Scottie Resources Corp. (TSXV: SCOT) (OTCQB: SCTSF) has spent years showing investors that there is high-grade gold beneath its properties in British Columbia’s Golden Triangle. Its job now is to demonstrate how much of that gold can support a mine.

That shift was at the centre of Scottie’s return to the CEM Top Pick list at the recent Kelowna TSX Venture Growth Capital Event.

Since being recognized at CEM’s Whistler event earlier this year, the company has put seven drill rigs to work, expanded its development team and moved much of the engineering needed for a feasibility study toward completion.

“We know the gold is there. The job now is to show how much of it can support a mine and build the confidence needed to move into production,” said Scottie’s Executive Chair Brad Rourke.

Scottie’s flagship project sits about 35 kilometres north of Stewart, B.C., along an established mining road in one of Canada’s most active gold districts. Its holdings include the past-producing Scottie Gold Mine, the adjacent Blueberry Contact Zone, the Domino target, and several other properties covering approximately 58,500 hectares.

The current inferred mineral resource contains 703,000 ounces of gold at an average grade of 6.1 grams per tonne. It includes 528,000 underground ounces grading 8.7 g/t and 174,000 ounces in a potential open pit grading 3.2 g/t. 

Those figures give Scottie a strong starting point. The current program is designed to improve the confidence of that resource, add ounces where possible, and provide the geological information needed to complete a mine plan.

Scottie’s fully funded C$26-million 2026 exploration program is built around 50,000 metres of drilling, said Rourke.

That represents more than a 50% increase over all the drilling previously completed by the company at the Scottie Gold Mine Project.

Approximately 35,000 metres is aimed mainly at development, resource conversion, and expansion. The remaining 15,000 metres will test exploration targets that could extend the existing system or lead to new discoveries. 

By July 23, Scottie had completed more than 10,000 metres in 47 holes, with seven rigs turning.

“We moved into camp earlier than ever and now have seven drills turning with results pending from the first 47 holes,” said Rourke.

These holes help determine where mine infrastructure can safely be placed and provide information needed for engineering and permitting.

The company expects the drilling and engineering programs to support an updated mineral resource estimate and feasibility study in the first half of 2027. 

Scottie’s current resource model focuses mainly on the upper portion of the deposit, but drilling has continued to encounter the structure below the existing resource.

That gives the company a chance to upgrade known ounces while testing whether the deposit continues deeper.

“Even when we’re doing resource drilling, we’re also doing expansion,” Rourke said.

All of this work serves a practical purpose. Scottie is trying to increase the amount of higher-confidence material available for the early years of a mine, improve the production schedule, and strengthen the economics used in the feasibility study.

“We have more targets right now than we’re drilling,” Rourke said. “That is something we simply didn’t have three or four years ago because we didn’t have the information.”

Scottie’s proposed development plan is unusual because the company does not currently intend to build a conventional processing mill.

Instead, mined material would be crushed and passed through an ore sorter. The sorter would separate denser, gold-bearing rock from lighter waste material. The crushed material would pass through X-ray fluorescence sorters that identify and separate sulphide-rich mineralized rock from lower-value waste.

The upgraded product would then be taken by truck approximately 40 kilometres to the Port of Stewart and shipped for processing under Scottie’s arrangement with Ocean Partners.

To further de-risk the project, Scottie completed a 10,000-tonne bulk sampling program that included mining, crushing, ore sorting, trucking, and shipping material to a blending facility in Asia. The program successfully demonstrated the viability of a direct shipping ore (DSO) development scenario, highlighting the potential to generate near-term production and cash flow while continuing to unlock value through district-scale exploration and resource growth. The company is now completing a third phase of ore-sorting studies using different technologies and equipment providers.

Rourke said this additional work is intended to improve the process rather than prove the basic concept.

“We’ve looked under every rock because even one or two grams can mean a lot of money,” he said.

Many remote mining projects require hundreds of millions of dollars for roads, power lines, camps, processing facilities, and tailings storage before production can begin.

Scottie already has several of those pieces around it, said Rourke.

The property is reached by an established road. A major power line crosses the district. The historic mine contains underground workings, while the project is close to the Port of Stewart.

“We’re blessed with that infrastructure, which makes the direct-shipping model so viable,” Rourke said.

Scottie’s preliminary economic assessment, released in October 2025, examined a seven-year operation producing an average of approximately 65,400 ounces of gold annually with a C$128.6-million initial capital estimate.

At a gold price of US$2,600 an ounce, the study calculated an after-tax net present value of C$215.8 million, an internal rate of return of 60.3% and a payback period of 1.7 years.

At US$4,200 gold, the estimated after-tax NPV increased to C$668.3 million and the IRR to 153.2%. 

Those economics are now being matched by progress on the regulatory and Indigenous partnership fronts.

Scottie announced in March that the proposed project does not require an environmental assessment under either British Columbia’s Environmental Assessment Act or the federal Impact Assessment Act. It will still proceed through the provincial mine-permitting process and the applicable review under the Nisga’a Final Agreement.

“That is a big win,” Rourke said, estimating that avoiding the additional assessment process could save about C$4 million.

Scottie has also entered a capacity-funding agreement with the Nisga’a Nation, represented by Nisga’a Lisims Government.

The agreement provides funding for the Nation to hire independent technical and legal advisers as it reviews the project and begins negotiations toward an Impact-Benefit Agreement.

An eventual IBA would address potential effects on Nisga’a Treaty rights and set out how the Nation would participate in and benefit from the project. 

That progress also strengthens the broader investment case being made for Scottie.

In a research report, Agentis Capital analyst Michael Gray described the company as a potential “linchpin” in the Stewart mining camp, pointing to its high-grade resource, existing infrastructure, and several possible routes to production.

Gray’s analysis considered three development paths: Scottie’s direct-shipping model, toll milling at a nearby operation, or a role in wider regional consolidation. Agentis estimated a sum-of-parts corporate net asset value of C$736 million, or C$10.71 per share, based on a weighted combination of those scenarios.

Scottie enters the next stage with approximately C$33 million in cash and backing from Ocean Partners through an equity investment, offtake agreement, and US$25-million construction and overrun facility.

“The feasibility study, expected in the first half of 2027, will put firmer numbers around the mine plan, costs, production, and financing, allowing us to build an economic case that is undeniable,” Rourke said.

After Scottie Resources was named a Top Pick at CEM’s 100th Capital Event in Kelowna, Executive Chair Brad Rourke spoke about the company’s record drill program, its direct-shipping plan, and the milestones that could move the project toward production.

“We’ve built out the team, both at site and at the executive and mine-development level. We are working toward production in the third quarter of 2028. That remains a realistic target, and we haven’t seen anything that would force us to change it.

The engineering for the feasibility study is about 95% complete. The main job now is to bring in the geological data from this year’s drilling so we can finish the resource work and mine plan.”

“About 35,000 metres is focused on development and 15,000 metres on exploration.

At Blueberry, the development drilling is doing two jobs. We are tightening the drill spacing to increase confidence in the ounces we already have, while extending holes below the current resource to test for more gold at depth.

The clearest opportunity is to keep drilling deeper at Blueberry. We continue to hit the structure below the current resource, and every successful hole gives us a better idea of how much larger the deposit could become.

Domino gives us a different kind of opportunity. We do not need it for the mine we are planning today, but successful drilling there could make the overall project much larger.”

“We’ve already proven the logistics with the bulk sample.

We can mine the material, crush it, sort it, truck it down the road and ship it. The road exists, the port is close, and the offtake arrangement is in place.

We are continuing the ore-sorting work because even a small improvement in grade can have a meaningful effect on the economics. The goal is to ship the highest-value product possible.

The key milestones are the drill results, the updated resource, and the feasibility study. The feasibility study brings the geology, mine design, costs, and production plan together.

We are also speaking with lenders and preparing for the financing stage. The business case is real, and we are getting ready for what comes next.”

CEM heads next to Ontario’s cottage country for the 14th annual Muskoka Capital Event, taking place from September 25–27, 2026, at the JW Marriott Rosseau Muskoka Resort. The lakeside gathering gives management teams time to move beyond the presentation deck, answer detailed questions and build relationships with investors who can help shape their next stage of growth.

Warm Regards and Happy Investing,

Fabian Dawson

Each week, CEM Partner and Portfolio Manager, Ryan Iverson, spotlights the ideas and companies sparking investor interest form emerging growth stories to the Top Pick featured across CEM’s Capital Events. This series brings real insights from the annotators shaping tomorrow’s markets and reveals where investors are finding the next breakout opportunities.

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