartz-pyrite veins and a surficial stockwork system. Numerous elevated gold grades were encountered throughout the holes but the best gold value obtained was from
GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
EL-24-15, which yielded 7.78 g/t Au and 3.54 g/t Ag over 1.5 meters from a quartz-pyrite vein. A separate high-grade silver-dominant polymetallic vein was also encountered that returned 1,766 g/t Ag and 1.39 g/t Au over 0.45 meters in drill hole EL-24-16. This is consistent with the geological evidence of a north trending high-grade silver system associated with lead-zinc sulphide mineralization, with minor gold values. This polymetallic system appears to be intertwined with a different hydrothermal pulse of gold-silver mineralization along the same northern trend. Reconnaissance crews have also discovered strong gold-silver phases adjacent to strong silver-lead-zinc mineralization northwards from Electrum, throughout the Fairweather and Delta Claims, on the eastern part of the Crown Claim Group. These precious and base-metal pulses may be explained as peripheral events to an intrusive-related (possible porphyry-style) crystalline belt of rocks located immediately to the west, that may trend southwards from the Treaty Creek and KSM Deposits. Crews have also encountered significant copper-gold-silver mineralization along the eastern flank of the Orion Spine; these are significant exploration targets that warrant further exploration.
Drill Hole Results
Dome Target:
EL-24-17: The hole intersected 48.00 m of 0.47 g/t Au, 5.00 Ag hosted in fine-grained volcanic rocks containing intervals of dense fractures and breccia textures. Millimeter scale fractures are sealed with fine-grained anhedral pyrite. These textures occur alongside quartz carbonate veining throughout the interval.
LP Zone:
EL-24-14: Intersected 4.60 m of 0.50 g/t Au and 6.0 g/t Ag, including 0.80 m of 1.48 g/t Au and 9.78 g/t Ag. This interval consists of a moderate hydrothermal breccia hosting semi-massive pyrite and trace arsenopyrite in fine-grained volcanic rocks. Further down the hole, at 210.00 m, a separate interval of 2.5 m grading 0.55 g/t Au and 0.56 g/t Ag contained an epithermal vein hosted in a porphyritic intrusive unit.
EL-24-16: Intersected 1.50 m of 1.02 g/t Au and 94.95 g/t Ag at 39.0 m down hole, that contained a hydrothermal breccia interval hosting galena and semi-massive pyrite. Deeper in the hole, at 172.85 m down hole, 0.45 m of 1.39 g/t Au 1,766.00 g/t Ag was intersected in a polymetallic quartz vein with 2-3% coarse-grained galena + sphalerite (0.63% Pb and 1.08% Zn) in a fine-grained intermediate volcanic host.
EL-24-13: Intersected 5.00 m of 0.53 g/t Au and 3.65 g/t Ag near the top of the hole. This interval comprised a dense vein zone, hosted in volcanics, which includes a background crackle texture sealed with fine-grained anhedral pyrite. Within the interval, 1.50 m of 1.04 g/t Au and 7.31 g/t Ag occurred at 7.00 m downhole. In separate intervals, 4.50 m of 0.52 g/t Au and 4.27 g/t Ag was intersected at 83.50 m, associated with stockwork veining in fine-grained volcanics; and 1.00 m of 1.13 g/t Au and 10.78 g/t Ag at 136.00 m was hosted by epithermal veins mineralized with sphalerite and galena within porphyritic intrusive.
EL-24-15: Intersected 6.00 m of 0.65 g/t Au and 5.00 g/t Ag with 1.78% Zn, beginning at 12 m down hole. This interval was observed to contain minor stockwork and vuggy veining ending in a volcanic breccia with a sphalerite cement. In separate intervals, 1.00 m of 2.55 g/t Au and 187.00 g/t Ag with 0.24% Pb and 0.16% Zn was intersected at 34.85 m, associated with discrete polymetallic epithermal veins; and 1.50 m of 7.78 g/t Au and 3.54 g/t Ag at 129.00 m also related to epithermal veining.
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GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
Table 1: Drilling Results for the Electrum Property in Press Release November 6, 2024
| Hole ID | Zone | From (m) | To (m) | Interval (m) | Au (g/t) | Ag (g/t) |
|---|---|---|---|---|---|---|
| EL-23-02 EXT | Dome | 451.00 | 461.10 | 10.10 | 0.48 | 2.03 |
| 472.50 | 484.50 | 12.00 | 0.54 | 2.20 | ||
| Including | 472.50 | 474.00 | 1.50 | 2.50 | 3.89 | |
| Including | 481.50 | 483.00 | 1.50 | 0.50 | 1.79 | |
| 520.50 | 537.00 | 16.50 | 0.48 | 4.37 | ||
| Including | 521.95 | 523.00 | 1.05 | 1.67 | 4.84 | |
| Including | 534.00 | 535.50 | 1.50 | 1.21 | 3.49 | |
| EL-24-12 | Dome | 171.50 | 203.00 | 31.50 | 0.43 | 3.71 |
| Including | 183.50 | 192.50 | 9.00 | 0.59 | 7.29 | |
| 401.00 | 402.50 | 1.50 | 2.86 | 8.70 | ||
| 443.00 | 444.50 | 1.50 | 1.63 | 28.02 | ||
| EL-24-13 | LP | 5.00 | 10.00 | 5.00 | 0.53 | 3.65 |
| Including | 7.00 | 8.50 | 1.50 | 1.04 | 7.31 | |
| 83.50 | 88.00 | 4.50 | 0.52 | 4.27 | ||
| 136.00 | 137.00 | 1.00 | 1.13 | 10.78 | ||
| EL-24-14 | LP | 50.20 | 54.80 | 4.60 | 0.50 | 6.00 |
| Including | 50.20 | 51.00 | 0.80 | 1.48 | 9.78 | |
| 210.00 | 212.50 | 2.50 | 0.55 | 0.56 | ||
| EL-24-15 | LP | 12.00 | 18.00 | 6.00 | 0.65 | 5.00 |
| Including | 16.00 | 16.70 | 0.70 | 1.57 | 3.82 | |
| 34.85 | 35.85 | 1.00 | 2.55 | 187.00 | ||
| 129.00 | 130.50 | 1.50 | 7.78 | 3.54 | ||
| EL-24-16 | LP | 39.00 | 40.50 | 1.50 | 1.02 | 94.95 |
| 172.85 | 173.30 | 0.45 | 1.39 | 1,766.00 | ||
| EL-24-17 | Dome | 99.00 | 147.00 | 48.00 | 0.47 | 5.00 |
| Including | 109.50 | 110.65 | 1.15 | 1.14 | 3.29 | |
| Including | 127.50 | 129.00 | 1.50 | 1.26 | 7.61 | |
| 173.50 | 178.50 | 5.00 | 0.49 | 1.48 |
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GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
Results from Operations
Quarterly Results
The following table summarizes the results of operations for the most recent quarters since incorporation:
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |
|---|---|---|---|---|
| Revenue | $ Nil | $ Nil | $ Nil | $ Nil |
| Loss and comprehensive loss for the period | (115,241) | (61,333) | (143,435) | (122,130) |
| Loss per share | (0.00) | (0.00) | (0.00) | (0.00) |
| December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |
| --- | --- | --- | --- | --- |
| Revenue | $ Nil | $ Nil | $ Nil | $ Nil |
| Loss and comprehensive loss for the period | (215,289) | (142,229) | (199,950) | (270,548) |
| Loss per share | (0.00) | (0.00) | (0.00) | (0.00) |
Results for the nine months ended December 31, 2024
The Company incurred a net loss of $320,009 for the nine months ended December 31, 2024 compared to a net loss of $557,468 for the nine months ended December 31, 2023. The difference is mainly due to:
- Consulting fees were $94,574 for the nine months ended December 31, 2024 compared to $193,067 for the nine months ended December 31, 2023. The difference is due to the reduction of consultants in the current period.
- Transfer agent and filing fees were $11,799 for the nine months ended December 31, 2024 compared to $52,390 for the nine months ended December 31, 2023. The difference is due to decreased filing fees in the current period.
- Interest income was $24,048 for the nine months ended December 31, 2024 compared to $Nil for the nine months ended December 31, 2023. The difference is due to the interest income arising from short-term cash investments in the current period.
Results for the three months ended December 31, 2024
The Company incurred a net loss of $115,241 for the three months ended December 31, 2024 compared to a net loss of $215,289 for the three months ended December 31, 2023. The difference is mainly due to:
-
Consulting fees were $27,533 for the three months ended December 31, 2024 compared to $54,221 for the three months ended December 31, 2023. The difference is due to the reduction of consultants in the current period.
-
10 -
GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
- Share-based compensation was $Nil for the three months ended December 31, 2024 compared to $22,005 for the three months ended December 31, 2023. The difference is due to the stock options granted in the prior period.
Financial Condition, Liquidity and Capital Resources
As at December 31, 2024, the Company had current assets of $280,492 and current liabilities of $308,933; compared to current assets of $2,025,063 and current liabilities of $156,327 as at March 31, 2024. At December 31, 2024, the Company had working capital deficiency of $28,441 including cash and cash equivalents of $45,274.
During the period ended December 31, 2024, the Company's cash outflows from operations were $247,134 compared to cash outflows of $436,982 in 2023.
Net cash and cash equivalents used in investing activities during the period ended December 31, 2024 was $1,657,984 compared to $2,026,260 in 2023. The Company paid $Nil (2023 - $305,661) to purchase fixed assets, $24,000 (2023 - $4,000) for reclamation deposits, and incurred $1,633,984 (2023 - $1,716,599) in exploration expenditures.
Net cash and cash equivalents provided by financing activities during the period ended December 31, 2024 was $200,000 from loans payable compared to $2,168,861 in 2023 from private placements.
The Company will require funds to meet its ongoing day-to-day operating expenses and will rely mostly on equity financing during such period. There can be no assurance that financing will be available on terms that are satisfactory to the Company.
Share Capital
As at the date of this MD&A, the Company has the following:
-
76,012,235 shares outstanding
-
Options:
| Number of Options | Exercise Price | Expiry Date |
|---|---|---|
| 150,000 | $ 0.35 | December 18, 2026 |
| 5,600,000 | 0.26 | November 10, 2030 |
| 5,750,000 |
- Warrants:
| Number of Warrants | Exercise Price | Expiry Date |
|---|---|---|
| 4,898,278 | $ 0.35 | December 15, 2025 |
| 1,022,500 | 0.35 | December 19, 2025 |
| 529,860 | 0.20 | December 15, 2025 |
| 6,450,638 |
GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
Transactions with Related Parties
Key management personnel are the persons responsible for the planning, directing and controlling the activities of the Company and include both executive and non-executive directors, and entities controlled by such persons. The Company considers all Directors and Officers of the Company to be key management personnel.
The Company incurred consulting fees of $108,000 (2023 - $108,000) to Ken Konkin, the Chief Executive Officer of the Company, for management and supervision of field operations, capitalized to exploration and evaluation assets. The Company also paid and/or accrued a total of and $Nil (2023 - $55,520) to Ken Konkin for exploration-related expenditures incurred on behalf of the Company during the period. At December 31, 2024, the Company owed $12,600 (March 31, 2024 - $12,600) to Ken Konkin.
The Company incurred consulting fees of $21,000 (2023 - $27,000) to Helmut Finger, a director of the Company. At December 31, 2024, the Company owed $3,000 (March 31, 2024 - $3,000) to Helmut Finger.
The Company incurred management, accounting and administrative services, which have been recorded as professional fees, of $51,900 (2023 - $63,530) to an accounting firm of which the Chief Financial Officer, Scott Davis is a partner. At December 31, 2024, the Company owed $Nil (March 31, 2024 - $Nil) to this accounting firm.
The Company incurred fees of $Nil (2023 - $16,172) to Natalie Senger, the former Vice President Resource Development of the Company. These fees have been capitalized under exploration and evaluation assets and recorded as geological expenditures. The Company also incurred fees of $390 (2023 - $Nil) to a company controlled by Natalie Senger, which have been capitalized under exploration and evaluation assets and recorded as consulting expenditures. At December 31, 2024, the Company owed $Nil (March 31, 2024 - $683) to Natalie Senger.
The Company incurred consulting fees of $Nil (2023 - $10,500) and director's fees of $13,615 (2023 - $Nil) to Jeff Rowe, a director of the Company. The consulting fees have been capitalized under exploration and evaluation assets and recorded as geological expenditures. At December 31, 2024, the Company owed $Nil (March 31, 2024 - $Nil) to Jeff Rowe.
The Company incurred rent of $11,579 (2023 - $18,729) to Tudor, a company with common directors. As at December 31, 2024, the Company owed $37,306 (March 31, 2024 - $125,710) to Tudor for expense reimbursements. The amount is unsecured, non-interest bearing with no terms of repayment.
The Company incurred lease expenses for use of field equipment, vehicles, storage and accommodation facilities of $115,875 (2023 - $Nil) to Tudor Gold Service Corporation ("TGSC"), a subsidiary of Tudor. The expenses have been capitalized under exploration and evaluation assets and recorded as field expenditures. As at December 31, 2024, the Company owed $38,420 (March 31, 2024 – was owed $229,713) to/from TGSC.
During the period ended December 31, 2024, the Company received loan proceeds of $200,000 from a non-arm's length party, bearing interest of 7% per annum. During the period ended December 31, 2024, the Company accrued interest expense of $1,112 (2023 - $Nil) on the loan.
Corporate Activities
In June 2024, the Company appointed Ken McNaughton to the board of directors and Natalie Senger resigned from the board of directors.
Adoption of new and amended accounting standards
Please refer to the Company's March 31, 2024 audited financial statements.
GOLDSTORM METALS CORP.
Management's Discussion & Analysis
For the nine months ended December 31, 2024
Financial Instruments
Please refer to the Company’s December 31, 2024 condensed interim financial statements.
Critical Accounting Estimates
The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual reports could differ from management’s estimates.
Proposed Transactions
The Company is not contemplating any other transactions which has not already been disclosed.
Contingencies
There are no contingent liabilities.
Off Balance Sheet Arrangements
There is no off-balance sheet arrangements to which the Company is committed.
Forward-looking information
Certain information in this MD&A, including all statements that are not historical facts, constitutes forward-looking information within the meaning of applicable Canadian securities laws. Such forward-looking information may include, but is not limited to, information which reflect management’s expectations regarding the Company’s future growth, results of operations, performance (both operational and financial) and business prospects and opportunities. Often, this information includes words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
This MD&A contains information on risks, uncertainties and other factors relating to the forward-looking information (see “Risks and Uncertainties”). Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of the factors are beyond the Company’s control. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to reissue or update forward looking information as a result of new information or events after the date of this MD&A except as may be required by law. All forward-looking information disclosed in this document is qualified by this cautionary statement.
Internal Controls over Financial Reporting
Changes in Internal Control over Financial Reporting (“ICFR”)
In connection with National Instrument 52-109 (“NI 52-109”) adopted in December 2008 by each of the securities commissions across Canada, the Chief Executive Officer and Chief Financial Officer of the Company will file a Venture Issuer Basic Certificate with respect to financial information contained in the unaudited condensed interim financial statements and the audited annual financial statements and respective accompanying Management’s Discussion and Analysis. The Venture Issue Basic Certification does not include representations relating to the establishment and maintenance of disclosure controls and procedures and internal control over financial reporting, as defined in NI 52-109.
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GOLDSTORM METALS CORP.
Management’s Discussion & Analysis
For the nine months ended December 31, 2024
Risks and Uncertainties
Uncertainty of Funding
The Company has no history and has not begun any operating activity. As such, the Company is subject to many risks common to such enterprises, including undercapitalization, cash shortages and limitations with respect to personnel, financial and other resources and the lack of revenues. There is no assurance that the Company will be able to obtain adequate financing or that the terms of such financing will be favorable.
Price Volatility
In recent years securities markets have experienced extremes in price and volume volatility. The market price of securities of many early stage companies, among others, have experienced fluctuations in price which may not necessarily be related to the operating performance, underlying asset values or prospects of such companies. It may be anticipated that any market for the Company’s securities will be subject to market trends generally and the value of the Company’s securities may be affected by such volatility.
Economic Conditions
Unfavorable economic conditions may negatively impact the Company’s financial viability as a result of increased financing costs and limited access to capital markets.
Dependence on Management
The Company is very dependent upon the personal efforts and commitment of its existing management. To the extent that management’s services would be unavailable for any reason, a disruption to the operations of the Company could result, and other persons would be required to manage and operate the Company.
Conflicts of interest
The Company’s directors and officers may serve as directors and officers or may be associated with other reporting companies or have significant shareholdings in other public companies. To the extent that such other companies may participate in business or asset acquisitions, dispositions or ventures in which the Company may participate, the directors and officers of the Company may have a conflict of interest in negotiating and concluding terms respecting the transaction. If a conflict of interest arises, the Company will follow the provisions of the BCBCA in dealing with conflicts of interest. These provisions state that where a director/officer has such a conflict, the director must arrange a meeting of the board to disclose his interest and must refrain from voting on the matter unless otherwise permitted by the BCBCA. In accordance with the laws of the Province of British Columbia, the directors and officers of the Company are required to act honestly, in good faith and in the best interests of the Company.
Additional Information
Additional information pertaining to the Company is available at www.sedarplus.ca.