BMO - Michael Petrina Appointed COO; PEA Timeline Extended

Probe announced it appointed Michael Petrina as COO. Mr. Petrina has over 25 years of experience and was previously with MAG Silver as vice president of operations. The Borden Gold project is evolving beyond a pure open pit mining scenario, which has been the focus of an upcoming PEA. The company noted that recent exploration results are pointing to greater potential for underground development, which could change the scope and timeline of the PEA. As some of the drilling was done from drill stations on Borden Lake during winter months, this in our view could extend timelines for infill drilling to bring the Southeast extension to the resource level. Exploration drilling itself could take six months or more to infill the resources. The project now presents greater challenges and opportunities in determining the correct project scale and addressing potential for underground mining. As the project has grown both in size and engineering complexity, we believe the input of a seasoned engineer is beneficial to advancing all aspects of the project. Using spot metal prices, Probe’s shares are trading at a 32% discount to our 10% NAV estimate of US$2.46/share, below the emerging producers in BMO Research’s coverage universe, which trade, on average, at a 35% discount.