Talisker Resources (TSK | TSKFF) | A Milestone for Bralorne: Avg. 110,000 Ounces Yearly Production

0:11 Good afternoon, good morning everyone. Thank you for joining us today. We have an update with Talisar Resources. President and CEO Terry Harbert is with us. The company released the results of the PA on the Braille or Gold Project earlier this week. The format of today's session will be Q&A with Terry. If you have questions, please enter them into the Q&A box at the bottom of your screen. Thank you to those that sent in questions. We have those ready to go as well. And before we begin, as always, today's presentation will contain forward-looking statements. You can learn more about those in the presentation that's on the company's website. And with that out of the way, welcome Terry. Thank you for joining us.

0:50 I think you're on site at Beaver Creek right now, right? >> Yes, Magda. Up here at Beaver Creek. So, been a been a very very busy week. and and and good to be able to discuss this this long- aaited PA. >> So, we have questions ready to go. we're going to start off with touching on the PA resource and mine plan. so, the 2026 resource now contains over 3 million or 3.3 million ounces and grades are about nine brands per ton. The PA mine plan has an average headrade of 3.9. Can you walk us through what drives the difference particularly around dilution and mining widths and where you see opportunities to improve those grades?

1:33 >> Yeah, absolutely. So, really the main focus that people see in the parameters that we've increased the mining width out to 2.5 m from what our current design mining width now is is 1.8 to around 2 m. the reasoning for this is to increase the distance between our development levels. so that significantly reduces the development that we need to do as underground long hole development. we have to do a lot of development along the veins both above and below so we can extract those stoopes. So being able to reduce that has a significant impact on on the value of the project and the amount of work and people so it flows through into into where it is. being able to bring in more lower grade material that then we that we can then process later on and upgrade with the OS orderer is a significant component of this as well.

2:32 so a a lot of material and I'll remind everyone that our our our cut off here, our economic cutoff is in the in the 2.3 g range. So that material although lower grade is is still very economic. So we aren't here just to mine gold. We're here to make money out of mining gold. so we have to design a mine plan to be flexible and maximize the gold that we have available and taking on some lower grade areas. we we see the grade reduces later in time and this is after a lot of our capex and and sustaining capital's already been invested. So we've already got the the plant, the process, the camp, all of this has already been implemented. a lot of the development's already been completed. A lot of the ramping and all of that. So we we we don't need high-grade material to be able to move that out. the average production grade coming out of that is is likely to be significantly higher. you know probably up around the 6 to8 gram per tunnel will be what will be coming out compared to the headrade through the all sorting process.

3:38 >> Got it. Thank you. And the PA leans heavily on inferred resources. How much resource conversion drilling is required over the next few years and where will that be focused? >> So we we have a significant program underway I think that everybody's quite aware of. that's 85 to 90,000 meters. the main focus of that is in in three areas. Of course, Mustang itself where we're currently mining. Brillon West that's getting a significant amount of drilling about 25,000 mters going in. and then a preliminary program AC across at Olympus. So starting to drill out the first years of production that we'll have there in Olympus. beyond that all of that's included in in our sustaining cost.

4:21 So we'll continually drill each year as we support the mine plan a couple years out in front. So we have drilling several years out in front development one year out in front as we as we develop these along these vein systems. >> Got it. Thank you. And you're currently mining at Mustang with access established to Brave West. What are the key underground development milestones over the next 12 to 18 months? So really we have a lot of focus both on the continuation of the lower Mustang ramp. That's our 4x4 access spiral ramp.

4:56 that'll be continuing down to the 1 level and down beyond. we we're currently stubbing into the 1015 level. so we've already completed from 1060 to 1045 1030 and now we're in 1015. so the ramp will continue as we develop that lateral development. So again, lateral development or a long vein development's been completed on 10:45 is underway on 10:30. and then here over the next sort of 3 to four months, we'll be developing on the 1015, the 1,000, and the 980. Over at Brillon West, we'll be developing a couple of key areas there over the next 9 months or so. And that'll be the 1060 level where we're currently at.

5:45 there'll be a cross cut going in there which will intersect the veins that we'll be mining. we'll be then starting the lateral development of those veins on the 1060 level. starting the ramp development to go down to the 1045 level. and also continuing the straight shot decline that we did from the Mustang portal over to what's called the Blackbird rays. and that'll allow a second point of surface ventilation to come in and ventilate all those activities that'll be going on in Brilon West. So, a lot of work going on, a lot of development work, a lot of infrastructure work to bring that Brilon West up and into production heavily in in third and fourth quarter particularly of 2027.

6:30 >> Got it. Thank you. And touching on geology and stoope geometry, recent drilling highlights the M series as a set of flatly vertically stacked veins alongside steep primary structures like the BK9870. Given that current STO planning focuses on M2, how much unmodled upside do M1 and M3 present in terms of incremental ounces per vertical meter? And how does that impact or and how does your model predict that stack pattern down dip below 10 15 level?

7:03 >> And I can answer some of those points. really the the M structures are are third order structures. So the Brilon deposit itself is a is a what they call a strike slip redell system. it's consist of first order structures that control the the overriding architecture of the whole deposit. they're generally unmineralized. that's the Cadweller and and Ferguson faults. The movement on those structures is what breaks our second order structures.

7:33 the second order structures are long strike continuity generally high dip between 65 and and and vertical structures. these are the predominant structures that we've drilled out for our resource and that will be mining. And the main reason for that is is that they're they're very predictive. they're very continuous and we we combine them with mechanical methods such as long hole longitudinal retreat. the M structures are the third are a series of third order structures. So these are not quite perpendicular but near to perpendicular to the second order structures. So we don't target those in in in drilling because we we we'd have to do a lot of drilling to be able to develop resource and we're focused on what what gives our best drilling discovery and conversion rate which is the second level structures.

8:29 Historically the M structures or those style of third order structures were mined in an opportunistic sense. So they weren't explored for similar to what we're doing. and we're taking that same tact that the the if they if we come across them in our development as we have here. So we didn't drill them, we came across them in development because they're almost perpendicular to our our drill pattern. then we'll certainly take these out. in that sense, we we don't have a clear picture until we're on top of them and we can sample them and and drill them with our longhole drills and and sample that, of of how much gold is contained in these. where where we are now, there's very limited historical development, historical mapping. So again, we don't have a clear picture of what the repetition of these nine echelon sets is. So I apologize, I can't really answer that question. it's an opportunistic thing, some cream on on top of the cake really. but it that they don't have the frequency or the geometry for us to really focus on building a mind plan around.

9:37 >> Thank you. I see one follow-up question about these structures. Do you have a sense of the typical spacing or offset between M1, M2, M3? How short are the cross card crosscuts required off of existing level drifts to access M1 and M3? and would you be extracting test stoopes from them during the Mustang ramp ramp up? >> yes. So, look, just to sort of reiterate the geometries of these, they they they sit between the the the other structures. So, so they sit between what we're mining long hole.

10:15 So, they they're in between and nearly perpendicular to the BK BK9870 and our lumbra. and they they've formed by movement on those structures. so technically as we're doing longhole development on the main structures we're literally cross cutting these other structures. So it's just when we get there then we look to stoope in between the the main BK BK9870 and and our lumber structures. So it it isn't additional development. we're just developing this way and then we hit these structures and then we stoke them out in the areas in between those those veins.

10:58 >> Got it. Thank you. And then coming back to the PA, the PA shows production ramping up from about 350 tons per day to 1500 before the mill and then ultimately to about 2,700 tons a day. What are the key bottlenecks to work through to get through today's operation to that scale? look, it's all the all the ordinary bottlenecks of developing a mine. it's it's it's having the drilling done, having the development done, having the infrastructure in so electricity, air, water, all all of the usual things. So it's it's basically just following the mind plan, implementing these in a in a steady and systematic way so we can support that that ramp up over time.

11:41 >> Thank you. And I see a follow-up question here about ramp up. So the PA models a nominal 2700 ton per day central process plant. Is the circuit design modular enough to stage initial commit commissioning at 750 to a,000 tons per day to lower upfront capex? And how easily could it be expanded as you get portals coming online? >> so it'll be it'll be one mill. so we we won't be having multiple mills going in there. we we can run that mill at lower capacity. That that's no trouble. So we can we can build that in it. It depends on the amount of material that we channel through the Oorder. So the current plan detail here in the PA is really just focusing lower grade material through the Oorder and then sending that sending that to the mill. So we have have quite a bit of flexibility. we can start to send more high-grade material through the or sort of to elaborate or open up more capacity if we're bringing in material from other sites or if we change our our ramp up profile to to go faster because of a higher gold price or or something like that. So there is a lot of flexibility in it but not not relative to scaling the equipment backwards and forwards. It's about the amount of material that we we'd send through the all sortter. The all sortter's got capacity for 1,700 tons per day. so our with a single inline all sortter, we' we'd really focus on the upgrading of lower grade material. that would either be below cutoff or or lower grade. if we're mining areas that are 12, 13 or 14 g that we most likely just send that directly to the mill as it is.

13:31 >> Thank you. And I see two investor questions here about costs. so I'll try and combine them. Are there significant opportunities to reduce the PA projected all in sustaining costs and what factors need to go right for you to have a about 1,500 US per ounce ASIC long-term post inflation? >> Well, I think the costs are pretty pretty solid as they are and you know, we're quite close to what what industry averages production costs are at at this stage. underground mines are always always generally high cost mines in the high cost per ounce. and that's relative to the level of of development that we we need to operate on. I guess it comes down to cycle time and operational efficiency. so moving across to single operator double boom jumbo style. moving away from any manual style operating and having a very tight tight cycle time with the cycling or with theuling of the mine. I think it's been quite well designed. so that's all coming out of the desk software. so I think that's I think that's quite a robust number that we have there. So, we're always looking at efficiencies to be able to keep that there and keep it quiet, but it's it's it's really backed on a really well-designed mind schedule.

15:00 >> And then what factors would need to go right for you to have a 1500 US ASIC long-term >> execution of the mind plan, I guess. Yeah, that's that's it. >> Got it. and then I see a follow-up question here about grade. Can you kind of speak a little bit more why the grade in the PA is lower than the historical context for Bray Lauren? Was do you was there an application of a conservative methodology due to much of the resource being inferred? and would current drilling address this issue?

15:39 >> Yeah, look, so I can answer both of those questions sort of in in in one answer. so the historic production at Brilon was using a different mining method a very manual and nowadays very expensive people are the most expensive cost we have called called shrinkage and also cut and fill that the the levels were were were very close. So it was was was quite expensive quite expensive mining quite manual mining but they were able to be very selective and very surgical. So there was limit amount of waste material included in they were able to mine quite quite narrow narrow widths. So we could try and attempt to mine very narrow widths but it would be very expensive and and very slow. So we wouldn't be able to achieve the large level of rates that we have. So to be able to achieve these rates what we're doing is is increasing the mining unit. So increasing the size of the stoopes and that causes more dilution. So the insitu dilution which is the grade of the veins be before we put any mining shapes what what we have is is very similar to the historic. So if we if we could be incredibly selective, we'd be mine them we'd be mining at 17 18 or 19 g. but we wouldn't produce much gold and it' be very expensive gold. So our focus or our our objective is not really to mine gold. It's to make money make money by mining gold. So to do that we're looking at a larger mining unit, faster mining rates, more mechanized mining. So basically mining faster, mining bigger, causing more dilution but still m mining bringing the same gold out. We reduce our processing cost because we passed this through the or sort of that removes a lot of that a lot of that waste material. but using old mining methods as they did in the 40s50s and 60s it's just insurmountable now to be able to mine like that. it's very difficult to find people who still know how to how to mine in those operations. So we move to a more mechanized much faster lower risk mining method to achieve those rates.

18:00 >> Thank you. I see one more question here on grades. So the PA models of 5.7 g per ton had grade during early operations till 2030 and then dropping to 3.7 g or ton post expansion. why this drop? is there capping and do the stoopes get bigger? Can you speak to that a little? Oh, we we just incorporating more material and higher production rates. so we we we keep the capping standard across the area at at 100 g per ton.

18:31 a lot of this is particularly the long range material is is based all on inferred. and we do certainly see the grade come up 10 to 20 to 30% when we convert into indicated and then as we're doing channel samples we see the grade jump again as we go into proven and probable before we mine the stoopes. Now until we have collected that data in a mining area I I can't tell you that the grades going to come out at those grades. We certainly anticipate that it will, but we need to build our model, our economics and our mind plan on the data that we have. So we we expect it'll continue as we've seen here in Mustang higher than what we expect. but we we have to work our economics, our cutoff grade and our mind plan on the data that we have.

19:24 >> Got it. Thank you. And initial capital is listed at 416 million. How much of this has already been incurred? how much will be pegged through cash flows and do you have a sense of how much you would anticipate needing to raise via debt or equity? >> All of that is basically from from the start of the of the PA period which is mid next year onwards until the completion of of the mill. so the figures I think was 185 million for capital development work. so that's development through the growth phase.

20:02 So that's all growth capital basically to take us from where we are now at about 200 250 tons per day firstly up to 750 tons per day and then onwards to 2,700 tons per day. So that's the lion share of of that growth capital that's going in and that'll be deployed parallel to that ramp up phase basically over the next 5 years coming into the mill build. The the remainder of that capex is for the mill process plant tailings facility and the paste plant, filter press, all that that goes with it. the new 300 person camp coming in. we need people to be able to mine at that rate.

20:46 so all that's all that's that material that comes in towards the end of that ramp up cycle. so when we hit the edge of that ramp up is when we bring the mill online commission the mill and and that's when that capital will be expended. and it's likely at at this stage you know still still quite a few years off Magda but u we we we'd likely do u manufacturer vendor finance for that for that material.

21:12 Anything that's got physical assets or or equipment would likely be that's usually the general form how things are done. >> Got it. Thank you. And what is your conviction level in maintaining 1.8 m stoopes while reaching a,000 tons per day through the Mustang portal over the next or within 24 months? How do you see the mining methods evolving as the total site tonnage scales over the long term? >> okay. So, we we won't be mining at 1.8, we'll be mining at 2.5.

21:42 the the mining method will remain unchanged. We we'll we'll be we'll be doing mechanical long hole longitudinal retreat. So developing along the veins and then stooping backwards. So retreating backwards as as we come. the main changes that we'll see from what we're doing now aside from the stoope width is increasing the lateral development height. so we'll be increasing that up to up to 3 and 1/2 mters. that's basically to allow us to have better longhole drilling equipment. so to be able to use gy gyroscopic drilling so we can get very good control on our blast patterns and minimize any sort of dilution that that comes out. Our 4x4 ramping will likely transition that all into double boom jumbo. So that allows one operator to to bore mesh and bolt with one piece of equipment. so it shortens that cycle time and allows us to have it have rapid cycle development 4x4 blast.

22:41 So a lot of movement that development will likely stay the same about 4 1/2 mters. this allows us tore increase our our current trucking tonnages. We're using 22 tons trucks. We can still fit 30 or 40 ton trucks there. So that helps us to move more material with those larger trucks with the same development scale. so really to summarize that there'll be changes mainly in the mining unit and some slight changes in the width but the mining method will remain the same unless we hit some of these third order MT type structures where we'll likely mine those mine those by other more manual methods if the grade and the cutoff warrants it.

23:32 >> Thank you. And do you have a sense of the physical practical limit in tons per day of the must stand portal single decline when accounting for holage traffic congestion and ventilation? >> I could I could probably try and calculate it for you. It'll be well beyond well beyond what we have. So, if we look at early stage using using 20 ton trucks, if we've got a 10-minut cycle time and effective 20our per day running, that would be 4,000 tons that we could move out that portal. so, if we had increased cycle time, let's say it's 20 minutes cycle time, that would be 2,000 tons per day throughout that portal. If we use 40 ton trucks, then it comes back to 4,000 tons per day. So, I think well beyond what what we could what we'd be stooping, we'd be able to get there. Yeah.

24:30 >> And so, it allows us and we basically designed that so we can mine at a maximal rate at Mustang itself out of Bridal West where we're developing now and then out of the Mustang West which we'll be looking to develop in 27 and 28. >> Okay. Thank you. And Terry, I see a follow-up question here. Can you speak to how much of the capex you hope to fund from operations? do you have like a target goal in terms of that outlay?

24:59 >> Yeah, look, I' I'd obviously like to raise like to be able to generate as much as I can out of cash flow. at this stage, it all sort of depends on the what the gold price does. if the gold price stays where it is, then of course we'll have a significant amount u that we'll be able to utilize out of out of cash flow. if the gold price goes back down 3,500 or whatever, then we'll we'll have to look at other mechanisms to be able to fund that. whether that's through combinations of debt, offtake, equity, or or other other instruments to be able to fund that. I'm hopeful that the gold price is going to stay or even go back higher to where it is. but you know we we have to be realistic about this and that's why we've we've chosen the base case we have. but obviously the gold price is well above it and has been significantly above you know it's been $2,000 above our base case less than less than 6 months ago. So, I am hopeful that we we can fund the majority of that through our production if if the gold plays gold price plays ball with us.

26:11 >> Got it. Thank you. And I see a question here about current operations. We're heading now into the fourth quarter. earlier in the year, you gave some guidance on potential production targets about 20,000 for 2026. Are we still on track? or are we looking at something different for production for 2026? >> okay. So I'm not technically I wasn't previously technically allowed to give any any formal guidance but we were able to give some some rough ranges of of production. the production this year will be around we expect the 10 to 12,000 mark and most of that's related to the delay from the resubmission of our bridging permit.

26:59 so we we submitted in December last year a permit for 500 increase to 500 tons per day. after discussions with the government we retracted that and resubmitted it for a larger production rate 750 tons per day basically to allow us to then only have to do one more permit amendment for the mill and for the larger plant. So as opposed to sequenting sequentially going through and doing multiple permit amendments, we've just narrowed that down to doing two specific amendments. the figure of 750 is related to our bridging agreement that we have with our first nation partners which is has a maximal 750 ton per day that we can truck through their territory prior to triggering an IBA. so we're sort of packaging everything together so it reduces the amount of work that we have to do and that the government has to do in that permitting permitting cycle. so we believe it was the right decision, but but what it's done is is slowed down the production that we could achieve here in in fourth quarter and and push that into first quarter of of next year.

28:11 >> Got it. Thank you. And here's a question. Do you have any comments about the initial PA estimates for production? They seemed conservative for the first four years about only 188,000 ounces. >> How do you view those? look, I think overall everyone will probably agree that that it is quite a conservative PA. and the reasoning for that is that we we're executing this now. this is based on our actual mind plan. that this is based based on what we're going to do. So it it would have been a frightening position for us to to to extrapolate too much beyond what we believe we can actually achieve from our production rates from our ramp up cycle time. so what we believe we put out here is is an achievable an achievable rate. it it's it's not a comparable PA. So we don't we didn't take other people's numbers. we we we used our numbers. our our actual economics of of how we're going to develop this. so to answer the question, yes, it it is conservative, but I'd rather be conservative with my shareholders and if we can achieve more than that, we can get better grades and get a better production and more development, all of us are happy. so to answer that, yes, perhaps we can mine more than that, but again, it's it's based on a real mine schedule. So we we've got an optimized mind schedule stoope optimized all bodies and and this is what we're going to be executing. So we we we think we've we've come up with a realistic way to do that. A realistic ramp up of development. development is the key bottleneck. being able to get access to these veins, develop along these veins so we can access the stoke material. So that's really what our focus is. Well, particularly here for the next nine months as we bring Brailon West online, but then following that ramp up, we've got to execute that development out in front.

30:23 >> Got it. Thank you. And once the Mustang operation matures at 1,000 tons per day, what's the targeted steady state ratio between stooping or in development period? >> I'd have to ask the engineers that one. perhaps I can cycle back to that shareholder or or on the next webinar I can go and get that data and and let you know I apologize I don't don't carry that sort of statistics and around in my head >> okay no worries and then near-term production outlook can you provide any color on production execution hage plans and kind of read reconciliation like a bit of an outlook for Q4 for >> yeah in a way I can again as we haven't got published guidance I can't tell you that but it's it's likely likely around the 5 to 6,000 ounce mark we have I think 3 or 4 thousand tons that's that's just been crushed and will be issuing a holding certificate. we're likely shipping another 10 or 11,000 tons towards the end of October.

31:36 mining rate will be around 200 to 250 tons per day between here and the end of the year. development rate couldn't tell you straight off the top of my head, but I can certainly grab those figures and and bring them into the into the next webinar. >> Thank you. And would you consider completing a follow-up technical study such as a PFS or feasibility, especially if doing so could broaden the financing options available for the larger buildout?

32:03 >> Magnets, it's always an option. if at this stage, I I wouldn't see the value in in in drilling off a 10-year mine life to indicated to support a a a prefeasibility. you know, we we we've got a very derisked, very well-known or body. It was mine for a very long time. I'm I'm I'm quite happy with drilling out to support our mine plan several years in front, but but having to drill out 10 years, I think, is cost prohibitive and I'd rather put that capital into development.

32:40 >> And kind of wrapping up, the PA describes a transition over four years from today's operation to a larger mine and mill complex. Where do you see the greatest execution risks during this transit? >> Well, I guess it's normal execution risk of of of any mine. execution risks are being able to keep up our development rate, which, depends on, you know, having enough electricity and have enough air in place. having enough drilling completed out in front of where we are. the the conversion from inferred into indicated. as we drill things out, we might lose some STO, we might gain some STO. you know, we we think that risk is quite low and that's why we've we transition into production because it's a very well understood body, very well understood conversion statistics. our reconciliation statistics up until date even though it's only this year it's you know we're only at 8 months or so of statistics has been very good on slightly on the positive side. so it it it appears that it's a all body that behaves very well. the geomchanics behave very well. so although all of these risks exist I think that they're well mitigated against by my plan and our knowledge of the or body.

34:03 >> As we kind of look into Q4 and the first half of next year Terry in your opinion what could be some of the catalysts that would be supportive of an increase in the share? well, of course, I think the main two here are receiving our permit amendment which our guidance from the government here is that'll be in in January in in Q1. and then of course following on from that is continued development across at Brilon West and then bringing Brillon West online first with lateral development. So development or and then of course our stooping which is now scheduled in for Q4 in 27 that we'll be stooping out some of those good-looking high-grade stoopes over there. there'll be a significant amount of drill results coming out here particularly out of Brillon West and also out of Lower Mustang. So continuing down below where the ramp currently is. it also has some good returns coming out of our production areas. So where we're doing our development now. we've had some good press releases out. We're expecting to track those or shoots. So some very high-grade oroots there quite extensive.

35:28 so we're continuing to track those down there as well. of course, we'll be continuing with our gold sales and tracking with that our revenue ramp up as we ramp up our development and production rates. >> Thank you, Terry. is there anything else you wanted to cover that we didn't get a chance to cover today? I know you need to you have meetings at me, but was there anything else that we that you wanted to cover? We didn't get a chance to touch on. there's only one thing that I've been been asked here that I think might be might be useful for for anybody on the line was a a question about an update to the resource following the drilling that that we're doing here. So if we're doing another early 2027 update to the resource so the simple answer is no.

36:15 We won't be we'll be continuing through that drillout program u and we we might look to do an an updated resource which will be predominantly updating the indicated category. So it's it's majority is resource conversion drilling. So it'll increase increase that volume of indicated. at at this stage you know again sound like a broken record but I' I'd rather spend that money put it into development put it into infrastructure put it into growth and wait until we've completed that program as opposed to just cutting off at the end of the year. so been asked that a couple of times here so I think that's good to bring up as well.

36:54 >> Got it. Thank you. Can I throw in one more question about courseing? >> Absolutely. I've still got a bit of time here though. >> Okay. Thank you. so after installation and testing of the ORS order, can you speak to the average grade that would be expected to be shipped and can you provide any color on the payabilities from Ocean Partners? >> so to answer the first part of that, initially we'll be reprocessing, our lower grade ore that we have. So that's, sub 5 g material. We've been stockpiling that, underground back in the stoopes that we've mined.

37:28 so we'll be extracting that material and upgrading it to above what our our shipping cutoff is which is five grams per ton. so we're bringing that material in I don't know what the the range of that will be from was the second question regarding average grade. >> can you provide any color on the payabilities from ocean partners? >> Not really. It's we have factored some of this in but it's it is quite contained by them but it basically it works within a range of 86 12% I think it is and at the top end of high-grade material it goes up to 93 and a half % payable for total contained gold. So not recovered gold total contained gold.

38:16 >> Yeah. Yeah. So, can you speak to the 17-year mine life from the PA versus the 30 expected prior guidance? >> Yeah, absolutely. So, a simple answer is with calculation of of of net present value, the longer your project life, the less value you have for things a long way from today. So we work at a discount rate. so long-term or or way out things get discounted back. So really beyond sort of a a 15 year or 16 year mine life any production that we'll do you know if we were to do 20 years we'd get no value for that. It'll be it'll be discounted back to zero.

39:06 so at this stage there's not really any point in having a very long mine life developing that out because it it wouldn't add anything to the the NPV or the cash flows. It' be it'll be discounted out. also the the mine plans likely to change. So we work on a a short-term mine plan, a mid-term mine plan, and a long-term mind plan. we have a long-term mind plan to continue beyond the resource that's in the in the PA, which I think was 1.8 million ounces.

39:39 all that material, it likely be drilled, be changed, the sequence will change. so we know we're going to mine it and I I I still stand by the fact that we expect the mine to to run well beyond this 30, 40 years. I've I've got no no concerns about that at all. it's just too far away for us to plan and the economics get get discounted back to zero anyway so it has no value for us.

40:04 >> Thank you so much for the update. Thank you to the audience and again if anybody has any further questions please email info@adcap.ca. Thank you. Have a good afternoon.