Ridgeline Minerals Hits High-Grade Gold in Nevada Validating Prospect Generator Model

• Ridgeline Minerals reported a drill intercept of 2.7 meters grading 7.0 grams per tonne (g/t) gold, including a higher-grade interval of 1.1 meters at 10.4 g/t gold, from its Swift project in Nevada.
• The project is being explored under a joint venture agreement with Nevada Gold Mines (NGM), a partnership between gold mining giants Barrick and Newmont. The new drilling result confirms that the Swift project has the potential to host economically viable, high-grade gold deposits.
• The gold grades encountered in the new drill intercept at Swift are in line with those found at other producing gold mines in the Cortez district of Nevada, which are operated by NGM. This suggests that Swift could potentially host a deposit of similar scale and grade to these established mines.
• Barrick, one of the world's largest gold producers and a 61.5% owner of NGM, specifically mentioned the Swift project and highlighted its drill results in its recent quarterly MD&A report. This signals that Barrick views the project as a materially significant asset within the portfolio.
• Under the terms of the joint venture agreement, NGM has the right to earn an initial 60% ownership stake in the Swift project by spending a further ~US$12 million on exploration over the next two years. If NGM fails to meet this spending requirement, 100% ownership of the project will be retained by Ridgeline Minerals.

High-Grade Gold in Swift Project

Ridgeline Minerals (TSXV:RDG), a Nevada-focused precious and base metals explorer, announced a potentially game-changing gold intercept today from its Swift project. In a joint venture with Nevada Gold Mines (NGM), a partnership between gold mining giants Barrick and Newmont, Ridgeline reported 2.7 meters grading 7.0 grams per tonne (g/t) gold, which included a higher-grade interval of 1.1 meters at 10.4 g/t gold.

This marks the first high-grade gold hit at the project after the initial five holes all intersected widespread low-grade mineralization. Those results demonstrated a large gold system was present however, this new intercept changes the story, proving that Swift has the potential to host the high-grade gold that NGM seeks.

"This is really significant," explained Chad Peters, President and CEO of Ridgeline Minerals. "We now know this project can host high-grade gold and it's of comparable grade to multiple producing mines in the Cortez District that are being operated by Nevada Gold Mines."

Disciplined Methodical Approach

The high-grade intercept didn't come about by chance. It is the result of NGM's disciplined "framework drilling" approach. This process, which was used to make major discoveries like Goldrush and Fourmile in the region, involves drilling widely-spaced holes, up to a kilometer apart, to collect the geological data needed to build a robust model of the system. This model is then used to vector in on the higher-grade zones.

In the case of Swift, the initial holes hit the right host rocks and confirmed a large, prospective gold system was present. The sixth hole, which is the subject of today's news, stepped in closer to test for high-grade structures that could host bonanza-grade gold. It hit the mark, intercepting grades that are on par with the underground reserves in the Cortez district.

Striking Comparisons to Multi-Million Ounce Deposits

The Swift intercept has some striking similarities to Nevada's major gold deposits in their early days. Peters pointed to the example of Barrick's Fourmile discovery, which is located south of Swift, in the same district.

"For the Fourmile discovery, it took 11 drill holes in 2015 and 2016 to really start fleshing it out," he explained. "Up until that point they were just hitting a lot of smoke. They were drilling framework holes, figuring out the geologic model - we're only at hole six of that process."

Fourmile, now considered a tier-one discovery for Barrick, has a current resource grading 10.1 g/t gold. The Swift intercept, at 7.0 g/t over 2.7 meters, is not far off that mark. Additionally, NGM's underground reserves across the district average 7.3 g/t gold, which Swift's grades are comparable to.

"As far as grade, we're hitting those hurdle marks for what NGM needs to see," stated Peters confidently.

Interview with President & CEO Chad Peters

Validating the Potential

While Ridgeline's management is certainly excited by the Swift results, the company isn't the only one that sees the intercept as material. In fact, Barrick, the world's third largest gold producer, specifically referenced the Swift project in its Q3 MD&A, released the same day. It included Swift as a highlighted project and provided a table with the significant intercepts.

This is a strong vote of confidence in Swift's potential. For a major like Barrick to include an early-stage project in its financial reporting is a clear indication that it sees the prospect as significant.

Next Steps and Upcoming Catalysts

With this promising hit under its belt, the next steps for the Swift project will be to continue systematically drilling to firm up the geological model and home in on the high-grade zones. NGM has drilled six holes so far, spending US$8.2 million of the US$20 million required to earn an initial 60% stake in the project. The remaining US$12 million must be spent over the next two years or the project reverts entirely to Ridgeline.

Peters believes it will likely take another seven to 10 holes to really flesh out the potential, but he is optimistic that more high-grade hits are in the cards. However, even if NGM doesn't continue advancing Swift for some reason, Ridgeline still sees it as a huge win.

"Whether NGM continues with this, which we strongly believe they will, or whether they don't, this is a huge win for the project," Peters affirmed. "If for whatever reason they don't hit that minimum spend, the project gets returned to us 100%. We keep all the data, all of the success that they've built on here - we'd move forward."

A Prospect Generator Model That's Paying Off

The Swift news is a strong validation of Ridgeline's prospect generator business model. The company focuses on generating multiple projects and bringing in well-funded partners to advance them. This allows Ridgeline to expose its shareholders to significant discovery upside with limited dilution.

In addition to the Swift JV with NGM, Ridgeline has a second partnership with NGM on the Black Ridge project and a JV with South32 on the Selena project. At Selena, a $400,000 geophysics program is underway to chase a deep sulfide target. Blackbridge is being advanced to a drill program for next year.

"It's really starting to hum for us," said Peters of the prospect generator model. "I hope next year to see somewhere around US$7-10 million being spent across our three projects. That's huge for us. If we can advance our 100%-owned projects, try to generate excitement at our big blue sky play, while at the same time seeing material drill holes being funded by our partners, I think it's the perfect scenario for a company like us."

The Path to Monetization

For Ridgeline, the prospect generator model provides multiple paths to value creation. With the project portfolio divided among various JV partnerships, the company has the flexibility to monetize success on a project-by-project basis rather than needing to sell the entire company.

"The great thing is we don't have to sell the entire company to have a material win for shareholders," explained Peters. "Let's just say Swift continues to accelerate, continues to deliver good results and we monetize our ownership stake - that's something where we can just monetize that stake, dividend it as a one-time dividend out to shareholders and we keep on going with these deals that we have."

Whether it be an outright sale of a project, a spin-out company, or some other mechanism, Ridgeline's CEO sees multiple ways to "skin the cat" when it comes to realizing the value of a discovery. As the largest individual shareholder, he is motivated to find the optimal path to monetization.

Conclusion

In conclusion, Ridgeline Minerals' high-grade gold hit at the Swift project marks a major milestone for the company. With its seasoned management team, prospect generator model, and portfolio of partner-funded projects in the rich gold districts of Nevada, Ridgeline offers investors multiple shots on goal in a top-tier jurisdiction. If it can build on the exploration success at Swift and continue delivering at its other projects, Ridgeline appears well-positioned to create significant shareholder value in the months and years ahead.

The Investment Thesis for Ridgeline Minerals

• High-grade gold discovery at Swift project with world-class JV partner Nevada Gold Mines (Barrick/Newmont)
• Potential for Swift to host a significant, high-grade deposit on par with major mines in the district
• Swift discovery validates Ridgeline's prospect generator model and geological acumen
• Portfolio of multiple partner-funded projects in Nevada provides several paths to value creation
• Upcoming catalysts include US$12M of partner-funded drilling at Swift over next 2 years and US$7-10M of total partner-funded exploration expected in 2025
• Tight share structure with just 62M shares out (68M fully diluted)
• Proven management team with track record of discoveries and creating shareholder value
• Exposure to significant discovery upside with limited dilution to shareholders

Macro Thematic Analysis

The high-grade gold discovery at Ridgeline Minerals' Swift project highlights the ongoing opportunity in the junior gold exploration space. Despite a challenging market for junior resource stocks in recent years, the sector continues to offer the potential for outsized returns in the event of a major discovery.

Nevada, in particular, remains one of the most prospective jurisdictions for gold exploration globally. With a rich history of production, a stable political environment, and a wealth of geological data to draw on, Nevada continues to attract the world's top gold miners. This is evidenced by the joint venture between Barrick and Newmont, two of the world's largest gold producers, which has consolidated the majority of the state's gold districts under the Nevada Gold Mines banner.

For junior explorers like Ridgeline, this presents a unique opportunity. By acquiring prospective ground in these world-class districts and bringing in well-funded partners to advance the projects, these smaller companies can minimize dilution while retaining significant exposure to a potential discovery.

Key Takeaway

Ridgeline Minerals' new high-grade gold discovery at its Swift project in Nevada has opened investors' eyes to the company's potential. With a portfolio of partner-funded projects in the top-tier jurisdiction of Nevada and a seasoned management team, Ridgeline offers exposure to significant discovery upside with limited downside risk. If it can build on the exploration success at Swift and continue delivering strong results from its other projects, Ridgeline could be poised for a significant re-rating.