Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:40 everyone for tuning in today. We're pretty excited. It's been a while in the making for us to get here. But here we are, and we'd love to start sharing with you the results of our PEA and what's next. You know, as usual, we're going to talk about a lot of forward looking stuff, particularly as the PEA points to it. So please bear in mind that they are future-based statements. Who is Rockcliffe? We're very much a copper focused company and the mandate with the new money that came into the company in May of 2019 from Greenstone, a private equity firm out of the UK. Man, that was go get us into making some copper for the market.
1:25 We're gonna talk about why we think that was a really good decision and why I joined the company for sure. The board that was put around, the new look Rockcliffe and the management team that was recruited in post the Greenstone and Novista Sort of merger into Rockcliffe was all focused on going into production And so when we go through the team, you'll see that we're set up for that. And we like the team we have. We also really like where we're at. In Manitoba, in Canada, we think it's a great jurisdiction. And we just happen to be in a really good piece of land package where Hud Bay has been for many years. And we've, as you see in one of our slides later, we're all around Hud Bay and have picked up a lot of the deposits that they moved on from some times ago.
2:12 The PEA itself, you'll see that We believe we found a very good way to bring these deposits finally into production. And of course, with the way the markets are moving, things are going to look even better for us. So we'll certainly spend a lot of time today walking through the economic portion of that. And just while I remember, if you're interested in the technical aspects of the PEA, please do visit our website. There's a presentation on there that I gave to the European Mining Convention in December of last year that goes through the technical aspects of the mining side. We've got upside beyond the resource shown that we mine in the PEA. We're going to talk about what does that look like. And the strategy that helps support a lot of the PEA results, those high-level numbers there of pretty good MPVs and IRRs for a startup from scratch company, is based on the hub-and-spoke strategy where we have the leased mill, you can see a picture of it on the right hand side there, And so we don't have to go construct this. And so permitting is a lot easier to change it from nickel to copper and understand those timelines and they're all very doable inside the construction timeframe of a mine.
3:26 And then as the one mine declines because they're relatively small deposits, we bring the next one on and the next one. And so we'll talk to you about how we see going beyond the life of the project as depicted in the PEA to keep concentrate flowing to the market. So the overview of the hub and spoke aspect of that, the bucket mill on the right hand side of that slide there, and you saw the picture of it earlier, it needs about 20 million or so capital, 2 million of it to bring the tailings up to the new standard, And then roughly 17, 18 million, where we had a big copper circuit to that nickel mill. And we use the old nickel circuit to separate the zinc.
4:14 And so the balance of that capital is the refurbishment and installation of a copper circuit. The PA then would suggest that we develop tower first, you see it on the bottom there, it's the highest grade, it's also of the ones we've studied, it's the closest to the mill, it's about 120 kilometers or so by road, and those roads exist. And so for us, it was clearly a best financial method to do tower ahead of the others. At the time When we went to begin the PEA, the rail deposit was the next furthest along in our drill knowledge. And so we added rail as the second project. It's currently sitting just below 2 million tons compared to the 1.6 million tons sitting in the tower, but it's open both to the south and at depth.
5:09 And we'll talk to you about a nearby anomaly that we're pretty excited about as well. So rail would be second, but I think it's worth talking about Burr on the slide before we move on. While we're about 50% of the way through the work of the PEA last year, we earned in 100% on that Burr property from Hudbay. The terms attached that allow Hudbay to purchase 70% of that back, and they have until August the 9th of this year to do that. So why we're excited about Burr is that we think it's a pretty decent project and if Hedbay elects to not exercise their buyback right in August it becomes a key point for us to start working on how to add very significant life to our project stream with very little cost of money on drilling because we've actually drilled it on our own and we'll talk about that some more.
6:15 So rather than the 6 year sort of life that's attached to the current PEA, we think with the addition of BIR we're talking at least double that. And we'll show you why in a minute here. But first, the economic details of the PEA. For 6 years life, we generate about just under $70 million of NPV, and that's an after-tax number with an IRR of 29%. Those numbers were largely guided by the design parameters that said when we started this work we needed to break even at copper somewhere in the low $2 range was our opinion. And so we ended up with pretty large volumes and therefore low unit costs. And in fact the low unit costs were absolutely paramount to support the strategy of being a long-term producer from multiple successive mines up there so that we could withstand a low copper price point in the cycle and never just cease operations.
7:16 And we achieved that with $1.94 all in sustaining costs. And what we like about that number it includes the cost of recapitalizing the second mine which was railed inside the PEA to achieve that dollar 94 number So it just shows us that we can really leverage small deposits and within a short timeframe, bring on a new one and still maintain a low copper cost to market. So we're very pleased by that. I think another important factor for us in the PEA is now that we understand fully our permitting requirements, also with the shallowness of all of our deposits, and the fact that the mill is largely constructed, it just needs some refurbishment and some equipment popped in there, is that From the day we start site clearing to the day we anticipate putting concentrated market is only 13 months.
8:07 So we're very excited by that, especially when we consider what's happening with the copper market currently. The other important number that came out for us is that we couldn't find as we looked across the projects that are out there at the moment one with a better capital intensity than ours. You know we're only $2.20 per annual copper equivalent pound on capital intensity compared to some others that start to drift up pretty high out there. And of course, that's largely available to us because 1, you don't have to construct a mill, so that's very useful. And so the refurbishment cost is way more efficient than building a mill, but 2, the deposits are shallow, and so they don't require an awful amount of capital to get in there.
8:55 There were 2 things, though, that we learned about our PEA and the position that it would put us in as a company. And there are 2 things that we're going to talk about, what do we need to work on next? And why? I would say that the first thing that came back to us is that 6 year project life was too small for most people. We sort of anticipated, but it was about showing how much resource was that each of those 2 properties. Yes, we believe there's more at rail, but tower really didn't show up more than about the 1.6 million tons or so. And so a big piece of our work going forward is how do we show much longer than 6 years of life for the project? And we'll talk about that. But I think the other key number for us is even though we spoke about the incredibly good capital intensity number, is that we need about $100 million of pre-production capital.
9:54 And when our market cap is floating in the $20-25 million range, that's a big ask for a company like us. And so it's clearly something we have to work on and we'll talk to you a little bit about what we're doing there and this is 2 angles that we're looking at it. 1 actually is allowed to us because of what's happened with the copper market since we actually published our PEA where we were using $3.15 a pound of copper to get to generate these numbers. And I think it's important to note that copper is the dominant revenue producer for us. 80% or so of the revenue actually comes from copper. So copper prices, everything to us. So at 315, these are the numbers. How do we anticipate the ability to add resource life, extend the project life without actually having to go back to market and spend a lot of money.
10:51 We had a quick look up at the tower deposit, we reported on that, that when we tested that anomaly just to the north, we've done some back of the envelope numbers that said we could easily drift over there underground without having to go through the limestone again, very cost effectively. However, the T3 anomaly turned out that it was just pyrite, it wasn't mineralized with copper or zinc. And so we've now believe we understand pretty much what the tower deposit looks like and its surroundings. On the rail deposit, you can see on the right-hand side there, just to the right of the south target number 1 yellow box, there's an oval there going around the, let me see if I can just draw here for you.
11:44 Just there is where we have the rail deposit. So we've got 2 million tons sitting in there. To the south of that, where that actual yellow box is pointing, is another anomaly not being tested by us. We've actually got a drill contract confirmed, we've got a permit confirmed, and we're trying to see if we can get in and test that anomaly to just south there that's within 500 meters of where the mine would be for the rail deposit. And the size of that envelope would suggest if it's of 1 mineral bearing characterization and 2 similar widths to rail there's minimum another million tons we could add and it's shallow like the balance of rail So we really like the prospects there and we hope to be back into the market if we can get the drill in before spring. We'll certainly be talking to you no later than end of April, early May, but if we have to wait for the end of spring before we can get in there, it'd be more like end of May, early June before we know what's in the ground there. So that's one aspect of how do we add resource life.
12:53 The other one that is in fact, I think potentially even more exciting is the Burr property. Now, you know, clearly Hud Bay has a buyback that they could exercise up until August the 9th of this year. But there was a reason that this particular property showed up on our options screen from them that they got rid of it and it's because of the thickness. It's very similar to all the properties that had been let go in the past. Although Tau wasn't theirs, that came from a Glencore stream. The balance of our deposits by and large have come out of the Hudbay stable and this one too. And the ones they've let go permanently have all been of these sort of widths, the 2 meters or so widths. When they exercise their buyback right on the Talbot option, it was very clear because the average width of that deposit was 5 meters.
13:42 And that's much more in their traditional bailiwick of deposits they like to actually go and develop. So this one though, it got very close to being a project for Hud Bay. If you look at the smaller diagram on the bottom of that particular slide, you'll see a darker red portion on the right hand side. That dark red portion represents approximately 1.4 million tons of resource that HUD Bay had delineated and actually decided they wanted to go build a mine to extract. It's a high-grade portion of the ore body. When they decided not to do that, we picked up an option on it. Our drilling to date, we just put in some of the highlights there. We've actually done a lot of drilling. But just so that you don't get too lost in details, What we've published in here on the larger section of, which you can see where it came from on the diagram there, you'll see that there's some very high grade zones and it looks like that high grade zone that Habe delineated extends a long way to the south, the left in this case.
14:52 And you'll see some, especially as you drift to the left-hand side there, you'll see some numbers that are in zinc equivalents, 15%, 19%, 21%, you know, 13, 12. These are very, very high zinc equivalent numbers. And to us, it looks like that high-grade zone stretches a long way down there. And so for us, seeing a way to potentially double the size of this deposit. And it's not like the rest of the deposit was particularly low grade. You know, I think this deposit averaged somewhere around the 10% zinc equivalent type number. But when you got a core that's high grade, You can imagine what the project could look like going in and taking out a high grade and then moving down to a lower grade once the infrastructure has all been paid for. So for us, the ability to add significant tons without drilling to our project pipeline is all just dependent on does Hudbay want to go mining at 2 meter widths, which they've never done in their past So we'll know by August the 9th, but you can tell why we're excited by this one the other thing that makes it pretty easy for us to develop is The the bird deposit was actually preliminary developed by Hadbay. They did an internal feasibility study. They actually permitted the project and started a construction program on it. And then they found Lala.
16:12 And they went and focused on Lala. I think every company would have done just what they did. It's a great deposit over there, but they abandoned this. And the top picture on the right-hand side of this slide is the road as it was seen last year when our geologists were driving into the place for our drilling program. It's in great shape, it was built for haul trucks, it's ready to go. The picture on the bottom right is they actually blasted out a box cut ready to put a portal face in to begin the ramp to develop into those shallow high-grade resources that exist there. And you can also see where they've cleared the trees around the area. So for us to get in and develop this is going to be very, very low cost compared to other sites where we've got to do the box cuts and build the roads, et cetera, where roads are necessary.
17:05 And so combined with the cheaper capital access but also the much larger size we see this one has potential to be twice as big as any other deposit we have. You can see why it's pretty exciting for us to have BIRR to look at as not just a third project, but should it be in the top 2, and we'll know, as we said, a lot more about that in the early August. I think the other thing that's also important to know about Burr is as soon as we'd earned in 100% and we knew what the metallurgical flow sheet was beginning to look like for the tower and rail deposits, We wanted to know if we'd done those modifications in the mill would burr be treated through it given that it's a zinc dominant Project it's got a very nice copper kicker still 40% of the revenue is going to come from copper But you know would the higher zinc content make an issue for us in the mill and would it be a different separation technique required?
18:07 It's actually beautiful for us. It's the exact same metallurgy required to separate them. The ore sorting works almost as well. It's slightly different factors because of the type of resource, but the ore sorting looks very favorable too. And so really the only change we'd make if we were to put this through the bucker mill post a refurbishment that treated tower and rail is All you would do is you'd send the zinc to the copper circuit to handle the volume, and then the smaller copper amount would go to the former zinc circuit because the matches almost mirror image of each other for the amount. So everything worked in our favor here, So very, very exciting for us. Maybe before I leave Project Life Extension, I'll just talk briefly about what are we doing on the capital piece?
18:58 So there's 2 aspects to that. The first one is pretty much standard, what everybody would be doing. Now that we've got the PEA, we understand all the baseline numbers, are there options to either delay or eliminate some of the capital that we put there in the first place? We really like that. We've got some great conversations going on with some communities around us, where some of our development might be done in partnership with them. And maybe we can put that off our balance sheets and pay them out of operating costs later. So we've got those sort of things looking at, just moving it from one place to another. Then we've got, can we cut? And yes, we've got some cuts that now look pretty obvious to us that we would be able to reduce the 100 million number by. And then there's just some other things that we started to look at, why do we have to set the mining method up in this particular way? And do we have to do all of that mill capital upfront? Could we stage it to a later date just to allow the initial capital raise to be a bit more practical for a company of our market cap.
20:05 What was interesting about it as we asked those questions was what happened to the copper market. So as you know, we published the PA out in Cedar in early January, But by then the copper market had begun to take off. And so there's this alternative scenario that we're examining now that says, you know, when we started, we were thinking 260,270 long term copper price, make sure you break even somewhere around the 220 or better and we got a $1.94. Well, the copper market looks quite different now. And so is there a way that we could perhaps not go for such a low operating cost, but save significantly on capital? And given where the copper market now potentially end up with an even better value on the project.
20:53 So is there an alternative mining method? And is there a different transformation in the middle available to us? And the answer is, we think there could be. In fact, we're interested enough that we've begun some internal study work. And, you know, as we get those numbers, and if they look good, obviously, we'll be back to share with you. But I think the piece that I want to leave you with around capital before we move on to the rest of our story is that yes it's beginning to look quite practical to significantly reduce the upfront capital raise. So what's left here? If the first projects are successful, which we now think we've found a way to make them successful, and we've already added Burr to the pipeline, and let's say Burr is successful in doubling the project life from 6 to 12 years.
21:52 You know, 1 is we haven't closed out rail and so we could extend mine life by just staying at rail. We don't think there's a lot at Tower, but Burr, we haven't found the end of Burr on strike or at depth, so Burr could itself lend life beyond, say, a 12-year target that we might have. But What we like about our land package is that even beyond that, there's many more deposits that have historic resources on them in some instances.
28:53 given my background in the gold industry over the years, is that the SLG property is a fascinating one for us. We did take a look at it for copper. We thought we might be under something and then ruled it out with our ground geophers, unfortunately. But we've never done geophers looking for the gold on there. But our early work on there, where we were taking chip samples along the surface suggests there is a showing which could eventually present itself as a parallel trend to what the new Brit mine was. As you know a new Brit mill has been purchased by Hadbay and they're refurbishing it to treat the gold ore from Lala. We got land right next to that and we think that would be very interesting for gold people. So we want to look at how do we market this to get the best value for the company and what would value actually present itself at to us.
29:52 Given that the money that we have in the company now was put very directly to develop copper deposits not gold, clearly this is not core to us at the moment, but could be interesting value. So the team. The team was definitely set up to go producing. I'm not an exploration background person. I'm not a junior markets person. I'm here to build and operate mines. I won't go through my background too much, but suffice to say that it's all been in operations since I started about 40 years ago. Ken Lapierre was the previous CEO of Rockcliffe, stayed on as the VP of exploration. He kept the company together over 15 years, put that big land package together that you've seen.
30:45 He still likes what's ahead of us and stayed on. Chris Stackhouse joined us from Guyana Gold. What we really like about Chris's experience is that he was with Guyana Gold and was the sort of the main money person on the ground going through the study phase and then the construction and commissioning. So Chris has been through the works of taking a company out of exploration into production. It's just the experience we need at the CFO. Mike Romaniak, His background came through the Falco, Naranda, Xstrata, Glencore, and he was building billion dollar projects for them and running operations in the Sudbury Basin for the group of companies. So great experience, we think, on the management side. And then our board is fully supportive of the management team. So where's our market strength? It's all sitting on the board.
31:40 You got Don Christie, who's the CEO of Novista Capital, is our chairman. You got Mark Sawyer, who's the founding partner of Greenstone Resources, but spent time with Rio Tinto and Xtrata before heading out into the PE world. We have Petra Desha that is from Franco Nevada and Gord Graham is extensively used by multiple parties around the world on mining specific issues, and is the technical person on the board to keep the management team straight for the board of directors. So just wholly focused, let's go producing team. And then the second last piece is just walk through what is our capital structure look like?
32:29 I think if you speak with Greenspan and Vista, just the way the deal got structured, it was unfortunate that 71% ended up over between 2 major shareholders at this point, but it did get us up and going. So the pros and cons said let's go ahead and do it. We don't think it's anything that can't be undone in the next race once we figure out how to get the capital down, how to grow the resource base and advance into the PFS and feasibility study range. But, you know, certainly it's a bit of a drawback at the moment, but nothing that can't be fixed. And then, you know, a lot of our warrants expired. So that overhangs disappeared in the market. Now, we still got plenty of money in the Treasury. You know, we had 5.6 million end of the year, We're not on a great spend rate right now, as we mentioned before.
33:19 We're pretty cautious how we're spending until we get clear answers to the capital and the resource piece. And so we don't see a raise in the near term future. And plenty of time we think to drive the share price up, given what's going on, before we do that raise. So the summary, before we get to some Q&A, summary is, boy, we think we're in the right middle at the right time with some projects that come on very, very soon. The story of copper, I won't bore you with it here, but the story of copper we don't believe is a short-term 1 or 2 year. This is a 10 plus year story for copper. It is the world Fixing its overall environmental issues and we don't care what technology is chosen Copper will be a piece of it. So if batteries are gone in 10 years and the hydrogen fuel cells here We don't care copper's a part of it If geothermal takes over from wind and solar, we don't care. Copper's part of it. Whatever the energy sources are, the way we get it to people is through copper. And whatever vehicles look like, as they get more and more sophisticated, the wiring harnesses increase. There's a lot of copper goes into that. And then of course, as people build houses, there's copper. So we believe copper is written all over the world's future.
34:43 And we think we can play our part in it. It's a small little niche deposit no one else has got. And once we get the first ones going, we think the world's our oyster to keep going with those type deposits. We've spoken to you about the resource growth. We've spoken to you about BIRB. We've talked about the upsides. Actually, I haven't spoken about all the upsides, but there are some upsides. Once we figured out the project life and capital piece, there were some significant opportunities that have been identified in the PEA to make the PFS look better than the PEA. We're excited by that. And we've spoken to you about the potential long-term future, where we're itching to start generating some money and start looking for those elephants, as Ken calls them.
35:35 So that's the summary for me about why you want to get into Rockcliffe before we take off. I believe we were a very attractive price today. So I see the first question, would the equity raise include a flow-through portion? Yes, very much. Let's talk a little bit about when we're in for our first equity raise. We'll do a small one initially, and that would cover off the cost of the pre-feasibility and feasibility study piece, which is what's a necessity for that is we've got to move some of the resource into measured, and if we want resource considered inside a PFS it can't stay as inferred, it has to get indicated.
36:22 So we will be drilling the deposits further to create measured and indicated resource to support the studies. And then some of those upside opportunities that we spoke of are around the geomechanics of the design for the portal, the stope support, and as well as the support of the ramp and drifts. And so we would make sure that the drilling covered off, getting the knowledge for that. But then also we need some money to take those drill results and turn them into the geomechanical data we need. So we think the amount of drill money needed to get the appropriate resource transfer in to indicate it measured is around the 2, 2.5 million dollars worth.
37:11 We would have to do a raise for that and then Probably the raise that does the advanced study work will no longer be eligible for flow through and so we'd have to do high dollar raises for that. And we'd probably need about 1 million or so. And so the raise for flow through, I think in the 2 to 3 million dollar range and maybe 1 million or so for, and I think Chris would say no maybe up to 2 million to make sure that overheads are covered while we do the studies. So that's the small one and then the big one you know will depend on how we manage the capital intensity piece. We want to make it better if we can. Great. I think it's a good time to transition to Q&A. And so just a reminder, If you do have any questions, please submit them now.
38:03 The next question we have here is from Maxim. He says the all-in-sustaining cost is very low and attractive. What is the recovery percentage of other metals used to drive this all-in-sustaining cost? Or what is the driving factor behind this low cost? Yeah, actually we're quite fortunate in that one, the recoveries through the system, the mine recoveries on the resource level is sitting at about 80%, which is not bad. We would like to have done better, but we were restricted on geomechanical stuff. And then from the resource through the ore sorter, we had over 99% recovery indicated. So that was an incredible number for us, but we rejected about, you know, just under 50% of the rock with less than 1% loss of mineral. That means we didn't have to transport it. So when you look at the oil and sustaining costs, yes, we're mining up to 3,000 tons a day, but we're only sending almost 1,500 tons a day to the mill. So the first big savings occurred in road transport, which makes the hub and spoke strategy very attractive for us. The next piece was that if only 1,500 tons show up in the mill, clearly you're only grinding and crushing 50% of the rock there too.
39:20 So it's a very, very significant savings. But the higher grade to the middle supported higher recoveries. And so what we're ending up in our lab tests, and we haven't even done closed circuit testing to make it better yet. It's something like over 96% recovery of copper in the mill. We had pretty good zinc recoveries even though the samples we did were somewhat lower on head grade than we would anticipate in the full feed to the mill, but we're getting 80% zinc recoveries in there. The gold wasn't bad either. We had about 50% recovery of gold on a head grade of somewhere around 0.6, 0.7. So we're very pleased with that. So the recoveries were certainly a major piece. But then one other key factor for our all-in sustaining cost being that low is given that we were able to keep the rock at the mine, is that that rock never got placed in tailings. So the size of the tailings facility gets reduced by nearly 50%.
40:15 And that's a very, very significant cost saving for life of project. So I don't know if I answered your question, but I think I got most of it. Yeah, great. Thank you so much. Ian is asking, what are the current resources and metal grades for the mineral property under PEA? Yeah, so the tower deposit is about a 5% copper equivalent, and over 80% of that copper equivalent sitting actually as copper, and then about 10% each for zinc and gold. So they are predominantly copper. At rail, the copper equivalent grade is around 3.6, 3.7%. That's why it's the second property.
41:02 And the, whoops, don't know what's happening there. Sorry about that screen, I don't know. I think that's Chris. Sorry, Alistair, I'm just taking us to the resource page in the deck. Okay. Perfect. And as I said, for rail, what we have is about 3.6% copper. And once again, the split for revenues is largely copper. It's about 80% But you can look up at each of those numbers there. Take a screenshot while it's there if you like. It is in the deck, in this deck I believe 6 is making available for you and it sits on our website. Yeah, I was just gonna say, if you would like to download this presentation, if you click the handouts tab, it is available for you to download. So you can take a look at those numbers at your own time.
41:55 All right, well, so Hugo has a question. He's asking, have you ever thought of doing a reverse on the shares outstanding? I would say we've looked at lots of options and that one is included but until we get closer to actually finalizing the amount we want to do for a raise, the way in which we do it is not clear. I would say that there's no decision made on the reverse at this point. All right. Bruce is wondering, do you have any comment on the Talbot deposit? Clearly, we liked it. We optioned it. We thought it might be a bit too small for Hudbay to exercise their buyback right. Personally we were disappointed when they bought it back.
42:44 But Our drilling had confirmed, we didn't grow it much. We were trying to understand, just like we were in the others, what the resource would look like to support itself as a project for us. A bit like we'll bring Burr on as a project at the back end of the PEA now that we finished it. We were hoping to do that with Talbot and, you know, Talbot for us had the opportunity to be a first project for us ahead of Tower, especially with the way both copper and gold are going, because this deposit is sitting, you know, close to, I think, 4% copper equivalent. And it's the revenues are split very close, 50 to 50 copper and gold. So it's a nice mix. It's a hedge against both prices. And you know, It's not a very, you know, all the rest of our deposits have a long strike length. So I think the one thing that's noticeable here is it's sort of 300 meters at its longest. It goes deep. And so, you know, if there's anything against it, it goes deep pretty fast. And so you got to go down pretty fast to match it. But to be honest, that wasn't going to be a major issue for us. And so you can see why Hudbay decided to buy it back when you've got that and about a 5 meter average thickness on it.
43:57 Great. Ian is asking, is it an open pit or underground mining operation? And what are the metallurgical test results? Sure, so yeah they're all underground because they're very narrow vein and very steeply dipping so there's no open pit possibility. The piece about the oh and I guess because it's so close to surface, I think the important thing to notice is we don't anticipate needing a shaft. I think the Australians pioneered the way for the rest of the world to show that if you've got a shallow deposit, you can ramp down on it these days to almost 1500 meters. And we haven't even drilled to those depths yet. For this particular tower one, it's only at bottom level we show there's only about 700 meters deep. So there'll be ramp portal access mines, not shaft.
44:51 And I think I covered off the metallurgical recoveries by and large, mid 90s for copper, 80% for zinc and around the 50% mark for gold. Thank you. Can you clarify the buyback right that Hudbay has on the Burr property? Sure. So that one's a little simpler than what was there at the Talbot. It's, they would pay us $3 million to get 70% of the project, which is what we spent to earn in our 100%. They would then have to pay an additional sum of money for the amount of money we spent on it since we earned the option in August of last year.
45:41 And for every dollar that we spend from August last year to August this year, they would have to pay $2 it back, capped at $750,000. So if we spend 750, they would pay us 1.5 million in addition to the 3 million to get 70% of the project. All right, perfect. Thank you. Sean is asking, what is the price target given by Fundamental Research? Chris, can you? Yeah, Their last report was a 32 cent valuation target, obviously with a buy rating, buy recommendation on their last report.
46:29 Thanks. All right. Thank you so much. So next question is what is management's view on reasons for the current share price? Okay, how much time do we have? I'd say the first thing is, is that we are in that part of the Lassonde curve, if people believe the Lassonde curve, it says the drilling money we've been spending has been very much targeted on known deposits, trying to grow confidence level rather than finding new resources. So there is that piece where we're no longer attractive to the straight up exploration people, even though we were spending between last year and this year nearly $20 million on exploration.
47:18 I think the second thing is we had marketing efforts going on last year up until July or so, but what we were finding is that even though we were continuing to either grow or confirm with really good intercepts on those existing deposits, nothing was shifting the market price. And so we made a decision to actually halt marketing in the middle of last year roughly and said, look, we don't think that the market will respond to our marketing efforts until we've got the PEA. So I think the absence of Rockcliffe's name out in the ether, plus the fact of where we are on the Lassonde curve is a reasonable description for why the share price is where it's at.
48:05 And so now that we've got a good PEA and we like where the market's going, we're back as evidence today. We're going to market the company very significantly going forward. We think we've got a great project and life ahead of us and we've positioned ourselves beautifully. I'd like to say we chose Copper because we knew Copper would be here. It's not quite true, but We'll take it anyway. We're in the right place at the right time. So the price, I think, has to change. Great. That actually feeds into Stephen's question. So he's just asking, how is the company positioned financially? Will there be another raise coming this year? So financially, at the end of last year, beginning of this year, we had $5.6 million split approximately 50% for flow through, 50% hard dollars.
49:02 So depending on when and what we find out, as I was explaining around what we'd be doing to answer the 2 key things that were found in the PEA, which was for project and initial capital requirements. Depending on when that data flows, and we've talked about spring breakup, et cetera, and how they buy back. So there's some known dates in there. We would anticipate, yes, We will do a small raise to complete the next phase of study work. And we think that would be no more than $45 million, about, I'm going to say 3 of it for flow through, 2 of it for the hard dollars in the studies. So that will happen later this year. And you know, is it July, August, September? We don't know, but that's the sort of timeframe.
49:56 And, you know, so our job is obviously get the share price up prior to doing that raise. And we think we've got everything in our means to do that. And then the big raise would come probably, you know, if the timing, if I was to look at timing, would be 6 months after that was when we could probably want to go to market and say, look, here's the results of a feasibility study or we're moving on the PFS. And so, you know, in the 1st and 2nd quarter of next year is the potential large arrays to go into construction, assuming success on everything else. Great, thank you. So what are your major stakeholder relationships currently like with the government and as well with the First Nations?
50:45 Yeah, let me, I'll keep the 2 groups separate for you. So first of all, you know, Manitoba has declined in the ratings for attractiveness to the mining industry from being sort of in the top 10 in the world to now they've drifted, I believe, out of the top 20. The government's actually been speaking to all companies, including us, about what do they need to do to make it more attractive. And I must say, I'm very impressed with the current government. They've been nothing but helpful for us in everything we've done so far. And I think the one thing I'd underline there is that they try to create this one-stop shop where we don't have to visit multiple departments across the government to speak about various phases of potential support, permit help, you know, whatever it is, regulatory compliance.
51:38 And we've been assigned a single resource. One is an amazing person, people who in Manitoba might know Janna Schott. She's been unbelievable to us. But 2, literally, she has been the one-stop shop. So I think as the ratings go forward, the Manitoba province will step back up. And so our relationships with the government have been great so far. Just very, very helpful on the permitting side overall. On the First Nations, we've loved the conversations we've had with First Nations so far. We would say that by and large, that the First Nations have welcomed us when we've been in the traditional territories. They've been nothing but great support for us.
52:24 And the 2 that particularly where we have used their traditional lands to perform our exploration on, They've actually come in and helped us in the form of services and labor and supplies. And we would just look to continue in that great relationship going forward as we do the next phase study work and then hopefully get into production. Great, thank you. Ian is asking, moving forward, what is the timeline for pre-feasibility, feasibility and mine construction? Yeah, so best case scenario, and all we know is that everything changes. And I think COVID has been a particular example of how things can change. But so these are best case scenarios where nothing else would happen or go wrong.
53:15 I believe we could be publishing the PFS, and we've got to still make a decision, and it would depend on where we get the initial capital, knife or mine, there's a lot of things that need to dovetail. Can we go to construction with just a PFS, or is our financing requiring us to actually go to an FS? We don't know yet, but the PFS would be a bit faster. So you'd add, I would say, 6 to 9 months to these if we have to go to the PFS. Otherwise, I mean, to the full feasibility study. But if we could go on a PFS, the timelines will look something like this. There'll be 3 months or so of drilling that would commence somewhere around July, August, August, September, depending on what we find there.
54:02 After that, the data would flow initially to do the work that's prior to the feasibility. I don't know if I'm still there live for people or not. Am I? Yep, you're still there. Good. Sorry, my screen just did a flick here. And then the pre-PFS work was about 3 months, so 6 months total. And then the actual pre-feasibility study, of course, might be able to go straight to feasibility study too. So it could be some time saving there would be about another 6 months of this, say a year of work before we finished up with the study. And then assuming we're rapid with the construction decision, you know, if we could go faster, if we could line everything up, including the financing, there's roughly 13 months of construction after that.
54:54 So what we see is about 2 years from now, the possibility of putting copper into the marketplace. Wonderful. Thank you so much. Well, so that's all the time we have for today. Thank you so much, Alistair, for taking us through your presentation and the live Q&A. I also want to thank everyone who submitted questions. If you think of a question after the summit, we will be emailing out a short survey and you'll have the opportunity to leave your contact details and the Rockcliffe Metals team will be happy to follow up with you directly. And you can also find more information on their website, rockcliffemetals.com. And as I mentioned, The presentation is available for download under the handouts tab, so do it now before we end the webinar. I'll hand it back to you, Alistair, for the final word. Yeah, so I think just thank you very much everyone for your interest in Rockcliffe.
55:45 Thank you for all your questions. Hope your time was well spent today, and we look forward to updating you on progress as it goes forward.
