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Hanstone Gold Corp. Management Reports 2025
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HANSTONE GOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
INTRODUCTION
The information in this Management’s Discussion and Analysis (“MD&A”) is intended to assist the reader in the understanding and assessment of the trends and significant changes in the results of operations and financial conditions of Hanstone Gold Corp. (the “Company”). This MD&A should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2024, and other information relating to the Company on file with the Canadian provincial securities regulatory authorities on SEDAR at www.sedar.com. The Company’s annual financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”).
This MD&A contains forward-looking statements. Please refer to the cautionary language at the end of this document.
This MD&A has considered information available up to and including April 28, 2025.
The Company was incorporated under the Business Corporations Act (British Columbia) on October 11, 2018. Effective on August 19, 2020, the Company changed its name to Hanstone Gold Corp. and is listed on the TSX Venture Exchange under the symbol “HANS” and on the Frankfurt Stock Exchange under the symbol “HGO”. The Company is a reporting issuer in British Columbia and Alberta.
The principal business of the Company is the acquisition and exploration of mineral properties. The registered office of the Company is Suite 1100 – 1111 Melville Street Vancouver, B.C. V6E 3V6.
GOING CONCERN
These financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due. As at December 31, 2024, the Company has not generated any revenues from operations and has an accumulated deficit of $9,486,971.
The Company expects to incur further losses in the development of its business, all of which casts significant doubt about the Company’s ability to continue as a going concern. The continued operations of the Company are dependent on its ability to generate future cash flows or obtain additional financing. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company’s liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These financial statements do not reflect any adjustments to the carrying values of assets and liabilities, the reported expenses, and the balance sheet classifications used that may be necessary if the Company is unable to continue as a going concern.
HIGHLIGHTS AND OUTLOOK
The Company is an exploration stage company and, to date, has no revenues. The recoverability of amounts shown for exploration and evaluation assets is dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary approvals and financing to complete the development, and future profitable production from the properties or proceeds from disposition. The Company fully anticipates undertaking further private placements or public offerings in order to finance business opportunities as they may arise.
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP
Ownership in mineral interests involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many mineral interests. The Company has investigated ownership of its mineral interests and, to the best of its knowledge, such ownership interests are in good standing.
ASSETS OF THE CORPORATION
The Company's major asset is its investment in mineral properties. As at December 31, 2024, the Company's investment in mineral properties totaled $2,188,250.
The Company continues to focus on the exploration of its Doc and Snip North properties.
DOC PROPERTY
On August 18, 2020, pursuant to an asset purchase agreement (the "Milestone Agreement") between the Company and Milestone Infrastructure Inc. ("Milestone"), the Company acquired all of Milestone's right, title and interest in and to the Doc Property (the "Doc Property"), located in the Skeena Mining Division in northwest British Columbia, approximately 55 kilometers northwest of the community of Stewart BC. The Doc Property lies within a mineral-rich belt that extends over 200 km north from the town of Stewart, along the western part of the Stikine terrane, and is about 10 kilometres north of the past producing Granduc Cu-Au-Ag mine.
The Doc Property consists of 8 contiguous mineral claims totalling 1,704.23 ha. The owner of the Doc Property, John C. Bot ("Bot"), entered into an option agreement ("the Option Agreement") with Milestone in July 2019 for Milestone to purchase Bot's interest in the Doc Property (the "Option"). The Option Agreement has a term of six years commencing July 3, 2019. Under the terms of the Option Agreement the Company shall be deemed to have exercised the Option and acquired 100% legal title to the Property upon paying to Bot an aggregate of $1,825,000 in cash.
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
Additionally, Bot shall retain a 1.5% Net Smelter Returns Royalty ("NSR") on the Doc Property. The Company may repurchase the NSR from Bot by paying $500,000 at any time. Until the Company has successfully exercised the Option, Bot would receive a bulk sample royalty of 5%.
As consideration for the acquisition of the Doc Property, the Company issued an aggregate of 4,500,000 common shares and paid an aggregate of $150,000 in cash for pre-closing expenditures related to the Doc Property incurred or accrued by Milestone.
For the year ended December 31, 2024, the Company has spent $462,821 in exploration expenditures (2023 - $557,342) for a cumulative total of $6,441,854 on the Doc Property.
Doc Property Description
The Doc Property is an Au-Ag exploration project located within an area informally known as the "Golden Triangle", one of the most important mineral districts in northwest British Columbia, Canada. The "Golden Triangle" encompasses the northwest Stikine terrane which follows an arc-like trend known as the Stikine Arch, and is an area which hosts prolific porphyry, volcanogenic massive sulphide, and high-grade vein deposits and mines, including the presently producing Red Chris and Brucejack mines, and the past-producing Eskay Creek, Snip, Granduc, Silbak-Premier and Scottie Gold mines. It also hosts large undeveloped deposits such as the Galore Creek, Schaft Creek, Kerr, Sulphurets, Mitchell, Snowfield and Iron Cap porphyry deposits, and exciting recent discoveries such as the Saddle North porphyry Cu-Au and Saddle South Au-Ag vein zones.
Doc Property 2019 Exploration Program
In 2019, a two-phase exploration program was conducted by C.J. Greig & Associates Ltd. on behalf of Milestone in early August and early September. Phase 1 was comprised of a geological reconnaissance and rock geochemical sampling program over the Doc, BGS, Galena Ridge, Q19, Quinn Eskay and Glacier zones, together with ground-based magnetometer surveys over the Doc, BGS, Galena Ridge and Quinn Eskay zones. A total of 154 rock samples were collected and 30.5-line kilometres of magnetometer surveys were completed during the exploration campaign. Phase 2 consisted of channel sampling (37 samples) at the BGS, Galena Ridge, Q19 and Quinn Eskay zones, as well as limited prospecting at the Florence zone. The Doc Property has been shown to host numerous high-grade gold veins and to have the potential to host replacement style skarn and volcanogenic-massive sulphide mineralization. Areas of known quartz veining with associated galena is the primary focus of exploration on the Doc Property.
Doc Property 2020 Drilling Exploration Program
Due to the shortened 2020 drilling season resulting from persistent winter conditions, the 2020 drill program consisted of relatively shallow drill holes where only 2 of 21 drill holes exceeded 200 meters in depth. All significant intervals of mineralization from the 2020 drill program are shown in 2020 Table 1 below. The drill program results included numerous other intersections ranging from 0.50 to 0.99 g/t Au which are not shown in 2020 Table 1. Assays of mineralized sections are posted on the Company's website.
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
2020 Table 1: Doc Property 2020 Drilling Intersections - Average Assay Grades
| Hole Number | Azimuth | Dip | Avg Grade Au (g/t) | From Depth (m) | To Depth (m) | Interval (m) |
|---|---|---|---|---|---|---|
| DC-20-01 | 020° | -50° | 1.58 | 175.00 | 181.00 | 6.00 |
| including | 2.92 | 176.00 | 178.90 | 2.90 | ||
| including | 7.41 | 176.94 | 177.44 | 0.50 | ||
| DC-20-02 | 186° | -45° | 1.39 | 28.00 | 30.40 | 2.40 |
| 4.36 | 59.20 | 59.40 | 0.20 | |||
| DC-20-03 | 191° | -45° | 2.27 | 82.18 | 89.20 | 7.02 |
| DC-20-04 | 215° | -60° | 6.35 | 69.48 | 77.60 | 8.12 |
| including | 10.58 | 71.00 | 74.50 | 3.50 | ||
| and | 53.10 | 72.90 | 73.50 | 0.60 | ||
| and | 17.68 | 76.30 | 77.00 | 0.70 | ||
| DC-20-05 | 215° | -75° | 11.51 | 129.83 | 137.00 | 7.17 |
| including | 50.12 | 133.23 | 134.40 | 1.17 | ||
| DC-20-06 | 225° | -70° | 2.78 | 61.10 | 61.55 | 0.45 |
| 12.01 | 119.00 | 132.28 | 13.28 | |||
| including | 8.47 | 119.00 | 119.50 | 0.50 | ||
| and | 113.70 | 131.00 | 132.28 | 1.28 | ||
| GR-20-04 | 217° | -45° | 1.33 | 15.67 | 16.09 | 0.42 |
| Q19-20-03 | 225° | -45° | 1.21 | 8.17 | 9.24 | 1.07 |
| Q19-20-04 | 175° | -45° | 6.18 | 6.80 | 9.05 | 2.25 |
| Q26-20-01 | 178° | -45° | 5.10 | 42.83 | 44.80 | 1.97 |
| Q26-20-03 | 178° | -80° | 2.20 | 72.00 | 78.00 | 6.00 |
| including | 10.80 | 74.00 | 74.80 | 0.80 | ||
| Q28-20-01 | 200° | -45° | 1.73 | 15.00 | 16.00 | 1.00 |
Note: *Average gold grade intervals under 1 g/t not included in the above table
Doc Property 2021 Drilling Exploration Program
On January 27, 2022, the Company provided an update on the results from its 2021 Doc Property bulk sampling program. conducted in 2021 on its DOC Property,
Two 1-ton bulk samples were taken from the Doc Property's Q19 vein, and from the newly discovered TRJC vein. Samples from each vein were crushed and milled to -150 mesh size fraction, with 5 samples retrieved from each bulk sample for analysis. Each sample was analyzed using the metallic screen fire assay at TSL Laboratories and ICP1 Total 4 acid digestion method at SRC Geoanalytical Laboratories in Saskatoon, SK. Highlighted results from the analysis are as follows:
- Q19 vein system bulks sample averaged 19.35 g/t Au, 127.00 g/t Ag, and 465.40 ppm Cu.
- TRJC vein system bulk sample averaged 5.73 g/t Au, 89.18 g/t Ag, and 43,580 ppm Pb.
Results from all samples analyzed from each bulk samples are listed in 2021 Table 1 below.
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
2021 Table 1: Bulk sampling results (2021)
| Bulk Sample Vein ID | Sample # | Avg. Grade Au (g/t) | Au Total (g/t) | Avg. Grade Ag (g/t) | Ag total (g/t) | Avg. Grade Cu (ppm) | Cu total (ppm) | Avg. Grade Pb (ppm) | Pb total (ppm) |
|---|---|---|---|---|---|---|---|---|---|
| TRJC | 872928 | 5.7 | 76.4 | 93 | 32600 | ||||
| TRJC | 872929 | 5.9 | 90 | 93 | 36800 | ||||
| TRJC | 872930 | 5.48 | 83 | 111 | 35200 | ||||
| TRJC | 872932 | 4.87 | 100 | 90 | 57900 | ||||
| TRJC | 872938 | 6.7 | 96.5 | 99 | 55400 | ||||
| Q19 | 872933 | 17.74 | 114 | 431 | 2010 | ||||
| Q19 | 872934 | 19.27 | 128 | 468 | 2240 | ||||
| Q19 | 872935 | 19.71 | 131 | 489 | 2260 | ||||
| Q19 | 872937 | 21.66 | 130 | 471 | 2230 | ||||
| Q19 | 872939 | 18.4 | 132 | 468 | 2070 | ||||
| TRJC average | 5.73 | 89.18 | 97.20 | 43,580 | |||||
| Q19 average | 19.35 | 127.00 | 465.40 | 2,162 |
On February 10, 2022, the Company announced the drill core assay results from its 2021 Doc Property drilling exploration program. The program consisted of 23 diamond core drill holes totaling 2,852.04 meters. The drill program focused on investigating and verifying historic drill-indicated gold mineralization, while expanding the known mineralization zones along strike.
Drilling result highlights from the 2021 drilling program include:
- Hole DC-21-025 intersected 5.83 m grading 2.86 g/t Au, 23.25 g/t Ag and 1,721.20 ppm Cu including 3.32 m grading 4.89 g/t Au, and 38.77 g/t Ag, and 1920.73 ppm Cu
- Hole DC-21-026 intersected 6.47 m grading 1.13 g/t Au, and 4.15 g/t Ag and 17.59 m grading 0.46 g/t Au and 2.54 g/t Ag including 6.14 m grading 1.07 g/t Au and 5.47 g/t Ag
- Hole DC-21-027 intersected 1.18 m grading 24.67 g/t Au, and 65.20 g/t Ag, and 35.92 m grading 1.03 g/t Au, and 4.44 g/t Ag including 1.41 m grading 12.14 g/t Au, and 49.10 g/t Ag
2021 Table 2: DOC zone intersection Highlights (2021)
| Drillhole | Avg. Grade Au (g/t) | Avg. Grade Ag (g/t) | Cu (ppm) | Width (m) |
|---|---|---|---|---|
| DC-21-025 | 2.86 | 23.25 | 1721.20 | 5.83 |
| including | 4.89 | 38.77 | 1920.73 | 3.32 |
| DC-21-026 | 1.13 | 4.15 | - | 6.47 |
| 0.46 | 2.54 | - | 17.59 | |
| including | 1.07 | 5.47 | - | 6.14 |
| DC-21-027 | 24.67 | 65.20 | - | 1.18 |
| 1.03 | 4.44 | - | 35.92 | |
| including | 12.14 | 49.10 | - | 1.41 |
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
DC-21-027 intersected low-grade mineralization over a $35.92\mathrm{m}$ within a fault zone with moderate to strong hematite and sericite alteration, and $1 - 5\mathrm{cm}$ quartz veining. The mineralization style indicates a potential continuation of the DOC epithermal vein system, heavily influenced by structure. The hole confirms mineralization from a historic hole and expands the mineralization footprint.
2021 Table 3: Significant Doc property intersections (2021)
| Drillhole | Azimuth ° | Dip ° | Avg. Grade Au (g/t) | Avg. grade Ag (g/t) | Cu (ppm) | Width (m) | From (m) | To (m) |
|---|---|---|---|---|---|---|---|---|
| DC-21-007 | 185 | 45 | 0.89 | 2.52 | 227.40 | 4.52 | 57.97 | 61.68 |
| including | 1.87 | - | - | 1.94 | 57.97 | 59.91 | ||
| DC-21-008 | 185 | -60 | 0.28 | 1.22 | - | 9.29 | 79.32 | 88.61 |
| including | 0.59 | - | - | 2.00 | 84.75 | 86.75 | ||
| DC-21-009 | 185 | -70 | 2.22 | 11.03 | - | 4.10 | 80.00 | 84.10 |
| DC-21-011 | 190 | -55 | 1.23 | 6.60 | - | 4.36 | 161.04 | 165.40 |
| DC-21-012 | 190 | -62 | 0.85 | 2.94 | - | 6.00 | 150.00 | 156.00 |
| DC-21-015 | 190 | -66 | 1.90 | 6.51 | - | 6.11 | 53.08 | 58.32 |
| DC-21-016 | 190 | -75 | 2.10 | 7.20 | - | 5.55 | 77.65 | 83.20 |
| DC-21-017 | 190 | -50 | 0.20 | 1.20 | - | 12.10 | 27.90 | 40.00 |
| including | 0.53 | 2.17 | - | 3.20 | 27.90 | 31.10 | ||
| 0.21 | 2.86 | - | 6.00 | 127.00 | 132.00 | |||
| including | 0.55 | 4.22 | - | 2.00 | 127.00 | 129.00 | ||
| DC-21-018 | 190 | -54 | 0.58 | 3.29 | 233.56 | 9.80 | 47.00 | 56.80 |
| including | 1.26 | 6.48 | - | 4.05 | 50.00 | 54.05 | ||
| DC-21-019 | 190 | -63 | 0.41 | 2.51 | - | 8.00 | 53.00 | 60.00 |
| DC-21-020 | 190 | -75 | 0.38 | 1.49 | - | 6.70 | 98.00 | 103.50 |
| including | 0.88 | 3.20 | - | 2.80 | 98.00 | 100.80 | ||
| DC-21-021 | 10 | -55 | 0.94 | 3.49 | 193.06 | 9.00 | 38.00 | 47.00 |
| including | 1.37 | 5.00 | 234.31 | 6.15 | 38.85 | 45.00 | ||
| DC-21-022 | 1.5 | -70 | 0.88 | 3.42 | - | 1.25 | 68.25 | 69.50 |
| DC-21-024 | 5 | -75 | 0.59 | 2.22 | - | 4.00 | 87 | 91 |
| 0.22 | 0.90 | - | 4.60 | 95.4 | 99 | |||
| including | 1.44 | 5.90 | - | 0.60 | 95.4 | 96 | ||
| DC-21-025 | 22.5 | -45 | 2.86 | 23.25 | 1721.20 | 5.83 | 103.35 | 109.18 |
| including | 4.89 | 38.77 | 1920.73 | 3.32 | 104.12 | 107.44 | ||
| DC-21-026 | 22.5 | -57 | 1.13 | 4.15 | - | 6.47 | 150.33 | 156.8 |
| 0.46 | 2.54 | - | 17.59 | 167.18 | 183.9 | |||
| including | 1.07 | 5.47 | - | 6.14 | 172.52 | 178.66 | ||
| DC-21-027 | 22.5 | -64 | 24.67 | 65.20 | - | 1.18 | 62.43 | 63.61 |
| 1.03 | 4.44 | - | 35.92 | 125.71 | 158.88 | |||
| including | 12.14 | 49.10 | - | 1.41 | 137.11 | 138.52 |
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
Notes:
Au analysis is by 2 AT (58.32 grams) fire assay with gravimetric finish (TSL Labs Method A/Gravimetric 2 AT) Ag and Cu analysis is by aqua regia digestion or multi acid ICP multielement analysis (TSL Labs Method ICP-MS Aqua Regia or MA) or Ag and Cu analysis also by ICP multielement analysis total 4 acid digestion (SRC analytical laboratories method ICP1 Total 4 Acid Digestion).
Results from a UAV Magnetic Survey compiled later in 2020 were interpreted in early 2021. The magnetic relationships between highs and lows are similar for both the Q26 and Doc zones and may also be analogous to a much larger and potentially more significant magnetic low to the south of both targets. This magnetic low may be tested in one to three key areas to understand if and how it relates to the similar magnetic signatures to the north.
In the Company's news release dated May 5, 2022, the Company announced the results of the Triaxial Magnetic Survey on its Doc Property. The 2022 Doc Property Triaxial Magnetic Survey was able to verify anomalies previously discovered in the 2020 UAV magnetic survey (drone survey) and revealed additional areas of interest on the Quinn Eskay, the Globe area and the highly prospective Florence vein. The magnetic survey also outlined a much larger folding event, to the east of the Doc vein system, and it appears that the known veins on the property are associated with the fold limbs.
2021 Figure 1: Doc Property Total Magnetics
Previous samples taken from the Quinn Eskay area have returned high copper values up to $4.8\%$ (January 2020, NI 43-101 Technical Report). Management has long suspected this may be a sign of a porphyry located on the Doc property. The Triaxial Magnetic Survey results appear to support this theory. To
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP
delineate the suspected porphyry targets on the property, several areas are targeted for further evaluation through mapping, prospecting, and a proposed Induced Polarization (IP) survey leading to a targeted drill program.
Doc Property 2022 Exploration Program
On October 31, 2022, the Company announced that it had completed a bulk sampling, surface sampling and mapping campaign at the DOC Property.
Details of the program are outlined below.
Sample Pits & Bulk Samples
A total of 18 sample pits were opened on the Property, with 17 pits located along the DOC area (Q17/Q22 vein zone) and one pit at the Q19 zone. The bulk sampling component of the program consisted of a series of four (4) bulk samples taken across the Q17 and Q19 vein zones. The specifications of each sample are shown in 2022 Table 1 below. Each sample at both the Q17 and Q19 veins consisted of abundant galena and minor pyrite mineralization within 0.5 to 1.0 metre quartz veins, hosted within a broader shear zone:
2022 Table 1: Bulk Sample Specifications (2022)
| Sample ID / Location | Zone | Weight (kg) |
|---|---|---|
| DOC22-Pit 2E | Q17 | 50.0 |
| DOC22-Pit 2.5E | Q17 | 20.0 |
| DOC22-Pit 3E | Q17 | 110.0 |
| DOC22-Q19 Pit 3 | Q19 | 130.0 |
The Q17 and Q22 veins clearly coincide with the underground workings, with pits generally exhibiting a similar style of mineralization to that observed within the underground workings. In conjunction with historical drill results, veining and sulphide mineralization appears to be mostly continuous throughout the zone, as well as further along strike to the east.
Surface Sampling & Mapping
The second component of the exploration program consisted of grab sampling and mapping across the majority of the Q17/Q22 (DOC) area, as well as in and around the Q19 zone. Additional samples were collected along strike from the primary mineralization at the Q17/Q22 (DOC) zone. In conjunction with grab sampling, key lithological and structural observations were recorded at each pit location.
On November 22, 2022, the Company announced that it received assay results from its recently completed bulk sampling program at its Doc Property.
Sample Pits & Bulk Samples
Assay results from the DOC Zone yielded a high value of 43.91 g/t Au and 244 g/t Ag from a 110.0kg sample from Pit 3E at the Q17 vein, out of a total of three bulk samples taken along an approximately 10-metre long zone on the Q17 vein (see 2022 Figure 1 below). The single bulk sample taken at the Q19 zone yielded 7.04 g/t Au and 85 g/t Ag from a 130.0kg sample.
A total of 18 sample pits were opened on the Property, with 17 pits located along the DOC area (Q17/Q22 vein zone) and one pit at the Q19 zone. The bulk sampling component of the program consisted of a series
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
of four (4) bulk samples taken across the Q17 and Q19 vein zones. The specifications and assay results of each sample are shown in 2022 Table 2 below. Each sample at both the Q17 and Q19 veins consisted of abundant galena and minor pyrite mineralization within 0.5 to 1.0 metre quartz veins, hosted within a broader shear zone and yielded anomalously high gold and silver values. No significant copper or zinc values were encountered.
2022 Table 2: Bulk Sample Gold Assays
| Sample ID / Location | Zone | Weight (kg) | Au (g/t) | Ag (g/t) |
|---|---|---|---|---|
| DOC22-Pit 2E | Q17 | 50.0 | 10.38 | 113 |
| DOC22-Pit 2.5E | Q17 | 20.0 | 11.34 | 149 |
| DOC22-Pit 3E | Q17 | 110.0 | 43.91 | 244 |
| DOC22-Q19 Pit 3 | Q19 | 130.0 | 7.04 | 85 |
The Q17 and Q22 veins clearly coincide with the underground workings, with pits generally exhibiting a similar style of mineralization to that observed within the underground workings. In conjunction with historical drill results, veining and sulphide mineralization appears to be mostly continuous throughout the zone, as well as further along strike to the east.
2022 Figure 1: Bulk Sample Locations at Q17 Zone
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
Assay Method
Analytical results of sampling reported by Hanstone represent rock samples submitted by Hanstone directly to Seacan Labs, an ISO 17025 accredited lab based in Stewart, British Columbia. Bulk samples were coarse crushed and divided into 5 kg samples, dried at 100 °C, crushed to 80% < 10 mesh, split, with 250g pulverised to 85% < 140 mesh. For Au and Ag, 30g pulp was fire assayed with gravimetric finish. For all other elements, pulp samples were digested by aqua regia and run by ICP-OES.
On December 6, 2022, The Company announced the results from grab sampling and surface mapping carried out at its Summer 2022 exploration program.
Highlights
- Hanstone receives assay results up to 277.9g/t Au and 1,405g/t Ag from grab samples at sample pits at Q17/Q22 Zones.
- High-grade gold identified at Q17/Q22 Zones along a 350-metre strike length.
Field Program Overview
Field reconnaissance was carried out during the Summer 2022 program, alongside the bulk sampling program.
Assay results from grab sampling at the Q17 and Q22 Zones yielded a high value of 277.9g/t Au and 935g/t Ag from sample 872104, which was taken from DOC22-Pit 7E (see 2022 Table 3 and 2022 Figure 4 below). This pit, opened on the Q17 vein, exhibits a vuggy gossan with galena-derived boxwork on the margin of the same vein exposed at the bulk sampled zone at the top of the slope at DOC22-Pit 2E through 3E. Sample 872135, taken from an unweathered portion of the Q17 vein at DOC22-Pit 3E, yielded 231.4g/t Au and 1,405g/t Ag*.
Mineralization observed at the Q17, Q22, and Q19 Zones is hosted within broad, approximately ~1 metre thick vitreous quartz veins with 5-10% coarse (up to ~2cm) galena crystals disseminated within the vein margin. See 2022 Figure 2 and 2022 Table 3 below for sample locations.
Sampling at Q17 / Q22 Zones
Grab sample 872125, taken directly above the end of the adit and roughly at the centre-point of the segment of the Q17 vein mined by the underground workings, returned 111.5g/t Au and 155g/t Ag. Sample 872122, taken directly above the eastern end of the underground workings, yielded 47.7g/t Au and 248g/t Ag. More significantly, sample 872123, taken 130 metres further ESE along strike beyond the end of the surface projection of the underground workings, in the vicinity of the eastern-most historical 1988 drilling, yielded 58.3g/t Au and 256g/t Ag. *
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP
2022 Table 3: Grab Sample Assay Highlights
| Sample ID | Location | Zone | Au (g/t) | Ag (g/t) |
|---|---|---|---|---|
| 872104 | DOC22-Pit 7E | Q17 | 277.9 | 935 |
| 872125 | DOC22 Pit 10E | |||
| (outcrop grab) | Q17 | 111.5 | 155 | |
| 872127 | DOC22-Pit 8E | Q17 | 90.6 | 353 |
| 872128 | DOC22-Pit 6E | Q17 | 242.7 | 1200 |
| 872129 | DOC22-Pit 5E | Q17 | 14.6 | 237 |
| 872131 | DOC22-Pit 4E | Q17 | 22.1 | 19 |
| 872132 | DOC22-Pit 2E | Q17 | 36.0 | 307 |
| 872135 | DOC22-Pit 3E | Q17 | 231.4 | 1405 |
| 872136 | DOC22-Pit 2.5E | Q17 | 31.1 | 769 |
| 872122 | Above eastern end of workings, 130 metres east of DOC22-Pit 10E | Q17/Q 22 | 47.7 | 248 |
| 872123 | 130 metres east along strike from 872122 | Q22 | 58.3 | 256 |
2022 Figure 2: Grab Sample Highlights Map
Discussion of Sampling Results
Grab samples taken from pits opened during the program yielded numerous high-grade gold showings with apparent continuity of a mineralized zone extending along surface from DOC22-Pit 1E (top of slope) down to DOC22-Pit 16E, a strike length of approximately 150 metres. Additional pits located 70 and 200 metres further southeast along strike of the same zone also yielded high-grade gold results (47.7g/t Au and 58.3g/t Au, respectively), with the zone remaining open along strike in both directions. This mineralized trend almost exactly parallels the underground workings and represents the surface projection of the same Q17
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP
and Q22 veins that were the target of underground mining. Based on these observations, in conjunction with historical drilling intercepts across the vein, the mineralized zone appears to measure at least 350 metres along strike and 100 metres depth, while remaining open along strike and at depth.
The grades being returned from grab and bulk sampling at the Doc Project are consistent between samples of similar material and have yielded up to $277.9\mathrm{g / t}$ Au (DOC22-Pit 7E), which was taken from a grab sample of vuggy gossan with galena-derived boxwork. Evidenced from the texture of the high-grade gossan, this material is the weathered form of the galena-bearing quartz vein appearing uphill at DOC22-Pit 2E through DOC22-Pit 6E and likely continues further beyond the most distal pits in both directions along strike. *
2022 Figure 3: Sample 872104 (277.9g/t Au, 935 g/t Ag)
2022 Figure 4: Pit 8E looking west - representative section of mineralized zone (rock hammer for scale)
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
Bulk Sampling Recap and Pit Descriptions
As announced in Hanstone’s news release dated November 22, 2022(2), assay results from bulk samples from the DOC Zone yielded a high value of 43.91 g/t Au and 244 g/t Ag from a 110.0kg sample from Pit 3E at the Q17 vein, out of a total of three bulk samples taken along an approximately 10-metre long zone on the Q17 vein. The single bulk sample taken at the Q19 zone yielded 7.04 g/t Au and 85 g/t Ag from a 130.0kg sample.
A total of 18 sample pits were opened on the Property, with 17 pits located along the DOC area (Q17/Q22 vein zone) and one pit at the Q19 zone. The bulk sampling component of the program consisted of a series of four (4) bulk samples taken across the Q17 and Q19 vein zones. Each sample at both the Q17 and Q19 veins consisted of abundant galena and minor pyrite mineralization within 0.5 to 1.0 metre quartz veins, hosted within a broader shear zone and yielded anomalously high gold and silver values. No significant copper or zinc values were encountered.
The surface exposure of the Q17 and Q22 veins evidently coincide with the underground workings, with pits generally exhibiting a similar style of mineralization to that observed within the underground workings. In conjunction with historical drill results, veining and sulphide mineralization appears to be mostly continuous throughout the zone, as well as further along strike to the east.
*Cautionary Note: The reader is cautioned that grab rock samples are selective by nature and may not represent the true grade or style of mineralization across the Property.
Assay Method
Analytical results of sampling reported by Hanstone represent rock samples submitted by Hanstone directly to Seacan Labs, an ISO 17025 accredited lab based in Stewart, British Columbia. Samples were coarse crushed, dried at 100 °C, crushed to 80% < 10 mesh, split, with 250g pulverised to 85% < 140 mesh. For Au and Ag, 30g pulp was fire assayed with gravimetric finish. For all other elements, pulp samples were digested by aqua regia and run by ICP-OES.
On February 8, 2023, the Company announced that it received preliminary metallurgical results from a 54.5-kilogram bulk sample of mineralized material from the Doc Property.
Highlights
Metallurgical testing achieved excellent recovery from processing of mineralized material from the Doc Property.
Combined gravity concentration and cyanide leaching (gravity-leach) achieved overall gold recovery of 95.3%.
Analysis was conducted on a 54.5-kilogram representative bulk sample collected from DOC22-Pit 2E, DOC22-Pit 2.5E, and DOC22-Pit 3E. The tests were conducted by Sepro Laboratories (“Sepro”), a full-service metallurgical testing facility located in Langley, BC.
Head Assays
Calculated head grades ranged from 31.5 g/t to 34.8 g/t Au with a calculated average grade of 32.2 g/t Au and a direct head assay grade of 33.6 g/t Au (2022 Table 4).
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP
2022 Table 4: Head Grade Summary
| Test Work Description | Method | Head Grade Au (g/t) |
|---|---|---|
| Direct Head Assay | Assayed Grade | 33.6 |
| Fine Gravity (4 stage) | Calculated Grade | 34.8 |
| Gravity-Floatation | Calculated Grade | 33.3 |
| Gravity-Leach | Calculated Grade | 31.5 |
The Direct Head Assay also returned values of 220 g/t Ag, 1.93% Fe, 7.05% Pb, and 0.6% S.
Gravity Concentration
A 20 kg subsample was subjected to a 3-stage gravity concentration test with intermediate grinding. The Falcon L40 concentrates were panned to determine upgradability. The stage 3 Falcon tailings were split into multiple subsamples for the following test work:
- Additional gravity concentration at a finer grind size (P80 of 45 microns).
- Flotation using a standard gold-sulphide procedure.
- Cyanide leaching under standard leach conditions
Standard gravity recoverable gold (GRG) testwork determined that grinding to a P80 of 78 microns achieved a gold recovery of 24.8%. The concentrates were high grade and amenable to further upgrading by panning. Additional grinding down to a P80 of 45 microns increased overall gold recovery to 30.7%.
Flotation Test
The scoping flotation test was conducted on the stage 3 Falcon tailings using a standard gold-sulphide procedure. Flotation testing achieved a gold recovery of 70.5% and a silver recovery of 63.7%. Flotation of the stage 3 gravity tailings (gravity-flotation) increased the overall gold recovery to 78.0%.
Cyanide Leaching Test
Cyanide leaching on stage-3 gravity tailings (gravity-leach) increased overall gold recovery to 95.3%. The relatively high dissolution of the gold content, as compared with the flotation recovery results, indicates while the valuable constituents are likely locked with the silicate gangue, there is high surface area availability for cyanide leaching.
Summary
Overall flowsheet test results are summarized in 2022 Table 5 below.
2022 Table 5: Test Result Summary
| Flowsheet Description | P80 (μm) | Au Recovery (%) |
|---|---|---|
| Standard Gravity (3 stage) | 78 | 24.8 |
| Fine Gravity (4 stage) | 45 | 30.7 |
| Gravity-Floatation | 78 | 78.0 |
| Gravity-Leach | 78 | 95.3 |
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
2024 Mineral Resource Estimate
On March 21, 2024, the Company announced the initial NI 43-101 compliant gold and silver Mineral Resource Estimate (“MRE”) on its Doc Property.
Doc Property Highlights:
- MRE of 172,000 Tonnes Containing 15.1 g/t Au and 65.2 g/t Ag
- The Inferred MRE contains 114,000 ounces of gold and 488,000 ounces of silver, or 120,000 ounces of gold equivalent.
- The MRE exhibits excellent continuity through a wide range of AuEq cut-off grades up to 10 g/t AuEq with a likely elevated working cut-off at 7 g/t AuEq yielding a grade of 15.87 g/t AuEq
- Previous geophysical work identified parallel vein structures giving the MRE excellent upside future potential (see Company website www.hanstonegold.com/doc-1)
- Metallurgical test work achieved an overall gold recovery of 95.3% (see news release dated February 8th, 2023 “Hanstone Receives Preliminary Metallurgical Results with Gold Recoveries up to 95.3% at the Doc Property, British Columbia”)
2024 Table 1: Underground Inferred Mineral Resource Estimate Sensitivity⁽¹⁻¹⁰⁾
| Cut-Off AuEq g/t | Tonnes k | Au g/t | Ag g/t | AuEq g/t | Au koz | Ag koz | AuEq koz |
|---|---|---|---|---|---|---|---|
| 10 | 97 | 20.61 | 89.7 | 21.73 | 64.0 | 278.8 | 67.5 |
| 9 | 120 | 18.35 | 79.9 | 19.35 | 70.8 | 308.3 | 74.7 |
| 8 | 143 | 16.67 | 72.8 | 17.58 | 76.8 | 335.3 | 81.0 |
| 7 | 172 | 15.06 | 65.2 | 15.87 | 83.5 | 361.8 | 88.0 |
| 6 | 217 | 13.26 | 56.5 | 13.97 | 92.4 | 393.6 | 97.3 |
| 5 | 252 | 12.14 | 51.5 | 12.78 | 98.3 | 417.0 | 103.5 |
| 4 | 294 | 11.01 | 46.9 | 11.60 | 104.0 | 442.6 | 109.5 |
| 3 | 389 | 9.13 | 39.0 | 9.62 | 114.2 | 487.9 | 120.3 |
| 2 | 466 | 8.02 | 34.4 | 8.45 | 120.1 | 516.1 | 126.5 |
- Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio political, marketing, or other relevant issues.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration, however there is no certainty an upgrade to the Inferred Mineral Resource would occur or what proportion would be upgraded to an Indicated Mineral Resource.
- The Mineral Resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines (2014) prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council and CIM Best Practices Guidelines (2019).
- The following parameters were used to derive the AuEq g/t value used to define the Mineral Resource:
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
- February 2024 Consensus Economics long term forecast metal prices of Au US$1,850/oz and Ag US$23.50/oz.
- Exchange rate of US$0.75 = C$1.00.
- Process recoveries of Au 95% and Ag 90%.
- AuEq = Au g/t + (Ag g/t/80).
- The 3.0 g/t AuEq underground cut-off was derived from C$140/t mining, C$60/t processing and C$25/t G&A.
- Totals may not sum due to rounding.
Three mineralized wireframes were developed in Leapfrog™ with a 1.5m minimum width and a maximum 75m projection distance from the nearest drill hole intercept. Wireframe constrained assays were composited to 1.0 m lengths and capped at 100 g/t for Au and 400 g/t Ag. A block model with 2.0m x 1.0m x 2.0m blocks was established and subsequent inverse distance cubed grade estimation undertaken. Bulk density averaging 2.64 t/m³ was determined from 32 site visit samples. A cut-off value of 3.0 g/t AuEq was used to quantify the Mineral Resource Estimate and has a reasonable prospect of eventual economic extraction.
An NI 43-101 Technical Report was filed on SEDAR+ on April 30, 2024 news release. Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants Inc. and independent Qualified Person, reviewed and approved the technical contents of the news release.
SNIP NORTH PROPERTY:
On August 19, 2020, the Company acquired a 100% interest in the Snip North Property, comprised of five mineral claims located in British Columbia, approximately 50 kilometers north of the Doc Property. As consideration for the acquisition of the Snip North Property, the Company issued an aggregate of 200,000 common shares of Hanstone Gold.
On May 17, 2024, the Company acquired three mineral exploration claims (the “Purchased Claims”) comprising approximately 355.37 hectares in the Province of British Columbia. Under the Asset Purchase Agreement, as consideration for the Purchased Claims the Company issued an aggregate of 650,000 common shares of the Company with an aggregate fair value of $29,250. The Shares are subject to a four month hold period. In addition, the Company granted to Mill a royalty equal to 2% of the net smelter returns on the Purchased Claims (the “NSR Royalty”), provided that the Company may purchase ½ of the NSR Royalty (so that a 1% royalty will remain) for total consideration of $500,000 at any time. The closing of the transaction was subject to the approval of the TSX Venture Exchange.
The Snip North is a highly prospective exploration property, given its location proximal to several active projects in the Golden Triangle. Approximately 8 km northeast of Hanstone Gold’s Snip North Property, Enduro Metals Corp announced in May of 2021, results of 17.15 g/t Au, 26.20 g/t Ag and 1.18% Cu over 2.72 meters in addition to a possible porphyry intercept of an average grade of 0.82 g/t AuEq over 139 m.
QuestEx Gold & Copper Exploration also reported in January 2021, impressive results on their Inel prospect with an intercept of 1,670.51 g/t Au over 1.4 m in the footwall of the Big Rock Deformation Zone which is “spatially associated with gold and zinc mineralization along its full > 6 km strike length.”
In the Company’s news release dated May 25, 2022, the Company announced the results of the Triaxial Magnetic Survey on its Snip Property.
The Snip North Magnetic Survey was flown across the western side of the property which coincided with areas of interest outlined by the multispectral satellite survey analysis conducted in 2020. Several new target
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP
areas have been identified where analysis indicates hydrothermal alteration coincident with multiple magnetic highs. These areas are often associated with mineralization and are considered high value target areas for future evaluation.
Snip Figure 1: Snip Property Total Magnetics
SUMMARY
Doc Property
Based on the successes of the 2022 and 2023 exploration and metallurgical work on the Property, the Company's 2025 goal is to continue to advance the project and to determine the economic potential of the Property's gold mineralization. In particular, the Company will undertake activities required to expand its recent MRE and elevate it from an Inferred to an indicated Mineral Resource.
Subject to available financing, the 2025 exploration program will include gathering additional data to enable the Company to produce a proven resource. Planned activities include a LiDAR survey and Orto photo image capture, marking ground control points, identifying and marking previously drilled holes, updating the 3D geological model, updating the geological database, drilling one or more new holes as well as additional core, UG and surface sampling.
Management believes that the Doc Property has considerable merit and offers strong mineral resource discovery potential. Data from the 2020 through 2023 sampling and drill programs utilizing HQ core drilling, are considered suitable for use in defining potential resource definition compliant with National Instrument 43-101 reporting.
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
Snip North Property
Historic and recent surface samples have returned assays grades up to 9.94 g/t Au. The delineation of multiple mineralized zones spanning the Snip North property demonstrate the longer-term potential for the discovery of significant in-situ resources with further exploration and development. Subject to available financing, the Company intends to complete a drone LiDAR survey and surface sampling in 2025.
RESULTS OF OPERATIONS
The Company has no revenues and is dependent upon both satisfactory results from exploration and access to capital on reasonable terms in order to advance its projects.
Year ended December 31, 2024
The Company incurred a net loss of $893,481 for the year ended December 31, 2024 (2023 - $682,335).
Years ended December 31, 2024 and 2023
| Year ended December 31 | 2024 $ | 2023 $ | Variance $ |
|---|---|---|---|
| Expenses | |||
| Exploration expenditures | 462,821 | 557,342 | (94,521) |
| Consulting | 170,852 | 202,115 | (31,263) |
| Advertising | 5,724 | 6,582 | (858) |
| Share-based payments | 17,220 | 20,205 | (2,985) |
| Listing, filing and transfer agent | 22,100 | 37,648 | (15,548) |
| Legal | 25,094 | 20,161 | 4,933 |
| Office supplies and services | 20,482 | 33,274 | (12,792) |
| Audit and accounting | 15,000 | 15,446 | (446) |
| Rent | 5,426 | 12,000 | (6,574) |
| Finance expense | 147,261 | 23,322 | 123,939 |
| Foreign Exchange | 1,523 | - | 1,523 |
| Total expenses | 893,503 | 928,095 | (34,592) |
| Loss from operations | (893,503) | (928,095) | 34,592 |
| Other income (expense) | |||
| Flow-through shares premium recovery | - | 129,827 | (129,827) |
| Government grant | - | 64,636 | (64,636) |
| Gain on settlement of accounts payable | - | 60,263 | (60,263) |
| Interest income | 22 | 8 | 14 |
| Part XII.6 tax | - | (8,974) | 8,974 |
| Net loss and comprehensive loss | (893,481) | (682,335) | (211,146) |
A summary of significant variances from the year ended December 31, 2023 to the year ended December 31, 2024 follows:
Exploration expenses decreased by $94,521 (17%) due to a reduced exploration program for the year ended December 31, 2024.
18
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
Consulting fees decreased by $31,263 (15%). The Company retained fewer consultants for the year ended December 31, 2024 and reduced fees paid for other contracts.
Advertising expenses decreased by $858 (13%). The decrease is due to reduced marketing activity.
Share-based payments decreased by $2,985 (15%). The decrease is due to the absence of stock option grants and vesting during the year ended December 31, 2024, offset by a charge of $17,220 related to re-pricing 2,954,000 options during the year.
Listing, filing and transfer agent fees decreased by $15,548 (41%). The prior period includes OTC Market listing fees that were discontinued, and not incurred in 2024.
Legal fees increased by $4,933 (24%). The increase is due to costs incurred to complete new loan agreements in the year ended December 31, 2024.
Office supplies and services expense decreased by $12,792 (38%). The decrease is due to reduced insurance and other administrative costs in the year ended December 31, 2024.
Audit and accounting fees decreased by $446 (3%). This amount is consistent with the previous period.
Rent expense decreased by $6,574 (55%). The decrease is due to the termination of the rental contract during the year ended December 31, 2024.
Finance expense increased by $123,939 (531%). The increase is due to the accrual of interest on loan advances received in the years ended December 31, 2023 and December 31, 2024, as well as expenses incurred to complete the financings.
Flow-through shares premium recovery decreased by $129,827 (100%). The decrease is due to the remaining balance of flow-through share liability being allocated in the year ended December 31, 2023.
Government grants decreased by $64,636 (100%). The decrease is due to the absence of government grant proceeds received during the year ended December 31, 2024.
Gain on settlement of accounts payable decreased by $60,263 (100%). The decrease is due to the settlement of accounts payable with a supplier in the year ended December 31, 2023. No such settlement occurred in 2024.
19
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
SELECTED ANNUAL INFORMATION
| Year ended December 31 | 2024 | 2023 | 2022 |
|---|---|---|---|
| $ | $ | $ | |
| Financial results: | |||
| Net loss for the year | (893,481) | (682,335) | (1,443,229) |
| Basic and diluted loss per share | (0.02) | (0.02) | (0.04) |
| Balance Sheet data: | |||
| Cash | 3,298 | 166,566 | 373,496 |
| Total assets | 2,276,623 | 1,820,350 | 1,762,000 |
| Current liabilities | 1,134,560 | 733,537 | 1,023,552 |
| Shareholders’ equity | 383,442 | 902,545 | 738,448 |
| Cash Flows data: | |||
| Change in cash for the year | (163,268) | (206,930) | (393,397) |
Three months ended December 31, 2024
The Company incurred a net loss of $217,801 for the three months ended December 31, 2024 (2023 – net income of $311,635).
Three months ended December 31, 2024 and 2023
| Three months ended December 31 | 2024 | 2023 | Variance |
|---|---|---|---|
| $ | $ | $ | |
| Expenses | |||
| Exploration expenditures | 94,472 | 176,716 | (82,244) |
| Consulting | 40,490 | 47,515 | (7,025) |
| Advertising | 3,775 | 290 | 3,485 |
| Share-based payments | 17,220 | - | 17,220 |
| Listing, filing and transfer agent | 2,683 | 2,783 | (100) |
| Legal | (4,693) | 7,083 | (11,776) |
| Office supplies and services | (2,422) | 7,827 | (10,249) |
| Audit and accounting | 3,750 | 3,750 | - |
| Rent | 1,426 | 3,000 | (1,574) |
| Finance expense | 59,578 | (488,738) | 548,316 |
| Foreign Exchange | 1,523 | - | 1,523 |
| Total expenses | 217,802 | (239,774) | 457,576 |
| Loss from operations | (217,802) | 239,774 | (457,576) |
| Other income (expense) | |||
| Flow-through shares premium recovery | - | 16,198 | (16,198) |
| Government grant | - | 64,636 | (64,636) |
| Interest income | 1 | - | - |
| Part XII.6 tax | - | (8,974) | 8,974 |
| Net loss and comprehensive loss | (217,801) | 311,634 | (529,435) |
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
A summary of significant variances from the three months ended December 31, 2023 to the three months ended December 31, 2024 follows:
Exploration expenses decreased by $82,244 (47%) due to reduced exploration expenditures for the three months ended December 31, 2024.
Consulting fees decreased by $7,025 (15%). The Company retained fewer consultants during the three months ended December 31, 2024 and reduced fees paid for other contracts.
Advertising expenses increased by $3,485 (1,202%). The increase is due to retaining a consultant during the three months ended December 31, 2024.
Share-based payments increased by $17,220 (100%). The increase is due to recording a charge of $17,220 during the three months ended December 31, 2024 related to re-pricing 2,954,000 options during the year. During the three months ended December 31, 2023, no stock options vested or were granted, resulting in a $Nil expense.
Listing, filing and transfer agent fees decreased by $100 (4%) and were consistent with the prior period.
Legal fees decreased by $11,776 (166%). The decrease is due to a reallocation of legal costs to finance expense during the three months ended December 31, 2024.
Office supplies and services expense decreased by $10,249 (131%). The decrease is due to the reversal of costs in the three months ended December 31, 2024 that were accrued in a prior period.
Rent expense decreased by $1,574 (52%). The decrease is due to the termination of the rental contract during the year ended December 31, 2024.
Finance expense increased by $548,316 (112%). The increase is due to the correction of accounting entries during the three months ended December 31, 2023, resulting in a gain during the previous period, versus an expense in the current period.
Flow-through shares premium recovery decreased by $16,198 (100%). The decrease is due to the remaining balance of flow-through share liability being allocated in the three months ended December 31, 2023.
Government grants decreased by $64,636 (100%). The decrease is due to the absence of government grant proceeds received during the year ended December 31, 2024.
Part X11.6 tax expense decreased by $8,974 (100%). The decrease is due no applicable tax in the three months ended December 31, 2024.
21
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
SUMMARY OF QUARTERLY RESULTS
The following is a summary of certain consolidated financial information of the Company for the past eight quarters:
| | Dec. 31, 2024
$ | Sept. 30, 2024
$ | June 30, 2024
$ | March 31, 2024
$ |
| --- | --- | --- | --- | --- |
| Revenue (1) | - | - | - | - |
| Net income (loss) | (217,801) | (232,956) | (213,416) | (229,308) |
| Total assets | 2,276,623 | 2,286,512 | 1,643,727 | 1,726,653 |
| Basic and diluted Earnings (loss) per share | (0.00) | (0.00) | (0.00) | (0.00) |
| | Dec. 31, 2023
$ | Sept. 30, 2023
$ | June 30, 2023
$ | March 31, 2023
$ |
| Revenue (1) | - | - | - | - |
| Net income (loss) | 311,635 | (712,202) | (121,510) | (160,256) |
| Total assets | 1,820,350 | 2,089,755 | 1,382,046 | 1,528,308 |
| Basic and diluted Earnings (loss) per share | 0.01 | (0.02) | (0.00) | (0.00) |
Explanatory Notes:
(1) The Company has no revenue.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
As at December 31, 2024, the Company had current assets of $46,380 (2023 - $243,432) and a working capital deficiency of $1,088,180 (2023 - $490,105).
The Company had a cash balance of $3,298 at December 31, 2024 (2023 - $166,566). During the year ended December 31, 2024, the Company used net cash in operating activities of $238,268 (2023 - $894,103), primarily due to the operating expenses as discussed in the "Results of Operations" section.
The Company's future capital requirements will depend on many factors, including, among others, its ability to earn cash flow from operations. Should the Company wish to pursue current and future business opportunities, additional funding will be required. If additional funds are raised through the issuance of equity securities, the percentage ownership of current shareholders will be reduced and such equity securities may have rights, preferences, or privileges senior to those of the holders of the Company's common stock. No assurance can be given that additional financing will be available, or that it can be obtained on terms acceptable to the Company and its shareholders. If adequate funds are not available, the Company may not be able to meet its contractual requirements.
The financial statements have been prepared in accordance with IFRS applicable to a going concern, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.
Recent financing arrangements include the following:
On August 25, 2023, the Company closed a non-brokered private placement with a director of the Company and raised aggregate gross proceeds of $600,000 through issuance of an aggregate of 12,000,000 flow-through units of the Company at a price of $0.05 per unit.
22
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
In addition, on August 25, 2023, the Company received $400,000 (“Loan 1”) from a company controlled by a director of the Company (the “Lender”). Loan 1 is repayable August 25, 2026 and accrues at 12% per annum, payable annually in arrears (certain terms were amended – see below). Loan 1 and interest thereon are secured by a perfected first priority security interest in all present and after-acquired property of the Company.
On August 2, 2024, the Company received $725,000 (“Loan 2”) from the Lender. Loan 2 was conducted under an amended and restated loan agreement (the “Amended Loan Agreement”) dated as of August 1, 2024 which comprised total loaned funds of $1,125,000, being the Loan 1 Amount and Loan 2 Amount.
Loan 1 and Loan 2 are repayable on August 1, 2027, and accrue interest at 15% per annum, payable annually in arrears. Loan 1, Loan 2, and interest thereon are secured by a perfected first priority security interest in all present and after-acquired property of the Company.
During the year ended December 31, 2024, draws totaling $50,000 were borrowed from the Lender under an additional loan facility (the “Loan 3 Facility”) of up to $100,000.
The Company used proceeds from Loan 2 primarily to complete an option payment due in July 2024. Proceeds from the Loan 3 Facility were used primarily to cover general and administrative expenses.
FINANCIAL INSTRUMENTS
Classification of financial instruments
| Ref. | December 31, 2024 $ | December 31, 2023 $ | |
|---|---|---|---|
| Fair value through profit or loss financial asset | (a) | 3,298 | 166,566 |
| Other financial liabilities | (b) | 1,134,560 | 733,537 |
(a) Comprised of cash at December 31, 2024 and 2023.
(b) Comprised of accounts payable and flow-through premium liability at December 31, 2024 and 2023.
The fair value of the Company’s financial assets and liabilities approximates the carrying amount.
Management of Financial Risk
The Company’s financial instruments are exposed to certain financial risks, which include the following:
Credit risk
Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its cash. The Company limits exposure to credit risk by maintaining its cash with large financial institutions. The Company does not have cash that is invested in asset backed commercial paper.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company currently settles its financial obligations out of cash. The ability to do this relies on the Company raising equity financing in a timely manner and by maintaining sufficient cash in excess of anticipated needs. Management and the Board of Directors are actively involved in the review, planning
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
and approval of significant expenditures and commitments. As at December 31, 2024, the Company had a cash balance of $3,298 (2023 - $166,566) to settle current liabilities of $1,134,560 (2023 - $733,537). While the Company has been successful in obtaining its required funding in the past, there is no assurance that this financing will be extended or that any future financing will be available.
Foreign exchange risk
Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as they are denominated in currencies that differ from the respective functional currency. The Company’s functional currency is the Canadian dollar. There are no current assets held in other currencies and therefore the foreign exchange risk is assessed as low.
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company manages interest rate risk by maintaining an investment policy that focuses primarily on preservation of capital and liquidity. This risk is considered to be minimal.
Equity price risk
Equity price risk arises from market fluctuations in equity prices that could adversely affect the Company’s operations. The Company’s current exposure to equity price risk is limited to declines in the values and volumes including those of its own shares, which could impede its ability to raise additional funds when required.
Capital management
Capital is comprised of the Company’s shareholders’ equity and any debt that it may issue. As at December 31, 2024, the Company’s shareholders’ equity was $383,442. The Company’s objectives when managing capital are to maintain financial viability and to protect its ability to meet its on-going liabilities, to continue as a going concern, to maintain creditworthiness and to maximize returns for shareholders over the long term. Protecting the ability to pay current and future liabilities includes maintaining capital above minimum regulatory levels, current financial strength rating requirements and internally determined capital guidelines and calculated risk management levels.
The Company’s current capital was received from the issuance of common shares. The net proceeds raised to date will only be sufficient to identify and evaluate a limited number of assets and businesses. Additional funds may be required to finance the Company’s future business opportunities.
The Company is not subject to any externally imposed capital requirements, except as noted above. There were no changes to the Company’s approach to capital management during the year ended December 31, 2024.
The Company is not subject to any externally imposed capital requirements. There were no changes to the Company’s approach to capital management during the period ended December 31, 2024.
OFF-BALANCE SHEET ARRANGEMENTS
The Company has no off-balance sheet arrangements and no long-term debt obligations.
24
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
TRANSACTIONS WITH RELATED PARTIES
Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that this consists of corporate officers, executive and non-executive members of the Company’s Board of Directors and companies owned by these individuals.
During the year ended December 31, 2024, key management personnel charged the Company $306,000 of consulting fees (2023 - $307,300), $14,314 in exploration expenditures (2023 - $29,523) and finance expense of $127,261 (2023 - $23,322). In addition, no stock options were issued during the year ended December 31, 2024 (2023 - 250,000 stock options with a value of $20,205).
At December 31, 2024, the Company had $494,462 payable to related parties included in accounts payable and accrued liabilities (2023 - $275,241).
On August 25, 2023, the Company received a loan in the amount of $400,000 from a company controlled by a director of the Company.
Also on August 25, 2023, the Company closed a non-brokered private placement with a director of the Company and raised aggregate gross proceeds of $600,000 through issuance of an aggregate of 12,000,000 flow-through units of the Company at a price of $0.05 per unit.
On August 2, 2024, the Company received a loan in the amount of $725,000 from a company controlled by a director of the Company.
On November 4, 2024, the Company established a loan facility under which it may borrow up to $100,000 from a company controlled by a director of the Company. During the year ended December 31, 2024, drawdowns totaling $50,000 were borrowed under the loan facility.
LOAN PAYABLE
On August 25, 2023, the Company closed a loan transaction (“Loan 1”) under which it borrowed $400,000 (the “Loan 1 Amount”) from an affiliate of a director of the Company (the “Lender”). Loan 1 is repayable on August 25, 2026, and accrues interest at 12% per annum, payable annually in arrears (certain terms are amended below). Loan 1 and interest thereon are secured by a perfected first priority security interest in all present and after-acquired property of the Company.
In connection with Loan 1, the Company issued to the Lender 8,000,000 share purchase warrants (a “Loan 1 Warrant”), with each Loan 1 Warrant exercisable to acquire a common share at a price of $0.05 per share until August 25, 2026.
On August 2, 2024, the Company closed a loan transaction (“Loan 2”) under which it borrowed $725,000 (the “Loan 2 Amount”) from the Lender. Loan 2 was conducted under an amended and restated loan agreement (the “Amended Loan Agreement”) dated as of August 1, 2024 which comprised total loaned funds of $1,125,000, being the Loan 1 Amount and Loan 2 Amount.
Loan 1 and Loan 2 are repayable on August 1, 2027, and accrue interest at 15% per annum, payable annually in arrears. Loan 1, Loan 2, and interest thereon are secured by a perfected first priority security interest in all present and after-acquired property of the Company.
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
In connection with Loan 2, the Company issued to the Lender 14,500,000 share purchase warrants (a “Loan 2 Warrant”), with each Loan 2 Warrant exercisable to acquire a common share (a “Loan 2 Warrant Share”) at a price of $0.05 per share until August 1, 2027. The Loan 2 Warrants and the Loan 2 Warrant Shares were subject to a four-month hold period that expired December 2, 2024.
On November 4, 2024, the Company established a loan facility (“Loan 3 Facility”) under which it may borrow up to $100,000 (the “Loan 3 Amount”) from the Lender. The Loan 3 Facility was conducted under an amended and restated loan agreement (the “Second Amended Loan Agreement”) dated as of November 4, 2024 which contemplates total loaned funds of $1,225,000, being the Loan 1 Amount, Loan 2 Amount and Loan 3 Amount.
During the year ended December 31, 2024, drawdowns totaling $50,000 were borrowed from the Lender under the Loan 3 Facility.
Loan 1, Loan 2 and advances under the Loan 3 Facility are repayable on August 1, 2027, and accrue interest at 15% per annum, payable annually in arrears. Loan 1, Loan 2, advances under the Loan 3 Facility, and interest thereon is secured by a perfected first priority security interest in all present and after-acquired property of the Company.
In connection with Loan 3, the Company will issue to the Lender up to 2,000,000 common share purchase warrants (each, a “Loan 3 Warrant”), with each Loan 3 Warrant exercisable to acquire a common share (a “Loan 3 Warrant Share”) at a price of $0.05 per Loan 3 Warrant Share until August 1, 2027. In connection with each drawdown under Loan 3, the Company will issue a proportionate amount of Loan 3 Warrants. The Loan 3 Warrants and the Loan 3 Warrant Shares are subject to a four-month hold period from the date of issuance of such securities.
During the year ended December 31, 2024, the Company issued 600,000 Loan 3 Warrants relating to a $30,000 draw under the Loan 3 Facility. An additional 400,000 Loan 3 Warrants relating to a draw of $20,000 under the Loan 3 Facility were issued on December 13, 2024 but due to an administrative delay, were granted on January 15, 2025.
During the year ended December 31, 2024, the Company accrued interest expense, in connection with Loan 1, Loan 2 and Loan 3 of $127,261 (2023 - $23,322).
26
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
OUTSTANDING SHARE DATA
The following table shows the Company’s share capital data as at December 31, 2024:
| December 31, 2024 | |
|---|---|
| Common shares issued (at $0.05 per share) | 3,000,000 |
| Common shares issued (at $0.10 per share) | 3,000,000 |
| Common shares issued (at $0.18 per share) | 12,603,266 |
| Common shares issued (at $0.25 per share) | 2,925,648 |
| Common shares issued for Qualifying Transaction | 4,500,000 |
| Common shares issued for Snip Property | 200,000 |
| Common shares issued on exercise of agent options | 300,000 |
| Common shares issued on stock option exercise | 100,000 |
| Common shares issued for services | 268,000 |
| Common shares issued (at $0.40 per share) | 1,276,200 |
| Common shares issued (at $0.44 per share) | 4,128,511 |
| Common shares issued (at $0.40 per share) | 972,500 |
| Common shares issued on warrants exercise | 100,000 |
| Common shares issued (at $0.20 per share) | 1,395,000 |
| Common shares issued (at $0.25 per share) | 2,274,000 |
| Common shares issued (at $0.25 per share) | 2,000,000 |
| Common shares issued (at $0.05 per share) | 12,000,000 |
| Common shares issued (at $0.045 per share) | 650,000 |
| Total common shares issued | 51,693,125 |
As at December 31, 2024 and the date of this report, the Company had 51,693,125 common shares issued and outstanding (90,247,125 on a fully diluted basis).
Share issuances
On August 25, 2023, the Company closed a non-brokered private placement with a director of the Company and raised aggregate gross proceeds of $600,000 through issuance of an aggregate of 12,000,000 flow-through units of the Company at a price of $0.05 per unit. Each unit is comprised of one flow-through common share of the Company and one common share purchase warrant. Each warrant is exercisable to acquire an additional common share (which will not be issued on a flow-through basis) at a price of $0.05 per share until August 25, 2028. The Company allocated fair value of $Nil from share capital to warrants issued pursuant to this financing based on the residual value method. The Company paid $12,827 as share issuance costs.
On May 17, 2024, the Company issued 650,000 common shares in relation to the acquisition of three mineral exploration claims with an aggregate fair value of $29,250.
As at December 31, 2024, the Company had 51,693,125 common shares issued and outstanding.
27
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
Incentive Stock options
A summary of the Company’s stock option plan as at December 31, 2024 and December 31, 2023:
| December 31, 2024 | December 31, 2023 | |||
|---|---|---|---|---|
| Description | Number of options | Weighted Average Exercise Price ($) | Number of options | Weighted Average Exercise Price ($) |
| Outstanding, beginning of year | 3,704,000 | 0.10 | 3,454,000 | 0.25 |
| Granted | - | - | 250,000 | 0.10 |
| Expired | (250,000) | 0.10 | - | - |
| Outstanding, end of year | 3,454,000 | 0.10 | 3,704,000 | 0.24 |
| Exercisable, end of year | 3,454,000 | 0.10 | 3,704,000 | 0.24 |
On February 8, 2023, the Company granted 250,000 stock options to officers of the Company with an exercise price of $0.10 per share for five years with an expiry date of February 8, 2028. The fair value of these options was calculated to be $20,205 using the Black-Scholes Option Pricing Model using the following assumptions: expected life of the option: 5 years; expected volatility: 126%; expected dividend yield: 0%; and risk-free interest rate: 3.03%.
On June 7, 2024 and June 10, 2024, respectively, the Company received shareholder and TSX Venture Exchange approval to re-price 2,954,000 stock options issued to directors, officers and consultants of the Company, with exercise prices ranging from $0.18 to $0.58 per share, to $0.10 per share. As at December 31, 2024, the amended stock options had not been issued. During the year ended December 31, 2024, the Company recognized share-based payments of $17,220 (2023 - $Nil) related to the stock options re-priced.
During the year ended December 31, 2024, 250,000 stock options at a weighted average exercise price of $0.10 were forfeited. As a result, a value of $92,704 was transferred from stock options reserve to contributed surplus.
As at December 31, 2024, 875,000 stock options are exercisable at $0.10 per share (2023 - $0.40 per share) expiring on January 29, 2026, 709,000 stock options are exercisable at $0.10 per share (2023 - $0.18 per share) expiring on June 8, 2027, 250,000 stock options are exercisable at $0.10 per share expiring on February 8, 2028, 500,000 stock options are exercisable at $0.10 per share expiring on April 29, 2029 and 1,120,000 stock options are exercisable at $0.10 per share (2023 - $0.20 per share) expiring on August 19, 2030.
Share Purchase Warrants
A summary of the Company’s share purchase warrants as at December 31, 2024 and December 31, 2023:
| December 31, 2024 | December 31, 2023 | |||
|---|---|---|---|---|
| Description | Number of warrants | Weighted Average Exercise Price ($) | Number of warrants | Weighted Average Exercise Price ($) |
| Outstanding, beginning of year | 20,000,000 | 0.05 | 27,189,225 | 0.32 |
| Issued | 15,100,000 | 0.05 | 20,000,000 | 0.05 |
| Forfeited | - | - | (27,189,225) | 0.32 |
| Outstanding, end of year | 35,100,000 | 0.05 | 20,000,000 | 0.05 |
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
Under the private placement dated August 25, 2023, the Company issued an aggregate of 12,000,000 share purchase warrants exercisable for one common share at an exercise price of $0.05 per share, for five years and have an expiry date of August 25, 2028.
In connection with Loan 1, the Company issued an aggregate of 8,000,000 share purchase warrants exercisable for one common share at an exercise price of $0.05 per share until August 25, 2026. The Company recorded fair value for the 8,000,000 warrants of $239,054 using the Black-Scholes Option Pricing Model using the following assumptions: expected life of the option: 3 years; expected volatility: 135.93%; expected dividend yield: 0%; and risk-free interest rate: 4.33%.
In connection with Loan 2, the Company issued an aggregate of 14,500,000 share purchase warrants exercisable for one common share at an exercise price of $0.05 per share until August 1, 2027. The Company recorded fair value for the 14,500,000 warrants of $308,600 using the Black-Scholes Option Pricing Model using the following assumptions: expected life of the option: 3 years; expected volatility: 158%; expected dividend yield: 0%; and risk-free interest rate: 3.06%.
In connection with Loan 3, the Company issued an aggregate of 1,000,000 share purchase warrants exercisable for one common share at an exercise price of $0.05 per share until August 1, 2027, of which 400,000 share purchase warrants were issued in January 2025. The Company recorded fair value for the 1,000,000 warrants of $19,308 using the Black-Scholes Option Pricing Model using the following assumptions: expected life of the option: 3.17 years; expected volatility: 163-166%; expected dividend yield: 0%; and risk-free interest rate: 2.91-3.05%.
During the year ended December 31, 2023, 27,189,225 share purchase warrants expired. As a result, a value of $382,483 was transferred from warrants reserve to contributed surplus.
As at December 31, 2024, 12,000,000 share purchase warrants are exercisable at $0.05 per share expiring on August 25, 2028, 8,000,000 share purchase warrants are exercisable at $0.05 per share expiring on August 25, 2026, and 15,100,000 share purchase warrants are exercisable at $0.05 per share expiring on August 1, 2027.
Compensation Options
A summary of the Company’s compensation options as at December 31, 2024 and December 31, 2023:
| December 31, 2024 | December 31, 2023 | |||
|---|---|---|---|---|
| Description | Number of options | Weighted Average Exercise Price ($) | Number of options | Weighted Average Exercise Price ($) |
| Outstanding, beginning of year | 7,000 | 0.30 | 241,794 | 0.38 |
| Granted | - | - | - | - |
| Forfeited | (7,000) | 0.30 | (234,794) | 0.38 |
| Outstanding, end of year | - | - | 7,000 | 0.30 |
| Exercisable, end of year | - | - | 7,000 | 0.30 |
During the year ended December 31, 2024, 7,000 (2023 - 234,794) compensation options expired. As a result, a value of $439 (2023 - $42,408) was transferred from stock options reserve to contributed surplus.
As at December 31, 2024, no compensation options were outstanding.
29
HANSTONE GOLD CORP.
Management's Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
The calculation of weighted average shares outstanding for the diluted loss per share calculation excludes the impact of the options and warrants outstanding as at December 31, 2024 and December 31, 2023 as the effect is anti-dilutive.
USE OF ESTIMATES AND MEASUREMENT UNCERTAINTIES
The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the measurements of assets, liabilities, revenues, expenses and certain disclosures reported in these financial statements. Significant estimates made by management include the following:
Valuation of exploration and evaluation assets
Management has determined that exploration, evaluation, and related costs incurred which were capitalized may have future economic benefits and may be economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefits including, geologic and other technical information, a history of conversion of mineral deposits with similar characteristics to its own properties to proven and probable mineral reserves, evaluation of permitting and environmental issues and local support for the project.
Share based compensation
The Company uses the Black-Scholes option pricing model for valuation of share-based compensation. Option pricing models require the input of subjective assumptions including expected price volatility, interest rate and forfeiture rate. Changes in the input assumptions can significantly change the fair value estimate and the Company's earnings and equity reserves.
Deferred income taxes
Judgment is required in determining whether deferred tax assets are recognized in the statements of financial position. Deferred tax assets, including those arising from unutilized tax losses require management to assess the likelihood that the Company will generate taxable income in future periods, in order to utilize deferred tax assets. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred tax assets recorded at the date of the statements of financial position could be impacted. The Company has not recorded any deferred tax assets.
CORPORATE GOVERNANCE
The Company's Board and its committees follow the recommended corporate governance guidelines for public companies tailored to its size and operations to ensure transparency and accountability to shareholders. The current Board is comprised of three independent directors: Andre Douchane, James Engdahl and Gary Billingsley.
FORWARD-LOOKING STATEMENTS
This MD&A contains certain statements that may constitute "forward looking statements". Forward looking statements include but are not limited to, statements regarding future anticipated business developments and the timing thereof, and business and financing plans. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.
HANSTONE GOLD CORP.
Management’s Discussion and Analysis
For the Years Ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
HANSTONE GOLD CORP.
Forward looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or which by their nature refer to future events. The Company cautions investors that any forward looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the Company’s ability to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies.
This MD&A includes, but is not limited to, forward-looking statements regarding the Company’s plans and the Company’s ability to meet its working capital needs for the next fiscal year.
Forward-looking statements contained herein are made as of the date of this MD&A, and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
FINANCIAL AND DISCLOSURE CONTROLS AND PROCEDURES
During the year ended December 31, 2024, there has been no significant change in the Company’s internal control over financial reporting.
The management of the Company is responsible for establishing and maintaining appropriate information systems, procedures and controls to ensure that information used internally and disclosed externally is complete, reliable and timely. Management is also responsible for establishing adequate internal controls over financial reporting to provide sufficient knowledge to support the representations made in this MD&A and the Company’s financial statements for December 31, 2024 (together the “Annual Filings”).
The management of the Company has filed the Venture Issuer Basic Certificate with the Annual Filings on SEDAR at www.sedarplus.ca.
In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (“NI 52-109”), the Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (“DC&P”) and internal control over financial reporting (“ICFR”), as defined in NI 52-109. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency, and timeliness of interim and annual filings and other reports provided under securities legislation.
APPROVAL
The Board of Directors of the Company has approved the disclosure contained in this MD&A.
ADDITIONAL INFORMATION
Additional information pertaining to the Company is available on the SEDAR website at www.sedarplus.ca.