Q2 2025 McEwen Mining Inc Earnings Call
Hello ladies and gentlemen, welcome to muan's second quarter 2025 operating and financial results conference call.
Present from the company today are Rob muan chairman and chief owner, William shaver Chief Operating Officer Perry in Chief Financial Officer, Jeff Chan, vice president Finance Stefan Spears, vice president, corporate development Michael meding, vice president, and general manager of MCU and copper and Michael swiston president CEO of Canadian gold, Corp after the speaker's presentation, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question again, press star 1, I will now turn the call over to Mr. Raab mckuin Chief owner, please go ahead, sir.
Hello shareholders, ladies and gentlemen. Today we're going to share with you our vision of the future from a Q&A.
And how our achievements in the first half of this year.
And our outlook for the balance of this year, will add to the momentum. To reach our goal of doubling, our annual gold and silver production to 250 to 300,000 gold equivalent ounces by 2030.
as you know,
Uh, we're big believers in exploration; it is the growth engine of the mining industry.
And we're big Believers in the potential of our properties. That will be revealed by exploration.
In the past 2 and a half years, we've invested 51 million dollars in Exploration.
Recent drill results have been quite exciting, building on our resource base and providing a solid foundation for increasing production, extending mine life, and lowering production costs.
It's a beautiful essay result, and it was the discovery of high-grade.
At our fume West Zone uh of 36 G over 10 m.
That's equivalent to more than 1 oz over, 32 ft. Um,
I should point out that the fume mine was slated to close this year and now has a promise of a longer life.
And more potential.
so, let's talk about,
20.
5 the second quarter of financial aid. Uh we have a much. It's a much better picture um than it was a year ago and I have to say that was certainly helped by higher Gold Silver and copper prices. Um we have a healthier treasury currently at 54 million up from 14 million. A year ago are working capital of 62 million versus a negative -7 million at the end of last year. Um, our adjusted ebit d
Of 17.3 million or 32 cents a share more than double what it was, uh, in the comparable period.
A year ago. Um,
so,
I'm looking at this and saying, well, we've got a lot of catalysts when
To move us towards our production goal of 250,000, to 300,000 gold equivalent ounces by 2030 and I just like to share those with you. We've got resource updates coming out of Nevada, uh, from the
Timberline property Bots but there's the windfall and Lookout Mountain projects that are close to the gold bar mine. Um and we're looking permitting that it's been initiated um there's a completion of the acquisition of Canadian gold Corp. And today we have a guest speaker. The president of Canadian gold Corp.
To speak about that, um, company and the properties. They have the exciting.
Aspects of becoming part of the queue and mining. Um,
there's a free feasibility study coming out in the first half of next year for gray fox.
Which will be lifting our production in the Timmins District. Um,
There's production starting in mid.
Ladies and gentlemen, we are experiencing technical difficulties with today's conference call. Please stay on the line, we'll resume momentarily.
all right, um,
we're just going to ask um, Bill shaver our chief operating officer to speak about
uh, our production, our costs were a little high in the first half of this year but are expected to go down as production increases both at
The Fox Complex and Gold Bar.
Is Bill. Could you jump in there?
Yep. Uh, thank you very much. Rob, and welcome everyone to our call. I hope you all got back on the line. Uh, first of all, I'd like just like to speak uh, for a short moment about our safety record which continues to be very, very good at muan. Uh, there have been no loss. I'm accidents this year and Mexico is now celebrating 1 and a half years. Tim, and 3 and a half years in. Nevada has worked over 5 years now without a loss. I'm injury. And that is exemplary. And, you know, we're proud of that performance and we, our sites are proud of their performance. And as Rob has mentioned
Our production in Q2 was slightly behind our objectives for the quarter.
For some reasons, some related to Manpower issues and to the impact of the stripping, uh, at gold bar, but now we're uh, have ourselves pretty well positioned to catch up our production in the second half. We also increased the number of ounces of material that are on our leech pad that that are not yet underneath. So that'll help the second half as well.
Uh, and as Rob mentioned the broom mind will now continue well into 2026 and we're continuing to drill there.
Longer because we're still a diamond drilling there. Looking for the final extensions of these War zones.
The development of the stock ramp is now going reasonably well, and according to expectation, uh, right now we're exceeding the rate that we have in our schedule of 6 meters a day. So this will allow the ramp to access the fourth level of the stock Pine uh, by year end 2025
and,
As we, uh, mentioned we already have access uh, to the old part of the mine, via the old stock mine shaft, which we have the watered, uh, down to the fourth level and we're in the midst of rehabilitating. Uh, the development, uh, that is underground at the present time, so that when we break into the mine will be in a good position to, uh, you know, start production as quickly as possible.
He has a great Fox PE PE pea study that we're doing on the gray fox. Uh deposit has lots of potential for attaining the objectives. The long-term objectives of being in the 200 to 250,000 ounces per year. That study is Rob said would be completed in the second quarter. Uh the economics of that boat project are very robust with both underground and open.
Components at this stage.
Uh so we're looking forward to start the the permitting process so that we can hit the ground running as quickly after we get all of the components of the study in place.
Initially, the ore will be going to the stock mill. However, longer term, we have a concept which will see us having a mill over in the vicinity of the old Prune mine.
Yeah, we're very happy to have uh uh Michael Swindon here. This morning from Canadian golf core and we're looking forward to closing that uh acquisition and that has a is a really good fit into our organization. It will be a relatively high grade operation in a mind friendly.
Jurisdiction with the potential for hiring local. Local mining people who are now out you know, now not at work.
so, I guess in
in summary, you know, we see the the future as being very positive
Uh, we have lots of scope to uh continue the, our growth and we're looking for more opportunities as we move into the future.
And we're particularly happy about, you know what, we see as a successful second half of this year.
I'll turn it back over to you Rob.
Thank you, Bill. Um, you gave the introductions to Michael. Oh, why don't we use this opportunity to ask Michael how, um,
Canadian gold, Corp looks and
What he sees its future to be.
Thank you. Yeah, uh, and uh, I'm pretty excited to be on the first uh, mu and call. Uh, it's an exciting time for for Canadian gold Corp. We have a uh a very interesting uh uh property in The Tartan property in Manitoba. Uh, the story of tartan just as a quick overview is, is that it was a mind that operated for only 2 years in the 1987 to 1988 and early to 89 produced about 40 just over 40,000 oz of gold. Um, it shut down because of the poor economics of gold at the time and had frankly, having too much debt, uh, it's that dormant. And then, uh, it was spun out of quote, resources and 2017.
the, uh, there was a 43101 done that showed that a 240,000 Oz, uh, with another 37,000 Oz, uh, inferred, the 240,000 Oz with an average grade of 6.8, uh, grams per ton
Uh, the 43101 only went down to uh just over 225 metres vertical depth uh, in the last 4 years, we've drilled 27,000 meters of new holes, 60 new holes, into primarily the main Zone and extended the the uh, uh, resource. Uh, what we found for resource down to a thousand meters, consistently finding minable, uh, widths and high grades consistent with, uh, what was in the 2017 resource estimate? And what we're actually finding at depth. When get down to 1 hole at 890, uh, vertical meters from surface, we hit an interval of 53, meters of width at 4, uh, 0.3 grams per tonne with an intersect of over 12 grams per ton or 8 meters. So, uh, these these, uh, zones are a lie on What's called, the, The Tartan Shear Zone, uh, which is a a, uh, the, uh, geological, uh,
Uh, structure that runs for almost, uh, over 30 kilometers, uh, east to west, uh, The Tartan lies, The Tartan mine lies on that. The story of tartan for us is that we were progressing with exploration where our fourth phase of of drilling on the site right now. Uh and we were going to conclude that at the end of the year, uh, and then move to a updated 43101 and pea with an idea to accelerating into a mine restart.
What uh, the opportunity with the queue and brings to this project is an ability to really step that up and and shorten the timeline to get back in production. Um, this is a ra, there is an existing uh ramp uh down to 325 meters that lies right between the 2 primary mineralized zones. And uh, there's power to the site Road access to the site. It's 20 kilometers away from the town of Flynn, which is a a real town has a Walmart and a Canadian Tire and uh, concludes the need for us to have a camp. So all of the elements are in there for a very accelerated, mine restart. We have had excellent, uh, relations with the the government of Manitoba, uh, the government of Manitoba just recently, uh, had a, uh, celebrated the the Alamos project at Lin, Lin Lake a little further north from us which uh, is going to go in production in 2028 uh they view uh, our project.
Uh, at Tartan as an ability to revitalize slim flaw which uh, was a hub. They a town for for going back to the 1930s but had uh has had the primary uh, mind uh, uh, dmss operation, shut down. So, we are in an area that has great, uh, opportunity. Uh, this year, we have uh, added 2 properties to the west of us, uh, 1 property, the option from HUD Bay, uh, which added an additional.
36 and a half square kilometers, and 8 kilometers of The Tartan Shear Zone, uh, to our land base. Uh, we're on the property right now, doing some surface work reconfirming work. That was, uh, done back in the 1980s and we've also optioned from Searchlight resources, uh, a property we called flin flon, uh, flin flon North, which actually runs into Saskatchewan, so it gives us a combined, uh, control of that part, and Zero Zone of about 29 and a half kilometers of that zone all the way along there. There has been historic, uh, high grade mineralization that have been found of gold and, uh, this is a, a much, uh, bigger story than when I joined the company. Just over a year ago and I couldn't be more excited about, uh, uh, getting a, uh, getting somebody involved like, uh, muan, uh, that can as a company that can bring these resources and really helped us accelerate us accelerate us into the restart. Uh, I don't
want to take the whole conference call. I could go on, I'm pretty excited about it. So I go on along so I'll just end it there. And I'll wait for questions. Thanks a lot.
Thank you, Michael. That's great. Um, I'd now like to call on another Michael, Michael meding. Who is the, uh,
Vice President and General Manager of Mulan, Copper, to just give us an update on the feasibility on the REGI application and.
The project, the political environments in Argentina.
Project in Argentina.
Since July of last year, this achievement is a testament to the dedication of our entire team on the ground.
financially, we invested 15.6 million during the second quarter driving significant progress towards the publication of our definitive feasibility, study which we aim to deliver end of the third quarter of 2025,
Our engineering teams are diligently. Advancing, the study with a sharp focus on optimizing the project economics,
we actively refining cost estimates to reflect current market conditions and implementing strategies to reduce upfront, Capital expenditures to enhancements to the Mind plan, construction, schedule, and infrastructure layout,
Key priorities for the upcoming quarter include finalizing, geotechnical inputs, and completing an optimized mind schedule. We are collaborating with renowned W Consulting on extended strategic mind planning.
This work covers both our base case, which utilizes conventional bioe bleaching and scenarios incorporating a riotinto Innovative. New in technology, the results will finalize. Our life of Mind production, profile capital and operating cost estimates, and the Epic design.
On the regulatory front, we have taken major steps to secure long-term, stability and benefits for the projects. We submitted. Our initial application for Argentina's regime for the incentive of large Investments or regi in February.
As the project has advanced significantly, we submitted a revised Consolidated application in July to streamline the approval process.
Furthermore, we see another very positive development in Argentina's economic policy.
The government today is should decree 563 which amongst others, eliminate the export Duty for copper reducing it. From a potential 4.5 to 8% down to 0%.
While the region framework already provides for zero, export Duty. After 3 years, this decrease of immediate benefits and reinforce the government's commitment to improving project economics for the mining sector.
In the fields, our exploration and development teams have had a productive quarter. We successfully completed the necessary geotechnical, hydrogeological, and condemnation drilling for the feasibility study.
And finalized our updated resource model. Excitingly our exploration workers identified 3. Copper targets nearby. Mercedes Tango which we plan to drill in the late fall.
We look forward to sharing more details on our programs at several upcoming events in September. You can find us at the Jeffrey industrial conference in New York.
The Pres the precious metal Summit in Beaver Creek, the mining Forum America's in Colorado Springs and the Latin America Day in Germany in October, we will be at the Nordic fund and mind Summit, the RBC copper development Summit in Toronto and the lme week in London.
Thank you so much and back over to you Rob.
Please stand by, ladies and gentlemen.
Okay. Um, Perry Inge was just now speaks up is our Chief Financial Officer on, uh, some points.
Of elaboration, thanks Rob. Uh, good morning everyone. So again, um, I think we, um, had a very successful second quarter. Um, as you as Rob highlighted, uh, both are, uh, growth and profitability and adjusted IBA duct just a couple points. Uh, I'll make in terms of, you know, why we feel confident in terms of, uh, our overall, uh, plan and cash generation for uh, 2025.
To, uh, the heat bleach PAD as well. Pointed out in at goldbar in Nevada, uh, as well as a significant increases in, uh, in circuits, uh, inventory as well. So, you know, 13 million is, is kind of the cost base of of that. If you look at, you know, on a realized, uh, gold basis. Uh, we're looking at, uh, uh, you know, over 20 million dollars which will be released, uh, you know, between the the third primarily between the third and fourth quarters of this year.
And just noting in terms of our treasury, uh, in addition to the the 54 million in cash that Rob mentioned, we also have uh 16 million remarkable Securities uh of which, you know, we have uh, significant unrealized uh, gains on. So in terms of our cash and market growth Securities, uh, total balance, uh, it's approximately 70 million dollars and we do see, despite, um, significant, uh, spending on the stock ramp, we expect to continue to add to our treasury balance, uh, between the 3rd and fourth quarters of of this year. So, uh, overall, I think, uh, we are in a sound, uh, financial position, uh, and, uh, you know, our bonds, uh, from our convertible notes are trading. Well, well above par, uh, and overall, we're well positioned to execute, uh, the growth plans that, uh, Rob outlined
Thank you, Perry.
I would like to conclude with.
A statement on our performance and going from September of 22. When we
Closed. Our first financing on Mulan copper.
Until today. Well, until August 6th. Um,
We are up 263%, as opposed to the GDX, which is up just under 150%. The GDXJ is up just over 150%.
NASDAQ up, 80 gold up just under 100% silver up. 112 copper up 29% and the Dow up 40%. And I'd just like to say that
The performance we're experiencing, I believe, is.
Due to our diversified asset base, composed of gold and silver production.
Which is the foundation of wealth preservation in my mind, and of copper, which is a critical.
Metal for modern civilization for the energy transition. And as Goldman Sachs says, it's the new oil.
um,
I think we have a very good project. We have excellent exploration potential on our properties.
and our production growth profile is only just starting
So with that, I'd like to open the session for questions and hopefully our internet connection doesn't make off with the first question.
Certainly, as a reminder, to ask a question, you'll need to press star followed by the number 1 on your telephone keypad. If you wish to withdraw your question, press star 1 again.
your first question today comes from the line of Hico eel from HC, Wayne Wright. Your line is open.
Hello, EO.
Hey, Robin team. This is case on behalf of Hico here today, hope everything's good on the year end.
Okay. Uh, 2 questions, uh, first at 10 Jose. Uh, the production was down a bit, just a lower grades recovery rates. Uh, next week we'll be halfway through Q3. Uh, can you give me us a bit of color about what you're seeing at site. Uh, Nano production growth in the second half as it seems. So presumably, this is just a blip and we can leave our models, The Way They Were
Yeah, Terry will sure address that question. Yeah, thanks Cass. Uh, so we have been working with the team at H child's. Uh, and at site on this, um, they have experienced lower recovery rates than they were planning. Um, I think recovery is our kind of in the low to mid 80s rather than in the high 80s. Um, there there's, you know, uh,
5 as a whole. Uh, so far July has been pretty good. Um, and we do expect, uh, the mind to achieve all your guidance, but obviously, uh, we will update that, uh, with our third quarter results.
Okay, awesome. Thank you. Uh, second question. I'll first, congrats on the Canadian gold deal. Uh, you have a lot of strong working capital right now, but still a decent amount of debt. Maybe philosophical question on my end, but have your thoughts on your balance sheet change at all, when compared to the beginning of the year for m&a versus debt repayment.
Mary. Yeah, I mean, I think, uh, first things first is to execute on our growth plan. I mean, we we expect to be able to undertake a lot of that uh, with uh, organic growth from free cash flow from our existing operations. Uh, as we, as we increase production sequentially, I think you'll see, um, you know, operating cash flow being able to meet our Capital needs, which what we're trying to do. With our growth plan is make everything bite-sized so that we don't have to undertake, you know, hundred million dollars of capex in any given year. Uh, we see um, Gray Fox as being a line, we can start initially, uh, with underground and then proceeding to an open pet, um, you know, uh, later on in the mine life as well as. Uh, Michael swisson was, was that
Lighting in terms of tartan, there's already a lot of underground development there. Uh, we don't see that as, you know, a hundred million dollar capex, we see that being able to bring that in as a small hybrid, 500 ton per day operation, on a modest budget and scaling up from that. So, uh, I would say, you know, in terms of our treasury, you know, we will um, use our existing treasury wisely. Uh, we will continue to look for m&a opportunities. I think Rob has always looked for both, uh, exploration and other opportunities as they present themselves. But uh, uh, we think Canadian gold is, is, is a great project and as well. Uh, great Fox and then our Timberline projects overall. You know, we're very happy with our asset base but uh, we always continue to keep our eyes on the ground as well.
Thank you. I'll hop back in queue.
Thank you.
Your next question comes from the line of Mike Kazakh from Cantor, Fitzgerald. Your line is open.
Hello, Mike? Yeah, uh, yeah good, uh, good afternoon, uh, Rob and team. Um, thanks for. Thanks for hosting the call. Uh, 2 questions from me. Uh, first, um, you're now guiding to the feasibility study at losses in late Q3, um, is that still contingent upon uh, a capital raise within the copper subsidiary. And and if that's still the case, how how much are we talking about?
So if I may take that uh, Novia Finance to the feasibility, that's not a problem. Um, we we guided towards the, the end of Q3 mostly because of additional optimization work that we're doing, um, we had seen some, some costing fees. Um, there are those, the PA that we published in June 2023 and we wanted to take a little bit more time, uh, to optimize, um, versus what we had seen in Argentina. In terms of US dollar cost increases as well as internationally, and we wanted to have a little bit more time to also um, do package negotiations uh, with potential suppliers which um, relatively speaking. Uh, then offsets um uh, part of the of those cost increases. And, uh, we are thinking of a slightly different production profile that should fit better and um, we think will be more interesting for investors going forward, but coming back to the initial part of your question. We Finance to
towards the feasibility that is not a problem.
Okay. That's, that's fantastic. I appreciate that. Michael. Uh, and then my second question, uh, is kind of on along the same similar line, um, you know, you submitted a revised Reggie application in mid July. The original 1 was submitted in February, so I was just you gave a bit of color in your prepared remarks. But I was hoping to for a bit more detail. Like, did you get any feedback from
From your first February application. That's that's LED you to revise this 1 or. Is it just the change in scope? Any more detail? You could provide would be would be very helpful.
Absolutely. So, generally speaking, the interaction with the regulatory body. So then.
So, the State Secretary, um, Daniel Gonzalez, the Substituting Secretary of Mining, is, uh, flawless.
Time. Uh, all of them technical in nature. Um, what happened is that you remember that when we filed in February, um, we felt, uh, 2, uh, 227, um, million initial and then a face, um, a face expansion, uh, with a capex. We just Consolidated the 2. Yeah. That that's the, that's the big change. Uh, why did we do that? Uh, because we think that, um, it is easier for the regulator to, to fit us in their understanding of the, um, uh, of the, uh, applicable law. And that is the only change we did, you know, uh, we think that because, uh, already in the initial filing, the information that we've been giving was encompassing the whole project, um, this should now streamline the approval process. And, um, we expect, um, we expect the the regulatory body to, to prove us relatively soon.
Thanks Mike.
Again, it's star 1 to ask a question. Your next question comes from a line of Don DeMarco from National Bank. Your line is open.
Hi Don.
Oh, hi Rob. Uh thank you, Aubrey and Rob congratulations on a on the quarter and uh the acquisition of Canadian gold Corp and so on um maybe um Mike. If I could just continue on the discussion uh related to loss of Zulus.
I can you just confirm? I think I heard you say that you're expecting approval soon. And, um,
uh,
Yeah, I think I think that's probably about it. I mean the you know we're encouraged to hear the the reduced expert Duty. You mentioned um
But, of course, if you get Reggie approved, that wouldn't even matter. Right? So, but so you're looking thinking approval soon before the the DFS.
Somewhere along that time frame.
It's a bit difficult to say. I mean, um, the regulations lay out for 45 days, um, for the regulator to come back, um, with an, um, within the pool or ejection.
And however, anytime there is an information request that clock stops. So it's a little bit like playing speed chess.
Um, we are very quick uh with responding to uh information requests.
But how long the process will take is a little bit difficult to say. It could be 1 month, 2 months, or even 3 months.
Um, it it depends on on any kind of potential questions that um the Regulatory Agencies May raise in the meantime and the time that we need to to respond to. Those having said that in the past, we have been very quick. Um,
We think that there's a good understanding of our project on a national level, so we are cautiously optimistic.
Okay. And, um,
Are you, is there any time pressure from your end? I mean, you know, if it is 2 months, 3 months, or even 6 months, I mean you can accommodate any kind of whatever the decision time frame is, is that right?
Yes. But on the other hand, um, it is very helpful. I mean, we we we are aiming for an IPO going forward, right? So, uh, obviously, um, having the, um, definitive bankable feasibility out, uh, and having the, um, the regi approval, uh, is making a significant difference in terms of, um, potential investor interest therefore, um, for us. Um, we think that, um,
we should, we should wait for the
Uh, for the VG approval, uh, before going for an IPO, it's not required, but I think it would be better. Okay? And then, uh, and then finally, I mean, maybe just a comment. I mean, you applied in February, you resubmitted an application in July. It sounds like things are really moving back and forth. Um, has there—how many other applications have been submitted, and is there any risk of, like, the whole review process getting backlogged?
Um, so we are the only Copa project that has uh, that has applied um for for the region. So far.
We expect others uh, to file soon. Uh, namely vkunia. Um, but when this is going to take place, we don't know. Um, what I can tell you however is that there is
Increased interest.
From the national governments.
To speed up the process.
I mean, remember, this is a totally new, um, regulatory legal framework, so obviously, um, the involved, um, the involved Ministries. Um, they want to do, um,
Appropriate.
Due diligence appropriate work.
So I guess that going forward. Well, there should be more applications coming in.
Think that this will lead to um back like backlog on the um on the regulatory body side.
Okay.
Okay.
Well that's great, thank you for that. Um, maybe just a quick question on Canadian, gold, Corp. Then, uh turning to um uh the other mic. Um, so Mike, you mentioned that the Tartan mine had operated for 2 years, can you just give some comment on, on the condition of the infrastructure? And, um, you know, some of the key items that are needed to be updated in order to restart both in terms of
Underground development or processing.
Sure, uh, yeah, the, the the ramp is is flooded like we'll have to be water that, uh, that and, uh, we estimate that that'll cost, uh, somewhere in the vicinity of about 3 million dollars, uh, to go through dewatering process, you know, it's a relatively, you know, it was, you know, the, the ramp was built in the 80s. So, uh, it's it's a relatively modern technology. And from what we understand from folks that were underground there was done. Well, um, so we're hopeful once we get into that. Uh, that'll look good. Uh, the road infrastructure and the, uh, uh, Power infrastructure. The hydro line in is, is intact. We actually had a forest fire, you know, extensive forest fires in the Flint plan area and a, a number of those of the wooden, uh, polls for the hydro line were burnt. And, and I got to say, man, it's about Hydro was right on at the, uh, they've already restored, the, uh, replace the, the polls that were damaged. So,
So that's back up uh, at the site itself. Uh, there was a mill, a mill in a crushing circuit. Uh, that was present, uh, at the uh, from the old thing, from the old, uh, operations. Those are, those weren't maintained in their obsolete so that we, we would look at a new, uh, crushing circuit and, uh, and and mill.
Uh, the tailings containment, which is, of course, Very uh, uh, uh, important is, has has been is still in very good condition and has a lot of capacity, because the minorly operated for, you know, essentially 2 years. Uh, so we're really excited about that. And, and from when we were talking with the people inside the province of Manitoba, uh, what they're excited about is that we can restart this within the, the, uh, the surface footprint of the, of the old operation. Um, and so that's that's also very appealing that we don't have to uh uh disturb any uh, any uh, virgin forest or any of the surrounding lands. So um, a lot of things to uh uh, that are obviously a plus. And the big thing is being that close to the town of Flynn where we don't actually have to have a camp and our, our Workforce can go home at night.
Okay, great. And then just final question, what do you think the timing of a potential restart might be? I mean, is it going to be uh you you do Implement a drilling program and and kind of see how that goes for a little while, uh, potentially even a year plus or or are you really kind of going to head directly toward a pea and then
Then get a little more clarity on on when you might restart it.
well, as as an independent
Prior to, to the, uh, negotiations with mu and and the yellows and Qin. Uh, Our intention was was to finish the phase 4 drill program. Uh, at the end of this year, uh, and, and immediately go to a an updated 431011. An updated resource estimate and a uh, and in immediately almost simultaneously a pea. So that was our original plan. Uh, I still think that we're on for that. Uh, and then, uh, really we have uh, in terms of timelines for uh, for restarting, the mind. We, uh, have spoken with the province. There was an existing, uh, mind permit for 500 tonne per day operation.
We would be looking at, uh, at amending that permit and essentially going in and uh, and looking at, putting it back to production pretty quickly. So, again, it really is a mind restart. It's not, we don't have to start from scratch, but clearly, we would be bringing in better technology and more environmentally, uh, benign,
Practices that would improve the operation. So, you know, I I think, you know, realistically 2 to 3 years, we we back in production
Okay, okay. Well, thanks a lot for that. Mike and, uh, and thanks Rob. That's all for me. Good luck with the rest of the quarter.
Thank you. Don appreciate it.
Your next question comes from a line of Jake Sakowski from Alliance Global Partners. Your line is open.
Hi Jake. Hey Rob, thanks for taking my questions.
Hey.
fitting in the broader portfolio development queue and and sort of from a capital allocation standpoint um relative to to growth plans at Fox
Um, we're looking at a feasibility.
Or pea. Um, for Fox midyear, I I'd say Tartan is probably running ahead of box right now in terms of timing.
Got it. Okay. That's very helpful.
Um, and then just a quick one on permitting in Nevada. Are you able to provide any color on what that path forward and timeline looks like at Windfall and Lookout Mountain once the resources are out later this year?
um, bill, would you care to um,
Thank you. Uh, yeah. Thanks very much. Jake for your question. Yeah. You know, the the permitting in Nevada will take 2 to 3 years, but you know, we'll ha ha, you know, we're going to work diligently to get those projects up and running as quickly as possible.
And, you know, I think the, uh, We've we're now well on our way, uh, to establishing resources on, you know, both that windfall, uh, you know, and, and the other surrounding area, we've had some discussions with I 80. Uh, you know, I I think the, uh,
There are 2.
Uh types of property there. Some some of uh the property is uh basically wholly owned uh by um human Mining and and some of it is still BLM land.
And the private, uh, part of the property can be developed relatively quickly. So it'll, it will be a case of figuring out what we actually want to do there. Uh, are we going to put a leech pad, uh, down next to the our body and then do the processing uh, at goldbar and I think that's where we're headed. Uh, but the the other possibility is, uh,
Is to work with, I 80, they have some space, uh, that they, uh, that we've had a conversation with them about that might might allow, uh, them for us to use part of their plant. That's not being used at the present time. So, so some of that is, uh, news to come. But, uh, yeah, we're we're really happy with the, uh, drilling that we're doing there, confirm,
Confirming the data that we, uh, that we got from the previous owners, you know, that's all falling into place quite nicely. And now it's the, you know, the next step will be to put together, uh, some kind of a study to, uh, you know, put that together to get all the economics and so on. But at the present time, there's no plan to, uh, build a big plant. Uh, on these properties, it'll be a leach pad where we then, uh, truck carbon back over, uh, to the Gold Bar.
Oh, it should be 1 that we're able to start very quickly after we get a permit.
Makes sense. Okay, thanks for that.
Thank you, Jake.
And there are no further questions at this time. Mr. Raab, muan, I turn the call back over to you.
Thank you, operator.
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