Q2 2020 SSR Mining Inc Earnings Call
Good morning, everyone and welcome to the SFR mining second quarter Twentytwenty Conference call.
This call is being recorded at this time for opening remarks, and introduction I would like to turn the conference over to Michael Macdonald Investor Relations for FSR mining. Please go ahead.
Thank you operator, good morning, ladies and gentlemen.
Welcome to assess our my name's second quarter 2020 conference call during which will provide an update on our business at a review of our financial performance.
Our financial statements and management's discussion and analysis had been filed on SEDAR and Edgar and are also available on our website.
To accompany our call there was an online web cast and you will find the information to access the webcast in our news release relating to this call.
Please note that all figures discussed during the call or in U.S. dollars unless otherwise indicated.
All references to cash costs, and all in sustaining cost or per payable ounce of metal sold.
We will be making forward looking statements today. So please read the disclosures in the relevant documents.
Joining us on the call. This morning, our Paul Benson President and CEO.
Greg Martin, our CFO, Kevin O'kane, COO, and Carl Edmunds, Vice President exploration.
Also presents its John Decooman Senior Vice President business development and strategy now I would like to turn the call over to Paul for opening remarks.
Thank you Michael.
Good morning, ladies and gentlemen, I'm very pleased to welcome you to AK coal to discuss our second quarter 2020, operating and financial results.
Obviously, the second quarter was it have been for one threats. This morning.
Navigating the impact of the cable pandemic through your two announcing our direct premium merger with Allison.
With respect to kind of it it's worth remembering each about saw its has its own unique characteristics, we consequences supposed to risks to the operation and how we manage them.
As Marigold is a highly mechanized operation with no Campo daunting facilities, it's been relatively unaffected by the bars.
Let's see I fly in fly out operation and they're not a bus in bus out based operations have camps. So she had a daunting and housing facilities as well as nearby indigenous communities. So the rest was significantly higher.
I had to this tune up it was 4200 made is above sea level in the Andy Hughes with workers coming to saw it from across northern Argentina because of things factors. We took a very conservative approach to shutting down base operations in March.
Kevin will go into more detail on how we are bringing both mines back to full production, but I'd like to thank and probably as a management and workforce at all that operations on how they have risen to these challenges.
However, arching philosophy has has always been the safety of their employees, it's better to take the time to do the restart once and do it correctly.
We also died and I did $350000, which we've used to support the local communities near mine since the Scott you in Nevada, and who we and our offices in Vancouver, Peru, and Mexico with their battles with kind of it.
Despite the challenges Marigold produced almost 50000 ounces of gold set a new record for material moved in a quota and its 31 years of continuous operation and remains on track for a strong second half the year.
Turning now we began processing all through the mill in late June and produced 40 400000 ounces of silver.
By the end of July tune, it was back to mining and milling its budgeted levels.
Let's see where the mine is limiting limiting capacity.
Beginning in July outside to sustain on a staged ramp up at the underground mining operations, allowing us to build and all stockpile, which in turn will allow us to run the mill at a high right upon where you stop.
From an exploration perspective, let's call it will speak to shortly following on from our impressive exploration success announced in my age we've increased the marigold exploration spend in the 2020.
We're also pleased with <unk> financial performance during the quarter all things considered.
Income from mine operations totaled $34 million and our cash balance stands at $462 million as of June Thirtyth, an increase of $63 million compared to the product caught up.
During the quarter. We also continued to advance our zero premium merger with Allison.
Integration work is progressing nicely and we continued to be encouraged by the strong cultural fit between the two companies.
We're obviously very happy with the positive shareholder vote in early July and we're working to finalize the remaining required activities in anticipation of closing the transaction in the near term.
With that I'll turn the call over to Kevin will discuss our operational performance in more detail.
Thank you Paul Good morning, all I Hope you and your families have been well during the challenging past few months as Paul indicated we suspended operations at tune in CV near the end of Q1 2020.
I'll be providing additional information on the status of these operations as of today. However at the end of Q2.
That puno or haulage, and the processing plant, where ramp back up and operating normally and the mine on day shift only might extraction had commenced its CB. We had started for development from underground and major capital work such as the triangulate tailing storage facility project well once again, an execution the mine continue to ramp up production.
Prior to site activities Recommencing, we implemented a broad range of covert protocols to ensure the safety and health our employees, obviously the use of mosques physical distancing disinfection of common areas and the like but also multiple prescreening steps before anyone is permitted on site.
Safety performance during the quarter was excellent we had a third of the number of recordable events. The exposure hours were lower but even without the accident rate was almost half of that experience during Q1 2020.
SSR produced 53200 gold equivalent ounces at a cash cost of $929 for gold equivalent ounce material movement at Marigold was over 22 million tons, a quarterly records for the site and one day after restart the pull the mill was operating at over 4200 tonnes per day.
I'm proud of the teams in all our sites projects and offices, so the way in which they have managed to call the 19 crisis.
In a safe responsible manner at Marigold, we produced 49900 ounces of gold in Q2, 15% less than Q1 cash cost for Q2, and 2020 were $864 per ounce, 5% higher than in Q1, mainly due to an increase in warranty costs from the higher gold prices total direct costs.
Marginally lower than Q1, despite total my moving 9% higher [noise].
During Q2 5.1 million tons of ore had a gold grade or <unk> 0.3 grams per tonne were delivered to the heap leach pads consistent with expectations and in line with Q1 2020.
22.1 million tons of material removed an increase of 9% from Q1 2020, mainly because of shorter haul distances associated with increased waste movement and good shovel and truck availability is the consistency in gold grade and strip ratio what the previous quarter reflects the continued all mining Mackie phase four and stripping and vacuum.
Phases six m-.
As previously flagged gold grades will increase significantly through the year as well recoverable ounces stacked in age two versus H, one the increase announced the stock will positively impact cost stirring age too.
Construction of the new Leach pad is progressing per plan and the person who is on track to be completed during the year.
Operating during the past three to four months has been challenging for the Marigold team they've been days when they do not have the full complement of operating staff, because it's covered related issues and I'd like to recognize the great job, they're doing they've managed the operations were carrying discipline.
Moving on to see as I mentioned, we did not produce during the quarter. We did commence ore extraction from the mine at the end of June moving approximately 18 1800 tons to stockpile et cetera.
The objective the CV restart has been to move forward together with care and appliance safe and disciplined manner. So we the do this ones and we maximize the opportunities for sustainable unpredictable production.
As of July 31st we had more than 20000 tons of ore stockpile Santoy and the same email and we're now starting up the processing plant will make our first port and more than four months during the next seven to 10 days.
We expect to be operating at over 1200 tonnes per day in the plan within 10 days and at that level until at least the ended the year mine has ramped up ore extraction, we expect to operating budget levels for the rest of the year.
During Q2 2020 at site, we increased the number of people from 22 to 44, and then 100 during April to 200 during May and currently have our full complement of operating personnel working the plant and discipline increases allow us allowed us to safely amount as the implementation of all the necessary control protocol.
As for people transport can't occupancy and kitchen services, while at the same time prioritizing and balancing the work activities such as currently segments. The commencement of underground development work surface capital projects like the tailings storage facilities expansion project and the startup of the water treatment plant.
Care and maintenance activities were focused on asset integrity and preventative maintenance work in the plant and other surface infrastructure, we executed preventative maintenance work on our mobile equipment sleep and reduced accumulated backlog.
In the mine, we have been advancing to capital development fronts for future our supply and are now accessing the GAAP hanging wall mineralization to facilitate conversion of these reserves during Q1 2021.
We initiated the construction of one ventilation raise and associated infrastructure to increase underground air volumes by 25% during Q during 2020 and with a second raised 60% total during Q1 2021. This work will allow us to operate it increased production levels.
As previously reported we're expanding the capacity of our tailings storage facilities to accommodate the in the expected increase in my life.
Activities re commenced during the quarter in June.
We're still projecting to complete the project at the end of 2021 and be mobilize the contractor over the 2022 ice road.
Operating remote fly in fly out mine as a complex undertaking the care disciplined dedication commitment of all of our CV employees as a reflection of the quality of people that work there and I know, they're proud of what they've achieved.
Put operations produced point 4 million ounces of silver during the second quarter 2020, 79% lower than quarter, one due to the suspension of operations on March 20.
Our haulage began between or haulage between CIS and Pirquitas commenced may 22. The plant started in June 12, and the mine was running one shift at the ended the quarter.
During April and May we executed a number of significant maintenance projects in the plant and other pirquitas infrastructure. We did a relied on the ball mill and changed helped to drive motor for that mill to limit the number of people on site. All this work was conducted by our people and execute it safely without incidence or injuries total plant throughput was 76.
Percent lower than the first quarter entirely due to the suspension of operations silver recoveries reached expected levels almost immediately feed grade to the plant was 159 grams per tonne, a 6% decrease compared to Q1 and silver recovery was 91.6%.
Total might extraction during the second quarter was 48000 tons.
Sufficient ore stockpiles for two months of continuous milling operations.
Throughout the shutdown period in the mine our people performed preventative maintenance on mobile equipment and component change outs for major equipment setting us up for success and the second half of the year.
More recently in July we implemented an extensive covert taste testing program for all people going to site.
This had been in development for some time in with the upward trend in cases in Argentina, Anhui Province, we initiated the program.
As a result during the last week of July we identified a meaningful number of asymptomatic positive cases prior to those people traveling to site and thus were able to reduce the risk the virus spread to the cap in operations there have been sporadic, but manageable disruptions to mine production.
The ore stockpiles will mitigate impacts on milling operations several sales in the second quarter totaled 600000 ounces and lead and zinc 1.7 point 4 million pounds, respectively. All the silver lead and zinc concentrate stocks were sold during the quarter.
Cash costs were $13 51 per ounces of silver impacted by limited byproduct credits.
I'd like to recognize the excellent job by the quality and especially given the remote operation cap environment and the complexities of transfer and transport of people from a diverse number of locations.
In summary, the operations again delivered solid safety performance, we maintain production at Marigold, while managing the impacts of covered my team and we safely and efficiently completed the restart of production that Puma. That's easily have commenced what should be a very successful second half of the here.
I'll now hand over to Carl will take you through our exploration activities.
Thank you Kevin.
At the outset of 2020, we had exploration plans for a record amount of work and related expenditures to be completed on claims surrounding our two north American operations targeting mineral reserve and resource growth.
Like many industries reacting to the pandemic, we have responded to the conditions on the ground by temporarily suspending operations and exploration activities, where we could not conform to the jurisdictions occupational health and safety guidelines and keep our employees safe.
Against this background, we were able to maintain exploration activities at marigold throughout the period, but suspended exploration work for the entire quarter in Scotland.
Currently we have just begun to turn the underground drills again, its CB on GAAP hanging wall and look forward to reporting results as the remainder of the year unfolds.
At Marigold, we continued our exploration and confirmation drilling program, a trend canyon and Marigold.
We announced a 2 million dollar increase to our 2020 budget to further explore time Canyon sulfide gold discovery intercepts published in May.
Work completed in the second quarter totaled 19400 meters in 61, almost completed at Transcanyon at Marigold bombs.
We have received positive assay results from to drill holes that follow up on intercepts reported from the sulfide discovery announced previously.
Drill hole Edmar 70, 233 returned 4.8 grams per tonne gold over 35.1 meters from 218 meters step.
Including 24.9 grams per tonne gold over 6.1 meters located approximately 40 meters west of DMR, a 70 178 intercept.
5.2 grams per tonne gold over 84, and a half meters.
Diamond drill hole 72 on to returned 4.9 grams per tonne goal over 18, and a half meters from 178.3 meters that.
We are pleased by the results to date and continued to drill in this area as we investigate the mineralized zones continuity structural orientation and metallurgical characteristics.
In the coming quarter, we anticipate initiating a seismic geophysical survey over select lines across trends and canyon, and Marigold, which will tie into existing drill information.
Once process later this year, it's likely that the results will allow us to resolve the special distribution of the favorable rock packages and the mineralized structures to identify new drill targets.
At CB, we previously reported exploration in infill result to April Thirtyth since that date, we have received another three infill holes with one meeting resource intercept criteria from the Santoy eight A. zone.
This whole returned in intersected interval of 10.96 grams per tonne gold over five and a half meters from infill drilling.
As mentioned underground Diamond drilling has resumed santoy and importantly, we are advancing underground access towards the got hanging wall zone on the 46 level.
We have already intersected projections of the mineral resource here.
We plan to cross cut the mineralization and then drive the drift on the level in both directions for 100 meters to confirm grade and continuity.
Now over to Greg for a discussion of our financial results.
Thanks, Carl and good morning to everyone [laughter] I hope, you're all making the best to your summer.
I'll keep my review embrace since the quarterly financial results are not particularly meaningful in light of the temporary mine suspensions that occurred.
For the quarter, we generated revenues of $92.5 million, an income from mine operations at $34.2 million as Marigolds performance was in line and we generated since sales activity from inventories.
Significantly higher gold prices or certainly the theme of the corridor.
Within our income statement, a number of meaningful impacts gionee was elevated entirely due to valuation changes on stock based compensation totaling $9.9 million.
We expensed $2.8 million of transaction costs related to our upcoming merger with Allaster, and finally care and maintenance cost expense for both CB Internet totaled $19.7 million.
Fair and maintenance costs were marginally below the guidance, we provided in our first quarter release.
Reported net loss was $6.3 million or five cents per share an adjusted net loss was $2.1 million or two cents per share.
In accordance with recently published guidance on cold and related costs, we did not add back care and maintenance costs in our determination of adjusted income.
Cash generated by operating activities was $21.8 million with investments in capital declining to $27.2 million.
All operations encouraged certain annual capital items as onsite crews completed capital maintenance and other projects as capabilities allowed.
So certain capital items incurred in Q2 set us up well is the mines restart.
The divestment of our position in silvercrest in the quarter at it and that $64 million to our cash position.
Well, we registered at total pretax gain of $38 million on the purchases and subsequent divestments. This gain is presented with an our other comprehensive income and not within reported income.
Overall for the quarter, we added 63.3 $63 million to our cash to close the quarter had a total cash position of $462 million.
Looking forward to the third quarter, clearly, we have a lot going on.
Most important is safe and sustainable restart of mine operations to take advantage of the higher metal prices prevailing in the market.
For the period of the quarter, where components of the mines aren't at full production certain standby costs will continue however at a much reduced amount.
In addition, some but generally modest incremental cost to adhere to covert related protocols continued to be incurred at each site largely related to transport and cap costs.
We expect the merger with a last year to close in the corridor. So we will be focused on close in integration activities to set us up for consolidated third quarter reporting.
Acquisition accounting related to the transaction will have a number of impacts on our financial statements presented next quarter as we picked up a last year's assets and liabilities at fair value.
Well it doesn't affect transaction economics, and reinforces the deal rationale the increasing share prices since announcement makes the acquisition costs, we will recognize for accounting purposes meaningfully higher.
And finally as discussed in our outlook upon closing the transaction, we expect to issue updated guidance for the new SSR, reflecting our increased scale and quality.
With those comments I'll turn the call basketball.
Thanks, Greg.
So despite the challenges trying to does by co, but I'm happy with the way we entered Q3.
Barring any new impact Marigold and set up for a strong h. too and on track to meet guidance, we presented at the beginning of the year.
Turning to has already started up and is running at the same above budget throughput rights for achieving before them out shutdown at CB. The mine is back at full production and with an existing stockpile, we expect to run the plant at a higher right than before them out shutdown.
Looking forward, we expect the merger with Allissa close soon and the focus will be safely integrating the world class chip flow operation.
Into our portfolio.
Enviable financial position that will only get stronger when the merger completes we'll be able to continue doing what we do well creating value for stakeholders by maximizing the value of their own assets and focusing on disciplined growth.
Finally, with the run up in silver prices, it's worth reminding people that in addition to silver production appear enough. We added 100% appear to re up one of the largest undeveloped silver projects in the world.
Earlier this year, we announced we will extend the existing exploration declined to enable close space drilling at the high grade zones.
I have been delayed the commencement of that project, which we now expect to start in Q4.
As this concludes the formal remarks it.
What should be my final. It's this earnings call I'd like to thank you assess our management team and board of directors for they leadership and support as well as all assists our employees I'd also like to thank our shareholders and the others on this call analysts and bankers, who supported it says I read the is.
As I said, when we announced the merger, although I will be leaving the company I will remain a shareholder cheering from the side lives.
With that I'll now pass along to the all probably done to take any questions you may have.
Thank you.
We will now begin the question and answer session to join the question Q. You Me Press Star then one on your telephone keypad, you will have a tone and knowledge in your request.
If you're using a speakerphone please pick up your hands it before pricing any Keith.
With that all your question. Please press Star then too.
We will pause for a moment that's called there's join the queue.
Our first question is from Mark Hi, living with RBC capital markets. Please go ahead.
Okay.
Perfect, Thanks, and good morning.
And.
Congrats again on the deal in a best of luck in your next adventures to call a Johnny and the rest of the team that will.
No longer be within the merged company.
I guess first question for me can you just kind of outline a expectation or a new flow out of the Trenton Canyon discovery and kind of.
Milestones, we should be looking out or beyond the the ongoing drilling.
Is because there.
Really spectacular intersections at Marigold, we tend to accumulate results input.
Exploration rate release at every quarter every two quarters and I'd imagine we'd continue to do that.
We we drive everything around out resource and reserve updates, which come out in February of each year.
And so that will be to assist.
Time, when we actually really some sort of resource update for that area.
But this what I've said the whole way long this is going to be a long program.
Huge area.
We have increase expenditure because they get it we had results initially much better than we.
Yes, it was sort of counting on so it's a great position debate, but.
What we've said all along we'll be spending 83 $4 million for the next ore bodies. This is a big area.
Oh you.
Yeah, that's on that that pretty much Chuck covers it but the beginning of what you started with Paul was was somehow cut out there and I don't know, whether mark Hurd heard that but.
Just to reiterate we typically do do these up to two times a year unless there's something very special in terms of the results that we get.
The this follow up hole that we've got we've reported here is some is interesting in lines up well with the other ones, but we're beginning to think that we have an east west structure.
Steeply dipping and if we start to develop some more continuity with this particular intercept that's the 70 178 intercept.
We'll be we'll be releasing some of those results as we as we accumulate them.
Perfect.
Thanks, Thanks for that but I guess.
In terms of the incremental covert costs do you expect going forward I can just kind of give us a breakdown on.
I'll give the transportation and some of the Tam stuff that you mentioned.
Quantify the expected cost there.
Yes sure.
Oh hand over to Greg.
Great then Kevin just I think.
Great Good Swiss re underwriting.
The fact that although some of after years of stripped out.
The care and maintenance costs from the adjusted cost we didn't so.
People should definitely be aware of that.
Yeah, Thanks, Paul and Mark.
As as indicated by Kevin obviously protocols are changing so the main you know the main impacts as we said really his boss transportation at tuna, and Marigold and then some flight and camp.
<unk> costs, those two not and a and C. B. So yeah, we're talking in that in a hundreds of thousands and up to a million dollar we're not talking about costs that are material at this point.
Again, it's dynamic.
But I will see be ramping backup and getting back to kind of full contingent we've seen that was densities improve and with the masking. Another protocols, we've been able to improve the density on some of that was tram part transport roots and maintain the.
That kind of safety protocols that we've targeted so I don't see it being a material impact if we stay in the current trend that we're on right now.
Kevin.
No I think you've covered it very well, Greg CV were almost back to normal flights, we had more than doubled before oh. So yes, that's good.
Perfect and then just just add maybe I kind of what type of mining rates do you think you'll be able to get out with while maintaining all the social distant thing and other cobot protocol or do you think you'll be able to ramp up to your prior levels or whatever.
Really a change in those protocols or or is it should we assume something like 90% of prior run rate.
Hi, Kevin you got to us.
Yeah, I, assuming that CB marketed and quite catch that yes, yes, sorry, yeah, yeah. So assuming no we expect to reach in fact were reaching them now.
All of the people working underground at CV were already wearing respirators for other reasons.
And any of the line outsource crew starts or what have you have the the correct physical distancing and as uses mass for any transport if those people and going underground et cetera. So yes, we will we will reach and we already are reaching.
Where we were before.
So the good thing is because we and that was the strategy. We started the mine for surgery by building up a stop call. We couldn't run the mine at the levels, we with before the shot but that will allow us to run the plant faster right than before the show.
[noise] perfect. Yeah, you can give you a chance to really feel what that plant can do and.
What it would be able to do it if the mine could supported because yes, that's always been the bottleneck there.
Yeah, and the other part of the news that we're talking bat is getting that access into the.
Got painful when going in both directions that gives you knew it development ends in a war, which hopefully that improves the productivity. So if we could not get more out of the.
And going forward than continue to run the mill faster.
Perfect. That's it for me thanks, guys.
Our next question is from Chris Thompson with Pi financial Please go ahead.
Good morning, guys. Thanks for taking my questions Paul the best for the future to you.
You know I think a lot of my questions have actually been answered by the previous a previous caller there but I.
Yes. This is for you called I Wonder if you could just expand just a little bit about what excites you. When you. When you look at sort of potential analogy is looking at Trenton Canyon with other sort of a deep deep level sort of caught Collin type systems.
Yeah, Thanks, Chris always dangerous to Alaska geologist, what excites them you better than that so cow yoga.
Yes, Hi, Chris Good morning.
The <unk>. This Mike My comments here are sort of more of a personal nature in the sense of when I first visited the property and we were looking at it.
Back during the due diligence for the for the acquisition.
Theres, a broad footprint there and.
Not a lot of holes down beyond about 200 meters and the a 30 or 40 years. It's been mining of these types of deposits in Nevada, they've in certain areas, then able to go deeper and into higher grade sulfide type or.
Yes, and and that is its tied up with certain structural stratigraphic.
Combinations that are different between Carlin and say that's you know at the mines that are north of us at turquoise Ridge. So.
As we've explored here the thing that's a that's become quite interesting is that we've got the same.
Lift the logic package, that's a that's at depth at Marigold, We got the same that same package adept at Marigold, the comp Comas formation, which sits underneath the Roberts mountain Thrace, that's present, a very close to surface on trying to canyon. It and is in fact its exposed.
These are these are features that we've discovered just as we've taken over the project and been completing surface mapping.
We have we have some confirmation type work to do in terms of the the the the fossil assemblages that are in those rocks, but.
The the lithology is our analogous to deeper slope sedimentation or sedimentary rocks.
Seeing things like slumped features and rip up. So these are these sedimentary rocks and that's that's all analogous to the comas.
Compared to the volley, which is what the assumption in terms of the formation. So so we've got the right rocks there and.
Just the idea of being able to or have a a large footprint and not in this this district of a large footprint of property in this district.
With these rocks being relatively unexplored.
Depth to to be able to tie one of these drill holes into us a high grade sulfide intercept a that would be analogous to turquoise ridge.
What would be a just just stellar for us and that's what's that's what's really exciting and driving the driving they are the exploration in this part this arena the depth.
Yeah depth area.
It's also something a a concept that the chief geologist there Jim Carver aside for a long time.
He some I would say quite a bit more optimistic than I am a lot of things, but he's very excited by being able to explore for this this type of target.
He is the material that Weve intersect is is close it's not a 100%, but we're on the trail is how we feel so we're pretty excited.
Right, that's a short enough.
Yeah, that's perfect. Thanks, a lot and congratulations guys and all the best.
Thanks, very much and I did I did on you.
Yes.
Yep go that.
Yeah.
Once again, if you have a question. Please press Star then one on your telephone.
Our next question is from Mike Parkin with National Bank. Please go ahead.
Hi, guys, just a little bit a follow up on that in terms of the diamond drill holes that you mentioned that program at Trenton Canyon.
When do you expect to start first hole.
We already have Oh, and yeah. I think we are part of those results in my one of them time, Oh, we talked about it but called you want to talk to the timing of the two programs.
Yeah. The 'em, we started diamond work or back in January on Trenton Canyon.
First of all was more of a stratigraphic coal the <unk> in this press release here, we've got results from from the I believe it's the third one.
No. It's the second one rather and and that's what's a referenced a reference there.
So we now are on our fifth and we're gonna be doing up to 6300 meters.
Of course work there today did I have a different designation on the drill hole number. So people can follow them go yeah. There yeah. That's out there they're easily identified there D D H as opposed to the M.R.M.R.A. listings on the whole idea.
Right at Janus Diamond drill hole, that's easy enough yeah.
Just to make a comment Mike.
Remember how strategy when we bought this project it picked up the land yeah, we justify the purely on the oxide. So a lot of that drilling at the moment is I'll say looking at bringing some.
Oxide resource in the next update early next year and then we said we views we I think I will say switching to they stay photography that first hole, we put down that Carl mentioned stratigraphic. All it was a day PANOVA kilometer and really what I think exciting from us from an exploration point of view, we're running the seismic so.
Everybody's we've never done that before that that will enable you to use the initial diamond drill holes you already understand though ufology met that out over the property and then looks a structures in that to see way you could have plumbing systems, bringing up gold bearing fluids, which will enable you right at the time to focus drilling across that what he is a very low.
Its properties. So for me, it's typically the OS big stuff, Yeah, absolutely will be Dave the number of years. Following this up but as everyone knows if you do get one of the.
Hi, Great sofas, yet it company changing discoveries so that that's what's really exciting about it.
Okay, I think that's where I was confused it's that program that you were talking about earlier being more late summer fall getting that done better fine tune in hone in on where you want to put additional holes.
Yeah, and unfortunately seismic yeah it doesn't wrong.
Speed that yeah.
You do it if it's all internal yeah, you due to the work it gets into potential processed and then you've got to get the expert that Jay because as institute interpretations and so.
In terms of getting drill holes coming off from that car. What are you looking at end of year based.
Yeah, Yeah, absolutely. It's you can spend quite a lot of time processing the the a any of the seismic data.
Okay. Okay. That's what I was thinking up so that is kind of a Q4 kind of thing okay.
Yeah, yeah, Okay. So we could potentially see results early in the new year from that program started yet.
Now the results you're talking about these would be that you physical results.
Right.
No like once you've got that and interpret it and then have.
Our plan of attack of where you want to put the next set of goals based off that study.
I could be.
Centrally returning results kinda late Q1.
That's the case.
Oh, <unk> I would yep best case, probably more like Q2 in Q3, just because if it if it involves anything that's elevation, we don't really get that underway a much in in Q1, although we were able to start this year.
From disturbs sites.
Where we really had good road access, but it's it's a it's a serious winter up there.
And would you need any additional exploration permits to do anything there are you pretty much right a good blankets and trends are nowhere.
Where we're in we're in good shape for exploration permits.
Sorry that was we made a point in.
The general kind of.
Thoughts in terms of first production would you be putting a pad locally around.
Or hauling all the way back to Marigold.
We don't know that yet and we put together approach it team with the yeah 'cause it thats multi disciplinary so thats, obviously geologists working off on that part of it but its engineering and permitting is metallurgical, but they're a different scenarios you could have a satellite Ted.
And then bring some products back to.
Our adult proper.
And is very very early days, but Kevin any comments from you.
Yes, I know that that characterizes it correctly made it any any increase in overall production at Marigold would require require additional pads and so if we get that logic might say the do it at Trenton Canyon.
But we're looking at sort of all possible combinations.
Okay I guess it makes you again it depends how big it is if it's sort of like the CB thing if you find enough of it might warrant putting it there rather than hauling back just want long term economics pay off better happening at local debt.
Right. Okay. That's it for me Paul.
In team you know, it's been a pleasure working with you over the years all the best tea in the future and congrats on you know.
I I well welcome deal by your shareholders.
Yeah, great. Okay, I think operator that see ended the question.
Yeah for their animal questions at this time.
Hi, guys. Thank you very much everyone for joining.
As I said, but should be my last call.
Have a good day and Im Capesize cheers.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant.
[music].
[noise] <unk>.
HM.
[music].