I would now like to hand the conference over to Mr. Craig Jetson, MD and CEO. Please go ahead.
Good morning, everyone, and thank you for joining us in St Barbara's March 2021 quarterly briefing. On the call with me today is the executive team from St Barbara, along with Lucas Welsh, our Chief Transformation Officer, and David Cotterell, Manager, Investor Relations. At this point, I'd like to draw your attention to page two and encourage a reading of our standard disclaimer. As always, at this point on slide three, I would like to begin by recognizing our traditional owners and First Nation people of the lands in which St Barbara operate in Australia, Canada, Papua New Guinea, and pay my respects to elders of past, present, and emerging. Now turning to slide five. Slide five outlines our five core commitments related to St Barbara operating safely and sustainably. Of note, St Barbara became a signatory of United Nations Women's Empowerment Principles.
We also realized and released our modern slavery statement. With the ongoing global challenge of COVID-19, it was pleasing to learn that 93% of our employees believe that COVID-19 is being managed well by the company. On slide six, we have had five recordable injuries for this quarter, most of low severity. Importantly, we recorded zero injuries in March, which was a high production month for us in the quarter. This demonstrates our goal of zero harm is possible. Priority areas of focus during the March quarter were whole of business focus on CARE, which stands for Control, Action, Respect and Engage. Safely transitioning to a new underground mining contractor, at Gwalia, has also been a key focus of ours. Although in comparison to our peers, we are certainly doing well, we still have a journey to travel and reach zero harm or zero life-changing injuries.
In terms of COVID-19, on slide seven, the COVID-19 situation in PNG deteriorated in the quarter with a significant increase in community transmissions across the country. By the end of March, a number of Simberi employees and community members tested positive for COVID-19. The employees were isolated in an on-site quarantine camp and containment measures in place to protect other employees. While specialist medical care and support has ensured the recovery of the majority of cases, two of our employees sadly passed away in medical complications while they were positive for COVID-19. St Barbara is extending due care and support to their families. Whilst the Simberi operations have been unaffected by COVID until recent escalation, it remains a dynamic situation with increasing pressure on resources and people. St Barbara continues to work closely with the government and non-government agencies, together with local community, to manage the situation at Simberi.
On slide eight, our quarter three March key achievements in particular. I'm pleased to report the performance of the month of March was strong, delivering 50% of the total production for the quarter. This was a result of our company-wide transformation and implementation of Building Brilliance initiative over the recent months. The cash contribution from the operations for the quarter was AUD 41 million. Of note, we have progressed a number of our growth options to unlock inherent value in our business. This is uplift two of our strategy, which is to grow the production from the Leonora Province and deliver brownfield projects at Simberi and Atlantic. First, we have reviewed a number of our aspects of the Leonora Province Plan relating to geological models, resource models, and pit optimizations. We are planning to release the details of this work, plus the Leonora mill options during the June quarter.
Secondly, we yesterday released the Simberi Sulphide results, which demonstrate we have a very robust and financially viable project. The board has approved $13 million in pre-investment work. This includes metallurgical test work, engineering work on the wharf and infrastructure design, deposits placed upon long lead items, including fleet purchases. We have submitted the SEIS to CEPA for the project and are expecting a modification approval to the process to take somewhere between nine and 12 months. Third, we have submitted the environmental impact statement for Fifteen Mile Stream, and in February, we expect to submit the EIS for Beaver Dam in May. All of these are significant milestones for Atlantic and Australian PNG operations. Most importantly, we continue to operate safely despite the COVID-19 headwinds, particularly in Canada and PNG. Now moving to slide nine. We first published slide nine in the December investor briefing.
It shows two near-term uplifts we're looking to achieve over the next two to three years across our operations, which are progressing as planned. As I outlined during the December quarter briefing and the half year briefing, we are executing to plan with Building Brilliance initiatives, underpinning the performance in March in particular, delivering of the Sulphide Feasibility Study, and in the coming weeks, we will provide an update on the Leonora Province Plan. On slide 10, slide 10 shows the contribution from each site and annualized cash contribution amounts we outlined in the December investor briefing. Our company-wide transformation is well underway and launched in December 2020, as evidenced by those results. At the end of March, we achieved 50% of the FY 2021 targets, driven primarily by Atlantic and Gwalia operations.
I'm pleased with our progress, and I look forward to continue to unlock value in our business through our program. Slide 11 is a deeper dive into some of the initiatives driving performance at Atlantic and Gwalia in particular. The mill throughput and availability and recovery rates at Atlantic continue to edge upwards, with 8% increase in mill availability. At Leonora, the team has balanced development and production with a 14% uplift in development meters and a 24% increase in total material moved compared to FY 2020. These are key performance indicators and value unlocks, as outlined in the December investor briefing at each of our operations. Moving on to slide 12, highlights of quarter three. Consolidated production for the quarter was 82,000 ounces, all-in sustaining cost of AUD 1,645 per ounce.
March was an excellent month, clearly demonstrating performance potential across all operations, which I'll talk about in more detail in the operational sections. As I mentioned earlier, operational cash flow in the quarter was AUD 41 million. It's however worth noting that we sold less ounces than we produced, which will come through on the balance sheet in the next quarter. Cash at the end of March was AUD 100 million, and with debt of AUD 102 million. The key items impacting cash flow were AUD 23 million of dividend payments, AUD 9 million of income tax payments, AUD 7 million of growth CapEx, and AUD 6 million of exploration expenditure. Slide 13 shows the consolidated quarterly production and all-in sustaining costs. The March quarter result was driven by lower production in January and February, and significantly stronger performance in March, particularly from Gwalia.
The strong performance in March is expected to continue into and through quarter four. On slide 14, Atlantic Q3 results. Production was 20,600 ounces and all-in sustaining costs of AUD 1,128 per ounce. The operations were impacted by weather events and winter operating conditions, with production lower than the previous quarter. The lower grade results is attributable to the use of stockpiles of supplementary mill feed as winter affected the mining rates. Despite this, mill performance in March was a new record. Throughput was up 5% on FY 2020, with availability at 98%, and the average recovery for the month was 94.5%. As we move into the final quarter of the financial year with adjusted FY 2021 guidance to production between 100,000 and 110,000 ounces. All-in sustaining costs between AUD 958 and AUD 1,050 per ounce. At Leonora, Gwalia's production was 42,716 ounces and all-in sustaining costs of AUD 1,555 per ounce.
While the numbers for Gwalia look almost identical to the December quarter, in reality, January and February were development-focused months, with 50% of the production for the quarter achieved in March. Mill throughput increased at Gwalia to nameplate capacity of 1.2 million tons per annum for the second half of the month. The development rates substantially improved, with both February and March achieving advance of over 400 meters. These themselves are records. Macmahon commences as an underground mining contractor at Gwalia in early May. This change of underground operator is expected to reduce the mining costs from around 8%-10% and support our productivity improvements. FY 2021 guidance is adjusted to the lower end of the previous range of 175,000-190,000 ounces. This could include 5,000-7,000 ounces of production from ore purchased from Second Fortune, which would replace lower grade Leonora Province ore, if required.
All-in sustaining cost between AUD 1,590 and AUD 1,630 all-in sustaining per ounce. On to the slide 16 of Simberi results. Simberi recorded a weaker quarter, with production of 18,981 ounces at an all-in sustaining cost of AUD 2,426 per ounce. The reporting period was impacted by lower oxide grades in particular, with the transitional ore resulting in lower recoveries. Production in March improved with higher oxide grades in the Samat Pit in particular. This result in production in March is equating also to about 50% of the total quarter production. The remainder of the original RopeCon belt is replaced during the quarter, which has resulted in higher mill throughput, which will continue into quarter four. FY 2021 guides has adjusted to the lower end of the previous range of about 95,000-105,000 ounces, and all-in sustaining cost between AUD 1,720 and AUD 1,810 per ounce. Onto slide 17.
At Gwalia, new areas of our mining lease and current footprint have been identified for inclusion in overall mineral resources. As part of the development making Gwalia's underground production rate and a number of areas of current Gwalia deeps mining front have been identified and incorporated into the mine plan, including intermediates and the Shallows. Slide 17 presents a long section of the upper part of the mine, showing the Gwalia Shallows target. During the quarter, the additional phase of underground diamond drilling, consisting of 11 holes, was completed. The team is commencing resource estimation work in the coming weeks. The team has also conducted a review of the upper part of the mine.
This has identified a number of attractive targets for infill drilling, including Old South Gwalia, Old West Lode, and targets in the south end of the mine above the 585 meters below the surface. We will drill these areas out over the next 6- 12 months. Onto the Leonora Province on slide 18. Slide 18 shows the deposits in the areas in the focus of both close to Gwalia and further to the north. Work has progressed in the Leonora Province Plan, is involved, reviewing of the geological models, existing resource models, and building new resource models, completing pit optimization, and considering mill expansions. We are planning a more detailed update on the Province Plan for Gwalia and Leonora in the June quarter. Slide 19.
In terms of Leonora Province Plan, this timeline incorporates the information from the two previous slides, which includes the expected increase of mineral resources and plans to launch a pre-feasibility study covering Tower Hill, Harbour Lights, and considering a mill expansion. The indicative timeline for assessment, development, and production of each of the major areas within the Leonora Province Plan ensures we will deliver Building Brilliance strategy as outlined and announced in our December announcements. On slide 20. Yesterday, we released the results of the Simberi Sulphide Feasibility Study, which highlighted a robust project with strong financial returns. The board has approved the pre-investment work of $13 million and final investment decision targeted for March 2022 or sooner. The next steps include completing the supporting trials on waste rock management and tailings footprint, with submission to CEPA in quarter one, FY 2022.
We're working to update the mineral reserves for the end of the financial year reporting. Over the next three to six months, we'll complete a reserve definition drilling program. Importantly, we will continue to build on stakeholder engagement to ensure appropriate consultation, supported by legislative assurance for the program. In terms of oxide drilling targets and exploration at Simberi, is targeting additional oxide mineralization within the mine corridor. Six oxide targets were drill-tested with the aim of defining additional inferred and indicated resources. Results highlight that Pigibo North and Cell Tower contain oxide mineralization. In addition, resource definition drilling is planned to be completed and converted to unclassified and inferred mineralization in the very near future. We expect to release these drilling results in the June quarter. On slide 22, as we deliver the promise.
In conclusion, we've had a solid quarter and a very strong month of March across all of our operations. We expect to continue in quarter four, and as Building Brilliance becomes the way we deliver. We've progressed with unlocking value in our business, expected to provide a detailed update on Leonora Province Plan in the June quarter. The balance sheet remains strong, positioned with AUD 100 million in cash and AUD 102 million in debt. Building Brilliance initiatives are starting to deliver with FY 2021 annualized cash contribution target already 50% achieved since launching in December. We have continued to implement COVID-19 protocols across our business and keep our people safe and maintain stable operations. With cost reduction starting to be realized and progress made with regards to brownfield project pipeline in particular, quarter four has been set up for a strong finish to finish the financial year.
With that now, I'd like to hand back and hand over for any questions that people may have. Thank you very much.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Alex Barclay from Morgan Stanley, Australia. Please go ahead.
Hi, Craig and team. At Gwalia, you stated you are trying to get to 12 mining fronts by the end of next quarter. When are we likely to see the benefit of that tonnage increasing towards the 1.1 million ton per annum you wanted FY 2023? Also for Q4 this year, more specifically, you would be expecting a better mix of tons and/or grade to reach guidance. How do you see that quarter developing?
Yeah, Alex, I think, clearly quarter four is certainly going to be a challenge. It's something that we believe we have the strategy and the mining fronts and, I guess, the production profile to be able to achieve it. If I look at the last few weeks in particular with Gwalia, the development work that we, I guess, did late last year and more so in January and February, starting to pay dividends and the mine is potentially starting to unleash itself and debottleneck itself. The results that we're seeing at the moment are exceptional. They will continue into quarter four. Of course, we don't want any more headwinds like fall of ground or any issues with the mill. We're really going to be going hard to finish the quarter strong. We only have to repeat what we've done in March to continue on such a performance.
To answer your question, in the last couple of weeks, in particular in the last month of March, we've actually been milling at around the 1.2 million ton milled run rate. That has been unlocked, and we certainly have enough material to feed that mill. Look, we're quite confident that those rates will continue on. As you said, we've developed some open headings. We've got more mining fronts that we can go to now. We've started to debottleneck the mine quite well. The team have done a great job moving waste from underground and setting ourselves up, in particular for FY 2022, as we finish FY 2021. I think now we're starting to see the benefits of the development work, the Building Brilliance program, the debottlenecking the mine, short-term mill control, management operating systems, and of course, some good reliability with the mill.
I think all in all, the production quarter full will be strong. Don't really want any more headwinds. Further growth of opportunity to keep that mill topped up. I'm looking forward to coming out later this year or in the June quarter in particular, talking about the province plan in a lot more detail. That's starting to unfold for us.
Okay. Jumping to Atlantic. The mine grades fell a bit quarter-on-quarter. Would you be expecting them to rebound back up towards reserve? Where do you see Touquoy over the next, say, 12 months? Plus, how long should we expect to see that bump you've been getting from mine to mill grades of roughly 0.3 grams per ton? Is that likely to continue?
Look, I think the mine to mill grade will balance out. It's tough in January, February, March at Touquoy, as we all know. The winters are much harsh up there, and we certainly get affected in the mine, an awful lot. A little bit in the processing plant as well, and I'll talk about that in a bit more detail later. We've been certainly moving low-grade stockpiles into the mill to keep up the mill feed while the mine has been affected by the winter in particular. That's really the issue with grade we've got at this point in time. If I look at how the team have gone with debottlenecking the mill, the reliability is world-class. The availability is up there with the best.
The throughput is increased by 5% in the month of March as well. The Building Brilliance programs and unlocking the value there is going quite well. I see Touquoy being a very solid operation over the next 12 months. Very strong cash position. Very optimistic about what's happening there.
With the mine grades, I mean, they dropped to sort of 0.7 grams per ton. That's been the lowest for quite a while. Was that a down quarter for any particular reason? Are you expecting that to rebound?
I suspect that's a timing issue more than something that will continue on. As we transition and develop the mine, we're certainly going through some low-grade areas, and I think this is more a timing problem than what we'll continue into next year.
Okay. A last question from me on Simberi Sulfide Project. What sort of regulatory outcome and certainty are you looking for in the next 12 months? Could the project be approved even if you don't get mining certainty beyond your current license in 2028? Thanks.
Yeah, Alex, absolutely. There's a bit of work to do yet. We've submitted the SEIS, there are two pieces of work that are outstanding for that to be approved, we'll get that in during the next quarter. I think, we're saying somewhere between nine and 12 months for approval. I believe we can get that approved a little bit sooner, provided we work very closely with the regulators. Part of submitting the SEIS or the SEIS in advance of having two pieces of work not completed was, as you'd appreciate, there's many thousands of pages involved in these documents. We wanted to give the government, in particular CEPA, the opportunity to review them technically, and prepare for the last two addendums that we will put in the next three months. That's progressing really well.
I don't believe there will be a regulatory issue, moving forward. I think there's still a cloud over the Mining Act and what that would mean. There's opportunity for us around, I think, as you said, ML needs to be renegotiated in 2028. If I look at the program as we've got it now, and the Sulfide project itself, it's got about a 13-year life of mine extension, at about a 3 million ton run rate. At 3 million tons, I mean, it's certainly a robust project to pay it back within about three years or less.
While we've got some time during the CEPA approval process over the next, say, nine months in particular, we'll look at variations to that mine plan and opportunity to be able to expand what we're currently intending to build, up to, say, 3.5 or 3.7 million tons or whatever the number economically turns out to be in the best investment case. There's a bit of work to do about that. If we build the plant, and we always said we're going to build it to be expandable. Now, while we're in the phase of engineering and pretty much the process flowsheet itself, there's not a lot of extra money involved in making a tank bigger or adding extra pumps to increase the throughput rate. We're looking at that.
The opportunity would be to increase the mill throughput, the mining rates through extra equipment and mining fleet more than anything, and larger size tanks. I guess what I'm saying is, we could increase the throughput, which would decrease the risk around 2028. There's a bit of work to be done on that, and I look forward to working with the government in making that happen.
Okay. That's helpful. Thanks. I'll pass it on.
Thank you. Your next question comes from David Radclyffe from Global Mining Research. Please go ahead.
Hi. Good morning, Craig and team. Just had a couple of questions, maybe starting with the Simberi feasibility study. I see there that the life of mine sustaining capital for the project looks to have doubled. Just wondering if you could sort of provide some more color there. I see the part of that's related to a power plant upgrade, so maybe is that a big chunk of that and when would that actually be spent?
Yeah, David, a really good question. I think the issue with the power plant during the feasibility study, it was grossly underestimated the amount of power generation we would need on the island. The most upticking in capital costs, in particular, is the extra power that we've identified during the feasibility. I think that's most of it. As the Board have approved about $13 million for long lead items and deposits on pieces of equipment, we're currently in commercial negotiations and searching for power plant opportunities in terms of building, whether it be extra modules, whatever we do there at the final day. I think the long lead items or the lead items in that's probably around 12 - 14 months away from now. There's still a lot of work to do in that power generation side, which is causing some of the uptick in capital expenditure.
Okay. Thanks. Following on, just maybe to help us better understand it. What is the gold price you're using now for evaluating projects? I see you're doing this at $ 1,500. Does that mean that this is now across all the businesses? Specifically for Simberi, I may be wrong, but I thought the reserves were cut at AUD 1,300. Does that mean there's potentially some upsides for reserves as they get recut at AUD 1,500, or are they sort of disconnected in the way you approach it?
No, no, they're certainly not disconnected. I will pass over to Garth to give you a more detailed explanation on the investment hurdles. As we recut the different gold prices and realize the different opportunities, it does change somewhat within the projects, and we're seeing Simberi one change somewhat as well. Garth, have you got a comment?
Yeah, I think, we review the gold price assumptions each year, obviously taking into account the market and the outlook, et cetera, and we update our resources and reserves as at the end of June. Yeah, that's a process we go through. Setting the gold price for the feasibility study, we've updated that gold price based on the outlook to AUD 1,500, and then we also set an exchange rate if we're using an Aussie dollar gold price. We reevaluate those exchange rate assumptions as well. That's something we do annually. Then, of course, separate to that, we'd have our investment hurdle rates, which we use as well, and the gold price feeds into that.
Okay. When you recut reserves, it sounds like you might be cutting them at a higher price, but we'll wait and see what you do mid-year.
Sometimes the reserves are not always that sensitive to gold price changes. In the past, Gwalia hasn't been particularly sensitive to changes in gold price. You don't always see a big lift in reserves just because you've changed the gold price.
Okay. Thanks. Maybe just moving to Gwalia. You've halved the growth capital guidance for the year. Could you provide a bit more color on that? Does that actually potentially impact near-term on what you're targeting to deliver? Do we defer that capital into next year?
Garth, I'll let you talk about the capital as well. In terms of deferring the capital, I don't think that's really part of the change in what you're seeing there. I think the capital is changing significantly over a period of time at Gwalia as we do things around the mine plan and the mine production in particular. Of course, the feasibility plans that we have could also change that profile of capital. We've spent a lot of capital this year on development, in particular, not so much on the growth side of the business. Garth, any other comments?
I think the questions you're asking is around the growth capital that we've adjusted down the guidance and there is some growth projects there that probably will be deferred into FY 2022. I think some of the capital that was in the growth was around tailings dams and some of the timing of that expenditure will not occur in FY 2021, and that's part of the reason for that revising down that growth capital range.
Okay, thanks. Then maybe just one final one, if you don't mind. Just the change over the mining contract for Gwalia. Obviously, that can cause disruption, so you think you're managing that. Then, just to expand again on the commentary before about how we should think about lifting the ore rates that are obviously delivered to surface, and how they all sort of come together when you think about that FY22 target of 180,000 - 200,000 ounces.
Yeah. Well, look, I think changing the mining contract is certainly something that we're managing very closely and working with Macmahon's and Byrnecut to make sure that the mine operation continuity is continued up, and first and foremost, the safety is managed accordingly because of that huge distraction. From a business perspective, to actually pull the lever on that transition now is the right thing to do, particularly as we set ourselves up for success for next year. Having said that, as you can see, the march rates have been exceptionally good. The performance of the people on site has been exceptional during these changing times. That's one box ticked. The safety and the transition is something that we're working on as well to make sure that people are not distracted, and we get on and finish the year out very strongly.
The other bit, I guess, was the early mobilization of Macmahon's. We have engaged Macmahon's to be at site, and some of their people are obviously at site now and underground. All their training, their inductions, is unfolding as we speak, ready for the transition early next month. We also have a Macmahon's crew mobilized underground that have been doing some drilling and some development work, in the intermediates and Gwalia Shallows in preparing for a reserves and resources upgrade at the end of next quarter, along with supporting Byrnecut in the transition. People are there mobilized. We're certainly de-risking wherever we possibly can and planning with both organizations as a smooth transition.
What will that do is, given the development work, the open headings we have, the early works that's going on as we speak in the Shallows, will set us up for 2022 mining rates, as we said during our Building Brilliance program late last year. The targets that we have set ourselves, what we're doing at the moment will enable us to reach those.
Brilliant. Thanks very much, guys.
Thank you. Your next question comes from Reg Spencer from Canaccord. Please go ahead.
Thanks. Good morning, guys. First question for me is, in relation to Leonora. I note that your slightly revised guidance does imply 58% lift in required production Q on Q. Assuming you can run at that 1.2 million ton per annum rate, can you remind me as to how much lower grade third-party ore as mill feed that might comprise? I'm just trying to back out what kind of mining volumes and/or grade you would need to hit that guidance number.
Yeah, Reg, I think we have been impacted by some grade issues in recent times. We're still planning on reserve grade and the head grade feeding the mill as we'd planned. I think the confidence to get us to the production levels will be around reliability, grade holding up to where it is, and certainly continuing for the March run rates that we've been able to achieve. Of course, if I look forward, if you take the March results into the quarter, we get across guidance quite well. Of course, these are the targets and the numbers we set ourselves for the future as well. I think coming off the back of March into quarter four to deliver guidance is the future sort of numbers that we'll run the operation to.
In terms of third-party ore, as you would know in different announcements, that we're actually funding some development with Second Fortune and we've received some of their ore, and that's sitting at the processing plant as well. We're bringing in some low-grade stockpiles, and we may use the opportunity to use Second Fortune ore to replace some of our lower-grade stockpile ore that's in the province. We haven't fully decided to do that at this stage because of the mining rates and what we've been able to do to run the mill at the rate of about 1.2 million tons in the last few weeks, to continue that on with our own underground and province ore. There's a few things in the mix of how we're going to achieve guidance, but we don't want any more headwinds either.
We believe that through bottleneck of mine, we've got enough mining fronts now. If grade holds up, which we certainly believe it will, we'll come home with a very strong sale, same as what we did in March.
Okay, thanks. Can we expect any disruption on the contractor changeover, or does your guidance and budgets provide a little bit of fat in there for any potential disruption?
Yeah, look, no, we're not certainly running with any fat anywhere. Given the headwinds from the first half of the year, we had fall of ground and other issues. Certainly, any fat that we had was consumed back in those days, and this is really now showing us how we have to operate the mine and move forward. I'd have to call out both contractors. Macmahon's, in particular, with the early mobilization of their people and equipment being ready and also participating as we speak in some of the early works in the shallows. Also the performance and the professionalism of Byrnecut working with us through the transition period. At the moment, both are working exceptionally well together underground. The St Barbara team working very closely in support and the planning process as well.
Look, I'd like to call out everybody that's working extremely hard at Gwalia to bring the quarter forward as strong as we can.
All right, great. Thanks. Last question from me. It's from Simberi. Should we assume lower recoveries going forward given that your mill feed blend is likely to comprise a high proportion of that transitional ore? I guess, how should we be thinking about recoveries on the oxides prior to any commencement of production from the sulfides?
Yeah, Reg, I think if you'd asked me that question end of February, where I was getting some sleepless nights over recovery and the transition material, and potentially the lack of ore body knowledge that we had. The drilling programs during the feasibility study have opened up a lot of oxide opportunity for us, and we're currently putting that into our plans. What you saw in January and February was very ordinary recovery rates. They were hit by throughput rates, too, not just recovery. March, in particular, last half of March, was a lot stronger in recovery, and we certainly have got more ore body knowledge now coming out of the feasibility study. We've definitely got two very strong oxide targets that we are currently drilling out and getting more information about that we'll put into our 2022 and 2023 plan.
That will stabilize recovery back to the recovery of old more than where we have been the first several months of this year.
Okay. I guess in the near term then, recoveries may end up being towards the lower end. That should pick up again as some of these new cleaner oxide sources come into the plan.
Yeah, that's correct.
Okay.
The more ore body knowledge we can muster over the next few weeks with the data we're already compiling, the better off we'll be mining the oxides accordingly to improve our recoveries.
Okay, excellent. Thanks, Craig. Thanks for asking. I'll pass it on.
Thanks, Reg.
Thank you. There are no further questions at this time, and that does conclude our conference for today. Thank you for participating. You may now disconnect.