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Silver North Resources Ltd. Management Reports 2025
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SILVER NORTH
SILVER NORTH RESOURCES LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS – QUARTERLY HIGHLIGHTS FOR THE SIX MONTHS ENDED MARCH 31, 2025
OVERVIEW AND INTRODUCTORY COMMENT
Silver North Resources Ltd. ("Silver North" or the "Company") has made significant new silver discoveries in the famous Keno Hill District in the Yukon, Canada, namely our Haldane and Tim properties. The Company is ideally positioned to further prove out and expand these discoveries, a stage of the mining development curve traditionally associated with the largest potential value increases. The Company is listed on the TSX Venture Exchange (the "Exchange") under the trading symbol "SNAG".
This MD&A is dated May 6, 2025 and discloses specified information up to that date. Unless otherwise noted, all currency amounts are expressed in Canadian dollars. The following information should be read in conjunction with the unaudited condensed consolidated interim financial statements and the related notes for the six months ended March 31, 2025 and the Company's audited consolidated financial statements for the year ended September 30, 2024 and the related notes thereto.
Additional information relevant to the Company and the Company's activities can be found on SEDAR+ at www.sedarplus.ca, and/or on the Company's website at www.silvernorthres.com.
The Company recognizes environmental, social and governance ("ESG") best practices as key components to responsible mineral exploration and development. The Company's exploration programs are conducted to meet or exceed environmental regulations, while respecting the communities and environments in which we operate. The Company strives to earn its social license with local and indigenous communities by meeting with stakeholders, regulators, and other concerned parties before, and during, exploration work to understand traditional and cultural issues important to these communities. The Company's approach is based on transparency, open communication, inclusivity, and respect, to better enable social and economic benefit for communities as well as value for investors.
MAJOR INTERIM PERIOD OPERATING MILESTONES
Haldane, Yukon, Canada
On October 16, 2024, the Company announced that the 2024 drilling campaign at the Haldane Property was completed. A total of 732 metres of drilling was completed in 3 holes testing the West Fault and Main Fault targets. This marks Silver North's first test of the Main Fault, with two holes successfully intersecting the target in moderately oxidized to unoxidized rocks allowing for strong recovery of the vein targets.
In addition to continuing step-out tests of the West Fault target, an important goal of the 2024 program was to test the Main Fault below the level of oxidation for a true representation of this target's potential for high grade silver mineralization. The surface expression of the Main Fault indicates potential for a large structure, with historical oxidized vein samples at surface averaging 151 g/t silver over 7.6 m and 223 g/t silver over 3.6 m at the Main Zone and Main Zone South showings. Heavily oxidized, poorly recovered intersections in 2011 and 2013 drilling by previous operators intersected similarly anomalous results.
Hole HLD24-29 intersected a somewhat oxidized structure above the Main Fault from 158.6m – 162.0m followed by unoxidized Main Fault breccia and siderite vein from 171.0m to 176.7m. The width of this zone warranted a follow up hole, targeting the structure 50 metres down dip. Hole HLD24-30 accomplished this, intersecting the same partially oxidized structure above the Main Fault from 171.0 – 172.5m and the Main Fault as a much wider, unoxidized, structural zone from 183.5 to 203.0 metres
Silver North Resources Ltd.
Management's Discussion & Analysis
SILVER NORTH
down hole, exhibiting multiple fault splays with strong gouge and breccia zones as well as quartz-siderite+/- sulphide veins. The program successfully showed that the Main Fault is a viable silver target with strong Keno District style veining characteristics indicating its potential to host high grade silver mineralization as seen elsewhere in the district. This was corroborated by strong analytical results from this target, released November 14, 2024 and summarized below.
A fourth hole at the Bighorn target was dropped from the program due to deteriorating conditions that made drill pad access difficult. Bighorn remains a high priority target and a pad was constructed early in the program that will be available for use in the next drill campaign at Haldane.
Main Fault Target
The Main Fault, thought to be a parallel structure to the West Fault, was targeted in the 2024 drill program based on surface sampling of the fault at the Main and Main South showings where oxidized vein samples on surface average 151 g/t silver over 7.6 m and 223 g/t silver over 3.6 m. Two holes tested this target (HLD24-29 and -30), successfully intersecting a wide structural zone consisting of three siderite-sulphide vein faults and breccias with an interstitial stockwork of siderite bearing veinlets and brecciated host rocks that forms the overall structural zone.
In hole HLD24-29 the widest structural zone returned 13.75m true width ("TW") of 157 g/t silver, 1.42% lead and 0.67% zinc and blossomed to 28.36m (TW) of 130 g/t silver, 0.55% lead and 0.52% zinc 50 metres down dip in hole 30. High grade oxidized and brecciated siderite vein fault material at the upper boundary returned 1.83m (TW) of 1,088 g/t silver, 3.90 g/t gold, 1.89% lead and 0.63% zinc including 0.73m (TW) of 2,470 g/t silver, 9.64 g/t gold, 3.88% lead and 0.99% zinc in hole HLD24-30. It is notable that these upper boundary intersections are unusually high in gold as compared to other intersections at the Haldane Property. The oxidized nature of these intersections makes it difficult to determine the mineralogy associated with the elevated gold values at this time.
Table 1 – Haldane Property – 2024 Significant Drill Intersections
| Hole | From (m) | To (m) | Interval (m) | True Width(m) | Ag (g/t) | Au (g/t) | Pb (%) | Zn (%) | Silver Eq (g/t)^{1} |
|---|---|---|---|---|---|---|---|---|---|
| HLD24-28 (West) | 243.71 | 244.09 | 0.38 | 0.19 | 122 | 0.17 | 2.07 | 0.48 | 218 |
| HLD24-29 (Main) | 146.20 | 162.00 | 15.80 | 13.75 | 157 | 0.08 | 1.42 | 0.67 | 233 |
| incl. | 147.60 | 150.00 | 2.40 | 2.09 | 206 | 0.10 | 1.49 | 1.36 | 311 |
| incl. | 157.00 | 160.50 | 3.50 | 3.05 | 460 | 0.15 | 4.34 | 1.23 | 653 |
| and incl. | 158.60 | 160.50 | 1.90 | 1.65 | 777 | 0.25 | 7.86 | 2.22 | 1,123 |
| 171.00 | 176.30 | 5.30 | 4.61 | 53 | 0.06 | 1.13 | 1.43 | 147 | |
| incl. | 174.20 | 176.30 | 2.10 | 1.83 | 105 | 0.04 | 2.61 | 2.07 | 268 |
| HLD24-30 (Main) | 159.00 | 161.50 | 2.50 | 1.83 | 1,088 | 3.90 | 1.89 | 0.63 | 1,491 |
| incl. | 159.00 | 160.00 | 1.00 | 0.73 | 2,470 | 9.64 | 3.88 | 0.99 | 3,422 |
| 164.20 | 203.00 | 38.80 | 28.36 | 130 | 0.09 | 0.55 | 0.52 | 174 | |
| incl. | 171.70 | 172.50 | 0.80 | 0.58 | 1,210 | 0.42 | 3.15 | 0.45 | 1,358 |
| incl. | 183.85 | 191.80 | 7.95 | 5.81 | 365 | 0.23 | 1.80 | 1.37 | 491 |
| and incl. | 190.80 | 191.80 | 1.00 | 0.73 | 1,025 | 0.54 | 8.52 | 2.18 | 1,415 |
| incl | 201.75 | 203.00 | 1.25 | 0.91 | 194 | 0.18 | 0.54 | 1.08 | 266 |
Silver North Resources Ltd.
Management's Discussion & Analysis
SILVER NORTH
¹ Silver-equivalent values are calculated assuming 100% recovery using the formula: ((20 * silver (g/t) / 31.1035) + (1650 * gold (g/t) / 31.1035) + (0.90 * 2204 * lead %/100) + (1.10 * 2204 * zinc %/100)) *(31.1035 / 20). Metal price assumptions are US$20/oz silver, US$1650/oz gold, US$0.90/lb lead and US$1.10/lb zinc. While metal prices today are generally higher than those used in the formula, these are the values used for past drilling at Haldane in order to compare past results.
High grade, partially oxidized and strongly brecciated siderite vein fault from the centre of the Main Fault structural zone returned 3.05m (TW) of 460 g/t silver, 0.15 g/t gold, 4.34% lead and 1.23% zinc, including 1.65m (TW) of 777g/t silver, 0.25 g/t gold, 7.86% lead and 2.22% zinc in HLD24-29 and 5.8m (TW) 365 g/t silver, 0.23 g/t gold, 1.80% lead and 1.37% zinc 50 meters down dip from HLD24-30.
The best result from the lowermost unoxidized siderite vein and vein fault breccia was an intercept of 0.91m (TW) of 194 g/t silver, 0.18 g/t gold, 0.54% lead and 1.08% zinc from HLD24-30.
Figure 1 - Haldane Property Drill Plan Map
Silver North Resources Ltd.
Management's Discussion & Analysis
SILVER NORTH
Figure 2 - Cross Section HLD24-29 & -30
West Fault Target
Holes HLD24-29 and -30 potentially tested the very upper portions of the West Fault prior to reaching the Main Fault. The intersections occur high in the hole in very oxidized material. A significant fault zone was intersected in HLD24-29 but was unmineralized while the projected intersection in HLD24-30 was not recovered. Due to the shallow nature of the intersections and associated poor core recovery,
Silver North Resources Ltd.
Management's Discussion & Analysis
SILVER NORTH
management does not believe that this is an adequate test of the West Fault in this area and plans deeper drilling in this area in the future.
Hole HLD24-28, intersected the West Fault but deviated significantly more shallowly than expected and to the west of the intended target pierce point. The hole intersected several narrow discrete siderite-galena-sphalerite veins and siderite veinlets with the best of these returning 0.19m (TW) of 122 g/t silver, 0.169 g/t gold, 2.07% lead and 0.47% zinc. The hole did not close off the interpreted SW plunge of high-grade silver mineralization intersected in 2021 drilling, which remains open at a more steeply oriented plunge.
Management is currently planning the size and scope of the 2025 drill program at Haldane, with the Main Fault target as the primary focus of the program. Once this plan is finalized, it will be announced.
Tim, Yukon, Canada
On January 30, 2025, the Company provided a review of 2024, an update on pending results from the Tim Project, and an outline of 2025 activities.
The exploration season commenced in July with the mobilization of crews to the Tim Property, located 19 km northeast of Coeur Mining's Silvertip Project. Coeur is the project operator under an option agreement to earn an initial 51% interest (by funding a total of $3.5 million in exploration expenditures) in the property which can be expanded to 80% by funding a feasibility study and reaching a decision to build a mine. Coeur funded the 2024 program, conducting it out of their Silvertip Mine facilities.
Coeur had initially planned to complete approximately 2,000 metres of drilling, largely to test the Wolf Fault along almost 2,000 metres of strike length within prospective stratigraphy. Drilling targeted both structurally-hosted "chimney" style mineralization potentially hosted within the Wolf Fault and splays of it, as well as stratigraphically controlled "manto" mineralization along conducive stratigraphic horizons. This program finished in the first week of September, having been expanded to a total of 2,250 metres of drilling, and the addition of two airborne geophysical surveys (magnetics, radiometrics and mobile MT) to help target future drilling. Although analytical results from the program have yet to be received, geological observations from drilling confirm the presence of a CRD-style system at Tim, including diagnostic features noted at Silvertip and elsewhere in the world including fugitive calcite veining that fluoresces in UV light (displaying the classic "barbeque" pink and orange fluorescence) and re-crystallization of the host limestones. Coeur made the 2024 option payment of $75,000 in December and management expects that Coeur will undertake follow up drilling in 2025, the planning of which will commence once final analytical results have been received and interpreted.
The Company will announce the analytical results from the 6 holes drilled by Coeur when they are made available. After interpretation of the 2024 drill results, in conjunction with the data collected from airborne magnetics, radiometrics and mobile MT surveys, Coeur will prioritize targets for drilling. It is expected that Coeur will test these targets in 2025 and once this plan is conveyed to management, its details will be relayed to the market.
GDR, Yukon Territory, Canada
The Company plans to conduct an early-stage analyses of the GRD Project acquired in 2024 and located in the Silvertip CRD District. This work would include prospecting, geological mapping and sampling to identify targets areas to refine for drilling. Priority will be placed on the Veronica claim block adjacent to the Tim Property.
Silver North Resources Ltd.
Management's Discussion & Analysis
SILVER NORTH
INTERIM PERIOD FINANCIAL CONDITION
Capital Resources
On April 9, 2025, the Company completed a non-brokered private placement by issuing 13,500,000 units ("Unit") at a price of $0.10 per Unit for gross proceeds of $1,350,000. Each Unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share for a 36-month period at a price of $0.15. In connection with the financing, the Company paid $32,200 in cash finder's fees and issued 320,000 finder's warrants, each of which is exercisable into one common share at a price of $0.15 for a period of 36 months.
On January 28, 2025, the Company granted 605,000 stock options to its directors, officers and consultants at a price of $0.10 per share for a period of 5 years.
The Company is aware of the current conditions in the financial markets and has planned accordingly. The Company's current treasury and the future cash flows from equity issuances and the potential exercise of warrants, finders' warrants and options, along with the planned developments within the Company will allow its efforts to continue throughout 2025. If the market conditions prevail or improve, the Company will make adjustment to budgets accordingly.
Liquidity
As at March 31, 2025, the Company had working capital deficiency of $632,806 (September 30, 2024 - $361,496). As at March 31, 2025, $206,375 was held in cash (September 30, 2024 - $709,647). The total decrease of $503,272 was due to: (a) operating activities of $137,033; and (b) exploration and expenditures assets expenditures net of recoveries of $567,387; while being offset by (c) net proceeds from financing activities of $141,500; and (d) return of deposits of $65,477 from the various government agencies in USA.
Operations
For the three months ended March 31, 2025 compared with the three months ended March 31, 2024:
The Company recorded a net loss for the three months ended March 31, 2025 of $221,241 (loss per share - $0.00) compared to a loss of $965,116 (loss per share - $0.03) for the three months ended March 31, 2024.
Excluding share-based payments of $51,080 (2024 - $Nil), the Company's general and administrative expenses amounted to $192,225 (2024 - $278,338), a decrease of $86,113. The change in the expenses was mainly due to the change in investor relations and shareholder information (2025 - $83,982; 2024 - $179,842) as the Company continues to monitor its use of cash and is actively seeking ways to reduce its operating expenses.
The other major item for the three months ended March 31, 2025, compared with March 31, 2024, was:
- Write-down of exploration and evaluation assets of $Nil (2024 - $687,683).
Silver North Resources Ltd.
Management's Discussion & Analysis
SILVER NORTH
For the six months ended March 31, 2025 compared with the six months ended March 31, 2024:
The Company recorded a net loss for the six months ended March 31, 2025 of $360,865 (loss per share - $0.01) compared to a loss of $1,139,603 (loss per share - $0.03) for the six months ended March 31, 2024.
Excluding share-based payments of $58,311 (2024 - $Nil), the Company's general and administrative expenses amounted to $405,047 (2024 - $465,192), a decrease of $60,145. The change in the expenses was mainly due to the decrease in: (a) investor relations and shareholder information (2025 - $162,893; 2024 - $321,004); while being offset by the increases in (b) accounting and legal fees (2025 - $89,275; 2024 - $41,572); (c) office expenses (2025 - $19,293; 2024 - $2,990); and (d) travel expenses (2025 - $26,183; 2024 - $8,710). The Company continues to monitor its use of cash and is actively seeking ways to reduce its operating expenses while maintaining shareholders' awareness of the Company's exploration programs at Haldane and Tim.
The other major items for the six months ended March 31, 2025, compared with March 31, 2024, were:
- Flow-through share premium recovery of $88,761 (2024 - $Nil); and
- Write-down of exploration and evaluation assets of $Nil (2024 - $687,683).
SIGNIFICANT RELATED PARTY TRANSACTIONS
The aggregate value of transactions and outstanding balances relating to key management personnel and entities over which they have control or significant influence were as follows:
| Short-term employee benefits | Post-employment benefits | Other long-term benefits | Termination benefits | Share-based payments | Total | |
|---|---|---|---|---|---|---|
| Jason Weber | ||||||
| Chief Executive Officer, | ||||||
| Director | $ 81,000 | $ Nil | $ Nil | $ Nil | $ 9,963 | $ 90,963 |
| Rob Duncan | ||||||
| VP of Exploration | $ 75,000 | $ Nil | $ Nil | $ Nil | $ 7,970 | $ 82,970 |
| Winnie Wong | ||||||
| Chief Financial Officer | $ Nil | $ Nil | $ Nil | $ Nil | $ 6,376 | $ 6,376 |
| Marc G. Blythe | ||||||
| Director | $ Nil | $ Nil | $ Nil | $ Nil | $ 6,376 | $ 6,376 |
| Mark T. Brown | ||||||
| Director | $ Nil | $ Nil | $ Nil | $ Nil | $ 7,970 | $ 7,970 |
| Craig Lindsay | ||||||
| Director | $ Nil | $ Nil | $ Nil | $ Nil | $ 6,376 | $ 6,376 |
Silver North Resources Ltd.
Management's Discussion & Analysis
SILVER NORTH
| Six months ended | Balance due | ||||
|---|---|---|---|---|---|
| Services | March 31, 2025 | March 31, 2024 | As at March 31, 2025 | As at September 30, 2024 | |
| Amounts due to: | |||||
| Jason Weber | Consulting fee and share-based payment | $ 90,963 | $ 81,000 | $ 27,299 | $ Nil |
| Rob Duncan | Consulting fee and share-based payment | $ 82,970 | $ 76,724 | $ 14,356 | $ Nil |
| Pacific Opportunity Capital Ltd. (a) | Accounting, financing, and shareholder communication services | $ 113,565 | $ 107,700 | $ 677,216 | $ 606,564 |
| Mark Brown | Expenses reimbursement | $ 31,284 | $ 12,448 | $ 2,884 | $ Nil |
| Marc G. Blythe | Expenses reimbursement | $ Nil | $ Nil | $ Nil | $ 2,115 |
| TOTAL: | $ 318,782 | $ 277,872 | $ 721,755 | $ 608,679 |
(a) The president of Pacific Opportunity Capital Ltd., a private company, is a director of the Company.
COMMITMENTS, EXPECTED OR UNEXPECTED, OR UNCERTAINTIES
As of the date of the MD&A, the Company has no outstanding commitments.
Other than disclosed in this MD&A – Quarterly Highlights, the Company does not have any commitments, expected or unexpected, or uncertainties.
RISK FACTORS
In our MD&A filed on SEDAR January 27, 2025 in connection with our annual financial statements (the "Annual MD&A"), we have set out our discussion of the risk factors Exploration risks, Market risks and Financing risk which we believe are the most significant risks faced by Silver North. An adverse development in any one risk factor or any combination of risk factors could result in material adverse outcomes to the Company's undertakings and to the interests of stakeholders in the Company including its investors. Readers are cautioned to take into account the risk factors to which the Company and its operations are exposed. To the date of this document, there have been no significant changes to the risk factors set out in our Annual MD&A.
DISCLOSURE OF OUTSTANDING SHARE DATA
The authorized share capital of the Company consists of an unlimited number of common shares without par value. The following is a summary of the Company's outstanding share data as at March 31, 2025:
| Issued and Outstanding | ||
|---|---|---|
| March 31, 2025 | May 6, 2025 | |
| Common shares outstanding | 47,713,494 | 61,213,494 |
| Stock options | 4,476,000 | 4,476,000 |
| Warrants | 13,005,500 | 26,505,500 |
| Finder's warrants | 249,637 | 569,637 |
| Fully diluted common shares outstanding | 65,444,631 | 92,764,631 |
Silver North Resources Ltd.
Management's Discussion & Analysis
SILVER NORTH
QUALIFIED PERSON
Jason Weber, BSc., P.Geo is the Qualified Person as defined under National Instrument 43-101 responsible for the technical disclosure in this document. Mr. Weber is the President and Chief Executive Officer of Silver North and prepared the technical information contained in this MD&A – Quarterly Highlights.
Cautionary Statements
This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration results and plans, and our other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, our estimates of exploration investment, the scope of our exploration programs, and our expectations of ongoing administrative costs. There can be no assurance that such statements will prove to be accurate, and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates or opinions change, except as required by law. Forward-looking statements are subject to risks, uncertainties and other factors, including risks associated with mineral exploration, price volatility in the mineral commodities we seek, and operational and political risks. Readers are cautioned not to place undue reliance on forward-looking statements.
Silver North Resources Ltd.
Management's Discussion & Analysis