Can you provide an introduction to Elevation and their flagship mine in Arizona?

Elevation is a Canadian company listed on the TSXV with their flagship asset being the Moss mine located in Mohave County, Arizona. The mine is situated 10 miles east of Bullhead City and 90 miles southeast of Las Vegas. Elevation went into production in 2018 and currently employs approximately 150 individuals. The company controls a 168 sq km exploration land package and has historical workings nearby, with the Oatman district having produced over 2 million oz Au. The area seems under-explored and the ore Elevation mines is a low sulfidation epithermal deposit. While this comes with its advantages, such as good recovery, no contaminants and excellent percolation through the leach pads, the rock is extremely hard and requires crushing at a high cost. Moreover, the ore grade is low, which requires the company to maintain tight cost control and stay efficient in their operations.

What is your vision for Elevation since being made President in August?

Since taking up the position of President in August, my main goal is to turn the company around financially. Our current reserves, which were published in the NI43-101 mid-2021, are still applicable. We are currently drilling and exploring areas next to the Moss pit, which are very promising for finding more gold. In 2021 and through May 2022, we drilled over 250 holes to figure out where to mine and where to construct future leach pads. We are also excited to start drilling in Florence Hill, which is a really promising target. Our goal is to remain profitable while continuing to explore with the ultimate ambition of becoming a significant producer.

Could you expand on Elevation’s maiden exploration program at Florence Hill?

Florence Hill has been a well-known target for over a decade and is located about halfway between the Moss mine and the Gold Road mine. Our geologists feel that Florence Hill could be the source of mineralization in the district, and we are drilling there to look for epithermal veins and porphyry deposits, as well as different kinds of alteration. We are currently on our first hole, and it has been promising enough that we plan to extend it deeper than originally planned. We are finding encouraging structural, vein, and alteration features, and we will have more information about the mineral grades when we receive our assays back in Q1 2023.

How has Elevation adapted its processes to mitigate recent inflationary pressures?

In order to reduce costs and balance inflationary pressures, we have drilled two new water wells to ensure that 100% of our water comes from our own wells. This will lower our costs and provide better quality water for our processes. We are also working with our mining contractors to employ new technology to increase efficiency and minimize costs. These pressures are unlikely to have a negative impact on our production at the Moss mine. We have two sides to the deposit, the West pit and the East pit, with the latter containing a principal vein structure with a higher grade. Overall, we produced 13,000 oz in the first half of the year and expect to produce 20,000 oz in the second half of 2022, reflecting the benefits of developing an additional push-back in the East Pit. We also will not need to build an additional leach pad until Q2 2023.

How do you view the regulatory framework for mining companies in Arizona?

Arizona is known to be a state that is pro-mining and industry-friendly. There are various groups and organizations that provide support to mining companies in the state. For example, AMIGOS is an extremely supportive group that facilitates supply chain processes for both producers and explorers. In addition, there are a large number of engineering and technology providers based in Arizona, and the state has outstanding academic programs and institutions related to mining and other related industries. Moreover, we enjoy fantastic support from the Arizona Mining Association (AMA), which further enhances the favorable regulatory framework in the state.

What should we expect from Elevation in the next few months?

Our primary goal is to identify more economic ore material near our current operating pits, which would enable us to extend the mine life for 3-5 more years. We are currently focused on exploring the long-term prospect of Florence Hill, and we expect to get results from our drilling operations there in the next few months. We are optimistic about the potential of this promising target and are hoping to find epithermal veins and porphyry deposits, as well as different kinds of alteration. Our geologists feel that Florence Hill could be the source of mineralization in the district, and we are excited about the possibilities that this exploration program could bring.