Q1 2022 McEwen Mining Inc Earnings Call
Hello, Ladies and gentlemen, welcome welcome to Mcewen, Mining's Q1, 2022 operating and financial results Conference call.
Present from the company today are Rob Mcewen, Chairman and Chief owner and allowed Kruger Chief Financial Officer, Robert Reagan stained director of operations, Canada, Adrienne Blanco director of them for renovations USA and Mexico.
Steven Mckee Gibbon executive Vice President of exploration, Michael netting Vice President of Mcewen copper in general manager after the speaker's presentation, there will be a question and answer session.
I would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question press the pound key I'll now turn the call over to Mr. Rob Mcewen Chief owner. Please go ahead Sir.
Thank you operator.
Hello, Ladies and gentlemen, welcome to our first quarter 2022.
Conference call.
Last year, we saw signs of our turnaround and progress.
The trends look good as we closed on 2021 with higher gold production and lower production cost per ounce relative to 2020.
This year our results have been mixed the Fox complex started strong and then was slowed down by manpower shortages induced by Covid.
And that was followed by an equipment failure in the mill.
But despite these issues Fox produced more gold at a lower cost than it did in the first quarter of 2020.
An important development in Q1 was our preliminary economic assessment.
That outline the future growth prospects of the Fox complex.
It details a bright future for Fox with a nine year mine life significantly longer than what we have right now and attractive mining costs. We are confident that our exploration will result in a shortening of the payback period and an improvement in the economics.
Our director of Canadian operations, Rory Graven seen we'll be expanding on the activities later in this on this call.
Mining at gold bar, the costs were very high and.
And we expected that because we are in a trends transitory stage of our mining cycle.
Where there is an expensive period of stripping to remove overburden burden in order to reach the ore zone.
<unk> Blanco, our director of operations.
For America, and Mexico will elaborate on.
Both of these operations.
At the San Jose Mine, which is operated by our joint venture partner Hochschild mining.
Covid induced manpower absences resulted in a temporary mine shutdown, then adversely impacted gold and silver production and the cost associated with that production.
Looking ahead our partner.
Believes that they'll be able to make up what was lost in the first quarter over the balance of the year and deliver on guidance.
At our Los <unk> project, we have made much progress that I believe is significantly increasing the value.
Four.
Mcewen mining at this large asset Michael netting our vice President materials copper will provide you with an update.
We encountered a cash squeeze three Q1 as a result, a result of our revenue shortfall.
And.
However, I feel confident enough that the future value of that in the future value of the company to personally step up and provide the company with $15 million.
We own a portfolio of assets the majority of which are located in well known prolific gold producing districts.
In areas considered.
Exploration rich real estate.
And that is why we continue to invest in exploration.
With the belief that we will be able to extend the life and size of our minds.
We also own.
A huge copper project.
That is looking increasingly more valuable as a result of our investment as a result of the surging demand for copper as a result of the higher copper price.
And the changing geopolitical environments in the largest.
Copper producing area in the world.
At this point I would like to ask and then land Cougar, our chief financial officer to provide an overview of Mcewen Mining's financial results for the first quarter of this year.
Thank you, Rob and good day everyone.
The COVID-19 pandemic continue to impact our operations in Q1 in areas of supply chain labor shortages and inflationary pressures.
We continue to monitor the impact of these factors on our financial condition liquidity operation suppliers and our workforce.
Our consolidated net loss in Q1 was $19 3 million or four cents loss per share.
It relates primarily to $14 4 million invested in exploration and advancing our losses to this project.
Our operations had a total gross loss of 6 million.
Contributing to this was $4 1 million loss from our Mexico operations.
As we wind down the residual heap leaching, we expect to.
To make strategic decisions on our Mexican business in the second half of this year.
We benefited from higher average realized gold price of 18 95 per gold equivalent ounce in Q1 versus <unk> 63 per gold equivalent ounce.
In the same quarter of last year.
Consolidated production in Q1.
With 25100 gold equivalent ounces. This included 14400 gold equivalent ounces on a 100% owned operations, which was 4% higher than the same period last year.
Average cost per gold equivalent ounces sold in Q1 are 100% owned signs were $60 96, a cash call on 'twenty 146 for all in sustaining cost.
These were expected to be higher this quarter. However, they did come in lower than we guided the market in March.
Liquid assets at the end of the first quarter, which includes cash cash equivalents and restricted cash was 74 million.
Of which $35 6 million is attributable to mcewen copper to advance the Los Angeles project.
A few transactions this quarter to bolster our treasury included two ways of $15 1 million dollar for Krishna.
And an unsecured promissory note of $15 million.
We also amended payment terms on our senior debt facility deferring principal payments to August 2023, and the ultimate maturity to March 2025, giving us further liquidity this year.
We also ended the quarter with the stockpile of 36000 tonnes of ore at an average gold grade of two six grams per ton ahead of the mill at our Fox complex operation.
We are continuing to manage our operating margins by redeeming capital expenditure production cost material contract management systems and procurement synergy between operation.
And lastly, as most of you know him I suffered from a brain aneurysm in December and out to all odds and a lot of support from family friends Mcewen mining and the mining communities in general I'm thankful to be here speaking on just to go to 100% recovered on the back of this healthcare I have decided to retire.
Here from the executive I'll focus my time with my family bought both and nonprofit work as well.
Thank you and I will now turn the culture Laurie to operations reviews.
Fox complex.
Thank you Anna.
Complex produced 7000 silver equivalent ounces in Q1.
Total cash costs, and all sustaining cost of $1193 $1729 per gold equivalent ounce sold respectively.
The free market and a solid performance in Q1 in line with our budget.
Okay, Let me get the mole reduced our gold production in Q1.
As a consequence, we all have considerable stockpile ahead of the law.
Provides operational flexibility and to reduce costs in future quarters.
Our team has implemented immediate upgrades to the MAU to ensure it is capable of processing the higher oil production rates from your food model.
Going forward in the remainder of 2022.
Additional screening at the mall.
The Jews crushing requirements, which would ensure that Fox complex meets its guidance for 2022.
Thank you I didn't know further speak about operations at gold bar.
Yeah.
Thank you Rory.
Cohort achieved the production target for gold in Q1 at 6300 ounces, the heap leach recovery with higher as compared to the 2021 feasibility study and the gold grade at the mine was also 8% better than expected.
On the other hand, we anticipate it to have a high cash cost in Q1, as we began mining the phase two of the pick pit. This year. These transition involved a high stripping ratio of almost six to one in the first quarter.
As compared to the four to one expected for the full year. In addition, we anticipate it to lose a few days of production due to weather conditions in the early months of the year.
We are finding presence of carbonaceous ore seems we began mining the phase II of pick <unk> robbing carbon is not suitable for heap leaching. However, we have been successful to isolate such or in order not to affect the gold recovery in.
In addition, the environmental permit approval for the gold bar South deposit was received in April and we are planning to begin the whole road construction this quarter and be ready for mining in the second half of 2022.
We are anticipating a negative impact to production in Q2 from the ore losses to carbon, but we are planning to maintain our gold recovery high as seen in Q1, and we are also defining potential new sources of ore for the 2022 mine.
Plan from the Atlas Beep and old waste dumps as well as advancing that readiness of the Goldberg south deposit to begin mining in Q3.
In addition, gold bar is implementing many actions to reduce cost and Capex for instance, the capex for the whole road construction in the heap Leach expansion will be less than anticipated and our mining contractor is improving the productivity of drilling and blasting.
Two months ago, which will certainly improve our cash per ounce going forward.
I will now turn the presentation to Steve who will talk about our exploration programs.
Thank you Adrian.
Our Q1 exploration investments in Ontario, and Nevada totaled $3 $2 million. The goal at each is to extend the life of our mines.
At the Fox complex near Timmins, our stock property covers eight kilometers of the gesture Porcupine fault zone and includes three gold deposits that occur within a three kilometer links that are open for expansion.
For 2022, we have four key target areas near our stock mill with excellent potential to materially grow mineral resources based on poorly tested vertical and lateral trends.
<unk> stock.
We targeted near surface delineation of mineralization.
During the first quarter, believing a successful outcome could shorten the payback period for the Fox PPA delivered earlier this year.
The remaining five kilometers up stock is under explored both to the east and west of the stock mine another.
Another target.
Is based on historic drilling that intercepted multiple mineralized zone structures with grades of up to 16, and a half grams per tonne located one five kilometers west of the stock West deposit.
At Grey Fox post to our largest and highest creed mineral resources attractive exploration targets include multiple intersections drilled west of whiskey, Jack that we reported on in our April 25th press release that included.
729 grams per ton gold over 15, three five meters and 475 grams per ton gold over 25.2 meters.
Yes.
At gold bar in Nevada.
Q1 exploration activities focused on several areas.
In the mine on southwest pick extension and cabin north testing for extensions of the mineralization continued.
The best of these oxide assays included 193 grams per ton gold over 38 six meters.
Drilling is continuing at pick.
At the Atlas pit located three miles west of the gold Bar mine. We are following up on a whole that contained three one grams per ton gold over 27 meters of oxide mineralization down dip to the east below the pit bottom.
At our San Jose joint venture in Argentina.
One $7 million were spent in Q1 on a 100% basis of $7 million exploration program for 2022.
Typical intercepts of high grade gold and silver were encountered in multiple holes at the Selena and Selina Pizzle veins and include eight three grams per ton gold over 500, and 561 grams per ton silver over one two meters a further 2000 meters of.
Still lineation drilling will be conducted in Q2.
The San Jose property surrounds new months, Cerro <expletive> mine and is host to high grade after thermal gold and silver deposits.
At Los <unk>, and San Juan Province, Argentina, Our exploration program has completed 11 500 meters year to date.
Weather permitting the drill program will continue until mid June and then resume again in early October .
This drilling is confirming the mineralization of historic intercepts.
Used for the 2017 Pega mineral resource estimate.
In many instances persistent copper mineralogy incurred encouraged us to continue drilling beyond the planned.
<unk> depth and is often still apparent when the whole is stopped.
Poor AG 20 to $1 42, intersected $419 one meters of seven 9% copper and included an interval comprising of 104 meters of 1% copper and the Super gene enriched zone.
And 46 meters of 159% copper in the Hypogene primary copper zone.
Importantly, our.
Our updated geological model will reflect to some vertical structures.
And rock types that are key features controlling the distribution of mineralization.
New to our program this year.
Geologic modeling is being augmented with a hyper spectral scanning program of all current and available historic core, allowing for a level of refinement not captured in previous work.
I will now turn the presentation to Michael who will tell you more about our developments had losses users.
Thank you Steven the Los <unk> copper project is located in the San Juan Province of Argentina, and mining Province ranked highest for investment attractiveness in Latin America by the Fraser Institute.
According to mining intelligence lots, assuming it's one of the top 10 largest undeveloped copper projects by resource with $10 2 billion pounds in the indicated category at $19 3 billion pounds, and then fifth category estimate by the 2017.
Since that time extensive enterprise optimization work has been completed on potential lack of scale lower cost and lower carbon footprint options reviewing opportunities to guide the drilling and technical workflows.
In Q1, 2020 to Mcewen Copa spent $9 8 million to advance the most as soon as copper projects execute progressive drilling road construction technical studies and community engagement.
Year to date 11500 meters of drilling has been completed and approximately 13000 meters of drilling is targeted to be completed by the end of June .
The critical issue off road access to the site has been results lots of Suez is no longer a remote and cut off from the world for six months to seven months of the year, we have to develop a second roads that will allow us access.
Access to the site.
This is a significant advance because it will allow us to advance and complete options work faster and at lower cost.
Another exciting development is the completion of the enterprise optimization study conducted by <unk> consulting, Australia, who specialize in optimizing my designs by generating and evaluating a large number of different operating scenarios than.
The work focused on the following objectives improved value optimized scale minimize risk and enable fast tradeoff analyses of environmentally friendly green legend oriented solutions.
The annualized indicated that there's potential to significantly increase the project value.
The results of the work will be included in the updated Pea to be completed in Q1 of 2023.
I will now turn it over to Rob. Thank you.
Thank you Mike.
Yeah.
We have.
<unk>.
Executive searches underway as a result of some departures and I wanted to note that we're saying goodbye and thank you to two senior members of our team as you heard Anna is retiring and Peter Moore, Our Chief operating officer is.
Stepping down to concentrate on family issues and other opportunities.
In the interim.
We have engaged the services of Perry Ing, who is a former.
CFO of the company to step in during this period.
As we search for a new CFO .
And to cover off on our Chief operating officer.
And we have the very good fortune of having a director Bill Schafer.
Who has said that he would serve in that interim capacity and when I say, we're fortunate builders.
Bill has had 50 years in the mining industry. He was a cofounder of dine attack.
A very successful mine contracting firm.
And.
So we have that covered office were searching for a new CFO is our CEO <unk>.
<unk>.
Sorry.
A lot of changes going on here.
Yeah.
So.
And the <unk>.
We feel very comfortable with that setup.
This concludes our presentation, but before that I'd like to ask bill to make a comment or two about the operations.
Yes, thanks, very much Rob and good morning, everyone.
There are for many of you on the call you probably heard about me at some point in your in your career and I'm happy to step in and help out over this interim period.
Most of my background is in the mine construction business and then running operations of the size.
Mcewan has so I'm really looking forward to.
Being.
Part of the process of engaging a new C or all in also.
For helping.
The rest of the operations.
Any way I can and to that extent.
Now made a visit to 10 months a couple of times also two losses roll those in.
Actually.
Just before the end of the year made a trip.
Donlin gold bar, so there'll be some visits.
Visitors to our gold bar.
<unk>.
And the next month or so, but anyway I am looking forward to doing rather cam to help out.
Thank you very much bill happy to have you onboard.
Operator could we now go into the question and answer period. Thank you.
Certainly thank you as a reminder to ask a question you will need to press star one on your telephone keypad to withdraw your question press the pound key.
I want to ask a question simply press star one on your telephone keypad.
Your first question comes from the line of Joseph Reagor from Roth Capital Partners. Your line is open. Please go ahead.
Hey, Rob and team thanks for taking the questions happy to Joe.
So first thing.
<unk> obviously.
Yes, it's a big part of.
The future value of the company.
From your perspective.
But what's the spending going to be like there for the rest of the year. It was pretty decent size number in Q1, I'm just trying to model out the rest of 2022.
We're entering the winter season in Argentina, right now so a lot of that.
Expenditure, we've done to date has been associated with drilling and maintaining a large camp up there.
I would expect that to be less than the money that we have in the treasury to take us through this year.
Okay.
Drilling will resume.
Expected in October .
Okay. So a little later the middle two quarters in a little heavier at the end of the year.
That's correct.
Okay.
And then at gold bar with this.
Carbon issue in Canada do you have an idea of what.
What percentage of the pick deposit might have this carbon in it so far.
It's early.
Adrian do you want to <unk>.
Jumping there.
Yes. Thank you Rob it's early to to.
To determine that number certainly the presence of carbonaceous ore represents a concern to achieve.
The production for the second quarter.
However, we are.
And looking at ways to.
<unk>.
New sources of ore.
So the mine planning 2022 from the Apple of deposit and old waste dumps.
So should be able to partially overcome these carbon issue.
Okay.
Okay.
Well thanks for the color on those things guys I'll turn it over.
Thank you.
Thank you. Your next question comes from John Rowan from self your line is open. Please go ahead.
Hello, John Hello, Mr. Mcmullen, Yeah, Hi, Mr. Mcewan I've been a shareholder for about seven years at 400000 shares average basis about 161 70 <unk>.
Have a series of questions I'd like to ask short of one at a time first is.
Are there any institutional investors buying or selling recently I'm asking that because I'm wondering if they are taking advantage of the low stock price to get a larger position.
It's a good question I don't have an answer for you.
Okay.
I can put it there hasn't been.
Conversations with institutional investors.
Recently there.
They are buying.
But you raise a good point.
Attractive prices come in.
The next one.
In a prior conference you mentioned that you thought mcewen copper might be worth about $3 and I know there's 69%.
That mcewen mining has in it and why do you think that's not factored into the stock price now.
There are a couple of reasons one we just completed the second access.
To it.
The drilling there's been some information coming out but not a lot.
And I guess more recently there is some nervousness in the marketplace.
It has been obscured by.
Some of the.
Operating issues that we have in the gold and silver production area.
Okay.
I mean, that's the copper prices copper prices going up.
<unk> is getting at.
The profile is growing a bit larger it's a mining intelligence as you heard from Michael it's viewed as the <unk>.
<unk> ninth largest undeveloped copper project in the world not owned by a major.
Argentina.
They are changing their tone and encouraging mining while their neighbors in Chile, and Peru. The governments, there are making it more difficult to want to invest there higher taxes more regulations.
It's emerging.
And.
Yeah.
But I can't explain high.
It's.
Not trading and where you want it to.
Alright.
Next one.
Now that the prices dropped precipitously, how will the listing affect the company.
Never having gone through a delisting I don't know.
Hi.
I would only be able to speculate.
And.
There are many exchanges that it could be traded on.
And have the volume it has on currently has on New York.
So we'll have to see.
And it will depend on.
What the state of the equity markets are.
Right.
Next one.
Not that you are.
If the company was sold today to someone another company what do you think it would.
Approximately sulfur I'm asking that because.
I'm wondering whether since.
Since my average basis is like $1 $60 70, if it would be worth you know.
<unk> more.
An excellent question and I wish I can see into the future.
I don't have an answer for you I am sorry, John .
Not that you could re land.
Okay and the less.
The last one is is there is there any chance that the company.
You know might become insolvent or go into bankruptcy.
I guess, that's always a possibility, but at the moment, where our liquidity is strong enough.
We have assets that have value.
I don't see that as a real possibility.
Otherwise, we wouldn't put in another $15 million.
Alright, Okay alright. Thank you so much I really appreciate you trying to answer these I wish you all the best.
Thank you very much. Thank you for your questions.
Thank you. Your next question comes from the line of Michael Mueller. Your line is open. Please go ahead.
Hello, Michael.
I think that that was supposed to be HEICO, but this is market.
Yeah.
Thanks for taking my questions first one.
Youre expecting meaningful exploration spend at Fox for this year given that you spent $1 7 million in Q1 can you break out the remaining $8 three by quarter for the remainder of the year and then <unk>.
We're halfway through Q2.
What is the spend year to date if possible.
Alright, I'll ask Steve Mcgibbon, our executive VP exploration.
Ill answer that question with fairly broad strokes so.
The one seven.
$7 million spent in the first quarter is.
Generally.
Consistent with what.
Would have been anticipated or what is anticipated based on our 2022 budget, which more or less.
Spending throughout the year.
With the.
The flow through financing that was completed in March.
We are now reviewing our program with <unk>.
With the view of our plans through to the end of 2023 and that May impact planned spending in 2022 versus the original budget and we're working through that process now.
R R.
<unk> should have a clear answer on that before the end of the second quarter.
Would anticipate.
Likely looking to accelerate to some level our planned spending in 2022.
<unk> original question.
Okay, and then for 2023.
$15 million should we just sort of break that out.
In terms of divided by four.
For quarterly spend.
At this point I think thats, probably the most reasonable view to take.
Okay. It really.
Clearly spending is results dependent Tim.
We'll try to be nimble and be in a position to adjustment.
Accelerate if the opportunity presents themselves.
For now I think.
Okay, and then last question I'm, sorry go ahead Rob.
No no I.
I didn't mean to interrupt your question.
Okay, Yeah, one more in just sort of speaking about exploration spending and given all the talk around inflation. How are you drilling costs doing have you seen.
Any sort of price movements, given recent fuel increases.
And how is that reflected in these drilling expenditures.
Drilling contracts were entered into.
Late in the fall of 2021.
And our.
Overall costs in Q1 on a unit basis were in line with that and.
Just to throw a number out it would have impacted our costs less than 10% versus what we experienced in 2021.
I think I think the greater challenge has been in our.
Sure.
Contractors.
Are you able to secure.
Our experienced personnel in manpower related materials related issues.
Possibly represent a risk but from a cost standpoint.
They've been very much in line with our expectations.
Okay Fantastic that's it for me thanks for taking my questions guys.
Yes.
Yeah.
Thank you and my apologies for Heico's name. Your next question is from Bill powers, a private Investor. Your line is open. Please go ahead.
Yes. Thanks.
Hi, Rob.
Thanks for taking my call today.
Very informative today.
A few questions I.
I guess as far as the closing of the second tranche of the financing philosophy <unk> I know you had previously mentioned that we're fairly close with <unk>.
I guess.
One of them more parties and I was wondering what where that stands and what your thoughts are towards getting that closed or I guess opening it up at a later date.
We may get to a point, where we close it soon and open it up at a later date and based on what we've done going forward. We've had a number of conversations they seem very serious and it looked like they were about to close but there was always another question and another question.
So.
Your suggestion or comment about closing it and saying well. The next time, we come back to the market given the money we have will take us around to next year.
Uh huh.
We've advanced the project significantly so the price of entry of the higher.
Yeah.
Just as a.
As.
The observer of this it seems as though.
Put out substantially.
Substantially more drilling results between now and it's a little unfair to I don't know.
To get to lock in the same prices what was previously offered win.
Before the spin was done but anyway that's.
I hope you can move that forward.
It sounds like given the results.
Some of your neighbors it sounds like.
There should be sufficient interest in that I would think.
I agree I agree there is some big if.
Some big drill results coming out of.
The province, we're in.
Yes.
And speaking of as far as I felt phyllo put out in the results today.
We're off the charts as far as grade goes.
When you are.
Not that.
You can read into the future but.
Are there are there how.
Similar is where what you are doing compared to what.
They have done or are you guys.
<unk>.
Familiar with what.
The comparison goes as far as that goes.
Well we're not.
We're probably about 200 kilometers away from them.
But we're a long long the spine.
In terms of what Theyre hitting Steve do you have knowledge too.
Piano not of the.
Of the press release today.
In general terms.
Higher observation lower grade, but.
Certainly they've been pulling significant D.
Deep results from the drilling this year.
I can't speak to any details okay.
That's great. Thank you for that.
The second question I had is.
I know you recently put out some results as far as at stock goes and how.
And it seems as though it's trending in a positive direction.
I guess, how much more drilling is going to be needed before you can decide that these are going to be.
Youre drilling is going to be economic.
Is that I guess, another six months or sometime next year.
Or sooner.
Our PPA.
Was.
For stock the stock West deposit was 144000 ounces indicated and believe another 111000 inferred. So we do need to do drilling which is part of our plan for this year two to upgrade and to further de risk the resource.
So we want to try to move.
Many of those inferred ounces.
Into indicated.
But outside of that the deposits are are are still open.
These the nature of these deposits are that you typically expect there to be.
Vertical continuation or continuity to the mineralization that we haven't fully tested and.
And as I alluded to.
There are a significant number of kilometers on the stock property that are what I characterize as quite under explored so to me the.
Just my.
My personal feeling is that the PPA is.
The first step in the journey that that I believe is going to ultimately realize.
Our long term and.
And meaningful material opportunity for the company the stock property, we've got three deposits all of them open to depth.
I believe there is a very good opportunity for a fourth to potentially be identified and drilling this year, but.
For now the drilling that we planned for.
The stock West deposit in 2022 should significantly de risked that.
That opportunity put us in a position to them.
To make make decisions.
Its future.
Okay.
Very helpful. One last question as far as I noticed in the press release that.
The gold bar South has been permitted and it sounds like you're moving forward with the assets or the haul road.
This is what is the plan to have gold bar south produce along with.
Pick and some of the other pits that are already.
In production and or is it going to be for production solely come from gold bar South once it's.
Up and running.
It would be for all of the areas for mining Bill in so gold bar South would be working in combination with the others.
Okay and would that be additive to your current rate of production or would those be depleted down the other speed depleted down as gold bar South comes up.
It's as you said.
Just compensating for as the other ones are going down gold bars coming out of it.
Okay that was that was all I had today.
On your on your comments about CLO.
So their results are quite exceptional high core values.
Copper and long intercepts.
I don't know Steve could you just comment on some of the intercepts, we've been getting and.
They've been more copper than goals in that plan.
Yes.
As mentioned in the.
In the presentation and in our press release last week.
The majority of the holes that were drilling and I'll characterize it as in the core of the deposit.
We've been drilling those holes 500 600 meters length.
And typically we're making a decision to stop the whole not.
The absence of mineralization, but more on the.
Kind of the progress that drilling productivity of the driller.
Progress slows too much and we decide.
Stop the hole for now and move on to another whole so.
Okay.
The nature of how these deposits reform that we expect mineralization will likely go much deeper in.
We will have exploration programs in the future too to test that.
But.
We've had drill intercepts of.
$4 to 500 meters approaching one gram per tonne at least in one of our older I'm, sorry, 1% copper I think was seven 9% comp or so.
With with intervals within those intercepts that are are double that kind of grade one.
One 5% copper.
Or more so.
The drill program, we've conducted so far this year.
<unk> has demonstrated to us.
Not just the.
Yes.
That the.
Results from the past.
Our.
Are being validated with the current drill program, but also that our.
Standing and expectations for the resource and time to be able to grow much more.
Are supported by our understanding and.
The work we've been doing on refining our geological model.
And there is some.
Big differences between the locations between Philo and ourselves.
Starting with elevation.
Probably 800 meter is lower.
We're not impacting place here is.
Yes.
Easier to get into.
Uh huh.
And then some of the other copper deposits in the area.
Excluding Taylor.
Tom.
Okay any other questions Bill.
Thank you.
That concludes our Q&A session for today I'll turn the call over to Mr. Rob Mcewen.
Any closing remarks.
Thank you operator, thank you, ladies and gentlemen, wishing you well.
Goodbye.
Thank you presenters, ladies and gentlemen. This concludes today's conference call. Thank you for your participation you may now disconnect.
Okay.
Thank you.
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On the call.
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