Q3 2021 Osisko Development Corp Earnings Call
Speaker 2: Good morning, ladies and gentlemen, and welcome to the Osisko Development Q3 2021 Activities Conference call. After the presentation, we will conduct a question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. Please note that this call is being recorded today, November 10th, 2021 at 9 a.m. Eastern time.
Good morning, ladies and gentlemen, and welcome to the Ocean Co development Q3, 'twenty 2021 activities conference call.
After the presentation, we will conduct a question and answer session.
If you would like to ask a question. Please press star followed by the number one on your telephone keypad.
Please note that this call is being recorded today November 10th 2021 at nine a M eastern time.
Today on the call we have Mr. Sean Roosen chair of the board of Directors and Chief Executive Officer, Mr. Alex Dan Chief Financial Officer, and Vice President Finance, Mr. Chris Lodder President Mr. Li Mr. Al <unk>, Chief operating officer, and Miss Yourself, Azuela, Mount Vice President Investor relation.
Speaker 2: Today on the call we have Mr. Sean Rosen, Chair of the Board of Directors and Chief Executive Officer, Mr. Alex Dan, Chief Financial Officer and Vice President, Finance, Mr. Chris Lauder, President Mr. Luc Le Saar, Chief Operating Officer and Mr. Jean-François Le Monde, Vice President, Investor Relations. I would now like to turn the meeting over to our host for today's call, Mr. Sean Rosen.
I would now like to turn the meeting over to our host for today's call Mr. Sean Rosen.
Well, so let me that's a meter.
Speaker 3: Good afternoon, Mr. Dismissio, and welcome to the conference of the 3rd trimest of the year 2021 of Cisco Development. After the presentation, we will proceed to a session of questions and answers. If you have any questions, please support the Etoile Touch.
Okay go ahead.
[laughter] Bulge on my Dad's didn't mishear it.
Dad coffeehouses executed it was empty mashed gilenya doing that is that they are the Cisco development appellate because knocked us young you posted there all I can say honest. It gets you only have a boss. She was just that it was in Castillo via creates to let Jewish H, well Gee of each new malware.
Speaker 2: The on, not cassette telet. Ta ist PR was shall D logistnavam demil vetier, another mthe.
So you're probably not cause stepped up any topic, just wait well shelf drilling just Nevada, Jim investing here in Nevada.
And the list.
Because I've also let that ozone dreamless, you Shawn Rosen, it's Dan G class eight I mean, your stock's Dominion speciality chefs Dillard's, Alex Yao, Mr. Alex Dan shaft, I loved it I can't see NASDAQ It is pretty darn announced Mitch.
Speaker 2: Mr. Chris Glaudeur, President, Le Cléstar, Chief of Operations, and Jean-François Le Monde, President, Relation to this event. Mr. Jean-François Le Monde, President, Relation to this event.
Mr. Chris Lauder is the Dol Lucas Star Chef is a bust open us y'all immerse yourself, just while I'm on this because downhole as young as they've asked saw Jim If I may now sit della pergola of adult Mr. Sean Rosen.
First of all go operator April you launched or that in.
That's what he did with positive jaws.
With me.
They keep they belong.
I wanted to schedule all prostate what are the.
In terms of where I'm sitting today. Unfortunately, there was some background noise, we have construction going on.
Next to the office.
I apologize if we have too much construction on the go on the background feel free to pose any last questions a lot of English.
Or a French.
The team are on the line.
Speaker 4: on the line today is completely bilingual. Take advantage of the moment to use that opportunity and I'd like to get into the results we're presenting for Q3 today. As we know, we launched this company.
Today is completely bilingual.
<unk> taken advantage of the Marlin two <unk>.
To use that opportunity and I'd like to get into the results. We are presenting for Q3 today.
As we know we launched this company.
And in the fall of 2020.
Speaker 4: in the fall of 2020 as a Cisco development corporation. And we've made quite a bit of progress with both of our flagship programs today, both in the Caribou Gold Project and in...
As a Cisco Department Corporation, and we've made quite a bit of progress.
With both of our flagship programs today are both in the Cariboo Gold project.
And in Mexico.
Speaker 4: Please note that we will be referring to the company probably as ODV or ODEV throughout the presentation which is short for the Assysco Development Corporation.
Please note that we.
We will be referring to the company probably is O D V. R O Dev throughout the presentation, which is short for the Cisco Development Corporation.
Speaker 4: Before I discuss the managed results, I would like to remind participants that
Before I discuss the manage results I would like to remind participants that are all amounts discussed are in.
Speaker 4: All amounts discussed in this presentation will be denominated in Canadian dollars.
This presentation will be denominated in Canadian dollars.
Speaker 4: And also note that the statements may include forward-looking information and future-oriented financial results regarding ODAV ODB.
Also note that the statements may include forward looking information.
And future oriented financial results regarding O D O D D.
Speaker 4: and it's a business's disclosure that's regarding the possible events, conditions, or results that are based on information currently available to management, which indicates management's expectations of future growth. Results of such operations, business performance, and business prospects and opportunities. So, you know, we have to provide these cautionary statements to you.
And its business and disclosure regarding the possible events conditions or results that are based on information currently available.
To management, which indicate managements' expectations of future growth.
Results of such operational business performance and business prospects and opportunities.
So you know we have to provide these cautionary statements do you.
Got it.
Statements.
Speaker 4: are made as of the date hereof and the company assumes no obligation to update, revise them, or reflect the event's results, disclosures, or circumstances, except as required by applicable security laws. Such statements involve significant risk uncertainties that are not guarantees of the future reform.
<unk> are made as of the date hereof and the company assumes no obligation to update or revise them or reflect events or results disclosures or <unk>.
Circumstances, except as required by applicable securities laws such statements involve significant risks uncertainties that are not guarantees of future performance.
Speaker 4: are the results as a number of these significant risk and uncertainties that could cause results that differ materially from the results discussed today.
How are the results as a number of these are significant.
Risks and uncertainties that could cause results to differ.
Materially from the results discussed today.
Speaker 4: Given the risk of sunsertainies, one should also please.
Given the restaurants uncertainties, one should also place undue reliance should not place undue reliance on these statements and information.
Speaker 4: Undo reliance, not on place, undo reliance on these statements and information. Please refer to the risk factors forward looking at statements.
Please refer to the risk factors forward looking statements.
Speaker 4: and future-oriented information in the sections of our public filings, including without limitation to our Q3 2021 financial statements and MVNA, our Q3 2021 earnings press release.
And future oriented information.
And the sections of our public filings, including without.
Without limitation to our Q3 2021.
<unk> financial statements and MD&A, our Q3 2021 earnings press release.
Speaker 4: and for information purposes filed on CDAR.
And for information purposes are filed on SEDAR.
Yesterday, we released the third party quarter two.
Speaker 4: Yesterday we released the third party quarter, 2021 results before the financial risk, before we get into the financial results. I want to update the company, update you on the company achievements in milestone since they go public launch in late 2020.
2021.
Resolved before the financial review before we get into the financial results I want to update the company update you on the company achievements and milestones since they go public.
Launched in late 2020.
Speaker 4: Here are a few of the highlights. ODEV has raised approximately $253 million via private placement since 2008.
Here are a few of the highlights Oh Deb has raised approximately $253 million via a private placement since the inception of the company.
Speaker 4: the inception of the company in 2020.
And in 2020.
Speaker 4: and they completed those financings in early 2021. Capital raises were accomplished by
And completed those financings in early 2021 capital ratios raises were accomplished by.
Speaker 4: on the back of our strong management team and reputation for building world class minds. The funds are...
On the back of our strong management team and reputation for building World class mines. The funds are are they.
Speaker 4: enabling ODEV to accomplish many of the goals in the mining exploration development of both of our flagship projects, Caribou Gold Project and British Columbia as well as San Antonio in Sonora, Mexico.
Oh down to accomplish many of the goals and the mining exploration development of both of our flagship projects Cariboo Gold project in British Columbia as.
As well as San Antonio.
In our Mexico.
We'll start with caribou on the first nine months ending September 30th approximately 152000 meters of exploration and infill drilling incurred the Cariboo project an outstanding accomplishment.
Speaker 4: We'll start with Caribou on the first nine months, at any September 30th, approximately 152,000 meters of exploration and infill, during the occurred Caribou project that's sending accomplishment given the backdrop of COVID.
Given the backdrop of Covid.
Speaker 4: The results to date have been successful in encouraging immunization expansions and discoveries have continued as we chase the immunization and the deposits demonstrates a growth potential.
The results to date have been successful and encouraging and mineralization expansions in discoveries.
Have continued as we chase the mineralization and the deposits demonstrates.
Growth potential.
Okay.
Yeah.
The.
Sorry, if somebody is trying to call out here. The the continued success at the drill bit.
Speaker 4: somebody's trying to call in here. The continued success at the drill bit is really the driver of value for shareholders as we get further into the end of the piece and you know we've only touched the surface when it comes to exploration on these projects.
It was really the driver of value for shareholders as we get further into the year.
The piece and we've only touched the surface when it comes to exploration on these projects.
The.
Encouraging drill results will in our opinion and has the results of the feasibility study and.
Speaker 4: The courage and drill results will, in our opinion, enhance the results of the feasibility study. And as we work closer to getting from resource to reserve.
And as we work closer to getting from Reis.
Resource.
To to reserve.
Speaker 4: These are important pieces of the puzzle.
These are important pieces of the puzzle.
Speaker 4: in terms of the infield drawing that's on the going. And we're looking to complete that study now in the second quarter of 2022 in conjunction with the
In terms of the infill drilling that's ongoing and we're looking to complete that study now in the second quarter of 2022.
In conjunction with the <unk>.
Speaker 4: the permitting process that's underway that we're expecting in the second half of 2022. So things are lighting up pretty well.
Permitting process, that's underway that we're expecting.
In the second half of 2022.
So things are lining up pretty well.
Speaker 4: And hopefully we've got a lot of the work done now and we've got the bulk of the drilling.
And hopefully we're a we've got a lot of the work done now and we've we have.
Got the bulk of the drilling that we need to.
Speaker 4: to produce that reserve level study and get into the next level of this project, which will be phase one commissioning and construction of a significant gold mine on the caribou site.
To produce that reserve level study.
Get into the next level of this project, which will be.
Phase one commissioning and construction.
Of significant gold mine.
The caribou.
Caribou site.
During the quarter drilling activities continue with up to 11 drill rigs operating at.
Speaker 4: During the quarter drilling activities continued with up to 11 drill rigs operating at one given time. The test the mine operations commenced at Bonanza Ledge with over 81,000 tons of ore mine. And then the recommissioning of the QR mill was another big model.
At one given time the test.
Just the mine operations commenced a bonanza ledge.
With over 81000 tonnes of ore mined in the re commissioning of the QR mill.
It was another big milestone.
Speaker 4: We recommissioned that mill site and we also used a lot of the work that we did at both the underground and QR.
We we recommissioned that mill site and and we also used a lot of the work that we did at both the underground and QR.
Speaker 4: to further our progress on the overall permitting process. And we'll talk about that in a little bit.
To further our progress on the overall permitting process.
And we'll talk about that a little bit later.
Speaker 4: And as we continue on having a commission, fully commissioned goal project, including the cyanization and tailing sponge at QR, is a particularly large asset in this day and age for the shareholders of the company.
And as we continue on having a commission fully commissioned.
Old project, including.
Cyanide Asian, and tailing sponsor QR.
Is it particularly large asset in this day and age.
For the shareholders of the company.
Speaker 4: We have a guest benders here. We're also made during the year of the treatment plants on the mind sites. The Cornell River, we installed brand new water treatment facility treatments or treatment processing that allows us to make sure that the water that we are discharging is higher quality than what we're taking in. So we're pretty proud about what we've been achieving on the ESG and the environmental side of that project as well.
If it gets vendors were also made during the year the treatment plants on the mine sites.
Cornell River, we installed a.
Brand new water treatment facility at treatments are treatment processing.
That allows us to to make sure that the water. We're discharging is higher quality than what we were taking in.
So pretty proud about what we've been achieving on the ESG and the environmental.
Side of that project as well.
New concentrator equipment was also purchase we bought a sag mill.
Speaker 4: A new concentrator equipment was also purchased. We bought a sag mill and ball milk. He had a set up a that's now located at the Prince George site. The equipment is brand new but never installed from 2013. 75 hundred ton of day capacity in a combination circuit.
Ball milk here.
Setup.
That's now located at the Prince George site the.
The equipment is.
Brand, new but never installed from 2013 7500 ton a day.
Capacity in the combination circuit.
So that's a pretty big thing to have in our hand as we go into.
Speaker 4: So that's a pretty big thing to have in our hand as we go into what is continuing to be an accelerated cycle and allows us to play defense against supply chain expansion and then inflation. Having that equipment now I think has turned out to be a pretty good strategic choice.
What is continuing to be an accelerated cycle.
It allows us to play defense against supply chain.
Expansion in inflation.
Having that equipment now I think has turned out to be a pretty good.
Strategic choice.
Feasibility is advancing toward 4750 tonnes a day operation.
Speaker 4: Feasibility is advancing towards 4,750 ton of day operation. And we remain optimistic that we will be able to expand that project in the future with continued success at the exploration up and down the trend.
And we remain optimistic that we'll be able to expand that project in the future with continued success at the exploration up and down the trend.
We've had mining operations are ongoing at Bonanza, ledge too which is.
Speaker 4: We've had mining operations going at Bonanza Ledge II, which is a smaller project outside of the main Caribou project and we can't mine within the Caribou project at this point in time because we're still under a final EA process. So we have a small scale mining permit there that allows us to continue to mine there and we'd use that site to develop our workforce, our knowledge, our relationships with the
A smaller project is outside of the main Caribou project and we can't mine within the Cariboo project at this point in time, because it's we're still under final EAA process.
So we have a small scale mining permit that allows us to.
To continue to mine, there and we'd use that site.
To develop our workforce our knowledge our relationships with the.
With the regulators and also to test some of our equipment.
Speaker 4: with the regulators and also to test some of our equipment and also to make sure that we have an understanding with our communities as to how we work there and then what we get done. So it's been a pretty big success.
And also to make sure that we have.
We have an understanding with our communities as to how we work there and then what we get done.
So it's been a pretty big success.
Speaker 4: in the overall life of what we think is the perming cycle for the project and to get to the bigger prize, which is a larger mine that we're perming at 4750 tons a day. We believe that the, but I-
And then the overall.
<unk> of what we think is the permitting cycle for the project and to get to the bigger prize.
Which is.
Larger mining, where Permian 4700, 50 tons a day.
We believe that the Bonanza ledge too.
Main permit.
Speaker 4: main permit is crucial and required in terms of our way into the larger permitting area for the Caribou project that we hope to achieve in the second half of 2022.
Is is crucial and required in terms of our way into the larger permitting area.
For the Caribou project that we hope to achieve in the second half of 2022.
Speaker 4: We also were able to test mine the BC Vane structure, which is a 18 kilometers long.
We also were able to test mine, the BC vein structure, which is a rating kilometers long.
Speaker 4: And to be pretty confident that that's something that we can add
And to be pretty confident that that's something that we can add.
Speaker 4: to the overall exploration targets because it wasn't included in the original resource.
Two the overall exploration targets because it wasn't included in the original resource.
Speaker 4: or exploration work. But it does represent a significant piece of upside for shareholders.
Or exploration work.
But it does represent a significant piece of upside for shareholders.
Speaker 4: and previously we weren't sure whether we could mine there or not but the Success that we've had a banana edge to Even though we're going to be announcing a right then today as provides you know a competence that we can continue to look at be receiving as potential upside for The overall development of the Caribbean goal project as we get further into the piece We're also able
And previously.
We werent sure, whether we could mine there or not but the.
The success that we've had at Bonanza ledge to.
Even though we're going to be announcing a write down today.
As provided on our confidence that we can continue to look at BC vein.
As a potential upside for.
The overall development of the Cariboo Gold project as we get further into the piece.
We were also able to.
Speaker 4: take care of some of the peg pile, the potentially outstaging pile.
To take care of some of the peg piled or you're potentially asset generating pile.
Speaker 4: By putting that material on around and as we develop BC vein to Become some more critical and integral
By putting out material underground and as we develop BC vein too.
It becomes a more critical and integral portion.
Speaker 4: of our commitment to our environmental standards to make sure we run the best project we can by cleaning up those historic
Of our commitment to our environmental standards.
To make sure we run the best project, we can by cleaning up.
Those historic operations.
Speaker 4: And to RESG strategy is to reduce our footprint, reduce our overall...
And to our ESG strategy is to reduce our footprint reduce our overall.
Speaker 4: use of groundwater and contact water.
Use of groundwater and contact water.
Speaker 4: So pretty pretty good development on that front From where we stand on ESG Unfortunately from the current accounting and engineering standards. We're gonna have to report a loss on this project What we see it is
So pretty pretty good development on that front.
From where we stand on ESG. Unfortunately from the current accounting and engineering standards, we're going to have to report.
Loss on this project, but we see it is.
Speaker 4: as crucial and significant to the development of the overall evolution of value for the Asun School Development shareholders at Caribou.
As crucial insignificant to the development of the overall.
Evolution of value for the Cisco developments shareholders at caribou.
Speaker 4: We also worked hard with our partners at La Tacua Dene, and Zethel, Williams Lake and the first partners.
We also worked hard with our partners at La <unk>.
That's all.
Williams Lake.
First partners.
First nations partners throughout the pandemic.
Speaker 4: First Nations Partners throughout the pandemic, in terms of what we could do to support those communities and to make sure that our partners understood that we're long-term partners that we're here for the good, for the bad, and for the tough, and I'm very happy with some of the friendships and community relations that our team and the communities have been able to develop throughout what has been a challenging time for all communities.
In terms of what we can do to support those communities to make sure that our partners.
Understood that were long term.
Partners that we're here for the for the good for the bad.
And for the tough and I'm very happy.
With some of the friendships and community relations.
That our team and the communities have been able to develop.
Throughout what has been a challenging time for all communities.
Speaker 4: So congratulations to everybody involved in that. And we look forward to this project being a leader in terms of sustainability and impersonations relationships in central BC. I think that we have an opportunity here to do something that maybe hasn't been done for a while.
So congratulations to everybody involved.
And that and we look forward to this project being a leader in terms of.
Sustainability and first nations relationships and.
In Central BC, I think that we have an opportunity here to do something that maybe.
Maybe it hasn't been done for a while.
Speaker 4: As we look forward, we've also been able to initiate a couple of legacy projects, which I'm particularly proud of as another storage man myself. We're happy to announce the Feather Mountain Caribou Legacy Initiative. We'll be providing land donation as well as contributing to manage the cows and calving operations to protect the cows and calves during the early years when they're vulnerable to predators.
We look forward.
We've also been able to initiate a couple of legacy projects, which I.
I'm, particularly proud of is another stores within myself.
We're happy to announce the southern Mountain Caribou legacy initiative.
We will be providing land donation as well as contributing to vantage.
The cows and carrying operations to produce to protect cows and calves during early years when they are vulnerable to predators.
Speaker 4: We've also been...
Also.
Ben.
Been able to initiate the <unk>.
Speaker 4: been able to initiate the
<unk>.
The by River salmon.
Speaker 4: the Bay River Salmon Enhancement Program where we're going to be looking to release salmon roe and get involved in the headwaters of the Fraser River. I think that from myself, having been involved in salmon preservation for over 20 years now, it's particularly fulfilling and I'm pretty happy to be able to talk to my First Nations partner.
Enhancement program, where we're going to be.
Looking to two released salmon Roe.
And get involved in the headwaters of the Fraser River.
And I think that from myself, having been involved in.
Samad preservation for over 20 years now.
It's particularly fulfilling and I'd say, we're pretty happy to be able to talk to my first nations partners.
Speaker 4: about these legacy projects because I think we're all excited to do it. And it's a pretty good opportunity to participate in one of the great salmon resources of the world. And we've been able to achieve and purchase a site that's somewhat unique and we'll be looking to highlight those legacy projects.
About these legacy projects because I think we're all excited to do it.
And it's a it's a pretty good opportunity.
To participate in one of the great great.
Great Samad resources of the World.
And we've been able to achieve and purchased a site that's somewhat.
Somewhat unique and we will be looking to to highlight those legacy projects.
Speaker 4: as we move forward and certainly part of our commitment to ESG as we move forward and happy to be, you know, also within the SSCO group, but we've announced the carbon.
As we move forward and certainly part of our commitment to ESG.
As we move forward and happy to be.
Also within the Cisco group, we've announced the carbon.
Streaming corporation through all our.
Speaker 4: streaming corporation through OR and we've also announced the green SPAC, the Cisco Green Corporation. So we've had a pretty big year so far in terms of our commitments to on ESG. We're going to continue to drive hard to try and be a leader in this space.
And we've also announced the.
The Greens back or a Cisco.
Green Corporation so we.
We've had a pretty big year, so far in terms of our commitments to on ESG and we're going to continue to drive hard to try and be a leader in this space.
Speaker 4: And I'm very happy also by the support that we've received from the BC government in particular, the premier.
Very happy also by the support that we've received from the BC government.
In particular the premier.
Speaker 4: Horgon has leaned in and supported this. And I think it's a big...
<unk> has has leaned in and.
And then supported this and I think it's a big.
Speaker 4: move forward that we have these legacy projects and that we have this kind of progress on ESG. This early in a project like like Caribou and very proud to be part of it.
Move forward that we have these legacy projects and then we have this kind of progress on ESG. This early in a project like a like caribou and are very proud to be part of it.
Speaker 4: I'm also very proud of the team and the work that they've done to get us where we are and the work that our partners are doing to make sure that we are the leaders in ESG for Central British Columbia as we move forward.
Also very proud of the team and the work that they've done to get us where we are.
And the work that our partners are doing.
To make sure that we are the leaders in ESG for central Central British Columbia, as we move forward.
Well, we had a significant amount of challenges during the pandemic period like everybody.
Speaker 4: We had a significant amount of challenges during the pandemic period like everybody. We initiated onsite early testing, purchased our onsite lab. We invested time and money to try and make sure that our employees and our partners and our communities were safe as we possibly could be. But the impact of COVID-19 on everybody and on the supply chain. And on our talent pool has had its effects. But I think we came through it.
We initiated onsite early testing purchased our onside lab.
Invested time and money to try and make sure that our employees and our partners and our communities.
We're safe as we possibly could be.
But the impact of COVID-19 on everybody.
On the supply chain.
And.
On our talent pool.
Has had its effects.
But I think we came through it relatively.
Speaker 4: well compared to most.
Well compared to most so we feel that.
Speaker 4: You know, the permitting cycle as we've head into the final stretch here in 2022.
The permitting cycle as we head into the final stretch here into 2022.
Speaker 4: where the first one to go through this perming process in BC for a brand new
We're the first ones to go through this permitting process NBC for a brand new mine.
Speaker 4: It's a pretty complex process, but
It's a pretty complex process, but.
Our partners.
Speaker 4: our partners in the regulators side within First Nations.
The regulator side.
Within the first nations.
Speaker 4: and within our group have been able to keep things on on track during COVID-19, which I think is remarkable that we've been able to do so. We received a 10,000 kind of day, 10,000 tonne, a bulk sample underground permit, which allows us to initiate.
And within our group have been able to keep things on track during COVID-19.
Which I think is remarkable that we've been able to do so.
We received a 10000 kind of the 10000 ton box.
Bulk sample underground plan, which allows us to initiate.
Speaker 4: 2.1 km is on your ground development. We're using some new technologies there that haven't been seen in gold mining in BC before with our electric road header.
2.1 kilometers of underground development.
We're using some new technologies, there that havent been seen in gold mining and bucy before with our electric road header.
Which we also commissioned earlier during peninsula edge too.
Speaker 4: which we also commissioned earlier during Pennend's Ledge II and we also purchased a brand new or sorter, which is currently being installed on site.
And we won't throw a purchased the brand new <unk>.
<unk> order, which is currently being installed on site.
Speaker 4: So we've been making steady headway on making sure this is a project that has the highest standards in terms of environmental and also setting course for the carbon met zero target that everybody would like to see. And certainly we've made an obligation for our team here.
So we've been making steady headway.
Making sure that this is a project that has the highest standards in terms of environmental.
And I also setting course.
For the carbon net zero target that everybody.
I would like to see and certainly we've made it an obligation.
For our team here.
Speaker 4: the XRT or sorter from Steinhard is offering a lot of opportunity. And maybe the key to success for unlocking significant value in this 2000 square kilometer land back.
<unk> XR T.
Ore sorter from Steinhardt is offering a lot of opportunity.
And maybe the key to success, we are unlocking significant value in this 2000 square kilometer land package.
Speaker 4: as we move forward. So it's been quite a bit of science on that side.
As we move forward so it's been quite a bit of science on that side.
And you know it's it's.
Speaker 4: And you know, it's going to require more work to make sure that everybody understands it. And then from a shareholder standpoint, that the technology is going to deliver what we expected to deliver.
It's going to require more work.
To make sure that everybody understands it and from a shareholder standpoint that the technology.
He is going to deliver what we expect it to deliver.
Speaker 4: So that work is continuing underway. In Mexico, we've initiated 45,000 meter drill program.
So that work is continue underway.
In Mexico, we've initiated 45000 meter drill program.
In the second quarter.
Speaker 4: in the second quarter with approximately 22,700 meters completed.
With approximately 22007.
700 meters completed.
At the end of Q3.
Speaker 4: at the end of Q3. You know, so Mexico is, we haven't talked about it as much as we could, but you'll see that the intensity of information coming out of Mexico starts to increase as we get more drill results in. We've been highly encouraged by both.
So Mexico is we haven't talked about it as much as we could but youll see that intensity.
By way of information coming out of in for out of Mexico.
Starts to increase as we get more drill results in.
We've been highly encouraged by both.
Drill results in.
Speaker 4: grill results in both oxide and qualified resources. And we see San Antonio being significant contributor to shareholder value as we get through to the end of the drill program.
In both oxide and sulfide resources.
And we see San Antonio being significant contributor to.
Shareholder value as we get through.
To the end of the drill program.
Speaker 4: into the PA study. We've all been initiated construction of the test pad. There's going to be the phase one stock file. We have about a million tons of oxide ready to go, which we hope to be loading near the end of this month in the early next month and should provide early production
The Pea study, we've also initiated construction.
Test pad, there, there's going to be the phase one.
Stockpile, we are about a 1 million tonnes of oxide ready to go.
Which we hope to be loading near the end of this month.
Early next month and should provide early production.
Speaker 4: from reaching operations there in 2022 as we get that project underway. But as...
From from leaching operations there in in 2022.
We get that project underway, but is happy to complement the management team in Mexico for having done a great job of achieving not only the permitting by getting the construction done to make that.
Speaker 4: happy to compliment the management team in Mexico for having done a great job of achieving, not only the permitting, but getting the construction done to make that that leads mine to go forward. And we continue to see success both on the permitting side. And as
That Leach mine.
Our go forward.
And we continue to see success.
Both on the permitting side.
And as well as the.
Speaker 4: the development side in terms of how we've been able to get the acquisitions for land use and as well as our partnerships with our IHIDO communities in the area moving forward. So all that's gone pretty well.
The development side in terms of how we've been able to get the.
Acquisitions for land use and as well as <unk>.
Our partnerships with our hero.
Communities in the area.
Moving forward, so all of that's gone pretty well.
Speaker 4: The company will continue a detailed plan to start processing the stockpile, starting objectives that have loaded with carbon, hopefully, in the first quarter of 2022.
The company will continue detailed plan to start processing the stockpile.
Starting and objectives.
Loaded carbon hopefully.
In the first quarter of 2022.
And as we see it right now.
Speaker 4: And as we see it right now, we have approximately 250 to 350,000 ounces of oxide material on surface and 1 million ounces overall.
We have approximately 250 to 350000 ounces of oxide material.
On surface.
And 1 million ounces overall.
Speaker 4: in terms of oxide and fall tide, that we continue to have success of the drill bit, and we see this as an opportunity to continue to expand and to add value for shareholders as we move forward.
In terms of oxide and sulfide.
We continue to have success of the drill bit and we see this as an opportunity.
<unk> continues to expand.
And to add value for shareholders as we move forward.
Speaker 4: There's, we'll get into the Sapucci project, which is under permit right now. And the larger Sapucci project allows us to look at sort of a six to eight thousand kind of day startup project that we already purchased equipment for, and has been delivered to Mexico.
There is we will get into.
The <unk> project, which is under permit right now.
And the largest to put your project allows us to look at sort of six to 8000 tons a day startup.
Projects that we already purchased equipment for.
And it's been delivered to Mexico.
Speaker 4: And we should be looking at that development of that project as we get further into 2022. And we've just, we've got a couple of permits there, but by all intents and purposes, that project is advanced extremely well.
And we should be we should be looking at that development of that project.
As we get further into 2022.
And we're just we've got a couple of permits there but.
By all intents and purposes.
<unk>.
For the purposes that project has advanced extremely well.
Speaker 4: and just as a further note, in terms of what we've been doing O-DV within our equity portfolio, as you know, we maintain significant equities.
And just as a further note in terms of what we've been doing <unk>.
Within our equity portfolio as you know we maintain significant equities.
We continue to invest in junior mining companies and.
Speaker 4: We continue to invest in junior mining companies and other companies, and we've made some investments. And we continue to operate as an equity investor within the space.
In other companies and we've made some some investments.
And we continue to operate as an equity investor within the space.
Speaker 4: and we've been pre-proud of the other companies that the assist group in general has been able to sponsor.
And we've been pretty proud of the other companies that.
Cisco group in general has been able to sponsor.
Speaker 4: and the success that we've seen around those companies. And we congratulate all of our partners within the accelerator group of investments within our equity book.
And the success that we've seen around those companies.
I congratulate all of our partners within the accelerated or group of investments.
Within our equity book.
As we move forward.
Speaker 4: And I'll pass it on to Alex Dan now to kick us through the Q3 results. And then we'll come back to Q&A at the end. Alex over to you.
I'll pass it onto Alex Dan now to take us through the <unk>.
The Q3 results.
And then we'll come back to the Q&A at the end Alex over to you.
Okay.
Thank you, Sean and Bonnie and good morning, everyone as Shawn touched upon we made significant progress towards our goals in the first nine months of 2021.
Speaker 4: Sean touched it on. We made significant progress towards our goals in the first time months of 2021.
Speaker 4: And the third quarter we realized gross revenues of approximately $3.9 million from the sale of 1640 ounces of gold.
In the third quarter, we realized gross revenues of approximately $3 $9 million from the sale of 60 to 140 ounces of gold.
Speaker 4: which is an increase of 1,325 ounces compared to the prior quarter.
Which is an increase of 1325 ounces compared to the prior quarter.
The company had approximately 824 ounces of gold available for sale as of September 30th.
Speaker 4: The company had approximately 824 ounces of gold available for sale as at September 30th. And these ounces combined with additional gold produced will be recognized in revenue in the fourth quarter.
And these ounces combined with additional gold produce will be recognized in revenue in the fourth quarter.
In the third quarter, the company incurred a net loss of approximately $31 $7 million or 24 per share.
Speaker 4: In a third quarter, the company incurred a net loss of approximately $31.7 million or 24 cents per share.
The main driver for the loss is the impairment of assets totaling $33 $3 million.
Speaker 4: The main driver for the loss is the impairment of assets, totaling $33.3 million, which is comprised of two amounts.
Which is comprised of two amounts.
The first amount is $22 $3 million related to the Bonanza ledge to project.
Speaker 4: The first amount is $22.3 million related to the Bananza Ledge 2 project.
Operational challenges occurred during the quarter, leading to lower production and revenues than originally planned.
Speaker 4: Operational challenges occur during the quarter, leading to lower production and revenues than originally planned.
Speaker 4: and management team proved it to revisit its mining and milling assumptions for the short-term life of the Bananza Ledge 2 mine.
And management deemed prudent to revisit its mining and milling assumptions for the short term life of the Bonanza ledge to mine.
The second amount of $11 million is related to the reevaluation of the stockpile in Mexico.
Speaker 4: The second amount of $11 million is related to the re-evaluation of the stockpile in Mexico. An increase in processing costs and a slight decline in gold price as it September 30th compared the June 30th, 2021.
Increase in processing costs, and a slight decline in gold price as at September 30, compared to June 32021.
G&A expenses for the quarter were approximately $6 $9 million compared to $1 2 million in the prior year quarter.
Speaker 4: DNA expenses for the quarter were approximately $6.9 million compared to 1.2 million in the prior year of quarter.
Speaker 4: The increase in expenditures is due to the ramp of activities and the workforce at all projects and the head off.
The increase in expenditures is due to the ramp up of activities and the workforce at all projects and the head office.
Other income net of other expenses in the fourth quarter posted a gain of $5 $3 million compared to $1 1 million in the same quarter last year.
Speaker 4: Other income net of other expenses for quarter posted again of $5.3 million compared to 1.1 million in the same quarter last year.
The increase in income is mainly due to the recognition of that premium on the flow through and charity flow through share issuances that were completed in the first quarter of 2021.
Speaker 4: The increase in income is mainly due to the recognition of a premium on the flow through and charity flow through share assuances that were completed in the first quarter of 2021.
Speaker 4: and also some foreign exchange games on U.S. dollar balances held by the company.
And also some foreign exchange gains on U S dollar balances held by the company.
Our cash and cash equivalents.
Speaker 4: Our cash and cash equivalent, excuse me, our cash and cash equivalent balance at the end of the third quarter was approximately $72.1 million.
Excuse me, our cash and cash equivalents balance at the end of the third quarter.
Approximately $72 $1 million.
Speaker 4: The main driver is affecting cash in the quarter, we're as follows.
The main drivers affecting cash in the quarter were as follows.
Speaker 4: Cash flows used in operating activities for three months was approximately $2.9 million compared to 1.2 million in the prior quarter.
Cash flows used in operating activities of three months was approximately $2 $9 million compared to $1 2 million in the prior quarter.
The increase is mostly due to the ramp up of the G&A to meet operational requirements offset by a positive change in noncash working capital.
Speaker 4: The increase is mostly due to the ramp up of the GNA to meet operational requirements offset by a positive change in non-cash working capital.
Second component of the cash flows used in investing activities totaled $69 2 million in the third quarter compared to $11 2 million in the prior year quarter.
Speaker 4: Second component is the cash flows used in investing activities, totaled $69.2 million in the third quarter compared to $11.2 million in the prior year quarter.
The increase is mostly reflected in the ramp up of the Cariboo Gold project, Bonanza ledge too and San Antonio projects.
Speaker 4: The increase is mostly reflected in the ramp up of the Caribou gold project, financial edge 2, and sent on token projects.
I will now turn the call back to Sean for closing remarks.
Thanks, Alex.
Speaker 5: Thanks Alex. You know, so we spent some money on these projects. We spent some money on BL2, which I deem is part of the permitting process and development process. It's a bit.
We have spent some money on these projects. So we spent some money on B L two which I deem is.
Part of the permitting process and development process.
It's not it's not the way I would presented if it wasn't required for financial.
Speaker 5: It's not the way I would present it if it wasn't required for financial process, but the reality is we've invested, we've commissioned the QR mill.
Process, but the reality is we've invested we've commissioned the QR mill.
And we have a a producing goldmine there and we'll have a second producing gold mine.
Speaker 5: And we have a producing gold mine there and we'll have a second producing gold mine by the end of the year in Mexico. And the strategy has been to get these projects into production as soon as we can achieve as much early permitting successes we can. Given the current environment for permitting. I think that we've made significant advances and they think the investment on behalf of the shareholders to make these.
By the end of the year.
In Mexico.
And the strategy has been to get these projects into production as soon as we can achieve as much early permitting successes, we can give.
Given the current environment for permitting.
We've made significant advances and I think the investment on behalf of the shareholders to make these.
Speaker 5: these progresses in terms of small-scale mining are significant in terms of clearing the way for the larger permits that we require for our bigger project.
These progresses in terms of small scale mining.
Our significant in terms of clearing the way for where the larger permits that we require.
For a bigger projects.
That said and done I think we're seeing that the gold prices has had a bit of a.
Speaker 5: That's that in town, I think that we're seeing the gold prices has had a bit of a rise this morning.
Bit of a bit of a rise this morning.
Speaker 5: So I congratulate everybody on the goal space that's on the call. And without further ado, I'll open it up for any questions that we might have.
So I congratulate everybody on the gold space.
So that's on the call and without further Ado I'll open it up for any questions that we might house.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad well pause for just a moment to compile the Q&A roster.
Speaker 2: At this time, I would like to remind everyone in order to ask a question pressed star, then the number one on your telephone keypad will pause for just a moment to compile the Q&A roster. As Mama, je voudrais rappeler à tout le monde à faire une pause et une question à cuisson l'étoile, puis le numéro 1 sur le clavier de votre téléphone.
I'm not sure what today does that play out through demand Atlanta, posting Castillo Etsy is the lift was seen in EMEA wholesale monumental answer like have you do have a telephone.
Is that a lot of D. N S. Therefore, kapila list Castillo Atmos.
Speaker 2: We will stop a moment to complete the list of questions, answers.
Yeah.
Yes.
The first question comes from the line of Don Demarco.
Speaker 2: The first question comes from the line of Don DeMarco.
Your line is open.
Oh, hi, Thank you operator, and good morning, Sean and team.
Speaker 6: So hi, thank you operator and good morning Sean and team. My first question, aside from higher throughput, is there any other scope changes that you're thinking about versus the 2018 PA? I mean, that is scope changes that might follow from insights that you've acquired from the expiration that you've been doing that might change your thinking a little bit around the project opportunities to optimize it or add value in other ways.
My first question aside from higher throughput.
Is there any other scope changes that youre thinking about versus the 2018.
That is.
Scope changes that they might fall off from insights that you've acquired from the exploration that you've been doing it might change your thinking a little bit around the project opportunities to optimize it or or add value in other ways.
Good morning, Dan and thanks for your question yes.
Speaker 5: Good morning, Dawn, and thanks for your question. Yeah, I think the infield drilling has been pretty exciting. Look at what's happened in the Valley Zone, low E.
Yes, I think the infill drilling has been pretty exciting.
Look at what's happened in the valleys are low.
Speaker 5: You know the opportunity to have a better starter zone.
The opportunity to have a better starter zone.
Speaker 5: and to really bear down on early-term revenue is opening up. We're processing a significant amount of drill results into the database right now. I think the new and revised mine plan does give us an opportunity to revisit maybe how we developed the mine in terms of priorities.
And to really bear down on early early term revenue.
Is opening up and now we're processing significantly.
Significant amount of drill results into the database right now so I think the new and revised mine plan does give us an opportunity.
To revisit maybe how we develop the mine in terms of priorities.
Speaker 5: I think the ORS order confidence has gone up since we did the PA study. We've done significant amount of work there.
The ore sorter confidence has gone up since we did the VA study <unk>.
Significant amount of work there.
And.
Yes.
Speaker 5: Yeah, it's definitely a project that's gaining strength.
Definitely project is gaining strength.
Speaker 5: as we look forward. And the end-filled drilling has done nothing, but we're far-beliefed that...
As we as we look forward.
And the infill drilling has been nothing but versus our beliefs that.
Within the only the four kilometers that we've explored so far.
Speaker 5: within the only the four kilometers that we've explored so far out of the 83 kilometers of trend. This is a mining camp. It's not a mining project.
Out of the 83 kilometers of trend.
This is a mining camp, it's not a mining project.
Speaker 5: and there are significant number of other targets that we can pull in and maybe the overall scale of the project can be increased as we have more success in places like Lodi as we did not include in the original reason. That's great.
And there are significant number of other targets that we can pull in and maybe the overall scale of the project can be increased as we have more success in places like loaded.
As we did not included in the original reason.
That's great.
Gaining speed.
Yeah.
Speaker 6: Yeah. Okay, that's very helpful. And on several fronts. And then looking to the FS, of course, and we're seeing some spending now in multiple areas making progress. Is the spending that we see in Q3, does this potentially provide some offset to the care of development costs?
Okay. That's very helpful and on several fronts and then looking to the best of course, and we're seeing some spending now in multiple areas.
Making progress is the spending that we see in Q3 does this potentially provide some offset to the caribou development costs.
And maybe I'll ask a follow up to that how do you see inflation inflation has been and.
Speaker 6: And maybe I'll follow up to that too. How do you see inflation? Inflation has been a common theme these days in mining. What should we be thinking about there as we anticipate the FF?
A common theme these days in mining.
What should we be thinking about there as we anticipate the Fas.
Well I think the good news for US is a lot of our primary equipment has already been secured we own the QR mill, we've been able to commission it.
Speaker 5: Well, I think the good news for us is a lot of our primary equipment has already been secured. We own the QR mill. We've been able to commission it. We did significant amount of upgrades to it. It's ready to take up to a thousand times a day of concentrate.
We did significant amount of upgrades to it and it's ready to take up to 1000 tonnes a day of concentrate.
Speaker 5: from what we would see as a primary constrater and we purchased that traditional combination.
From what we would see as a.
The primary concentrator and we purchased that we have.
Original combination equipment.
Speaker 5: From HUD Bay, we bought that 7,500 ton of day process units that will have more than enough capacity in our concentrator in wells. So we've tried to take the risk out of the inflation component, where we do see inflation as mining equipment and also in terms of underground mine development talent is a grown up in price.
How did they we bought that 7500 ton a day Prost.
Process unit, so we'll have more than enough capacity at our concentrator.
In wealth. So we've tried to take the risk out of the inflation component.
Where we do see inflation as mining equipment and also a.
So in terms of underground.
Mine development talent.
It has gone up in price.
Speaker 5: So I don't have a number for you today and we'll come out with a feasibility. Probably early next.
No I don't have a number for you today, and we will come out with a feasibility.
Probably early next quarter.
Speaker 5: But, you know, I think more lawful lines operating in development across as opposed to CapEx.
But I think more along the lines of operating and development cost as opposed to Capex.
Speaker 5: because we may have to lock it down quite a bit of the capex. So, you know, the fact that we did this work during...
We've made up a lock it down quite a bit of capex. So.
The fact that we did this work during COVID-19.
Speaker 5: In terms of getting QR ready and in terms of putting in place some of the issues that
In terms of getting QR already and in terms of putting in place some of the issues that.
Speaker 5: that we have to and also securing our line that we expect to be delivering power by 2023-2024.
But we have to and also carrying a power line.
That we expect to be delivering power by 2023 2024.
Speaker 5: We've been able to in a lot of the costs and hopefully we've done as good a job as we can in terms of protecting from inflation, which I think is eminent in the sector.
We've been able to gain a lot of costs.
Hopefully we've done as good a job as we can in terms of protecting from inflation.
Which I think is is eminent in this sector.
And in terms of being where we are being on grid power behind <unk>.
Speaker 5: And you know in terms of being where we are being on grid power being on infrastructure is the best way to protect against any of the inflation just just by having that proximity to community or 45 minute throughout the town of which is a town of 28,000.
Infrastructure is the best way to protect against any of the inflation.
Just by having that proximity of the community, where 45 minute drive out of the title which is.
28000.
Speaker 5: and being not being having to deal with fly-and-fly out, also protects us in terms of the ability to build a cost-effective mind in this environment.
And being <unk>.
Not being having a deal a fly in fly out.
Also protects us in terms of the ability to build.
Cost effective mine in this environment.
Okay.
Speaker 6: Okay. We'll look forward to that then. And my final question, well BC's been in the headlines a lot lately. We see after the Freddie Macquisition and ODEV is a name that's come up as a potential M&A target. When I look at you've got holdings yourself though and another company, Mineral Mills. And so could you give us some comments on ODEV's strategy with respect to Mineral Mills?
We will look forward to that then in my final question well <unk> been in the headlines a lot lately you see after the <unk> acquisition.
<unk> is the name has come up as a potential M&A target.
When I look at you've got holdings yourself, though in another company Minera Alamos and so could you give us some.
Comment on on Audette strategy with respect to Minera Alamos.
Right.
Well I'll give you the strategy both from the <unk> side, but from the Cisco group side, we've been incubator of companies.
Speaker 5: Well, giving us the strategy both from the old downside and from the fiscal group side, we've been incubators of companies and for Alamos is one of our more successful accelerator companies. We made an initial investment at that company and we had to mark a cap of 13 million.
For almost as one of our more successful accelerator companies.
We made an initial investment of that company when we had a market cap of $13 million.
Speaker 5: We continue to support the company. We've been big fans of Darren Connigan and is crew and what he's been able to do in Mexico for a long time. We congratulate them on their successes.
We continue to support the company.
And we've.
We've been big fans of Darin Khan again.
And his crew and what he's been able to do in Mexico for a long time and we.
We congratulate them on their successes.
We've also made investments in other accelerator in early stage company and we tend to go back down market sometimes when.
Speaker 5: We've also made investments in other accelerator and early stage company. And we tend to go back down market sometimes when we can and try to get those things going. And we've been trying to work with groups like Eric Sprout and some of the other crew. And then there'll be early stage investors and course zone investors and a lot of different to find out things as a group.
When we can.
And try to get those things going and we've been trying to work with groups like Eric Sprott.
And some of the other crew and then there'll be early stage investors and cornerstone investors and there are a lot of different <unk>.
Financing as a group.
So we continue to be pretty active participant.
Speaker 5: So we continue to be pretty active participants in terms of early stage companies.
In terms of early stage companies.
And our simple philosophy.
Speaker 5: And our simple philosophy is, values built with the drill bit, the rest of it's more of a de-risking operation. And we continue to believe in that philosophy. And we certainly congratulate Minerala Moses being one of our successful accelerator companies within the Asusco group. We sponsored them early on, and we continue to be proud owners. And we continue to support management team in their efforts. Okay.
Value is built at the drill bit the rest of it's more of a derisking operations.
We continue to believe in that philosophy.
Certainly congratulate mineral alamos as being one of them are successful accelerator companies within the Cisco group, we sponsored them early on and we continue to be.
Proud.
Vowed owners and we continue to support the management team and their efforts.
Okay. That's all for me thank you very much.
Your next question comes from the line of Ralph <unk>.
Speaker 2: Your next question comes from the line of Ralph's profitee. Your line is open. Thanks operator, good morning everybody.
Your line is now open.
Thanks, operator, good morning, everybody.
Sean I wanted to ask you.
Something along the lines of the previous question sort of inflation in supply chain and I'm, particularly concerned about.
Longer lead time items as it pertains to the actual physical arrival of equipment on site.
Speaker 7: longer lead time items as it pertains to the actual physical arrival of equipment on site.
What's on the critical path there and is there anything is there anywhere where we could be exposed.
I think one of the things we did do is we brought in the road header.
Speaker 5: I think one of the things we did do is we brought in the road header. The first brand new one from Sandvik. We brought it in last year and we commissioned it this year. Based on the success of that program, we've confirmed two more.
The first brand new one from Sandvik.
We brought it in last year and we commissioned this year.
Based on the success of that program, we have confirmed two more.
Speaker 5: and locked in pricing, which I think is kind of the sort of the, you know, the workhorse of this project is going to be lateral development.
And locked in pricing.
Which I think is kind of the sort of the.
The work horse of this project is going to be lateral development.
We've looked at other mining equipment. So we've.
Speaker 5: We've looked at other mining equipment. We've secured the process facility, a combination circuit with the sag mill and the ball mills. They're sitting in Prince George. We locked that down early because we thought this inflation might come. So I think we're in pretty good shape. You know, Ralph in terms of what we could protect against.
Secured the process facility.
Combination circuit with the Sag mill and the ball mills, there sitting in Prince George we lock that down early because we thought this inflation might come.
So I think we're in pretty good shape.
Ralph in terms of what we could protect against.
Speaker 5: You know, and, and, you know, the biggest question will be is what's the cost of electric equipment? The differential between electric scoops and trucks.
And the biggest question will be is what's the cost of electric equipment.
The differential between electric scoops and trucks.
Speaker 5: versus traditional and the access to the power to drive those.
Versus traditional and the access to the power to drive those.
Speaker 5: And you know, that's something that I think that we got a huge amount of confidence back from the BC government in terms of their support for the decarbonization of the use of BC Hydro power. And I think we're in pretty good shape in terms of protecting.
And.
That's something that I think that we got a huge amount of confidence back from the BC government in terms of their support.
For the de carbonization of the use of BC Hydro power and I think we're in pretty good shape in terms of protecting.
Our ESG component and staying as a dominantly electric mining operation and being a leader in that process in terms of being the first one through the permitting process.
Speaker 5: RESG component and staying as a dominantly electric mining operation and being a leader in that process in terms of being the first one through the permitting process. And certainly I was encouraged by my discussions with Premier Hogan two weeks ago.
And certainly I was encouraged by my discussions with Premier Oregon.
Two weeks ago.
So we're going to do our best to lock down as much as we can in the supply chain.
Speaker 5: So we're going to do our best to lock down as much as we can in the supply chain. But that'll, you know, it's also going to be subject to competition for mothers. But ODV is the first one through the burning primary process under the new rules. So we're in pretty good shape that way. And we've been pretty, I think, nimble on our feet in terms of locking down the combination circuit and the primary mining gear.
But that.
That's also going to be subject to competition from others, but.
<unk> is the first one through the permitting process under the new rules.
So we're in pretty good shape that way and we've been pretty good.
I think nimble on our feet in terms of locking down the combination circuit and the primary mining gear.
Speaker 5: So that's what I have this morning, Ralph, but we're continuing, it's a working progress, we're working pretty hard to protect that inflation.
So that's but that's what I had this morning, Rob but will continue its about its a work in progress we're working pretty hard to protect.
That inflation.
Yep understood good to hear thanks, Sean.
Yeah.
Your next question comes from the line of John Tumazos.
Speaker 2: Your next question comes from the line of John Camazos. Your line is open. Thank you very much. Sean, how much cash do you need from September 30th to come?
Your line is open thank you very much.
Sean how much cash G&A.
From September 30 to complete.
Caribou.
And we will.
<unk>.
Use that for the completion or try to be debt free.
Speaker 8: use depth for the completion or try to beat depth free.
So I think where we're going to set Jonathan thanks for the question and I was.
Speaker 5: I think where we're gonna sit John and thanks for the question and you know, I was very glad to see your comments on the rest of the assets in the assist go group and very happy that you got a chance to visit the the the windfall project there last week or two weeks ago I guess was now.
Very glad to see your comments on the rest of the assets in these ESCO group and very happy that you got a chance to visit.
The windfall project there last week.
Two weeks ago, I guess it was now.
Speaker 5: But in terms of what we need to do, we're gonna put out the feasibility study. I don't want to try and front run numbers. The PA study is out there. So I can only really speak to what's in the public domain right now.
But in terms of what we need to do we're going to put out the feasibility study I don't want to try and front run numbers or the Pea study is out there.
So I can only really speak to what's in the public domain right now.
But you've known me a long time John.
Speaker 5: But you've known me a long time, John . We're going to optimize our project finance package in the best way that we can. And we'll keep our cost to capital as low as we can.
We're going to optimize our project finance.
Packaged in the best way that we can and we will keep our cost of capital as long as we can.
Speaker 5: I think the way the capital markets are working right now, equity has been expensive. Dad has been cheap, converts, and hybrids are in there.
I think the way the capital markets are working right now equity has been expensive debt.
<unk> has been cheap.
And and.
Reds are in there.
Speaker 5: And we also obviously were participants in the world at the streaming space.
And we've also obviously were participants in the royalty and streaming space.
Speaker 5: So our capital criteria, John , is going to be...
So our cost of capital criteria, John is going to be.
Speaker 5: pretty strategic, but I'm not gonna pronounce today how how exactly that cocktail is gonna work because I Can't predict the freezer any better than anybody else
Pretty strategic but I'm not going to pronounce today, how how exactly that cocktail is going to work because.
I can't predict the future any better than anybody else.
Speaker 5: But it's a place to say there's a priority for the finance team at the Cisco development level as well as within the Cisco group to optimize the cost of capital for shareholders because at the end of the day, this is gonna be about the cost of capital.
Suffice it to say it is a priority.
For the finance team at Cisco.
<unk> level as well as within the Cisco group to optimize the cost of capital for shareholders because at the end of the day.
This is going to be a bunch of cost capital. Unfortunately, I can't give you a clear answer than that but that's what I've got this morning.
Speaker 5: Unfortunately, I can't give you a clear answer than that, but that's what I've got this morning.
Sean.
Speaker 8: Sean, if I'm pushing too hard, just tell me to stop. But does the money to complete the project with the first digit be a two, a three, or a four?
Pushing too hard just telling me to stop it.
Does the money to complete the project with the first two or three or four.
What we've said in public is Whereabout $4 48 to go to a 4700 50 tons a day.
Speaker 5: You know what we've said in public is we're about 448 to go to 4 750 tons a day. I think that's the most public number we have out there. Obviously we're fighting hard to contain any inflation numbers. So you know until we have a better number for you that was the number that we had. Some of the costs that we've incurred on the commissioning of QR and probably somewhere around 50 to 70 million depending on how the accounting works out.
I think thats the most public number we have out there obviously, we're fighting hard to contain.
Any inflation numbers.
Until we have a better number for you that was the number that we had.
Some of the costs that we've incurred on the commissioning of QR, and probably somewhere around $50 million to $70 million, depending on how the accounting works out.
Speaker 5: I would be deductible from that number from where we sit today. And we certainly.
That would be deductible from that number from where we sit today.
And we're certainly.
The way, we're we're approaching things is to try and get to the earliest form of payback that we can but I think we're relatively low cost number and if you convert that into U S.
Speaker 5: The way we're approaching things is to try and get to the earliest form of payback that we can, but I think we're a relatively low cost number. And if you convert that into U.S., we're coming in around the $3.75 to $3.90 U.S. in terms of the cap act that we've published so far in what our expectations are to achieve that $4,750 tons a day.
We're coming in and around the $3 75 to two 390 <unk>.
In terms of the Capex that we publicized so far and.
And what our expectations are to achieve that 4700 50 tons a day.
So I hope thats accurate enough.
Speaker 5: So I hope that's back here enough. Sean, thank you. Thank you. If I could ask another, you've done a good bit of infill drilling and exploration drilling, both at Carabou and Santa Antonio this year.
Sean. Thank you. Thank you if I could ask another you've done a good bit of infill drilling and exploration drilling.
Both the chair of <unk>.
San Antonio this year.
Oh.
Presumably with some more drilling.
Speaker 8: There's going to be more tons of resource and more ounces at both locations.
There's going to be more tonnes of resource in more ounces at both locations.
Is it reasonable to expect tons to go up.
Speaker 8: is it reasonable to expect the tons to go up?
Speaker 8: I think the average grade will go up or down or be unchanged at each site. What's the date?
The average grade will go up or down or be unchanged.
Right.
Well I mean, Jeff.
Obviously the target.
Speaker 5: Obviously the target, you know, Karibu is a world class.
Caribou is it.
World Class Big.
Big project.
Speaker 5: big project. So drawing the line on what you want to use for cutoff can change that head grade. What we did see from the drilling in Caribou is significant increases in high grade zones, the specifically low-he valley and some of the stuff that we saw in the shaft zone.
So drawing a line on what you want to use for cutoff can change that that had great.
What we did see.
From the drilling in <unk>.
And caribou is significant increases in high grade zones.
Specifically low <unk> valley.
And some of the stuff that we saw in the shaft zone.
Speaker 5: You know, grades are getting better within fill, which is always encouraging because as we all know, in fill drilling has two outcomes. Other grade go down and grades goes up. We think that we're making headway on that. We're gonna look at also some of the priorities.
Grades are getting better with infill, which is always encouraging because as we all know.
Infill drilling has two outcomes either grade goes down grades goes up.
We think that we're making headway on that we're going to look at also some of the priorities.
Speaker 5: around, you know, what the cost, the access those orbodies are.
Around what the cost to access those ore bodies are.
Speaker 5: And I think that the big takeaway is that everything that we've hit in terms of
And I think that the.
The big takeaway is that everything that we've hit in terms of.
The actual.
Speaker 5: the actual vein corridor mineralization, the average grade is set between 10 and a half and 12 breaths.
Vein corridor mineralization, the average grade stacked between 10, 5% and 12 grams.
So it really depends on the density of the veins within any mining block.
Speaker 5: So it really depends on the density of the veins within any mining block. So this...
So this is coming down too.
Speaker 5: You know, a trade-off study between how you mind the block, how you mind the stealth, when do you mind it?
A trade off study between how your mind the block how you're minus dope when do you mind it.
Okay.
Speaker 5: and how much material goes to the oarsorder as opposed to how much goes directly to the flotation process facility.
And how much material goes to your sort of approach to how much goes directly to the flotation process facility.
Speaker 5: So it's a complicated project, you know, from a general standpoint from that aspect.
So it's a complicated project.
From a general standpoint from that aspect.
But keep in mind, we've only really focus on the first 350 meters here John So.
Speaker 5: But keep in mind, we've only really focused on the first round or 50 meters here, John , so...
Speaker 5: You know, the headline should be, all the veins are running between 10 and a half to 12 grams, and it just depends on whether we both got his mind them, or whether we try and high grade.
The headline the headline should be all the veins are running between 10, 5% to 12 grams and it just depends on whether we bulk tonnage mining them or whether we try and high grade.
Speaker 5: And that will be the decider on what grade we run. But at the end of the day, we'll make economic decisions based on the lowest cost per ounce.
And that'll be the decider on on what grade we ran.
But at the end of the day will make economic decisions based on the lowest cost.
<unk> per ounce.
Speaker 5: And the lowest cost grounds is you know us as ball kind of minor on the path
And lowest cost per ounce is lesser as bulk tonnage mining from the past.
Speaker 5: doesn't necessarily mean you run the highest grade. So we'll make that decision when we get through the feasibility study, but my hope is to maintain grade. And if we can, especially to increase it during the starting, the starter zone.
It doesn't necessarily mean, you run the highest grade so we'll make that decision.
When we get through the feasibility study.
But my hope is to maintain grade.
And if we can especially to increase during the starting here. So they started zones.
Speaker 5: So pay back as soon as we can is my number one criteria. And return on invested capital is what we're trying to achieve here.
So payback as soon as we can as my is my number one criteria.
And return on invested capital.
What we're trying to achieve here.
Sean excuse me for this question I'm, a little distracted by Johns.
Speaker 8: Sean, excuse me for this question. I'm a little distracted by John .
9700 Gram interceptor windfall.
Speaker 8: 90,700 gram intercept at windfall. Could you just refresh us as to the top cut procedure at caribou?
Could you just refresh us as to the top cut procedure.
At.
Caribou.
And how many meters.
The area of influence or how far out your project each assay.
Speaker 8: zero of influence or how far out you project each <expletive> .
Yes.
Speaker 5: Yeah, you know, John , I, you know, I'm also a founder and a director of a Cisco mining and, you know, it's been a very successful campaign of windfall, far more successful than all of us had. You've been originally dreamed of. I think what we have at Barkerbill is more continuity in terms of grade. And we're running, I think, of presents roughly three big groups of cop cuts.
John I am also a founder and a director of our Sysco mining and it's been a very successful.
Campaign at windfall far more successful than all of us.
<unk> been originally dreamed of.
I think what we have at <unk> is more continuity in terms of grade.
And we're running and I think a president roughly three big groups of top cuts.
Speaker 5: And Chris Loder, if you're on the line, did you want to say a word on TopGuts or
And Chris load or if youre on the line did you want to say a word on top got Sir.
Speaker 5: We're top-cutting in a pretty standard fashion. I don't think we're doing anything exotic here, but maybe Chris, you want to be more precise.
We're we're we're drop guiding a pretty standard fashion.
I don't think we're doing anything exotic here, but maybe Chris you want to be more precise.
Yes, Hi, John.
Speaker 4: Yeah, John , Chris, what are you? Yeah, so the top cuts are based on different from intercepts and they go from 10 to 15 to 10 to 20 to 30 grams of low top cuts, but we found that to get a more homogenous type or body and the juice very building the grade that was the best way to do it. So yes, there's quite a population of high grades still outside of that. We'll be able to look at as we start mining. So with those relatively low top cuts.
Yes, so the top cuts are based on different from intercepts and go from there.
10 to 15, 10% to 20% to 30 grams, so quite low top cuts, but we found that to get a more homogenous ore body and reduce variability in the grade that was the best way to do it. So yes, there is quite a population of high grades still outside of that.
We will be able to look at it as we start mining so with those relatively low tops cuts.
Speaker 8: How much of the contained gold is erased? What's the difference between the cut and the uncut reason?
How much of the contango is erased what's the difference between the cut and the uncut resources.
I Couldnt give you that right off the top my head here, but.
Speaker 4: I couldn't give you that right off the top of my head here, but it could be I have to look at that
It could be.
Does that answer.
Matt do you want.
Speaker 8: If we were going to make a guess, you think it's close to 5% or 20%.
If I were if we were going to make a guess shifting is closer to 5% or 20%.
So between filing plan.
Give me a ring back on it or have your two ph.
Speaker 8: Give me a ring back on it or have your two-peach. So, John , I mean, I think the other discussion, if we're gonna go down this...
I think the other discussion if you if we're going to go down this.
Speaker 5: We've excluded a huge amount of mineralization, mostly the replacement zones that we haven't really been able to test from surface drilling that we're going to know more about when we get underground.
One is that we have excluded any huge amount of mineralization are mostly the replacement zones.
That we haven't really been able to test from surface drilling that we're going to know more about it when we get underground.
Speaker 5: And I think that, you know, there's some high grade replacement zones, which is historically, what was mined here from 1864 or 1864 word that we've excluded from the resource. And maybe Chris, we can talk about, you know, what those high grade replacement zones look like because they're not included in this discussion, right?
And I think that there is some high grade replacement zones, which is historically what was mined here from 18 to 64 eight.
<unk> forward.
That we've excluded from the resource and maybe Chris if we can talk about what those what those high grade.
Replacement zones, it looks like because they are not included in this discussion right. So.
Yes, there was about 645000 ounces of high grade mined previously on just island mountain from.
Speaker 4: Yeah, there's about 645,000 out to sub high grade mine previously on just Island mountain from these replacement zones which are low angle. I think they're hard to model into our main corridor so we only use the parts where they're intersected by the vertical banks.
From these replacement zones as a low angle.
Hard to model into our main corridor. So we only use the parts, where they're intersected by the vertical base and the rest is not included in our resource. So theres a whole upside there there are typically six to <unk> seven ounce per ton.
Speaker 4: And the rest is not included in our resource. So there's a whole upside that they're typically 0.6 to 0.7 ounce to the tonne material. And where the main target of the underground line is again, because the low angle at tubular nature, these things are very hard to define from surface drilling. So they're a complete upside for underground. We do hit lots of them. All are pretty well, all are vain quarters. They intersect them. But they're gained just because they're shaped of them. And they're ankle. It makes it hard to model from surface drilling.
Material and.
Our main target of the underground mine them again because of the low ankle at tubular nature of these things. They are very hard to define subsurface drilling. So there are a complete upside for underground we do have lots of them.
All of it pretty well all are being quarters intersect them, whether again, just because of the shape of that their angle. It makes it hard to model from surface drilling.
Speaker 8: And I guess if you drilled that, your top cut procedure would reduce.
And I guess, so if you drilled that.
Ah you're top cut procedure, which.
Reduce it results anyway.
Well.
Speaker 5: Well, I think it adds high grade ounces in areas where we already have development plans. So me, I'm a mining guy, so there's two types of ounces. Alances that you can grab because you're already there and the ounces that you have to develop to go and get.
I think it adds high grade ounces in areas, where we're already have development plans.
So me there.
Our mining Guy. So there's two types of ounces ounces that you can you can grab because youre already there and the analysis that you have to develop to go and get so.
Speaker 5: I think where we see the upside on the replacement zones is we can only identify those high grade replacement zones economically from the time that we're.
Where we see the upside on the replacement zones as we can only identify those high grade replacement zones.
Economically.
From the time that we're underground.
We've made a.
Speaker 5: strategic decision to pursue the AA process and the permitting process.
Our strategic decision.
To pursue the EIA process in the permitting process.
Speaker 5: Over cow mountain, which is why we haven't been able to get underground, but as soon as we're underground John We're gonna be drilling those zones
Overcome mountain, which is why we haven't been able to get underground, but as soon as we're underground John we're going to be drilling those zones.
Speaker 5: And once we're underground and in them, I don't think there'll be a lot of top cutting required. We'll have mining access to them. So I think that's one of the big prizes that I want to get on the ground floor. By the end of the end of next year, I want to be into those.
And once we're underground and in them, but I don't think there'll be a lot of top cutting required.
We'll be able to have mining access to them. So I think thats one of the big prizes that that I wanted to get underground floor by the end of end of next year I Wanna be into those those underground operations and seeing what the replacement zones can actually do in terms of.
Speaker 5: those underground operations and seeing what these replacements zones can actually do in terms of providing those bonus ounces that we have it included in the original resource. And as you know us from the past, we're relatively conservative. Canadian Ballardic was, you know, we drilled over 1.4 million meters and that's one of the few minds in the world that's had a significantly positive reconciliation since
Providing those bonus ounces that we haven't included in the original resource and as you know from the past we were relatively conservative Canadian Arctic who as you know we drilled over one 4 million meters and Thats one of the few mines in the World Thats had a significantly positive reconciliation since since drilling all the way through mining.
Speaker 5: since drilling all the way through mining. So we tend to err on the side of conservative when we drill to maybe our detriment, but we also always think about the fact that we're actually going to mine these things. So we can be a little more conservative than some others. Thank you. Looking forward.
So we tend to err on the side of conservative.
When we drill a two maybe our detriment, but we.
So I always think about the fact that we're actually going to mind these things so.
We can be a little more conservative than some others.
Thank you.
Looking forward to all the future developments.
Thanks, John and I look forward to get you to Barker Bill.
Thank you.
Yes.
There are no further questions at this time.
Speaker 2: There are no further questions at this time. I would like the turn call back over to the presenters.
I would like to turn the call back over to the presenters.
Thank you very much operator, please feel free if theres any further calls to ring us up.
Speaker 5: Thank you very much operator. Please feel free if there's any further calls to ring us up. And I appreciate everybody giving us their time today. Barkerville and Caribou is a very exciting, very big project. And San Antonio is sort of coming alive as we speak. So we look forward updating you on the future success of these project as we get further into them. Thanks everybody.
And I appreciate everybody, giving us their time today Barker Bill.
And caribou is a very exciting day, a very big project.
And San Antonio is sort of coming alive as we speak so we look forward to updating you on our future success.
All of these projects as we get further into the thanks everybody.
This concludes today's conference call you may now disconnect.
Speaker 2: This concludes today's conference call. You may now disconnect.
[music].
Yeah.
Yeah.
[music].
Speaker 9: The host has ended this call. Goodbye. The animator has been crushed. To re-watch.
The host has ended this call goodbye.
My question.