Q3 2023 Wesdome Gold Mines Ltd Earnings Call
Okay.
Okay.
Good morning, welcome to Wisdom Gold mines, Q3, 2023 financial results Conference call I would turn the call over to Lindsay Dunlop VP Investor relations to begin today.
Great. Thanks, operator, and good morning, everyone welcome to watch them Gold mines third quarter 2023 results conference call before we begin today, we'd like to take this opportunity to remind everyone that during this call, we'll discuss our business outlook and make forward looking statements. These comments are based on our predictions and expectations as of today actually.
Events or results could cause outcomes to differ materially due to a number of risks and uncertainties, including those mentioned in the detailed cautionary note contained in yesterday's press release and in the company's management discussion and analysis dated November eight 2023, yesterdays release should be read in conjunction in conjunction with the MD&A and financial statements all of which can be.
And on SEDAR and on our website.
Following the prepared remarks, we will open the call up for questions. All figures discussed on this call are in Canadian dollars, unless otherwise noted I will now turn the call over to empty about president and CEO to begin today.
Thanks, Neal and good morning, everyone.
Lisa.
Okay.
Many opportunities.
Awesome.
Speaking on the call with me today.
Yes.
Sure.
These operational detail.
Yeah.
As we discussed last quarter <unk> was expected to be the lightest quarter from a production and cash flow perspective, while we completed that shutdowns that equals a bit related to annual mill maintenance along with some other infrastructure upgrades.
Well, we spent approximately $30 million in capex in the quarter, mostly related to sand production ramp Akita and pizza hut.
Post Q3 exit to the 120.
Non Eaton level has been achieved and take a walk through this in a bit more.
Detail a little later.
With 87190 ounces produced at the end of quarter, three and in protection uptick expected in quarter. Four we are well positioned to meet the midpoint of annual guidance and 110 to 130000 ounces and all in sustaining cost of USD 1620 to $1800 and now.
But is that a possible as interest rate to walk through some operational details.
Hi, everyone and thank you for attending this morning.
Noted Q3 was a lighter quarter on production at two sites in line with internal production.
Being set at two operations continued to deliver on key initiatives in Q3.
Position us very well for Q4 and beyond.
Starting with Ebola River production in Q3 came in at 40391 ounces as we performed our annual mill maintenance shutdowns in July.
Planned repairs were performed on the grinding filtration service, which resulted in the mill being down for a period of 14 days.
Throughput was maintained at similar levels in Q3 of last year. Despite the fact that the mills that have been issued stock off of a lighter form with the underground mine bridging the gap.
Development performances in Q3 continues to exceed budget targets and production grades were consistent with expectations, but the bulk of production coming from the high grade zones.
With productivity and great now consistently achieving forecasted number that eagle, we're very confident that the operation can reliably sustained 80 to 90000 ounces per year.
That being said you are launching a thorough benchmarking exercise.
<unk>, both on productivity and on cost to try and improve our cost structure with a view to value.
We'll provide updates on this initiative in the coming quarters.
Athena Q3 production came in at 7369 ounces.
<unk> continued to trend slightly higher than the upper end of guidance. As a result of continued positive reconciliation in the <unk> zone, where we continued to successfully cycled stopes and permanent shifts in Q3, demonstrating our ability to mine in some of the most challenging ground conditions on acuity.
We continue to be excited but our batesville by which not only is proving an invaluable tool in cycling stopes effectively but also enables us to return up to 45% of our tailings underground a much higher proportion of that.
PFS.
Putting less strain on our tailings capacity.
The <unk> remains a key focus for the team in Q3, and we're happy to report. The development performance has continued to track ahead of schedule during the quarter in fact as of earlier. This week. We've now reached one nine level access.
We will now be focusing on developing the level of infrastructure required to support mining activity such as ventilation raises escape.
In power distribution on levels 127 to 149.
With development into the NBA zone set to start in early Q1 of next year.
As we established production on the horizon hybrid production from Stoping is expected to ramp up to reach steady state by the end of Q2.
During Q3, we've been taking advantage of the ramp positioning strategically target delineation holes into next year's production. The results received they confirm the continually thickness and high grade zone.
After the reserve block model.
Finally, we received the required authorizations to proceed with the excavation of the restaurant.
The contractor has been selected and we are currently installing support infrastructure at surface to begin installation of the board.
In addition to providing an exploration platform for the western side of Ciena. This 1700 meters ramp is expected to yield significant debottlenecking of material headwind in the mine and ventilation benefits as it will provide a second access to surface routine.
So overall, our lighter production in Q3, and the two sites combined with bolt sales somewhat lagging production cost cash cost and all in sustaining.
Outside of the guidance range.
That being said year to date costs are in line with expectations and we're very confident.
Year production from both months as well as unit costs will fall within the guideline.
Guidance range that we provided in January.
Over to you Jonathan.
Thank you Fred.
I guess I'll start with just an overview of the results from the third quarter previously reported Q3 production of 27760 <unk>.
This was largely in line with expectations and brought year to date production to 87119 ounces sales.
Sales in Q3 were 27000 ounces and was slightly impacted by the timing of final jewelry sales.
All in sustaining costs of 2711 or U S 2021 were up meaningfully over the first half results, but included the impact of a planned shutdown at Eagle River and the timing of capital spend.
We do expect to see improvement on our performance in the fourth quarter of 2023, However, and continue to see the mid point of cost guidance.
We also project to be within the $100 million capital budget set forth in January.
Cash flow from operations was $45 million or <unk> 30 per share, including a $12 5 million tax refund and a $13 million of noncash working capital adjustments.
As a result of cash flow during the quarter total liquidity stands at $143 million.
As we were able to maintain our revolver draw at $39 million and increased our quarter over quarter cash position by nine 5 million to $31 million.
Subsequent to quarter end, we did draw down $10 million of our revolving credit facility, which we plan to pay down by the end of the year.
Our balance sheet strength remains a priority for us and we expect higher grades at Ciena to drive costs lower and supports strong cash flows in coming quarters, especially at current gold prices, allowing us to pay down the remaining balance of our revolving credit facility as well as fund our range of opportunities to reinvest in the organization.
Mike will now take us through an exploration review.
Thanks, John.
For exploration was a very exciting quarter at Eagle River.
Although its early days it looks like we have discovered another gold zone at the Eagle, we provide that occurs within the volcanic rocks Amelia immediately west direction.
Initial surface drilling returned high grade hits within 200 meters from surface.
One wall returned 64, four grams per ton gold over four meters correlate.
Meanwhile, underground drilling 750 meters down the interpreted plunge of this new zone is also intersected a similar style of mineralization and returned 33 four grams per tonne over four meter correlate.
The Goldman amortization occurs within an intermediate volcaniclastic similar to the hosts Rocco for Falcon <unk> zone, which is known to be a more brittle and a better horse for Bolton amortization income seeing basic volcanic 12 units.
The drilling suggests the potential of a new sub parallel zone with results consistent with those seen in early drilling of the sockets that result in 2019.
Not only is this new zone near existing mine infrastructure, but demonstrates the potential for high grade mineralization in Iraq.
Emitted drones.
Additionally, gold mineralization has also been discovered further to the west near the historic nine zone.
All the curves within steeply plunging shoots that have a similar periodicity to the gold mineralization in the my diary.
All of the surface drilling is part of our renewed strategy focused on the upper areas of the mine, which also includes an assessment of remnant mining areas.
Developing and optimizing the strategic plan around these potential resources could add incremental tons for processing that Eagle Ford, which mill, which has spare installed capacity.
Since the recent announcement of the new discovery drilling has been ongoing along the interpreted plunge of the zones. Most recently an underground drill hole returned 12 liters of alteration quartz veining and sulfide mineralization as you can see in this slide.
All the assays are pending we're excited to continue drilling in this area is 12 meters thickness as well beyond the typical thickness of the mine.
Elsewhere within the Eagle River mine underground.
Drilling continues to confirm the.
Continuity of high grades of the 300 <unk> you start with that.
And with wider which returned locally could represent an area of similar to the previously mined 303 license.
The continuity of the mineralization down plunge at 300 East also suggests that the other parallel zones, namely the eight seven zones at the same potential.
To continue at depth.
The company has commenced directional drilling to aid in the extensions of the known zones at wider step outs at depth to provide an indication for future mining.
At Keener recent surface and underground drilling was focused on better defining our known resources.
Our surface drilling was focused at the per skills, which is located one three kilometers northwest of the GMI.
The surface drilling has confirmed the continuity of Goldman organization with one hole returned 32 grams per ton gold over three meters correlate.
However, as importantly, the drilling has confirmed the down plunge.
Potential.
And this is going to be an area that we're going to continue to explore with the development of the ramp.
The recent drill results support the decision to proceed with the exploration ramp from surface to test the downloads extension of the deposit.
The exploration of the ramp is now proceeding with the recent receipt of the required permits.
Of course, the press skills. So it's just one of several zones, having the potential to offer a supplementary source of mill feed near surface or in the upper areas of the mine.
With the spare installed capacity at the <unk> mill.
Recent drilling results from the shock via <unk> <unk> zones earlier, this year, including two three grams per ton gold over 72 meters indicates this potential both of these zones are accessible from the existing 33 level development that extends across the property.
So let me start with Goldman our isolation observed keep in mind, we are confident that as our exploration continues we will be able to identify more zones of mineralization.
Within the Kenai drilling has been focused on better to regain the zones.
Zones to Derisk, the 2024 mine production, particularly given the high grades than the reserve model to date. The delineation is in agreement with the previously drilled wider space exploration holes.
One delineation or return for 190 grams per tonne gold or just over four kilograms per tonne of gold.
Either you can see this in the attached slides obviously these types of intercepts provide confidence in the forecast for next year.
Over to you again.
Thanks, Mike.
We remain on track with strong fourth quarter, and we are excited about the future of the business and.
As we highlighted on our recent investment in the first operation.
Full name uptick.
Upticks as for success.
Firstly, we need to continue executing on peanut Rems development, which is now at 129 meter Netherlands.
Given the issues that means improving our understanding of the results, giving us a high degree of confidence and plan.
Secondly, our continued to see opportunities for organic growth by utilizing the same store capacity up on load and refocusing the strategy to really optimize not months and from first principles.
With the exploration stages, that's been developing NIM on potential when we stick to the leveraging of fixed cost to sustained increase our unit economics.
Sydney and leadership team is coming together nicely with the June increase and developing between <unk> <unk>.
Lastly, looking ahead, we expect a marked increase in cash thanks, reentering pool, particularly a cargo classes preliminary budget plan suggests they are well positioned to achieve a net cash position in the coming months coming quarters, but also significantly increasing our dependence or inventory to capital development.
Great to be advancing our pipeline of near mine exploration opportunity.
Infrastructure upgrades to maximize long term value of these assets cons.
Consequently undertaking the capital budget for next year to be consistent with this year's level.
We look forward to providing the market with two years of production and cost guidance.
In January this initiative is part of our ongoing commitment to maintaining Pia and forward looking communication with our stakeholders.
Thanks for listening today, and with that I'll turn the line back to upgrade it for any questions.
Thank you if you'd like to ask a question. Please press star one one.
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Our next question.
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Yeah.
Our next question comes from Aaron Lumber with TD Securities. Your line is open.
Hi.
Thanks for the update and congrats on the good quarter, you mentioned youre going to give two year guidance in January and you mentioned the higher grades at Ciena are going to kind of kick in sometime in the first half of 2024.
But can you just remind us like what the.
Mine and mill is capable of Qunar.
Just trying to get them.
<unk> guidance on what.
You can do next year I know youre catching up on development this year and when I look at the last feasibility study.
There's a little bit of a ramp up.
In terms of tonnes processed in the first couple of years versus later in the mine plan. So.
Any color just to remind us on what the mine and mill can do there would be appreciated.
Okay.
Thank you for the Christian and I think just physical we should talk about limited capacity on the MAU and the potential to move I think the most capacity and potential by 2040 tonnes per day.
And in the current plan.
Running more like <unk> 50 to exit if I'm not mistaken.
Yes.
Can be way below the current capacity.
Limited capacity demo.
Yes.
Yes.
Yes.
Thanks.
Our next question comes from Don Demarco with National Bank. Your line is open.
Hi, good morning, Thank you operator and.
Hello, Andy and team.
Congratulations on the quarter.
A couple of questions here first one is.
So you broke through on a onetime nine level. The ramp is there. It seems like this is earlier than targeted at the end of November So does this.
Shift your schedule forward curve community production in any way.
And Don Thank you.
<unk> your voice.
In terms of the internal updated plan.
According to our internal plans, obviously different from what you have to keep in the Piceance.
And to your perspective liquidity.
At Disney will result in an uptick next year.
Previously at the <unk> plant.
Thank you. Our next question comes from Brian <unk> with <unk>. Your line is open.
Hi, Good morning, guys. Thanks for the call.
Just wanted to go back to the the debt. So you said subsequent to quarter's end you drew down another $10 million, what is kind of a net movement going to be in Q4. There do you still plan aggressive payback during the quarter.
Thank you.
Sorry, Brian could you repeat that.
Yes, just on the drawdown from the facility.
Subsequent quarter end, you drew down another $10 million.
So I'm just wondering during the balance of the quarter or their repayments still planned.
Fairly aggressive on the repayment front still plan to do that in Q4.
We plan to go back to pay back to accumulate Dmitry is done by the end of the year.
Okay.
And then just on the capital budget.
So around about the same $100 million ish this year into next year.
Is that.
Ex any kind of savings identified during this cost initiative program and is that kind of a number we should be sticking with.
For the foreseeable future.
Yes.
Sneak in savings.
I can give you a bit of an understanding what it really is.
Luis will focused on say development or development, we're trying to keep pushing on the rent.
And secondly, you're obviously looking at pre skill development as well and I think it's important to note that it's about exploration exploration budget. Since I think two important standard we're going to keep pushing these three initiatives. It helps both the mine and the longer term.
So you can assume that that will continue.
And we will continue for next year.
Great. Okay. Thank you that's it for me.
Thank you.
Next question comes from John squad, Nick with Dji, Ben Your line is open.
Yes. Thanks for taking my question guys I guess I'll just follow up on that Brian.
Brian's question.
That capex and not sure if I'm getting my head here, but I'm wondering if you're able to break out kind of how you see that flat capex year over year broken out between maybe assets and sustaining versus growth or exploration.
When I look at them together John.
I mean, if it does break it up into puneet, but if you look at it together I think what you'll see that number continue to nextgen and like I said I'll repeat it again, it really is around pushing development and ensuring that we keep pushing that down is what we wanted to do is get the Knicks. Nevertheless mine and obviously continue that development and get ahead of ourselves inside <unk>.
And secondly, we really want to push on exploration and should that be getting those programs. So any strong to drive that business ammo downturn, and obviously preschools, including that capital as well for next year.
Continued.
No.
Okay, yes that makes sense.
I guess, one more just on depreciation I, it's been a bit elevated in the last three quarters and just curious kind of how you see that going forward in a run rate into Q4.
And into 2024 in terms of our per ounce number if you have that handy.
I'll ask Ross to actually cover that for.
Sure.
John.
This monolithic on units.
Production on a dollar per ton basis, we used to be reserved for that.
That's why you're seeing that market increase so that's just around our model.
Yes.
Okay, no that makes sense I appreciate that and that's all for me. Thanks guys.
<unk>.
Thank you. Our next question comes from Wayne Lam with RBC. Your line is open.
Yes, thanks, good morning, everyone.
Just wondering.
At Presque Isle, what's the kind of magnitude of Capex spend for the brand.
What's kind of the timeline of events Youre kind of contemplated there in terms of curtailment and the grants and Mikes question, Jade Sorry Street level.
Just curious if youre able to provide a bit more context around that.
So.
I'll hand over to fit on this one.
Yes.
Right now we're still working out the details numbers that can take care of the budget exercise but.
I guess in terms of scale for the ramps about 1700 years Alec stated in the statement earlier factor.
Factor in.
And the cost of about 6000, Canadian and so on that's going to be in the scheduled right now, but we see the development in this.
This year end.
A little bit into next year.
In 24, sorry, <unk> 25, as well in terms of schedule.
Okay, great. Thanks, and then just in relation to that Capex commentary should we also be thinking about a catch up in exploration spend as well next year.
Yes, you can unit, increasing the capital spend.
Okay, great. Thanks, that's all for me.
Thank you. Our next question comes from Jeremy <unk> with Canaccord Genuity. Your line is open.
Thanks for taking my questions.
So we don't actually covered a few of the things I wanted to ask I guess, just a clarification for me then.
Miller Cana is permitted to 2040 <unk> tons per day.
Can you remind us of what type of capital would be required and additions to get to that level or can it do that in its current state.
Yes, Jamie it's maybe neutral catheter.
Glad to do that it actually is I would almost call. It 10.
Yes.
A key competency that I'll go I'll ask on greater.
Thank you Chuck.
In the equipment.
The best connection. Thank you and it has come down to just provide a little more flavor here.
The mill has been installed capacity is just that we're currently not using the secondary crusher at surface. This is ready the infrastructure that will bump up the tonnage to 3000 bus and right now we're bypassing this infrastructure has been dormant I would think for a few years.
So ultimately the Capex is only too.
And update the bids the electrics.
Change a few competitive conveyor belts and away we go.
The minimum.
Okay excellent. Thank you for the clarification.
Yeah.
Okay.
Thank you there are no further questions at this time. Thank you for your participation. This does conclude the program and you may now disconnect everyone have a great day.
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Good morning, welcome to Western Goldmine skewed.
2023 financial results Conference call I will turn the call over to Lindsay Dunlop VP Investor relations to begin today.
Great. Thanks, operator, and good morning, everyone. Welcome to watch Jumbo mines third quarter 2023 results conference call before we begin today, we'd like to take this opportunity to remind everyone that during this call, we'll discuss our business outlook and make forward looking statements.
Comments are based on our predictions and expectations as of today actual events or results could cause outcomes to differ materially due to a number of risks and uncertainties, including those mentioned in the detailed cautionary note contained in yesterday's press release and in the company's management discussion and analysis dated November eight 2023, yesterdays release should be read in Jive.
In conjunction with the MD&A and financial statements all of which can be found on SEDAR and on our website.
Following the prepared remarks, we will open the call up for questions. All figures discussed on this call are in Canadian dollars, unless otherwise noted I will now turn the call over to <unk>, President and CEO to begin today.
Thanks, Lee and good morning, everyone.
Okay.
Great.
J D.
<unk>.
Awesome.
Speaking on the call with me.
Today.
Okay.
Yes.
Exploration.
Both of these are rational.
D E E.
As we discussed last quarter <unk> was expected to be the lightest quarter from a production and cash flow perspective, while we completed that shutdown the eagles liver related to annual mill nation, along with some other infrastructure upgrade.
As well, we spent approximately $30 million in capex in the quarter, mostly related to production ramp again, I'm very pleased to say.
Excuse me access to the 129 million level has been achieved and Facebook looks at this in a bit.
More detail later.
With 87119 out of the east at the end of quarter, three and a protection.
In quarter, four we are well positioned to meet the midpoint of anybody and hasn't changed 130000 ounces and all in sustaining cost of USD 1620 to 1000 800000.
But is that a profitable is it just safe to walk through some operational detail.
Hi, everyone.
Thank you for attending this morning.
Q3 was a lighter quarter on production sites in line with internal projection that the exact dwell operations continued to deliver on key initiatives that.
That position us very well for Q4.
Starting with Google River production in Q3 came in at 40391 ounces as we performed our annual mill maintenance shutdown.
Planned repairs will perform on the grinding filtration.
Which resulted in the mill being down for a period of 14 days.
Throughput was maintained at similar levels in Q3 of last year. Despite the fact that the mills that have been issued stockpile for the lighter bar with the underground mine bridging the gap.
Development performances in Q3 continues to exceed budget targets in production grades were consistent with expectations, but the bulk of production coming from the hybrid Balkan and per hundred zones.
With productivity and great now consistently achieving forecasted number that we're very confident that the operations and reliably sustained 80 to 90000 ounces per year.
That being said you're watching a thorough benchmarking exercise at the border.
Bolt on productivity and on costs to try and improve our cost structure with a view to value.
We will provide updates on this initiative in the coming quarters.
Our Cana Q3 production came in at 7369 ounces Grace continues to drift slightly higher than the upper end of guidance. As a result of continued positive reconciliation in the H M Zone, where we continued to successfully cycled stops and permanent shifts in Q3, demonstrating our ability to mine in some of the most challenging ground conditions.
<unk> Sonic fusion.
We continue to be excited with our batesville by which not only is proving an invaluable tool in cycling stopes effectively but also enables us to return up to 45% of our tailings underground a much higher proportion than what the PFS.
Your first call, putting less strain on our tailings capacity.
The ramp of <unk> remains a key focus for the team in Q3, and we're happy to report. The development performance has continued to track ahead of schedule during the quarter in fact as of earlier. This week, we now reached one nine level access.
We will now be focusing on developing the level of infrastructure required to support mining activity such as ventilation raises a point and power distribution on levels 170 149 with.
With development into the or NDA zone set to start in early Q1 of next year as.
As we established reduction on the Horizon high grade production from Stoping is expected to ramp up to reach steady state by the end of Q2.
During Q3, we had been taking advantage of the rent positioning strategically target delineation holes into next year's production. The results risky they confirmed the continually thickness and high grade as an attack.
After the reserve block model.
Finally, we received the required authorizations to proceed with the excavation of the best around.
The contractor has been selected and we are currently installing support infrastructure at surface. The beginning division to the board.
In addition to providing an exploration platform for the western side of Ciena. The 1700 meters Rep is expected to yield significant debottlenecking of material headwinds in the mine and ventilation benefits as it will provide a second access to surface Ricky.
So overall a lighter production in Q3 at the two sites combined with bolt sales somewhat lagging production cost cash cost and all in sustaining.
Outside of the guidance range that being said year to date costs are in line with expectations and we're very confident that full year production from bulk month as well as unit costs will fall within the guideline.
Guidance range that we provided in January.
Over to you Jonathan.
Well thank you Fred.
I guess I'll start with just an overview of the results from the third quarter. Previously reported Q3 production of 27760 ounces was largely in line with expectations and broad year to date production to 87119 ounces sales.
Sales in Q3 were 27000 ounces and were slightly impacted by the timing of final door sales.
All in sustaining costs of 2711 or U S 2021 were up meaningfully over the first half result, but included the impact of a planned shutdown in Eagle River and the timing of capital spend.
We do expect to see improvement on performance in the fourth quarter of 2023, However, and continue to see the midpoint of cost guidance.
We also project to be within the 100 million capital budget set forth in January.
Cash flow from operations was $45 million or <unk> 30 per share, including a $12 5 million tax refund and a $13 million of noncash working capital adjustments.
As a result of cash flow during the quarter total liquidity stands at $143 million.
As we were able to maintain our revolver draw at $39 million and increased our quarter over quarter cash position by $9 5 million to $31 million.
Subsequent to quarter end, we did draw down 10 million of our revolving credit facility, which we plan to pay down by the end of the year.
Balance sheet strength remains a priority for us and we expect higher grades at Ciena to drive costs lower and supports strong cash flows in coming quarters, especially at current gold prices, allowing us to pay down the remaining balance of our revolving credit facility as well as fund our range of opportunities to reinvest in the organization.
Mike will now take us through an exploration review.
Thanks, John.
For exploration was a very exciting quarter at Eagle River.
Although its early days it looks like we have discovered another gold zone at the Eagle, we provide that occurs within the volcanic rocks Amelia immediately west of library.
Initial surface drilling returned high grade gets within 200 meters from surface with one wall returning 64, four grams per ton gold over four meters poorly.
Meanwhile, underground drilling 750 meters down the interpreted plunge of this new zone is also intersected a similar style of mineralization and returned 33 four grams per tonne over four meter cortland.
The Golden amortization occurs within an intermediate volcaniclastic similar to the host rock with 1007 zone, which is known to be a more brittle and a better horse for board in the organization that the income being maintenance capital gains.
The drilling suggests the potential of a new sub parallel zone with results consistent with those seen in early drilling Osaka incentives after 2019.
Not only is this new zone near existing mine infrastructure, but demonstrates the potential for high grade mineralization and of rock type that has seen limited drilling to date.
Additionally, gold mineralization has also been discovered further to the west near the historic nine zone.
All the current events steeply plunging shoots that have a similar facility to the gold mineralization in the my diary.
All of the surface drilling is part of our renewed strategy focused on the upper areas of the mine, which also includes an assessment of remnant mining areas.
<unk> and optimizing the strategic plan around these potential resources could add incremental tons for processing at Eagle River mill, which has been installed capacity.
Since the recent announcement of the new discovery drilling has been ongoing along the interpreter. Upon just the zone. Most recently an underground drill hole returned 12 metres of alteration quartz veining and sulfide mineralization as you can see in slide <unk>.
All the assays are pending we're excited to continue drilling in this area is 12 meters thickness is well beyond the typical thickness of the mine.
Elsewhere within the Eagle River mine underground drilling continues to confirm the costly continuity of high grades of the three of you saw at depth.
And with wider which returned locally could represent an area similar to the previously mined three on three levels.
The continuity of the mineralization down plunge at three other east also suggests that the other parallel zones, namely the eight seven so at the same potential to.
It continues at depth.
The company has matched directional drilling to aid in the extensions of the known zones at wider step outs at depth to provide an indication for future mining.
At Keener recent surface and underground drilling was focused on better defining our known resources.
Surface drilling was focused at the per skills, all which is located one three kilometers northwest of the GMI.
The surface drilling has confirmed the continuity of Bolton organization with one hole returned 32 grams per ton gold over three needed correlates.
However, as importantly, the drilling has confirmed the down plunge.
Potential.
And this is going to be an area that we're going to continue to explore with the development of the ramp.
The recent drill results support the decision to proceed with the exploration ramp from surface to test the downloads extension of the deposit.
<unk> of the ramp is now proceeding with the recent receipt.
Perfect.
Of course, the press guilt out it's just one of several zones of catch up to offer a supplementary source of mill feed near surface were in the upper ore mine with the spare installed capacity at <unk> mill.
Recent drilling results from the shock the it do so super solid zones earlier, this year, including 2.3 grams per ton gold over 72 meters indicates this potential both of these songs are accessible from the existing 33 level development that extends across the property.
So many styles of gold mineralization observed is to keep in mind, we are confident that as our exploration continues we will be able to identify more zones of gold mineralization.
Within the Kenai drilling has been focused on better delineating the asos to Derisk. The 'twenty 'twenty four mine production, particularly given the high grades than the reserve model to date. The delineation is in agreement with the previously drilled wider space exploration holes.
One delineation or return 4190 grams per tonne gold or just over four kilograms per ton of pool over eight meters. You can see this in the attached slides. Obviously these types of intercept provide confidence in the forecast for next year.
Over to you again.
Thanks, Mike as you've heard we remain on track with strong fourth quarter and excited about the future of the business and.
As we highlighted on our recent investment in the bank.
<unk> operations.
We will make Nixon era uptick for success.
Firstly, we need to continue executing on rents development, which is now at 129 meter Netherlands.
Current given the Asian companies, including nine studies the results, giving us a high degree of competence and plan.
Secondly, a continued opportunity for organic growth by utilizing the same store capacity up on load and refocusing the strategy Julie optimizing our month end.
Principal <unk>.
With the exploration strategy, that's been developed the NIM on potential when we think can be leveraged fixed cost a sustained increase in unit economics.
Thirdly, the leadership team is coming together nicely with Virginia increase in developing between only applicable with navigation. Lastly, looking ahead, we expect a marked increase in cash rents rates rainfall, particularly in chemical classes.
Limited budget Jacobs are well positioned to achieve a net cash position in the coming months.
Core, but also invest significantly increasing our dependence or even speak to capital development.
Great to be advancing our pipeline of near mine exploration opportunity.
Overdue infrastructure upgrades to maximize long term value of these assets.
Sequencing I'm expecting the capital budget for next year to be consistent with this year's level.
Look forward to providing the market with two years of production and cost guidance.
And Jamie This initiative is part of our ongoing commitment to maintaining clear and forward looking communication with our stakeholders.
For listening today, and with that I'll turn the line back to us.
For any questions.
Thank you if you'd like to ask a question. Please press star one one.
Yeah.
Our next question comes from Aaron Lumber with TD Securities. Your line is open.
Hi.
Thanks for the update and congrats on the good quarter, you mentioned youre going to give two year guidance in January and you mentioned the higher grades at Ciena are going to kind of kick in sometime in the first half of 2024.
But can you just remind us like what the.
Mine and mill is capable of Qunar.
Just trying to get them.
Rough guidance on what potentially you can do next year I know youre catching up on development this year.
I look at the last feasibility study.
A little bit of a ramp up.
In terms of tonnes processed in the first couple of years versus later in the mine plan. So.
Any color just to remind us on what the mining now can do there would be appreciated.
Okay.
Thank you for the Christian and I think just physical we should talk about permitted capacity on the MAU and the potential to move I think the most capacity and potential by 2040.
Hey.
In the current plan.
Running more likely around June 15th.
Thank you.
Yes.
Can be way below the current capacity at the low end dependent to pass through the mill.
Yes.
Thanks.
Thank you. Our next question comes from Don Demarco with National Bank. Your line is open.
Hi, good morning, Thank you operator and.
Hello, MTN Kuhn.
Congratulations on the quarter.
A couple of questions here first one is.
So you broke through on a one kind of high level. The ramp is there. It seems like this is earlier than targeted again in November so does this.
Shift your schedule forward curve peanut production in any way.
Well done thank you.
<unk>, Yes, I think in terms of the internal updated plan definitely we accrued ahead of our internal plans, obviously different from what you have to keep in the PFS.
Internal prospectively.
Kidney will result in an uptick next year he never previously Petite plant.
Okay.
Thank you. Our next question comes from Brian Walker with <unk>. Your line is open.
Hi, Good morning, guys. Thanks for the call.
Wanted to go back to the the debt. So you said subsequent to quarter's end you drew down another $10 million, what is kind of a net movement going to be in Q4. There do you still plan aggressive payback during the quarter.
Okay.
Sorry, Brian could you repeat that.
Yes, just on the drawdown from the facility.
Subsequent quarter end, you drew down another $10 million.
So I'm just wondering during the balance of the quarter either repayments still planned.
Fairly aggressive on the repayment front still plan to do that in Q4.
We plan to go back to pay back to accumulate the boutique online end of the year.
Okay.
And then just on the capital budget.
So around about the same $100 million ish this year into next year.
Is that right.
No.
Any kind of savings identified during this cost initiative program and is that kind of a number we should be sticking with into the foreseeable future.
Yes.
Sneak in savings.
I can give you a bit of an <unk> relief will focused on development or development, we're trying to keep pushing on the rent.
And secondly, you're obviously looking at skilled development as well and I think it's important to note that it's about exploration exploration budget is I think very important standard we're going to keep pushing these key initiatives that help both the mine and the longer term.
So you can assume that debt.
That will continue for next year.
Great. Okay. Thank you that's it for me.
Thank you.
<unk> question comes from John squad, Nick with Dji, Ben Your line is open.
Yes. Thanks for taking my question guys I guess I'll just follow up on.
Brian's question with that Capex and not sure if I'm getting my head here, but I'm wondering if you're able to break out kind of how you see that flat capex year over year broken out between maybe assets and sustaining versus growth or exploration.
Now I will look at them together John.
Sure It does.
To break it up better for me, but if you look at it I.
I think what's your keys that number continue to Nextgen and like I said I'll repeat it again, it really is around pushing development and ensuring that we keep pushing that ramp down is where we wanted to do is get to the next level mine and obviously continue that development and get ahead of ourselves inside Eagle is wrong, and secondly, we'd really want to push on exploration and should that be getting.
Both presents many strong to drive that business, and Tim and obviously pre skills, including that capital as well for next year, which will obviously continue.
No.
Okay, yes that makes sense.
I guess, one more just on depreciation I, it's been a bit elevated in the last three quarters and just curious kind of how you see that going forward in a run rate into Q4.
And into 2024 in terms of our per ounce number if you have that handy.
I'll ask Ross to actually cover that Scott.
Sure.
John.
This modular units.
Production on a per ton basis used to be reserved for that.
Okay.
<unk> seen a marked increase so that's just around the mall.
Okay, no that makes sense I appreciate that and that's all for me. Thanks guys.
Thank you. Our next question comes from Wayne Lam with RBC. Your line is open.
Yes, thanks, good morning, everyone.
Just wondering.
At Presque Isle, what's the kind of magnitude of Capex spend for the brand.
What's kind of the timeline of events Youre kind of contemplated there in terms of curtailment, Nebraska and Mikes question Jay Street level.
Just curious if youre able to provide a bit more context around that.
So when <unk> been on this one.
Yes.
Right now we're still working out the details numbers that can take care of the budget exercise, but I.
I guess in terms of scale for the ramps about 1700, either as Alex stated in the statement earlier factor.
Factor in development cost of about 6000, Canadian and so on that's going to be in the scheduled right now.
And this year in <unk>.
A little bit into next year as well.
In 2004, sorry, and then a little bit as well in terms of schedule.
Okay, great. Thanks, and then just in relation to that Capex commentary should we also be thinking about a catch up in exploration spend as well next year.
Yes, you can unit.
The capital spend.
Okay, great. Thanks, that's all for me.
Thank you. Our next question comes from Jeremy <unk> with Canaccord Genuity. Your line is open.
Thanks for taking my questions.
So Wayne actually covered a few of the things I wanted to ask I guess, just a clarification for me then.
The mill at Cana is permitted to 2040 tons per day.
Can you remind us of what type of capital would be required and additions to to get to that level or can it do that in its current state.
Yes, Jamie it's very little capital.
It's required to do that it actually is.
Let's call it 10.
Yes.
No relevant a key competency that umbrella.
Chuck.
It really is all equipment is mainly by connection thank you.
Just provide a little more flavor here.
The mill has been installed capacity is just that we're currently not using the secondary crusher at surface. This is really the infrastructure that will bump up the tonnage.
Yes.
And right now we're bypassing this infrastructure has been dormant I would think for a few years.
So ultimately the Capex is only too.
An update a bit the electrics.
Change of Cuprum conveyor belts and away we go.
The minimum.
Okay excellent. Thank you for the clarification.
Thank you there are no further questions at this time. Thank you for your participation. This does conclude the program and you may now disconnect everyone have a great day.
Yeah.