Study Result

May 28, 2020

Good morning, and welcome to West Elm Gold Mines' Kiena Preliminary Economic Assessment Conference Call. I will now turn the call over to Heather Lexton to begin today. Thank you, operator. Good morning, everyone. We hope you're all keeping well, and we thank you for joining us today. I'll just cover off a few housekeeping matters here before we begin. First off, during this presentation, we'll discuss our business outlook and make forward looking statements. These 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. Please note that the preliminary economic assessment for Kiena complex is based on the updated mineral resource estimate prepared as of September 25, 2019 and filed on SEDAR on November 8, 2019. The PEA is intended to provide an initial high level review of the project potential and design options and the economic model and mine plan include numerous assumptions, including the use of inferred mineral resources as permitted in National Instrument 33,101 for PEA studies. There is no guarantee that inferred mineral resources can be converted to indicated or measured mineral resources. And as such, there is no guarantee that the project economics described in the PEA and during this call can be achieved. Please note that all figures discussed on this call are in Canadian dollars unless otherwise stated. The full PEA will be filed on SEDAR and posted to the company's website within 45 days of yesterday's news release. And finally, the slides used for this presentation and a recording of this call will be posted on the company's website. And that's over to you, Duncan. Great. Well, welcome everybody. As we go to Slide 4, what we see here is the company strategy and really the company strategy is quite simple. 1st and foremost, expand production sustainably from the Eagle River Mine, increase our reserves and resources through an aggressive exploration program, optimize the operations in order to drive value and produce at minimum rate of 100,000 ounces per annum and continue on our trend of incremental increases. The second pillar of our strategy is to bring the Kiena mine back into production and establish a high grade, low cost operation capable of producing at 100,000 ounces per annum. This independent PA indicates at a high level funded with free cash flow from the company's operating asset, the Eagle River mine. Additionally, the company's balance sheet is strong with $49,000,000 in cash equivalents as of March 31, 2020, and an available $45,000,000 revolving line of credit associated with no debt. The results of this PEA are very supportive to our strategy that West Elm has the ability to become Canada's next mid tier gold producer. Our focus continues on the next steps and despite COVID-nineteen setbacks and challenges, the company intends to deliver an updated resource in Q4 and start work immediately on our next phase, which is pre feasibility study, which is intended to provide us with a construction decision. The assets I mentioned, both of them are in world class mining jurisdictions, Ontario and Quebec. The company's 3rd asset is the Moss Lake property, which is also located in mining friendly Ontario. However, the company's focus so far has remained on the assets which can quickly deliver value. The company has not suspended production guidance and currently intends to produce 90,000 to 100,000 ounces through extremely challenging times. This will also serve to bolster our balance sheet, especially in the gold market we are currently experiencing. I take this opportunity to thank our employees and contractors for working safely through the COVID-nineteen pandemic, challenging to say the least. Now let's get into Kiena. As we know, Kiena Mine was a great path producer with a great address, 10 kilometers outside of Bel Dor. 12,500,000 tonnes at a grade of 4.5 grams 1,750,000 ounces produced. All the required infrastructures in place, the 2,000 ton per day mill, the 9 30 meter deep shaft, the ramp system going down now to nearly 1100 meters below surface and the tailings management facility, all operational. The mine has never been flooded despite being put on suspension since September of 2013. Additionally, all permits are in place to conduct our advanced exploration program and the resumption of productions. Looking at the resources considered for the PA, the company took the decision to include only those resources proximal to the mine infrastructure. High grade A Zone. Since our last resource update at Kiena, we have been very focused on the A Zone plunge extensions and the conversion of the inferred resources up into the indicated resource category. Since the upcoming PFS can only consider measured and indicated resources, we wanted to ensure there would be no disjoint with the inclusion of the remaining resources on the Kiena property. Our intent to come to a restart decision and become an established producer, meanwhile commencing a systematic evaluation of the remaining resources. What we see here are those resources. You can see the model wireframes within the Kiena mine and you see the proximity to existing mine infrastructure, which have been considered for this PEA. So with that, we'll hand it over to Marc Landry. Marc Landry, go ahead. Thank you, Duncan. Good morning, everyone. Slide number 10 Slide number 9 shows a short summary of the 40 three-one hundred and one PEA. The price of gold used for this PEA was US1532 dollars at an exchange of US0.76 dollars which represents $20.16 in Canadian. The price of gold, West Elm decided to engage an independent firm called CPM Group to provide the long term price projections for the PEA. CPM Group is based in Brooklyn in New York. The discount rates for this PEA was 5%. You see a quick snapshot of the mineral resource indicated and inferred a total of 850,000 ounces, grade caps between 20 to 200 grams and you see the technical information for the indicated inferred based on the drill spacing. Of course, the majority of those resources are from the Kinebit. So the total of ounces from the Kynadip was 737,000 ounces, which represent 87% of our mineral resources. Stove shapes for the PEA were done with a software called DeskWick, DSO. DeskWick Stove Optimizer Software generates optimum configuration of stopes for underground mining. An extraction factor, mining extraction factor of 90% was used for the Kiena Deep and 80% for the other zones. The 90% for the Kiena Deep is higher mainly because of the good continuity of the zone. You see the breakdown of the dilution for each zone. The dilution grade was used for 0.0 grams per tonne and higher dilution factor was applied to the Kiena Deep, mainly due to the presence of the shift in some of the zones. The main recovery used for the PA was of course based on the historical mill recovery for the other zones. And part of the PA, we've done some metallurgical testing with SGS Labs located in Lakefield for the A zone. The metallurgical testing has demonstrated that the Curep Mill circuit, which is a basic cyanide and CIP circuit, is very well positioned to maximize the gold recovery for the Kiena Deep. So we use a mill recovery of 97% for the PEA. Total life of mine for the project is as it is, but the current resource statement is 8 years. All right, next slide. This picture shows the Kiena Deep. As you can see, we have about 600 meters of vertical ramp to develop. What you see on top in gray is the current development ongoing at the Kiena Deep below $10.50 level. So development is underway. Underground development is going to be the main capital expenses for the project, mainly in the Kienadip and in the VC zone as well. The Kina Deep zone has been divided in 35 in 7 zones, 5 level each for the 35 levels. Each mining front would become in production as the ramp goes down. The development rate used in the Kiena Deep is 11 meters a day. Ventilation rates will be developed from top down as the ramp go down to sustain production. Next slide. A quick look on the life of mine production. So what you see on this table, you see the production tonnes, grades, ounces and mine ounces, sorry, for each zones for each year. So as per the PEA, development starts in 2021. And the production basically ramp up from a low tonnage about and up to 800 tons per day over the years. The first full year of production is 2022. And at the beginning, we see the contribution from the other zones and it ends in 2026 and when the production comes from 100% from the Kina Deep at this time. The daily tons from the Kina Deep vary from 2 50 tonnes, but they have the start up to 7 20 tonnes per day near the end. Next, this shows the production tonnes per year. The blue bars are the ore from the Kinabit and the other color is contribution from the other zones. As you can see, 80% of the tonnes are coming from the Kiena Deep. The average tonnage to the life of mine is 6 84 tonnes per day with a peak of 8 70 tonnes per day for 300,010 tonnes per year. Future Mining, we're basically long haul mining, this mining method has been used in the past at Kiena in the S-fifty with success. We are also using the same mining method at Eagle. So we believe we have a pretty good handle on this mining method. All the ore in the Kiena Deep will be hauled by truck to the shaft to the existing shaft ore passes already established in the mine. All the waste rock generated from the development will be used for backfill underground. We also have a backfill system on surface, which will allow us to send the tailings material back into the underground void. The overall strategy is to maximize throughput from the high grade of the Kynadip zone and to augment the production with the other zones. Next slide, production forecast. So this slide shows the Arndt mine over the year. So of course, again, Kiena Deep is 91% of the ounces mine ounces come from the Kiena Deep. The ounce profile increased over the year as, of course, as the production increased from the Kennedi and the grade are also actually increases as the production from the other zones declines. So to eventually reach a mine production over 100,000 ounces a year with the contribution of the Kina Dibsone. Quick look at the operating cost. You see here the breakdown for each department, mine, mill, surface and G and A. So the operating cost used for the PA was $163 a tonne, which includes definition drilling. I'd like to note there's no royalty cost in the at all at Kiena for the Kiena Deep. So the operating cost was basically based on the historical information and also our knowledge of the our good knowledge of the operations since we've been there for a long time. There is an additional cost related to the tailings management of $2.75 a ton, which will come from with the new tailing facility that we'll commission eventually in 2024. Let's have a look at the capital cost. As Duncan mentioned, it's a fairly low capital cost, preproduction and sustaining. So the preproduction cost for the KienaGo project is estimated at near $44,000,000 and there are some and that includes the indirect and the contingency cost. The contingency cost was applied on some items where additional study is required. The preproduction capital expenditure includes refurbishment in the mine, the process plant, mine development, mining equipment, engineering and fields program. There are 8,900,000 dollars sunk cost, including the preproduction, which basically be spent in 2020. So that money is going to be spent this year as we are doing some underground work in the main ramp, the Kinadik, and also in one of our main exhaust rate. South reclamation cost, which is 3,000,000 dollars is on top of this existing $7,000,000 obligation. So if we remove the some cost and the site reclamation cost, we come with preproduction cost of about $35,000,000 to $36,000,000 The total sustaining cost for the project is estimated at $121,000,000 which includes $5,600,000 contingency. There is no exploration cost as it is in the capital cost. The mine sustaining cost of near $93,000,000 which consists of the bulk of our capital cost, includes underground development, equipment purchase and construction work. As I mentioned, a new tailing storage capacity area will be required for the long term and new water treatment facility will be built as well. The cumulative life of mine expenditure cost include preproduction and sustaining of $165,000,000 The cumulative life of mine forecast to spend amount, which includes reclamation and closure bond and excludes some costs, is estimated at $158,700,000 The mine capital cost as you're saying is the main the major capital cost for the project. Development, of course, is a key in the Kiena Deep and in the BC. It's mostly ramps and ventilation releases. As it is at Kiena, we do not have a lot of equipment. So in the PEA, we included the new equipment fleet, which will be composed of jumbos, scoops, hard hit trucks, production drills. Construction work basically, as you know, we have an existing mine. We have a shop. We have current infrastructure. But as we go down, we have to develop an escape way. And eventually, as we get deeper, we will need another shop facility in the Kiena Deep. Let's talk a bit about the mill and the TMA facility. The last time the mill was in operation was in 2013. The mill has been putting tight maintenance properly at that time. In the PA, there is only $4,000,000 of repairs to put the mill back in operation, which consists mainly on electrical upgrades and some repairs on the CIP tanks and of course purchasing of the equipment and supplies. A detailed planned restart audit was achieved during the PEA process and we are at the stage to do the planning and the engineering to recommission the mill. We have remaining capacity in our existing storage facility, which consists of the North and the South Basin and a publishing pond. It is expected to reach the capacity in about 4 years after the restart of the operation. Of course, it all depends how much attaining we are going to send back on the ground for backfill. So in the PA, we assume there was 38% of the tails going back on the ground. In 2024, a new facility will be required to store tailings that will be generated for the future. This tailing, what we're looking at is a dry cycling facility comparable to what we have at the Eagle Mine, which will allow us to store tailings with cyanide 3. We are working at the moment with a consultant on the permitting of this facility. Next is the sensitivity analysis, after tax 5% discount. Of course, as you can see, the price of Golar has the most significant influence on the NPV compared to the other parameters based on the range of values evaluated. After the price of gold, the NPV is mostly impacted by changes of the exchange rate, U. S.-Canadian, as we sold as we sell our gold in Canadian dollars and then to a lesser extent by a variation in operating and capital cost. What is interesting is the economic viability of the project will not be significantly impact by the variation in the capital and operating cost, within the margin of error associated with the PEA cost estimate. At current gold price today, the NPV is more than $425 dollars 525,000,000 in income at current co price. I will now turn the call to Mike to talk a bit about the next steps. The next steps really for the project, we want to continue on with the drilling, of course, and the conversion of inferred to indicated resources. We want to proceed to the pre feasibility study. But as you know, we've been a lot of parts of the PEA have been done to almost a pre feasibility level, but there is a lot of work still to do in the metallurgical test work, some geotechnical work, which is going to involve some drilling and some geotechnologies, some hydrogeology, some additional environmental and permitting, particularly around the new tailings facility. And then we're going to update the resource estimate. So really, I think on the exploration slide, I think that we're happy or as happy as we've ever been. Certainly, we've resumed drilling now as of May 11. And prior to the suspension in March, 7 underground drills were in operation, really tasked with infill and the up and down plunge extension drilling of the Kiena Deep A Zone. This drilling has continued to confirm the overall continuity of the A Zone and successfully identified additional mineralization outside of the most recent resource estimate, which was used in the PA. The A zone now extends down plunge in excess of 830 meters. Since the September 2019 resource estimate used in the PA, a total of 47,800 meters and 164 new holes have been drilled. As you can see from the recent press releases, this drilling is expected to expand the September 29 resource base. As such, we plan to use this drilling as well as the current drilling we are doing to update the mineral resources in Q4. In addition, 2 of the 7 drills have been positioned in the new seventy nine level exploration ramp and are now following up on several encouraging drill results in the potential up plunge extension of the A Zone as well as the down dip extension of the BC zones between the 67 level and the 105 level. It is interpreted that the BC zones are folded as they extend down plunge to and possibly could connect with the A zone. The 79 level exploration ramp could also serve as a hollow strip for any future production from this area as it access the main shaft level dump pocket. Over the past several years, our primary focus has been the Kiena Deep A Zone. Although, it remains the focus of the drilling to add additional mineralization, we have also started to work on the remaining 8 historic zones on the property that have returned positive results from limited exploration. In total on the Kiena property, the resources altogether totaled 2,830,000 tonnes at 8 0.7 grams per tonne for 790,000 ounces in the measured and indicated and additional 798,000 ounces in the inferred category. In addition, we have commenced our property wide exploration campaign, which includes updating the geologic interpretation, which is really important given that the A Zone represents a new style of gold mineralization on the property. Our regional magnetocaluric geophysical survey has been completed on the lake ice covering the Kiena deposit and the immediately surrounding volcanic rocks. The survey was designed to identify deep structures up to 1.5 kilometers below surface. This data combined with the airborne mag and historic drill information has identified a number of new and exciting exploration targets and will be the testing that will be done later from surface drilling. Hopefully, Duncan. Great. Thanks, Mike. In summary, I think what we can see here is that it's quite compelling currently with the parameters that we've used. I think that in retrospect, specs, because we have been operating the Kiena mine for a number of years now, we really do have a good confidence in the parameters that we've used. There's always going to be some unknown and of course, we're going to definitely address those areas and get some comfort around that within the PFS process. I think overall, I would have to say that this assessment has been conservatively done. However, again, I emphasize that our operating experience at Kiena Mine certainly does give us some confidence in moving forward here on into the next phases of the resource update and the PFS. So I think with that, I'd open it up to some questions and answers. And your first question comes from the line of George Topping with Industrial Alliance. Great. Thank you, operator. Mark, Andre, just a couple of questions for you here. The 3 meter minimum thickness, I saw that in the slides. But do you know roughly ballpark what's the average over the 8 years for the average mining fitness? You mean in the past, George? Well, no, in the PEA plan. Yes. I believe it was the average overall, it varies from basically 3 meters to 8 meters. But so the average is probably around 4 or 5 meters. All right. Great. So no real changes there. Good. Next, just on the long haul, the dilution that was settled on for the PEA for the grade dilution. And are you getting grades coming in from that dilution or are you counting it as 0? I think what we put in the PEA, George, is very conservative. You cannot go lower than 0. So 0 is fairly conservative. One thing we noticed, George, is in those DSO shapes, There is actually internal dilution included as well. So I mean, as we progress through the project with more detailed design, we believe that we can improve on that for sure by maximizing the ore recovery and minimizing the mine dilution. Yes. So the dilution used, was it in I didn't see it, maybe I missed it. 21% for the Kiena Deep. Got it. Thank you. And then lastly, I'll hand it over. Just on the mine plan, how far ahead of production will you run the ore reserve development? Will you be able to get a year ahead when you're starting up? What has been done, Josh, is a very high level mine planning and mine design. So of course, that's something that is going to be optimized in at the PFS level. What it is now, it's based on development productivity assumptions and the key asset is the main ramp. So as the main ramp goes down and I believe the productivity use in the PA for the main ramp is about 150, 160 meters a month. So that is kind of the bottleneck, if I can say that as the main ramp goes down, it will allow to open more mining front, more mining stops. So the key is definitely the ramp. And we believe in our current PA, there's lots of potential to optimize and maximize the production from the Kynadet. And your next question comes from the line of Don DeMarco with National Bank Financial. Thanks for taking my call. So good morning, everyone. Just had some questions about your rationale for the throughput. So I see that the throughput commences around 3 50 tons per day and then gets up to about 850. Are there any constraints that are stopping you from getting to greater than 1,000? I mean, maybe just mentioned about the main ramp, but if you could just add any more color on constraints getting to the foot high? Well, it's all based on assumptions, Don. So the main ramp is 1. And it's all about productivities and the mining cycle. So that's something again that we believe we can certainly optimize and improve. Our overall strategy, Dom, is going to maximize throughput from the higher grade Kennadeep zone. So that's going to be our main focus. And that's what we're going to be working on. If you look at the table in detail, you see that the production goes much higher in the KienaDi once the development is completed. So there's probably some optimization work to do there to maximize the development productivity, the usage of waste rock for backfill to short the haulage distance for trucks. So those kind of things that we'll be looking at in detail in the PFS. But we definitely see opportunities to increase the throughput. And just to sort of highlight that AISC, I see life on mine average just over $500 an ounce, pretty remarkable. Can you tell me a little bit about how the AISC varies in the early years of the mine plan? I think you got lower grades then versus later years? I'm not sure if I understand your question, Don. Yes. I can take that. Yes, I can take that, Mark. Yes, I know definitely Don is obviously production rates are lower and the ounce production is lower. Our all in sustaining will be higher. I don't have it in front of me right now. I mean the full report is, of course, going to come out probably in June, I would think. However, yes, I would totally expect that, obviously, when we sort of hit our mark of over 100,000 ounces. I think the thing to emphasize here though really is this is a conservative base case. I got to tell you that team at Kiena is salivating to get their hands on the scope optimization and actually carve out the mining shapes within the data mine. As Mark mentioned before, the DESWIC stope optimizer is a good tool on a preliminary basis, I would say, but that's never how you would I don't think we do a production plan and go right into mining like that. So we do see a lot of opportunities within this. The other opportunity, of course, is exploration, okay? So I think that by the time we come to do the PFS, any sort of additions we have above the 10 50 meter level, I think are just going to be so additive to what we are and especially in the early days of this. So I'd look for that in the upcoming resource estimate. Okay. Okay. Well, thanks so much and congratulations. Great. Thanks. And your next question comes from the line of Phil Kehr with PI Financial. Good morning, everyone. Most of my questions were already answered, but if you could just maybe follow-up and elaborate on the potential optimization of the ramp and bringing in some of that Deep A ore earlier on in the mine life, that would be great. The key, I mean, it's all it's to get to cycle development heading every single shift, every single day as you get deeper. We're working with a contractor at the moment to we are in the ramp at the moment. So we are improving our systems development productivity, moving the waste, gas clearing. It's all work that is ongoing as we speak, as we are trying to improve the productivity as it is. I think the key I don't want to repeat myself, but the key is going to be to keep the waste on the ground. So reduce the haulage, speed up the mucking cycle, the development cycle and also allowed us to continue mining as we are going to backfill the slope with waste. So I think that is definitively a key. Ventilation is important as it is with the current ventilation system. We do have enough error. However, we will need some upgrade. On the long run, electric equipment could be used. It's not considered in the PA. That's something that will be looked at the PFS level. But the electric equipment will allow us to use obviously more equipment in the Kiena Deep with the same amount of pressure. So stat, I think it's something that we really need to look at to maximize the development going down in the Kiena Vit. Okay. And then just touching on the limitations of the production volumes, particularly coming from Canadeep. What limitations just given the likelihood of large sized stopes down there, what's limiting the volume from increasing and to better utilize the 2,000 ton per day capacity at the mill? It's the rep, the haulage distance basically. And it's something we are experiencing at the Eagle Mine. It's the same thing. It's every single mine as the ore gets deeper, the haulage distance gets longer. So you really have to optimize your haulage production activity. And what about with the ongoing exploration success, both testing up plunge and even down plunge, you're getting obviously deeper in the system. Is there based on the timeline of receiving some of the results, is there an opportunity to evaluate perhaps internal wins or something increase those volumes and reduce the dependency on that ramp to bring up that deeper ore faster and more effectively? The UP Planche discovery in the UP Planche would make a significant change in the production of the mine. We actually have resources in the VC zones from 67 levels down to almost 100 level. The addition of the UP plunge from the Kinabik will be located in the same area of the VC zone. So we will have the existing ramp already in place with more additional ore to mine. So that would be significant. That would be a game changer for the project. Maybe Mike can talk a bit more about that. Certainly, it's with the completion of the exploration ramp on 79 level, we have 2 drills there now, which are chasing the VC down and also going to be testing the potential up plunge of the A Zone. So I would like to think that in the next several months that we could hopefully get on some new mineralization in this area and really drill away at that at a good pace. So we could include that in the next resource update. So we're going to be updating the Kiena Deep resource sometime in Q4. That's our current plan. And if we could find any mineralization in that plunge area, we certainly would like to include that in the resource as well before going into the PFS because obviously that could have a very positive impact. So we're hopeful we're going to find more mineralization there. We have a good geologic model and now it's really about drilling the hole. So that's what we're doing now with the 7 rigs. Okay, great. And then just final question, I guess, would be related to the mill and turning that on. And are you looking at the latter half of twenty twenty one more like processing a bulk sample and working out the tweaks in the mill? So where we are now at the mill, so we are actually at the engineering planning level. So the mill is in fairly good shape and we believe we can get that mill start up fairly quick. Our main our key priority now on the ground is to develop exploration accesses and establish vent raisers. So we that's our current plan. We're not going to be that far away from the ore. So it's something that as it is, we do not plan, but we could certainly access the ore in a fairly close future. Maybe Duncan can add something on that. Yes. I think, Phil, there's definitely merit to us getting into some of this deep ore. We definitely want to examine the geotechnical. I know we'd love to have a look at the geology, really see what we have. Of course, the processing of that could be the final phase, more or less for, I suppose, mill test and just basically grade confirmation. However, we don't look at the mill as being a bottleneck. We're quite convinced the mill is in really pretty good shape. And so I think that as Marc Andre alluded to the fact that we're doing the engineering on it and really only identify very really relatively minor rehabilitation or restart things to focus on. I don't believe it's going to be an issue. And your next question comes from the line of Barry Allen with Laurentian Bank Security. Hi, good morning. Mike, you've already touched on it to a certain extent, but I'd like to get a little bit more specific. And what I'm trying to really visualize is the vertical plunge of the resource that was used in the September estimate compared to where you are now where you say you have about 8 30 odd meters of vertical plunge and where you will be at the time you have a cutoff date for the updated resource. Could you kind of walk me through those 3 steps? Certainly. I would say in the September resource, since that time, we've probably added about 1 100 meters down plunge with the drilling. And really, we've had some pretty spectacular results down there as you've seen, and we're infilling that because what we'd like to do in this resource, really it was about fifty-fifty indicated inferred. With the 5 drills we've had underground, we did do the extension drilling on the A Zone. We know it's there. And then we sort of pulled back a little bit from expansion to more infill drilling because we'd like to take that 700,000 ounces of indicated inferred that was used in the PEA. We're going to add to that for sure with the drilling that we've done. But what we'd really like to do is get enough infill drilling done so we can take all the numbers in the PA, get them into indicated status so that when we go to a PFS, then we could use all that to convert into a reserve. And that's really our goal now for the next 5 or 6 months of drilling with those 5 rigs. And at the other end, the 2 drills are really the up plunge. So I think we're probably going to add some ounces on BC compared to what we had before, which is good. And we're certainly testing in that up plunge area of the A Zone where we had some good hips, but it's a little bit more complicated than what we found on the A Zone. But the A Zone was complicated too when we first got in there. Now we understand it, it seems easier to buy. So hopefully with more drilling, we'll get this all settled and add to the resource base on both ends. But I mean really it's a lot of drilling that we've got on the books now. So we're going to see definitely increased proportion of indicated and more ounces. I'm pretty sure of that. Right. And could you just remind me, Mike, the gap between kind of where you think the VC bottoms out at and the top of the Deep Azo? Yes. So right now, I think in the resource, we were maybe 100 meters deeper or so than the 67 level. And of course, our exploration ramp is on the 105 level. So that's about 400 vertical meters or so. I would say for the PEA, we were maybe down about 100 meters since then. Let's see from some of the drilling results we've had. We've extended it down past the 79 level now. We're kind of down around 100 levels. So we've actually brought that down, say, 250, 300 meters now. And we're still drilling in there right And so that's going to be an add, but the really high grade A Zone stuff, we brought up above the 105 level, maybe into around the 100 meter level. Now if we could connect those 2 or if they're parallel zones, but in between the 400 sorry, the 67 level and the 100 and 105 level, then yes, that would really be great, but then we'd be buying more zones off one particular horizon between 67.5 and our ounces per vertical meter would start to go up because now we're mining 2 zones off the same level. So I think that could be really positive, but we're really just getting that drilling going now. And it's going to go pretty fast because that 79 level exploration ramp we put in was really going to help us a lot for drilling that because the holes are shorter. They're at good angles, so they're not going to get stuck in any ultra MAFIX in the area and stuff. So I think that 2 or 3 months back, we'll have a pretty good idea for what I think we've got in front of us. So then a couple of months of infill drilling that and we could add that onto the resource as well. Okay. And then just finally, are there any real deep hole planned in this program before the next resource? Or you're going to largely keep it to the infill when it comes to the deep zone? It's right now, we're really concentrated on the infill, but it's hard to keep off some of that stuff at depth there. You've got some good ideas about where it's going down plunge in the intersection with the B zone. There are all kind of ideas that we have for in the right position. Certainly, as we put this exploration ramp further down, because right now, we're coming down from 105 down to the 109 and 111 areas. And that's all being done in the May fix. It is a great area to drill from. So I think if we can maybe get a rig in there just to take a couple of shots at some deep stuff, I think we probably will. But really the focus is on Intel for sure. Yes. Okay, great. Thanks, Blake. And there are no further questions. Thank you, ladies and gentlemen. This concludes today's conference call. You may now disconnect.