The KE Report Scottie Resources – Largest Ever Drill Program Underway And Key Derisking Work Building Towards A PEA On The DSO Development Strategy
Brad Rourke, President and CEO of Scottie Resources (TSX.V:SCOT – OTCQB:SCTSF), joins me to review a number of key takeaways from recent newsflow on the further derisking work building towards an upcoming Preliminary Economic Assessment (PEA) and the largest ever drill program exploring and expanding resources at the Scottie Gold Mine Project located in the Golden Triangle of British Columbia.
We start off reviewing that drilling has been underway with 3 diamond drill rigs on the property and a 4th drill rig is being added in the next week focused at targets around the past-producing Scottie Gold Mine and the adjacent, high-priority Blueberry Contact Zone-is located just 35 kilometres north of Stewart, British Columbia. Brad points out that a big percentage of the planned 25,000-30,000 meters will be focused on upgrading the resources from inferred to indicated categories as well as resource at the Blueberry Contact Zone, with a focus on the open pit and upper portions of the underground resources at both Blueberry and Scottie, and detailed testing of the siltstone side of the contact zone. We also review follow-up step-out drilling on the Wolf Zone target discovered in 2024 at the Scottie Gold Mine area.
Ongoing geotechnical and hydrogeology drilling will also provide data to inform mine design and assist efforts with the recent initiation of Baseline Environmental Studies. With all this exploration and fieldwork now underway, the Company remains on track to deliver a low-capex PEA based on a Direct Shipment Ore (DSO) scenario in October. Brad reiterates that the management team and board believes this coming economics study will clearly highlight the significant, untapped value of the Scottie Gold Mine Project.
Next we touched on the big news out to the market today on July 24, 2025, which announced that Scottie Resources has received all required permits from the government of British Columbia to proceed with a 10,000-tonne surface bulk sampling program. The Bulk Sample is slated to be taken from the road accessible, outcropping Bend Vein located on the north end of the Scottie Gold Mine Project, and is expected to produce 3,000 - 4,000 tonnes of mineralized rock. This will be a nice opportunity to learn more about a number of metrics and provide a nice proof of concept, as well as generating some non-dilutive capital for the Company in the process.
When reviewing their direct-ship ore strategy, Brad highlighted that Scottie has one of the closest gold projects to a deep-sea shipping terminal, which based on its location is positioned in one of North America’s cheapest commercial shipping lanes to Asia. In addition to the ease of a proposed open-pit mine, which already has an existing mine permit, there is also key external infrastructure in place, such as power lines and hauling roads right to site.
Wrapping up we review the importance of the recent financing announced on July 9th, for a $16.8 million non-brokered private placement financing, of which a lead order of $6 million, translating to $8.4 million in charitable flow-through funding, will be provided by Ocean Partners UK Limited. Brad outlines that Ocean Partners, in addition to their participation in the recent financing, has entered into a binding term sheet with Scottie to provide a commercial offtake agreement 100% production for first 8 years of commercial production, and has made available a construction loan and overrun facility of USD$25 million, to advance the Scottie DSO Project towards production.
If you have any questions for Brad regarding Scottie Resources, then please email them in to me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Scottie Resources at the time of this recording and may choose to buy or sell shares at any time.