Morning everybody, and thank you for your time today. It's an exciting day at Osisko Development with the announcement of the acquisition of the Trixie project in Utah. Before I start, I'd like to thank Tom Bowens from IG Tintic and Geoff Stanley from Chief Consolidated for helping us get this transaction in place and who have brought us the opportunity. We really appreciate the cooperation that we've had. We're looking forward to a long partnership with both groups. Certainly hats off for the discovery and the execution of the work that's been done. It's extraordinary discovery that's been made at the Trixie Mine with the new T2-T4 high-grade zone, and that's what we're gonna talk about today.
To have them join the Osisko family with this project, it really does put a third leg on the Osisko development story and brings us near-term production in the here and now, as well as a significant amount of upside, as this is a brand new type of mineralization that even though this project's been in production for over 100 years at various times, most recently by Kennecott, we've never seen this type of mineralization in the deposit before. It is something brand new and hopefully very exciting for shareholders. It is teeing up to be the highest grade mine in the world, if the grades maintain the way they have been in recent production.
With that, I'd like to take a minute to watch a video that we've prepared from site because this project really does explain itself. So if we could, I'd like to start the video now, Phil. We'll come back and go through a bit of the deck on the back end. For those more technically minded, there will be a breakout session after market today, led by Chris Lodder for those who wanna get into the significant geology. Over to the video please.
As a geologist, I can't think of a better place to work than the Tintic district. It's one of the premier historic mining districts in the U.S. Mining in the district started in sort of 1870s, 1880s in the main district and moved eastwards sort of into the early 1900s. The East Tintic is under cover. It's under volcanic cover, which means a lot of the deposits that were discovered at that time were blind discoveries. I think there's only one outcropping occurrence of mineralization on surface in the East Tintic district. There was a lot of shaft sinking into areas of alteration, discovering these major base metal deposits, and the whole district grew from there.
Through the 1910s, 1920s, 1930s, certainly there was a lot of activity here with both lead zinc operations and then the precious metal gold and silver operations.
In terms of the mining that was done underground, its old structure, rails and rail cars and things like that. Tintic Consolidated Metals owns over 14,200 acres of patented claims and about 7,000 acres of surface rights. This area covers 23 past producing mines. Where our admin offices are is where the Burgin Mine is located. It is connected to the Apex Two Mine, which is literally over the hill. Apex Two is connected to Apex One, which is on the other side of the road. As you go up the valley, you've got the Eureka Standard, you have the Trixie. The focus now is to actually further develop the Trixie. There's a lot of exploration that still needs to be done, but as we're doing that, we're also mining.
There are 22 other mines, past producers, some very good past producers, which offers a great opportunity for development. What we've inherited as a very positive legacy is the infrastructure that's in place. We don't have to drive the tunnels or develop certain bits of the mine to make it produce.
One of the benefits that the company had in acquiring the project was this legacy data set. There's an enormous amount of historic information on all of the deposits here in the projects, all in hard copy formats. The company spent sort of four or five months and the group pulling all that data into modern mining software systems and 3-D models for the first time. From that, you know, we're able to develop the targets that we developed onto.
Tintic Consolidated Metals started development of the Trixie in 2019. The decision was made to actually go underground in the Trixie. There was some rehabilitation work required. Targets were identified on the first level of the mine, which is 625 ft below surface.
There had historically been produced about 158,000 ounces of gold and I think almost 4.7 million ounces of silver.
In today's price, that's about a quarter of a billion dollars in terms of just the gold alone. Thanks to some good geology and good interpretation of data, the T2-T4 was discovered, and that's now led on to the T4, which is adjacent.
The discovery that we've made in 2020, which we call the T2-T4 structure, is a very, very high-grade gold tellurium rich structure that's sitting immediately adjacent to the west dipping structure that was historically produced on. There's a structure which we call in a footwall. It's only 44 ft where we first discovered it and developed on it into the footwall of what had historically been mined, so extremely close. In fact, some of the historic mining was as close as 8 ft from a 160-ounce mineralized material on this, on our T2-T4 structure. The previous mining was extremely close to it and essentially missed it.
Working in an operation where you're not looking at, say, 0.25 ounces or 0.2 ounces per ton, you're actually working in a grade that's been up to, well, over 400 ounces a ton in certain areas of the T2-T4. Certainly overall, averaging on strike around a little over five ounces is absolutely amazing. It's amazing not just to myself, but everybody that works at the mine. To actually see visible gold is incredible as in mining you rarely ever see it. That's visible gold, that's pure gold. That's the same kind of gold color as my ring finger. A lot of our gold has been altered by tellurides, and this piece of rock here, lovely color, indicator of copper, has actually pure gold here, but it's been altered by telluride.
The mineralization on the T2-T4 is quite unique in a sense that, the high-grade golds come in as a gold telluride. It's quite exotic, and it's a fantastic rock to look at. It's some striking greens and blue colorations that are these, exotic and rare copper tellurides. Whenever you see that dark mineral underground, we know that that's integrated with, significant visible gold. You'll not see rocks as high-grade and spectacular, you know, there's very few places in the world where you get, you know, you're fortunate enough to work on rocks that are that are of the grades that we have. Yeah, TCM is certainly targeting a resource target in the Trixie itself with the T2-T4 structure and the discoveries within the Trixie and expanding that T2-T4 structure, both at depth and along strike.
have a resource target of about 400,000 ounces, which is conservative within the Trixie itself. Beyond that, in the next sort of two to three year timeframe, bringing on additional resource opportunities in a near mine sense, and again, apply the same approach.
We're currently at about 45 tons per day, and over the next few years, plan decline from surface, expanding the mine. Target is to go up to 500 tons per day, which covers the Trixie and also potentially the adjacent mine, the Eureka Standard. Associated with the mine development is the processing. We've got a process facility on site that we started in October, very small, but we're gonna expand that to a full facility to be able to take the ore from the mines. The ore is mined, it's hoisted to surface, and it's put into various stockpiles based on grade. The ore is then crushed. We currently are using a mobile crusher to get the ore down to about minus a quarter of an inch. We just literally take it and put it into vats. We have 4 vats.
They're about 75 tons capacity each. We have a nine day residence time from the start of loading up the vats, running cyanide through it, and then running a hydrochloric acid fluid through it. We capture the gold through solution in carbon.
We've had a laboratory re-established on site. Underground samples are collected. Our samples go through the laboratory there. The first step is to dry the samples in the oven. Jaw crusher that takes the rock down to, I think about 2 mil, and then into a pulverizing unit that pulverizes that to a pulp. That pulp then is put into a packet and goes around the corner into what's called the fire assay room. That pulp material is put into a crucible and mixed with fluxes. The crucible is placed into the furnace. They're melted down. That separates the gold and silver into a lead bead in fact. Then they're put into nitric acid, and the nitric acid, they part the sample, so that they're left then with the gold and the silver in solution.
The gold goes into the weight room, and they determine then the amount of gold in that sample, and it gets calculated out. The grades that we're operating in the mine, we typically report those in ounces per ton, and they can be anywhere from 10 ounces per ton up to, I think, our highest grade face sample was 467 ounces per ton, which is quite an impressive grade. The group has grown very quickly. There's 120 people on site. We all work collectively, sort of as a dedicated team each day. There's management in place that have really taken the company forward, both in the sort of early days of when we first arrived in 2019 and into production.
The team element to this company is really, really important. We've put a lot of effort into getting the right incentives for these people, for Trixie to be attractive as a place to work and as a place to live too. We're very excited about the fact that, you know, as we move forward and we start opening up mines, we're very hopeful people are gonna build up more houses in Eureka, more houses in Santaquin, Saratoga Springs, for example. They're earning a good salary. They're spending money. It's good for us. It's good for the employees. It's also good for the community and we see that increasing substantially over the next couple of years.
During the course of 2021, we've gone from an operation that needed cash input to operate to a point where third to fourth quarter we were cash flow positive, not just on a month-by-month basis, a good month and a bad month, but we're sustainably cash flow positive. The fact that Osisko's coming on board and we're gonna be part of Osisko, I think that's a very good start. Based on the way that we're operating and the people that we've met at Osisko, I see us working very well as a team. Going forward, I think it's gonna be a good opportunity, very good opportunity for Osisko in terms of what they see from a regional perspective. One of the things that is the difference here that's really important is that we get to accelerate a lot of this work working with Osisko.
TCM and the project, you know, offers a fantastic opportunity, you know, for investment and future investors from an exploration company that identifying opportunities and targets, drilling those, and then developing onto those and becoming a producing company and producing gold within a very, very short period of time. I can't think of too many other examples where a company has had such an accelerated path towards, you know, production at an early stage. It's very exciting for the company and the people that are here.
The opportunity we see at just the Trixie is in the $ hundreds of millions in terms of the ore deposit and the ability to mine it. If you actually multiply that to the adjacent mines and the other mines that we own, under TCM, it's a big multiplier effect. Plus, we do have the infrastructure to support opening up further mines.
You know, additional opportunities in both the historic mines as well as develop a really solid, strong pipeline of projects that the company will, you know, develop in the sort of three to five year timeframe and longer into the 10-20-year timeframe and across the district has a, you know, a target of sort of 5 million ounces across the district, which I think, you know, is very much a focus for the company and very exciting investment opportunity for those that wish to, you know, sort of partake in on the journey that TCM is on.
Well, thanks everybody. For those of you who wanna participate in the site visit, you'll probably meet Dave Sabourin and Matt Perkins, who were in the video clip, with Matt Perkins being the geologist and Dave being the mine manager. They've really led the charge on this discovery and done quite a job there as we continue to develop this project. We're gonna take a quick run through the PowerPoint right now. It's gonna be the light version because we wanted to use the time for the video. The video that we saw is a consolidated view of the overall district, 23 previous producers. As we look forward to the evolution of this project, this new style of mineralization is available in other places.
We are looking now at the cautionary statement. I would like you to look at that, because we will be making several forward-looking statements on this project, and as we go forward. The main advantage of this strategy, of course, is the accelerated path to a leading producer. We've got the Cariboo Gold Project as well, as the project in Mexico. As we continue to move forward, we're going to be accelerating our five and 500, which is five years to 500,000 ounces a year production. With the Trixie, the rationale, the strategic rationale behind this project is to bring on board a in-production mine with significant high grades. It's a significant opportunity. This opportunity came to us through persistence.
Chris Lodder and Ruben Padilla and I, during the Osisko one days, we looked at this project from the porphyry style. This mineral endowment at the Trixie and the Tintic area is the second-largest mineral endowment in all of Utah. We've been looking at it from a porphyry model standpoint. When the discovery happened in 2020, we were able to understand what it was, and Ruben and Chris led a charge to make sure that we understood the opportunity. Really hats off to the technical team for getting that done.
In terms of what this represents, at 59 grams head grade for 2021, and now most recently looking at sort of the 80, 90 grams in the last week or so of production, this has really taken off in terms of being an exceptionally high grade deposit with the ability to duplicate this mineralization in other spots along the trend. To be clear, the old-timers in the Kennecott major mining company never mined this type of mineralization. It is quite exciting both from a technical standpoint and also from an investor standpoint, as we have a new interpretation on an old mining camp. If you recall, that is the MO of Osisko Group. We like to go into these brownfield deposits, apply new technology, new models, and new ideas and see where they come from.
Matt and the team at Tintic have done a really good job with Tom and Geoff Stanley and the crew having led the charge to really rehabilitate this mine and get back into the exploration. In terms of our growth plan, we continue to add ounces here. We have a NI 43-101 on this project in the works, and then are updating the opportunity here with some more drilling. The main event here will be a ramp down to the actual deposit to expand the ability to hoist more. Right now they're mining at 45 tons a day with the existing shaft, and we'll be looking to put a ramp in there. This is a meaningful acquisition into the Osisko Development portfolio.
Obviously, it's immediate cash flow, and it is in production, with a lot of the permitting requirements already met and the existing infrastructure both in buildings and others. On to slide four. The transaction overview is the settlement here, just under $55 million of cash. The total value of the deal will actually be closer to $184 million by the time we reform the whole payment into it. U.S. dollars all the way through. There's a 2% NSR back to the vendors with a five-year 50% buyback rate, and a contracted rate for 10% NSR on the stockpile that exists on surface. And a couple of convertible loans that were put in to continue to push on the development.
We've also retained significant shareholder support from both IG Tintic and Chief. Representing 6.6% of the development pro forma will be held by the principals and they've agreed to hold the stock and come along for the ride as we unwind this asset for Osisko Development. In terms of financing, we also sidecar to this transaction, we have a $20 million-$40 million sliding stream available from Osisko Gold Royalties. That would leave us pro forma when the transaction done with Osisko Gold Royalties owning just under 60% of the equities. Tintic shareholders and Chief shareholders would be around 21.3%.
A float of 19.6%, and we're expecting to close at the end of Q2 in 2022. We've been on this project and negotiating for a while to sort it out. This is a 100-year-long chain of custody in this project. It's quite important to us that we make sure that we understand that history. It's remarkable that this property has been held in good stead for over 100 years, and the title is impeccable on it. We're quite impressed with all the aspects of this project, both the technical, the geological, and the administrative side of it. On page five, we see our lineup.
This leads Osisko Development with three development projects that are transitioning to production in the next 24-36 months. The Cariboo Gold Project, as you know, is headed for a feasibility study. The main event for this year will be the acceptance of the EA and the early works projects for this construction of the underground operations at the Cariboo Gold site. We're currently sitting at 3.2 million ounces of measured and indicated, with another 2.7 million ounces of inferred. The Bonanza Ledge project is underway as we speak. We poured gold there, and the QR mill is up and running and producing gold in 2022. We're hoping to see 20-30 thousand ounces of production from there as well.
Obviously, the Trixie Gold Mine is now in production and has produced just under 15,000 ounces in 2021. Looking good here in 2022 as the grades have increased and the leaching capacity has increased as well. Also with Trixie is a mine that we haven't talked about too much in the interim is the Burgin Mine, which we'll get into later on. There's a feasibility study or PEA study from 2011 that outlined about a $160 million NPV at the time from a silver-lead-zinc project that is also held in the asset base. We quite like that project, but the focus in the near term will be the high-grade Trixie underground gold deposit.
On page six, we've got a pretty clear path as to how we're working. Bonanza Ledge II is already underway. The Trixie Mine has been producing for about four months at steady state and produced just under 15,000 ounces last year, as we said. Continue to be optimized as the team there gets more open faces to work with and gets better infrastructure development underground and upgrading process facilities, and just the overall capacity of the team there is exceptional. We'll be looking to start a ramp and set the stage for that 500 ton a day exploitation that we'd envision with the team on the ground since the beginning. San Antonio is a heap leach project in Mexico.
We're currently stacking ore, and we expect to have gold on carbon here by the end of February from that project. A larger project that'll produce between 50 and 70,000 ounces from open pit oxide is looking for permitting to come out near the end of the year. The larger Cariboo project, which we expect to have mostly the EA permits completed in 2022. Feasibility in the first half of this year. We'll be looking for construction of that project at 4,750 tons a day, and then scalable from there to start in 2023 in earnest. Page 7 probably the most important slide of the day shows Trixie.
If grade is king, Trixie may be the king of kings. This is 80-gram head grade what we're running right now. We're not too familiar with the mine in China that comes in the number two position, Shaanxi, Tongguan County Mine. But I think everybody's relatively familiar with Fosterville, which currently reporting about 34 grams a ton. Then Macassa here in Canada, in the Kirkland Lake camp, running at just under 19 grams a ton. You know, quite an exceptional outcome when we look at this mine having the ability to produce at over 80 grams a ton as we speak today. Looks like that we can sustain that production for quite some time as we continue to develop underground.
The Tintic overview on page eight, the location is about 40 miles south of Bingham. Bingham being the most well-endowed mineral camp within Utah, with Tintic being second. There's quite a bit to do here. As I said, 23 historic mines have been in production on this property with significant landholdings, and a lot of these are patented landholdings that have been for some time, which gives flexibility in terms of exploitation. 14,200 acres of patented land is a big land package in the U.S., especially in a premium jurisdiction like Utah. It's an exceptional opportunity with another 7,000 acres under lease. You know, this continues to be a big asset.
As you saw in the video, significant amount of infrastructure on the site, several head frames, underground developments, and there are literally probably $300 million-$400 million worth of underground development in place if we had to duplicate that. You know, there's significant ability to take advantage of those old workings, the access points, and also take advantage of the fact that the aquifer's gone down by about 100 ft since they stopped mining. The reason that they stopped mining was because of the aquifer, not because the deposits ran out. Even on the traditional mineralization, there's quite an opportunity to pursue that at depth and also to look at what it might be below the water table as well.
The last time this project ran again was for flux for the Bingham Mill. Onto page nine with Trixie. You know, this is a bit of a summary here, and I don't wanna get too far into it because I think we've covered a lot of it. Suffice it to say, we are permitted, we are in production, and looking forward to building on the success that's been generated here by the operators so far with a target of getting to 500 tons a day. Now I'm gonna pass it over to Chris Lodder here on page ten to take you through a bit about where the geology fits and sits on this one.
Chris, if you wouldn't mind taking on slide 10 and just let us know when you're ready to go to slide 11.
Okay. Thanks, Sean. The Trixie mine is part of a larger porphyry epithermal district with various styles of mineralization, from the polymetallic mineralization, which is a carbonate replacement on the other side, other parts of the district. That was principally for lead, zinc, and silver. Then in the eastern and central part, we have the epithermal mineralization that was mined for copper, gold, and silver, but in large portions for flux, principally by Kennecott between 1965 and 1995. The Trixie mine itself is one of the mines on that trend, and it's located in the southern part of that.
Here we have a 3-D sectional view, showing the stopes that were mined principally for flux, but with significant gold within them. By-products were sort of 4-30 grams of gold by-products with high silver and copper in them. T2 sits within that, just into the footwall of that mineralization to the east. As in the video scene, it was fairly close to workings there. This mineralization was never mined before. It's gold telluride. It's low sulfidation, low sulfide, and it's non-refractory. It continues at depth. We've got workings over the full length of it there, right by the T2 structure and the adjacent stockwork zones around it.
The mineralization panel that we see right now, where we're underground drilling development and focus will be over the next 12-24 months, is really an area quite small, 215 meters by 260 meters. It varies in thickness from 25 meters-2.5 meters. That includes both the high-grade structures and the surrounding stockwork zones. There's been significant underground channel sampling, development sampling, development into it, and core drilling now is beginning from underground as drill bays and that are put in there. It's also located under a cover rock. It's important for this type of mineralization. There is a rock that really caps it. It's an impermeable both shale rock and volcanic in the area.
This really ponded the mineralization below that and forced the historic precipitation of very high grades through this area. You can see there that there's a bigger panel there of approximately a kilometer long, which is really the continuation of this type of mineralization that we see from where there is some drilling off to these very limited by Kennecott looking for flux. They only assayed in the very high silica zones and a lot of the fault zones and structures they didn't assay. Even with that, they were still getting some impressive grades in the exploration drilling they did off into the footwall of the original Trixie Mine stopes.
Down below is a sampling, an average of all the samples taken underground, I believe to the end of November that was, mid-December, about 2,332 channel samples, that averaged an impressive grade of 93 grams per ton gold and 135 grams per ton silver. Even with top cuts at punishing amounts of 3 ounces and 5 ounces, you still see significant grades showing that you've got great continuity and along the structure. Next. This is a plan view of the actual T2 structure, as it was discovered, showing it on the 625 level, with what we're calling them sill cuts.
These were then to confirm the mineralization above and below the original structure. You can see there that along that 700-foot strike length, recently they've had 68.3 meters with an average width of 1.4 at again a very high grade of 318 grams per ton silver. It was on what we call the T2 North. On the southern one, they had 138 meters at 1.6 meters average at 433 grams per ton. In the stockwork zones, the area shaded in orange there, or yellow you can see in that thing. You'll see the different grades along the cross cuts there with impressive grades in the stockworks too.
These stockworks are principally quartz, pyrite, and other epithermal alteration minerals that are typical of high sulfidation systems. In this case, lacking things you would see typically, but in more high complex sulfides. In this case, telluride rich with native gold and electrum. Next. This is. There's a lot of detail in it. You can read it yourselves, but really what we're showing here is a cross cut. This was on one of the original faces they went into it. But it's a very good image showing what there is there. Some of the low grade footwall at less than six grams. Just keep that in mind, less than six grams.
The actual high-grade zone, which varies from 0.3 meter- 1 meter wide, with great continuity over a 700-foot or 250-meter strike length so far. It is still open to the south and north at grades of 70 grams- 3,400 grams. There's this high-grade right immediately in the hanging wall to the structure that we're seeing this 1 meter-3 meter zones of 30 grams- 100 grams. Then going on to lower-grade stockwork on pyrite, quartz stockwork zone, from 3 meters- 25 meters or up to 80 ft, 6 grams- 20 grams. Very impressive there.
There's obviously potential for the high grade, but also for some larger stope mining, as we define this in detail as we go forward. I'll stop right there, and I'll let Sean then continue.
Thanks, Chris. I think that's a good slide to stay on for now. We're going to be available for more technical discussions, but given the time limits, and I know everybody's busy this morning, I did want to go to Q&A after that. We have a couple of extra drawings in here. You can see our development plan, which is essentially to drive a drift that's gonna take about 650 feet vertical down to the 650 level where they're currently operating, so about 200 meters. Then, going down to the next level, which is the 900 level, we would be encompassing that, and that would give us the vertical extent of the deposit for what we need to mine in the near term. We've been very conservative.
We think about what the available ounces are for what we wanna do here. As you can see in that slide on page 13, the grade mineralization is the key to it all. We like this project a lot. In the long term, we also have the base metal project, and it is eventually even a copper porphyry exploration target at depth. There's quite a bit of activity in the Tintic area outside of this property as well for that porphyry target with one of Robert Friedland's companies exploring to the south and west of us.
It's, you know, a great new discovery in a historic camp, great mineral endowment, and I think it just really puts another speed on the Osisko Development story. At that note, I'll open it up for questions about the transaction or about the project. Again, if we wanna do any detailed geological, for those who want to, just send us an email at the website, and we'll get Chris and the technical team to answer those, and we'll set up a session especially for that and send you an invite. All right, you have to go to the chat room for the questions. Unfortunately, we don't have the ability to do audio on this system.
If there are any questions, please put them in the chat room, and we'll be glad to take those. In the meantime, you know, pretty excited about this one. Again, I wanted to thank both the Chief shareholders for the support in the Osisko investment, as well as Tom and the IG Tintic people for coming into the family. We're really looking forward to working on this project with everybody to set the stage to hopefully make this the highest grade gold producer for the next several years. I see we have a question for Chris. Is there a structure open at depth?
Chris, do you want to, maybe is there a slide you wanna go to on the long section there?
Hi. Yes, you can go to that long section I have showing the stopes there in the area of exploration if you want. Yes, it's open at depth. We have no bottom that we can see yet on this thing in terms of the historic mineralization. T2A, we don't know the depth potential, but these typically are looking at about an epithermal system's depths of about 300 meters of mineralization from the top to the bottom, you typically see. Some places they can be deeper. Right now with the present access, we have access or workings down. We have to fix up some of the access, but we have workings down to approximately 200 meters, so there's still about 100 meters, I think.
As I stated, those older stopes, they all bottomed in mineralization. They bottomed because of the water table, so they were still in mineralization.
Thanks, Chris. In terms of their next question, is the permit for the tons per day, the 500 tons per day and the development work there, and what is the project? We would like to continue on hoisting at the current capacity, which is, with the waste and development, we're able to hoist about 45 tons a day of mineralized material that's going to the vat leaching. The development underground continues to really be the key, and we're challenged by our hoisting capacity to remove waste and develop.
That continues to develop, and there is some permitting process that's been undertaken to expand the existing mining permits to allow for that ramp development, as well as review of what we can do in upgrading the existing processing facility to handle the leach capacity 'cause we do have a mill that is fully permitted on site. We're working on the engineering around that as we speak. In terms of costs, we're gonna keep that back for today. We've got a question about what the CapEx cost will be. We've envisioned about $25 million for this year to get the ramp and the underground development going.
We're working on numbers for that 500 ton a day process facility. We envision somewhere between $75 million and $100 million of investment, depending on how much exploration and how much extra development we put in here. We do have a hand on the gas pedal in terms of how fast we put that money in. The best tool so far has been drifting within the mineralization. Once we have two levels opened up, we'll be able to connect those for mining methods that are appropriate at the time. Right now, it's cut and fill. You know, we're looking at all the aspects there.
As you saw in the cross-section, it's quite a large mineralized patch, portion, and there will be more work required as we get underground, and we start to diamond drill more, and we get more of a feel for it. Certainly, the underground development has been by far the best tool, and it also pays for itself when we're doing development at these grades. A lot cheaper than drilling, which you don't make much money on, is exploration development. I see it. There is a question about Matt saying 400,000 ounces of possible resource in the deposit. I guess, Chris, do you wanna quantify that?
That's really just a speculative number at this point in time, looking up and down 50 meters both, on dip from what we've seen in the underground. Is there any color you wanna add there?
Yeah. It's basically along that panel of about 250 meters we have open right now and 50 meters above and 50 meters below to the contact basically, which averages about 50 meters above us or less in some places, but we're below us up there too, of course, and then about 50 meters below.
Maybe, Chris, the last question from me, just in terms of the style of mineralization and the extra mines that we have on the property. Maybe you could just speak to the bigger picture of what we think our upside could be here in terms of getting into those deposits. You know, we've got quite a bit of room to move here. We'll ask the question that makes every geologist squirm. You know, what do you see in terms of where our upside step outs on these other projects?
Yeah. The 5 km trend we mentioned really starts at Trixie and goes up to North Lily and covers the Ajax, Eureka Standard and a few other smaller mines. There's a lot of connectivity from underground workings parallel in that along that 5 km trend. That's really the target where Matt had mentioned that he feels that you know you're looking at a very big number of you know 5 million ounce type potential et cetera on that. Our first focus is to be though within the Trixie area that 1 kilometer by 300-meter panel of mineralization explore. Also off to the east because this mineralization there's almost no drilling off to the east of the present structure.
There's no development over there, and that's really opened up. The quartzites are key and that caprock. You're still within what we call the high sulfidation or epithermal corridors there that we're looking at. The other styles of mineralization are the carbonate replacement deposits. That was about 20 million tons mined there that produced somewhere around 2.5 million- 1 million ounces of gold that came out of it as a byproduct, so significant, as well as 280 million ounces of silver and lots of lead, zinc, and copper. There is on the outer halos of the district what we call one of the intermediate or neutral intermediate sulfidation type systems and carbonate replacement.
Underlying it all, there have been indications from work done by Rio Tinto and Anglo American on the property, as well as Phelps Dodge in the south, or Freeport now, where they've identified a porphyry-style mineralization that requires follow-up, deeper mineralization. Now that the district's been consolidated, we've got a deal on. I think we are allowed to do more better work and targeting on that and follow-up drilling.
Thanks very much, Chris, and thanks everybody for tuning in today. Please send us an email at sroosen@osiskoodv.com or to any of the emails that you see on the website. We'll be looking to line up site visits, as well as any technical questions that you have. We'll round it up and try and come back with a schedule for everybody. This one is really worth seeing if you have the chance to do it. Stay safe, everyone, and thank you very much for your attention this morning.