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 our per payable ounce of metal sold.
We only 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 for instance, our mining.
Navigating the impact of the cable pandemic through your two announcing have 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.
Marigold is a highly mechanized operation with no you can't put dining facilities, it's been relatively unaffected by the bars.
Let's see I fly in fly out operation and they're not a bus season pass out but its operations have camps. So she had a daunting and housing facilities as well as nearby indigenous communities. So the rest was significantly higher.
To this tune up it was 4200 made is above sea level in the Andy Hughes with work is 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 about 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.
The <unk>, 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.
C B, where the mine is limiting limiting capacity beginning in July our focus has been 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 it might 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 quota.
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.
Puno or haulage, and the processing plant, where ramp back up and operating normally and the mine on day shift only mine extraction had commenced at the CV. We had started for development fronts underground and major capital work such as the triangulate tailings storage facility project well once again in execution. The mine continue to ramp up production.
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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 alike, 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. That's 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 advance the common 19 crisis.
In a safe responsible manner at Marigold, we produced 49900 ounces of gold in Q2.
15% last in Q1 cash cost for Q2, and 2020 were $864 per ounce, 5% higher than in Q1, mainly due to an increase in royalty costs from the higher gold prices total direct costs were marginally lower than Q1, Despite total my moving 9% higher.
During Q2 5.1 million tons of ore had a gold grade <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 on road, 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 with the previous quarter reflects the continued all mining Nike phase four and stripping in vacuum.
Phases, six and eight.
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 during age too.
Construction of the new Leach pad is progressing per plan and the person is on track to be completed during the year.
Operating during the past three to four months has been challenging from Marigold team there have been days when they do not have the full complement of operating stuff because it's covered related issues and I'd like to recognize the great job, they're doing that manage 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 a stockpile et cetera.
The objective of the CV restart has been to move forward together with care and appliance safe and disciplined manner. So we do this ones and we maximize the opportunities for sustainable unpredictable production.
As of July 31st we had more than 20000 tons of ore stockpiles Santoy and the CV mill 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 it over 1200 tonnes per day in the plan within 10 days and at that level until at least the ended the year mine is 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 plan and discipline increases allow us allowed us to safely matters 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 current maintenance the commencement of underground development work surface capital projects like the tailings storage facilities expansion project and the startup of the water treatment plant.
Our 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.
And 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 an increase production levels.
As previously reported we're expanding the capacity of our tailings storage facilities to accommodate the expected increase in my life.
Activities recommence 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 CB 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 of 2020, 79% lower than quarter, one due to the suspension of operations on March 20.
Or haulage began between or haulage between she hasn't Pirquitas commenced may 22. The plant started June 12, and the mine was running one shift at the ended the quarter.
During April 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 executed safely without incidence or injuries total plant throughput was 76.
<unk> 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 or stockpiled for two months of continuous milling operations.
[noise] throughout the shutdown period in the mine our people perform 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 sometime and with the upward trend in cases in Argentina, and hopefully 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 we are able to reduce the risk of virus spread to the cap and 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 tons, 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 camp 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 up to not a seemingly 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 claim 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 confirmed 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 at Marigold, We announced a 2 million dollar increase to our 2020 budget to further explore Trenton canyons sulfide gold discovery intercepts published in May.
Were completed in the second quarter totaled 19400 meters in 61, almost completed it trends in canyon and 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 goal over 6.1 meters located approximately 40 meters west of the MRT 70 178 intercept.
5.2 grams per tonne gold over 84, and a half meters.
Diamond drill all 72 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 in 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.
FCB, 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 Santos <unk> eight A. zone.
This whole returned and intersected interval is 10.96 grams per tonne gold over five and a half meters from infill drilling.
As mentioned underground Diamond drilling has resumed its 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.
I hope, you're all making the best of 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 and income from mine operations at $34.2 million as Marigolds performance was in line and regenerated since sales it to enough 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, including that totaled $19.7 million.
Aaron 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 co then 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 as the mines restart.
The divestment of our position in silvercrest in the quarter added to that $64 million to our cash position.
Well, we registered a 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 point nearly $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 in 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 cold winter related protocols continued to be encouraged at each site largely related to transport in 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 lessors 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 back to Paul.
Thanks, Greg.
So despite the challenges trying to does by Cobot I'm happy with the way we ended 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 yet.
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 high write them before them out shutdown.
Looking forward, we expect the merger with Alison to 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 not we added 100% pit or 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.
The delayed the commencement of that project, which we now expect to start in Q4.
As this concludes the formal remarks, it Oh, what should be my final is this a 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 assess our employees I'd also like to thank our shareholders and the others on this call analysts and bankers, who supported and says.
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 sawed lives.
With that I'll now pass along to the all pride and to take any questions you might have.
Thank you.
We will now begin the question and answer session.
During the question Q You Me Press Star then one on your telephone keypad, you will hear the tone and knowledge in your request.
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Our first question is from Mark Hi, living with RBC capital markets. Please go ahead.
Okay.
Perfect, Thanks, and good morning.
And and grab it again on the deal in a best of luck in your next adventure to Paula Johnny and the rest of the team that will.
No longer be with them the merged company.
I guess first question for me can you just kind of outline.
Hi, Jason for a new flow out of the Trenton Canyon discovery and kind of.
Milestones, we should be looking out for beyond the the ongoing drilling.
Is because there.
Really spectacular intersections at Marigold, we tend to accumulate results and put.
The exploration rate really said every quarter every two quarters and I'd imagine we'd continue to do that.
We we drive everything around our resource and reserve updates, which come out in February of each year.
And so that will be to assist.
Todd when we actually released some sort of resource update for that area.
But this is what I've said to Hawaii long basin is going to be a long program.
Huge area.
We have increase expenditure because they get it we had results initially a much better than we.
Yes, it was sort of counting on so it's a great position debate.
What we've said all along we'll be spending $234 million for the next ore bodies. This is a big area.
Carl you.
Yeah, that's on that that pretty much check covers it but the beginning of what you started with Paul 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 and 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.
Uh huh.
Thanks, Thanks for that but I guess.
In terms of the incremental covert costs do you expect going forward.
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 we're talking in that in a hundreds of thousands and up to a million dollar we're not talking about cost scitor material at this point.
Again, it's dynamic.
But I will see be ramping back up and getting back to a full contingent we've seen that was densities improve and with the masking. Another protocols you know we've been able to improve the density on some of that was transport transport roots and maintain our that kind of safety protocols that we've targeted so.
I don't see it being out material impact if we stay in the current trend that we're on right now.
Evan.
No I think you've covered it very well, Greg CV were almost back to normal flights, we had more than doubled before.
So you know that's good.
Perfect and then just add maybe I'd kind of what type of mining rates do you think you'll be able to get out with while meeting all the social distant thing and the other cobot protocol.
Do you think you'll be able to ramp up to your prior levels or without without 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 see be marketed and quite catch that yes, yes. So 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 the use of 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 work 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 plan faster right than before the show.
[noise], Okay, perfect, Yeah, you're giving you a chance to really feel what that plant can do and.
What it would be able to do it if the mine could support it could be if that's always been the bottleneck there.
Yeah, and the other part of the news that we're talking about is getting that excess into.
The GAAP hanging wall and going in both directions that gives you knew it development ends in a war, which hopefully that improves the productivity. So if we couldn't get more out of the.
Mind going forward than continue to run the mill cost.
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 offered by the previous a previous caller there but I.
I guess 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.
Oh, Hi, Chris Good morning.
The <unk> this side, 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 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 found in certain areas have been able to go deeper and into higher grade sulfide.
Type horse 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 side, 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.
Very close to surface on trying to canyon it and is in fact its exposed.
These are these are features that we discover just as we've taken over the project and been completing surface mapping we.
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, we're 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 up a large footprint of property in this district.
With these rocks being relatively unexplored.
At 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's had 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 shortened up.
Yeah, that's perfect. Thanks, a lot and congratulations guys and all the best up.
Thanks, very much and I did I did on you.
Yeah.
Yep.
[laughter].
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 not in terms of the diamond drill holes that you mentioned that program that trend Canyon.
When do you expect to start the first hole.
We already have Oh, and yeah. I think we are part of those results in my one of them kind 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 do they did I have a different designation on the drill hole number. So people can follow them go yeah. There that yeah. That's out there they're easily identified there D H as opposed to the M.R.M.R.A. listings on the whole idea.
Right. It is diamond drill hole, that's easy enough yeah.
Just to make a comment Mike.
Remember our strategy when we bought this project it picked up the land yeah, we justify the purely on the outside so a lot about 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 use.
I think I will say searching for they stay photography that first hole, we put down that Carl mentioned stratigraphic all it was a deep on over Coleman.
And really what I think it's starting from awesome.
In an exploration point of view, we're running the seismic surveys we've never done that before that that will enable you to use the initial diamond drill holes you already understand the lithology met that out over the property and then looks a structures in that to see way you could have plumbing systems, bringing up yeah gold bearing fluids, which will enable view over time to.
Focus drilling across that what is a very large property. So for me.
Under the auspices stuff, yeah, absolutely will be Dave the number of years. Following this up it as everyone knows if you do get one of the some migrate sofas and the company changing discovery. So 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 a bit earlier being more late summer fall getting that done to better fine tune in hone in on where you want to quit.
Additional holes.
Yeah, and unfortunately seismic yeah, it doesn't run at the speed that yeah.
You do it.
It's all internal yeah, you do do the work it gets into potential processed and then you've got to get the expert that Jay because this has to do interpretations and so.
In terms of getting drill holes coming off from that cow. 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 like 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 have physical results that right.
No like once you've got that and interpret it and then have your plan of attack of where you want to put the next set of goals based off that study.
I could be.
Tensely 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 disturbed 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 try to get blankets and trends are nowhere.
We're we're in we're in good shape for exploration permits.
Sorry that was we made a point in.
You want the initial hall, we put in was located where there was already just a ground because we didnt get have that turn it to go into a way. We wanted to we received our now yes, it's Tom I open territory for us.
Okay.
And then just I know, it's obviously early days with the oxides there but.
What would be the the general kind of.
I thought in terms of first production and would you be putting a pad locally around.
Or hauling all the way back in America.
We don't know that yet and we put together approach it team with the yeah 'cause it that's multi disciplinary so that's obviously geologists working off on that part of it but its engineering its permitting is metallurgical, but they're a different scenarios you could have a satellite pad.
And then bring some products effects too.
Our adult profile.
And is very very early days, but Kevin any comments from you.
Yes, I know that [noise].
Eric Horizons, it correctly, and then any any increasing overall production at Marigold would require we acquire additional pads and so if we get that logic might say the do it at Tritan Canyon.
But we're looking at sort of all possible combinations.
Okay. I guess it makes you know kind of it depends how big it is if it's sort of like to see be thing. If you find enough of it might warrant putting it there rather than going back just walk long term economics pay off better happening at local debt.
Right. Okay. That's it for me Paul.
And team you know it's been a pleasure working with you over the years all the best tea in the future and congrats on.
[music].
I I well welcome deal by your shareholders.
Yeah, great. Okay, I think operator that see ended the question.
Yes, Sir there are no more 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 Capes I just.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant.
[music].
[noise] HM.
[music].