Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
15:37 with vein type structures and targets and often challenging topography, it takes a lot longer to do that. And so you're not building your ounces as quickly. And so from that standpoint, you know, sometimes the some investors will look at it and say, well, you know, it's it's small, you know, it's, it's only got X number of ounces, that sort of thing. And so it can be a little bit of a challenge from that standpoint in convincing people that you're on the right track. But it's so that you're always having to weigh these pros and cons, but overall, I like the opportunity that Petraro and underground deposits in general present.
16:29 Excellent. Thank you. John Paul, Metates represents one of Mexico's largest undeveloped open pit projects. How are you approaching the development planning and stakeholder engagement for an operation of this scale? Yeah, so one of the challenges we've had is there's been a change in the processing technique that we're using for Matates. So originally the plan was to go down the POCS autoclave route. And right now with the new technology we're taking a totally different route and everything's done in basically a heat bleach environment. And so one of the things that we've had to work with both the community, the government, and many of our stakeholders is first getting them over the hurdle of understanding what the new technology is and understanding how that would both impact them and what are the benefits for the for the new technology. And one of the interesting things and we do there's a case study in our corporate presentation looking at the ESG aspects of the new technology.
17:29 And we've done a comparison. We've taken Barracks 2023 sustainability numbers, where we've compared PeboVeo, which I mentioned earlier is very similar to Metates, and we've compared that to Veradero in Argentina, which is a heap leach operation. The only thing that's different between those 2 operations, because they use the same sort of energy consumption, they use the same size equipment. The only difference between the 2 is really the processing technology that they use. And so in the pox autoclave environment, the demands on water are much higher versus in a heap leach environment. It's a tenth of the water consumption in a heap leach environment. The same sort of situation happens when it goes to energy intensity and how much energy is required to run a poxotoclave versus a heat bleach.
18:23 It's much lower. It's like a 20th of what's required. And most of the energy for our technology is actually the chemistry is what's driving the energy within the system. There's no energy being brought in to run flotation cells, or to run an oxygen plant or other things. And then and then the third aspect is the GHG emissions. And again, because you're not running all that equipment for processing and the technology is basically chemistry doing the work. Again, in a heap leach environment, there's way less GHG emissions. And because there's no flotation in our process, then there's no tailings facility. So the first thing we've had to do is basically explain to the community and the government that there's no longer a tailings facility. The work that we're bringing to the community with our technology is actually more environmentally friendly.
19:14 And so we will be producing a green gold rather than the amount of energy and water and other requirements that are needed to produce a bar gold from the same operation. And so that was one of the steps. And I think that's a huge benefit when it comes to looking at the environmental permitting, working with the communities, because they can see the benefits that you know the water is not going to the mine the water will be available to the community and the water requirements are much lower and the same goes for pollution aspect of the operation as well as the energy requirements and so getting back to you know how do we you know talk to the community and the government to get them to understand these changes and what it would look like. So we actually created this 3D model that we bring around with us. So we've brought it to the local community.
20:03 And this model basically shows different steps of the operation, 5 years, 15 years, 30 years, and what it would look like relative for the community and for the government so they can get a better understanding of what the project will look like at the end of the day. And that's been a very useful tool to get their minds around exactly what we're doing and how we're moving things forward. The other part of it is, you know, we're doing our environmental baseline work on an ongoing basis. And so we're in the community, we're doing flora fauna, we're doing air quality sampling, water sampling, both groundwater and surface. And so we're collecting all this data to see what the environment looks like today, and then sharing that information with the community so that they understand kind of what the environmental situation is at the beginning.
20:53 And then community engagement is an extremely important part. And we're very thankful that we've had a long relationship with the local Ajito that's lasted several decades and they've been open communication with us. We notify them when we're going to site, when we have different activities happening in the field for the environmental baseline work, for example. And they've been really excited about the opportunity that Metate has offered to them, both today, but this could be either jobs, community partnership with different sort of activities, whether that running the cantina of the future operation, there's several options that are out there and available. And I look at places where I've worked at in the past, where that's been a key part of building the relationship is building capacity within the community to provide support services for the mine, to really interlock the relationship to gain the most benefit for the operation, but also the community, the local government and the state and federal government. So that's the same sort of plan and pathway we've kind of highlighted in front of us.
22:04 And I think that's a key way of moving through the process hand in hand. Thank you, Jean-Paul. Robert, I'm going to circle it back to you to talk about what we're all here for, the jurisdiction of Mexico. While some companies and investors have expressed concerns about expanding their Mexico portfolio, you're actively pursuing the El Potrero acquisition. What gives you confidence in Mexico as a jurisdiction right now? Well, Kyle, as I mentioned, I've been working in Mexico on and off for almost 30 years now, and, you know, seeing different administrations come and go and different approaches to mining. And, you know, the previous administration that we had was quite anti-mining, they made no bones about that.
23:02 AMLO was a very populist president, and whereas I think his successor is far more pragmatic. And, you know, President Scheinbaum recognizes the importance of mining in the economy of Mexico. And she's surrounded herself with a lot of really good people, I think, in her cabinet, and people that are advising her as to pros and cons. And there are people within the mining industry that are engaging with the government and trying to not only educate them on all the benefits that mining brings, not just to the country as a whole, but specifically to the communities, where they're operating.
23:52 And in a lot of cases, I mean, let's face it, mining operates in remote areas for the most part. You don't find a mine in the middle of Mexico City. You're out working in areas where there's not much else going on. I can use for example the Topia mine, like I say it was just 13 kilometers of Potrero and the first mine that we bought with Great Panther. My first time in there was in 2003. This was a sleepy little town up in the mountains with not much going on. When we brought the mine back on stream, that became the largest employer in the town and it was only about 3000 people at that point.
24:39 And now, the mine has expanded, Guanajuato Silver bought it off of Great Panther a few years back. And, you know, they're running, I believe, at about 250 tons per day now. And the population sign at the edge of town says the municipality is more than 9,000 people. So it's tripled in size, you know, in the space of about 20 years. And in doing so has brought, you know, huge economic benefits to, to that community in the surrounding area. And I mean, Topia is literally at the end of the road. You know, you just, you can't go any farther from there. And, you know, you can cut off earlier on and take an alternate route through to Mazatlan, but, or Kulayakan, I should say. But nonetheless, you know, it's in an area where they never did really receive a lot of government support.
25:45 And the town is booming now because of mining. And you can probably go to many communities around Mexico where that's the case. And the other gentleman had talked about their own relationships with the local communities and the Jijitos and so on. And that's something that you build over time. But ultimately, mining brings a lot of benefits to these communities. And that's something, that plus the overall benefits through taxes and so on. That's something that we're just having to educate the government on and then the new administration. And I think they're starting to realize that. And Unquestionably, there are things in Mexico that can be improved in the way that not only the mining companies operate, but the way the government operates, the various regulatory authorities and how they interact, you know, trying to streamline things and, you know, claims management, there are all kinds of things that do need to be improved.
26:58 And, you know, A lot of the people that I talk to and are having meetings with the various authorities saying, look, we're willing to work with you to help you improve this situation and trying to educate them on the best ways to do that. And so, I think overall it's improving. Just since this administration took power, it's only been a matter of months. I think things have already started to improve, they're, they're talking about, you know, granting new permits, and we've seen that happen already with Alamance Gold. So, you know, I think there are a lot of steps in the right direction. And so I'm actually quite optimistic about the way this is going. And, you know, as with any sort of cycles or volatility, the time to get in is at the bottom.
27:54 And you can say that with the stock market, buy low, sell high. Everybody talks about it, but who actually does that? So when you're working in an area, the time to get in and acquire projects and start laying the groundwork and then building them out is when nobody else wants to be there. And I think, you know, for those reasons, I think it's a great opportunity for people in the mining industry, and especially if, you know, when you're comfortable working in a particular jurisdiction as we are. So I think it's a great opportunity for us right now. Well said. Brody, I don't believe I gave you an opportunity to talk about what your experience has been working with the local communities.
28:42 You know, it's been fantastic and it really starts with our team. You know, our entire technical team is built right there in Sonora. You know, this is their home, their backyard. And that's really gave us a big advantage in terms of meeting with the community, getting to know them being part of that community. You know, really proud of the fact that we've been able to hire local geologists from a village that's close by 900 people population. There's probably only been 1 geologist ever that's come out of there. You know, we're happy to have been able to hire her and advance her in her career. And we've actually attracted other workers that have been with us to continue a secondary education in geology and mine engineering.
29:28 And it's about building that foundation within the community. And we also have an excellent ehito that has most of the land ownership across our property and a great relationship with them and really to understand a lot of Mexico and Sonora especially is the history there is a lot of it built around mining. Our local village close by has been there for over 400 years. It's there because of mining. That's what originally attracted them to that location. And it's really interesting to see things develop and build those relationships and see it come full circle where we can look to develop and advance a project that they'll see the direct benefit from. So we're looking to interact with them on an ongoing basis. And we're in the desert, so water is always a critical issue and so we're looking to find ways where we can provide increased access to clean water and give them that advantage as it is primarily ranch land around us and also looking at different ways that we can help out with waste management for the communities around us and use that as a way to provide a better quality of life for all the stakeholders around us.
30:51 Excellent. Jean-Paul, you recently filed an appeal regarding the San Facente 3 concession. Without getting too deep in the weeds of that case, Could you share your broader perspective on managing mineral concessions in Mexico and what other companies should keep in mind? In Mexico, mining concessions are a very interesting topic. At some point, mining concessions could not actually be granted to individuals outside of the country. And then that all changed at some point, allowing for Canadian companies to hold Mexican entities that then can hold concessions in Mexico. And so, for example, Chesapeake, all of our concessions are in mining entities in Mexico that are Mexican entities.
31:43 Some of the things I would suggest for people looking into this, the last concession that had been issued, it was I think back in 2018. So no new concessions under AMLO had been issued or granted for a long time. So it makes it very challenging for newcomers, unless you come and you acquire an asset like Rob's doing here in Mexico. But for people that are looking to just get into it, there's unfortunately at this moment, there's a lot of barriers to entry. And some of the things that you need to consider is, you know, Mexico, the mining laws and all of the laws in Mexico are civil-based. And for people in Canada and the U.S., it's not really that common for you to understand civil law versus common law, which is what Canada and the US are based on. Unless you live in Quebec, the province of Quebec is also civil law.
32:40 So some of the great lawyers that come out of Quebec have a very good understanding of civil law, which a lot of the South American countries operate under. So our legal counsel is actually based in Mexico. So we have someone that's 12 first to help manage and operate the claims. It's very important that you have detailed receipts, expenses, and you have a claim portfolio that's all together. That's all done by your legal counsel and ensured that the full package is all together. So when you go every year, they ask you to pay your taxes on all the claims. And so you go ahead and do that. And then every year, you also have to show the work that was done on the claims that you own.
33:28 And so that is where you need to have really well documented information, both on the claims and also the detailed information on the work that is done. With regards to San Vicente 3, I'm not sure exactly what happened at the DGM, but we did provide them with full documentation of the work that was done on San Vicente 3. And it seems like they've misunderstood the work that we provided to them. And so that's the reason why we're moving through a legal process. But overall, it looks as though things are changing in Mexico. Plan Mexico was just announced about a month ago, and it looks as though Claudia and the Morena government is looking at private ownership again of claims.
34:19 And you can see that things are starting to change in Mexico. I can't remember if it was Brody or Robert that mentioned Almos receiving their permit there, But Aveeno also received a permit for La Preciosa, an underground operation. So that's another example. There's 2 undisclosed other mines that have also received permits that I've heard the grapevine through Pinoles, a little bit more opaque on what Penolias' assets were selected to receive permits. But I go back to December, and in December there was an announcement that they're changing the mining duties as well as the extraordinary tax. And so the mining duties for those that don't know on the call, in Mexico, 7.5% of your EBITDA is taxed when you have an operation.
35:11 And they've increased that by 1%. And then there's the ordinary tax on gold and silver, which is kind of like an NSR royalty. And they increased that from half a percent to 1%. And where's the signaling here? Well, when Claudia came out and announced these changes, she also announced that there's gonna be 16 mines that are likely to get permitted and advanced at the same time as she's making that announcement. So on one hand she's saying that these mines are going to be coming up and we've always seen 2 that have come to permit or potentially 4. I think can include the Pinoles ones and so there's actually if you're looking at the signaling it looks as though Mexico's really turned its position, which is great. And just as Rob mentioned earlier, the time to invest and to get in is before everything rises. And it looks like we're getting into a new environment where, you know, Claudia is a scientist, she's a PhD. She has 100 articles under her name and 2 books on energy, the environment and sustainability of projects. And so she really understands the value of, you know, investing in industries, because that is really how you lift people out of poverty. And that is really how you increase the education.
36:37 You bring people to jobs that are more meaningful. And thankfully in the mining industry, the jobs are high paid for those that are in Mexico. And so it's a lot more opportunities. And there's a big focus on wellness corridors, so more regional areas, and that plays right into the mining industry that has focused on the regional aspects of the country where fewer people are living, the opportunities for job and work flow, and mining really addresses those perfectly. And so it really aligns with the focus of the government in Mexico and where they want to take the country in the coming years. So I'm very optimistic, both on the legal regime in Mexico, but I'm also optimistic that the mistake that happened with San Vicente 3, that we can find a resolution for that too.
37:28 Thank you. Now, Robert, I'm gonna skip over you again here because you provided some commentary already on President Chainbaum's administration. I will leave it open for discussion for Jean-Paul and Robert after, but I do wanna hear Brody's comments on this new administration. Have you observed in Mexico's approach to mining and foreign investment? How do you see mining policy evolving under her leadership? Yes, I think almost immediately we've seen a vast improvement under President Scheinbaum. And I think we'll see a continuation of that. We're hearing from the mining chambers that there is a backlog of permits that have been pending and they're starting to go through those now, as Robert and John-Paul mentioned, seeing Alamos Gold get their permit at Mulatos, Avino, we're seeing again, positive indications that things are moving forward.
38:28 On our side of things in Sonora, obviously there's a lot more open pit developments in that jurisdiction as well. And a lot of pending permits that we've got our eye on to see as they come through. But we are very confident and very optimistic that things will continue to advance and improve as we navigate through that. And that's backed by the mining chambers, by permanent consultants, by the regulators themselves, and even the Senator of Sonora has been quite vocal on their standpoint. So yeah, we think this is a great opportunity to take advantage of that. And I think there's been very positive signs within that as well that we've seen in the market.
39:17 The performance of Discovery Silver, another big open pit Silver deposit potentially in Mexico, a few others, Helio Star, reshaping the old Argonaut Gold assets. The list continues, a lot of positive activity there and a lot of what I would say, champions in the industry investing in the space. So I think they're seeing the opportunity and I think it's a matter of time before the rest of the market sees that as well. Now, Robert, if you have further commentary, please feel free, but I'll provide a fresh question for you as well. There's also the new President of the United States, Donald Trump. So if these proposed UF tariffs are implemented, would that impact your exploration plans or timelines in Mexico? Could you or could it counterintuitively improve Mexico's willingness to expand mining? But I'll let you start off with this one, Robert.
40:18 Yeah, I think I've been thinking a lot about that as well. And I think mining could end up benefiting, mining in Mexico could end up benefiting indirectly from that Because if these tariffs, I shouldn't say if, I mean when these tariffs start to impact or have an impact on the economies, the politicians are going to have to start looking elsewhere. How do they try to protect their GDP from collapsing and falling into recession? How are they going to protect the other industries in the country? And, you know, Mexico, or sorry, mining is something that it has a bit of a mix in terms of your cost structure, but a lot of the costs are right there in country, you know, And so outside of maybe sourcing equipment, everything's pretty much there.
41:23 And so I don't think the mines specifically are gonna be really affected very much by the tariffs and by this new political regime. But because of the impact that they are going to have on other industries, I think we could end up benefiting from all of that because as the administration looks to see where it can prop up their economy and try to protect themselves, mining is going to be one of those areas where they can do exactly that. So 1 fear, of course, would be that they don't start slapping more taxes on to us, you know, saying that, oh yeah, you know, these guys are a cash cow, we can, you know, we can go after them. But, you know, I hope that won't be the case. I don't think so.
42:13 But, And I mean, even as far as sourcing equipment, and this is one of the things that Mexico has been criticized for by the US administration, is the fact that they can source a lot of stuff from China. And when it comes to mining equipment, the Chinese have really improved the quality of the equipment that they produce. And you know, so I mean maybe that's instead of bringing stuff down from from the US, maybe we start sourcing things from China. And it's also cheaper in a lot of ways too. So at this point in time and it's early days, but honestly I see more benefits than negatives on the way things are evolving. So I think mining in Mexico will be just fine.
43:06 Sean Paul, do you have any further commentary on that? Yes, I definitely do. Rob, you're directly on point on this one. I think when people are looking at investing, and I think this is kind of a big challenge with the tariffs and everything. If a company is looking to build an auto manufacturing facility, and they haven't made that investment yet, I think the challenge they have is with this new tariff regime is do I build in Mexico or do I build this future manufacturing facility in the United States? And so when it comes to bringing in new investment into Canada or Mexico, I think that's going to be one of the biggest challenges. But the one great thing about the mining industry, you can't move the mine.
43:54 The ounces are in the ground in that country. There's no decision of where that's going to happen. So the mining opportunities in Mexico stay in Mexico. And so if, if, if I was in that position of, you know, making decisions at the higher government levels, I would be, you know, going directly towards mining as the solution to solving this issue. Issue. And one of the other key areas the government has been focusing on Mexico is looking at moving towards more environmentally friendly energy technologies. And one of the largest ones right now is photovoltaics. And 50% of the Silver is consumed in creation of photovoltaics. So I think if they want to pair those 2 together, that'd be a great opportunity.
44:41 And there's one other key point here. I looked at the 2023 numbers, looking at foreign investment in Mexico And Canadian mining industry has out of the $30 billion invested in Mexico, the Canadian mining industry represents $12 billion of those dollars. And So we already have this really interesting partnership with Mexico. And so I think it would be great to see us to continue to develop ties between Canada and Mexico and to develop the wealth in both of our countries. Well said. Brody, During your recent financing discussions, I'm assuming you had a lot of these questions already, but what were the key questions investors raised about Operated in Mexico and how would you address them? Yeah, I mean, you know, importantly, I think they're looking at outlook and how things could change over time.
45:33 You know, there's 2 camps. There's the investor that reads the media headlines and immediately thinks that Mexico is a negative place to place an investment. But through conversation, I think a lot of times we can persuade them to think a little bit differently or look at it in a different light. You know, the second camp is looking at the opportunities that it presents currently and the fact that we have a jurisdiction with a long history of mining, great infrastructure, great people to advance these projects forward. I think that's the key thing. When we talk about permitting in Mexico and often complain about delays and how things have slowed down, what are we complaining about? Pre-COVID, you could permit a mine within 9 months.
46:31 Now we're looking at timelines that could be 18 to 24 months. Those can improve, but still relative to other jurisdictions like Canada, like the US, this is extremely fast timelines to be able to advance projects. That's something that we can see and we want to take advantage of. That's the opportunity that we see present in Mexico. It has a deep understanding of the importance of mining. I think that history will continue and we want to be part of that. Thank you. Why don't we talk about the opportunity for each one of your companies, specifically as we wrap up here. We'll start with you, Brody. Can you walk us through your key catalysts and milestones for 2025?
47:20 We've been drilling actively since December. We have currently 14 pending results for 14 drill holes and we're looking to get those out fairly quickly here. Those will be the first catalysts that we see. Some of the drilling is RC reconnaissance drilling on our expansion area that we were able to consolidate over the last year. This will be the first drilling ever on that land package. If we hit and are successful there, I think that'll have big implications for us. Also, using that drilling to build out a made in resource estimate for Polar and rolling that into a PEA as quickly as we can. I think currently in this environment, it's important to showcase not just resource size but also the economic viability of the projects with the current commodity price.
48:14 That's going to be a key focus for us. In tandem with that, we have ongoing exploration. We consolidated over 22km2 last year. Early surface exploration has been very encouraging and we'll start to test those target areas with drilling this year. Then the test mine, I think that's going to be an important catalyst for us, and an exciting one to be able to share that progression as we go through that, that whole process. And ultimately, like we did in 2023, poured Dore again, but this time, hopefully on a bigger scale. We continue to showcase the project. At the end of the year, we're actually then starting to look at submitting our environmental impact assessment.
49:01 That'll start our process for application for full-scale mine development at Grand Pilar. Excellent times. Robert, for Pinnacle Silver and Gold, it's going to be a pivotal year for you. Why don't you share with us the catalyst for 2025? For 2025? Yeah, very much so. It will. I mean, this will be our first foray into Mexico with Pinnacle and got a great project to work with on that front. So, you know, we're just as I mentioned early on in the program, you know, we're just in the final stages of the acquisition of the project. And I mean, when I say final stages, I mean, we've submitted all the documents to the Stock Exchange, and just addressing final comments right now. So I mean, we're literally days away from hopefully getting final approval.
49:54 We've raised the $800,000 that we announced. So we'll be cashed up and ready to go on the project. So, you know, within the next week, 2 weeks, we'll be having all of those, you know, all of that news coming out as to, you know, finalizing everything and then getting going, we can get going on the project immediately. And as we, the nice thing about this project is, with looking towards short-term production potential, we can be advancing it from that standpoint at the same time as conducting the exploration. So, you know, we have all the historic underground workings that we'll be getting in there, rehabilitating those, making them, making sure that they're safe enough for the workers to get back in, doing some systematic sampling through the underground workings to get a better understanding of where the mineralization is, what the controls are, what the actual grade is, and doing all of that work at the same time as mapping the project on surface, getting a better understanding of more projects, scale and regional scale, structural controls.
51:10 And while we're doing all that technical work, we'll be cleaning up the old plant site and the camp infrastructure and everything, getting all of that ready. And then we can start looking at assessing, you know, what it's gonna take to refurbish the plant, you know, procuring equipment and getting that ready to go. And also in parallel, starting to do baseline studies for whatever environmental work needs to be done to secure the permits. So there are a number of things that can be run in parallel on this project and then all of that, you know, we can start the permitting process for diamond drilling as well, such that a few months down the road, we can actually start the first ever diamond drill program on the project.
52:01 And that will be initially targeted on the underground workings and trying to get a better understanding of the controls on the mineralization and what it might look like. And we have no idea what these things look like along strike or at depth below the lowest level of the workings, which just goes in from surface. There are no shafts or anything. So you're just looking at it straight into the side of the hill. And So there's a lot of work that can be done there as well. So all of these things can be run in parallel. And so there should be a really robust news flow, I would say, through the course of the year and advancing this project very quickly.
52:48 And as we continue drilling, we'll ultimately get to the point where we'll consider what kind of a resource estimate we might be looking at and then see where we're at with the whole permitting process. And, but then, you know, that's a couple of years down the road. But, but yeah, there's, there's lots, lots that we can do in the short term. So there'll be lots of, lots of news flow, lots of catalysts. So I'm excited about it. Nice. John Paul, what are the key catalysts for Chesapeake going forward for 2025? The key area right now is the technology. We continue to advance the technology. On the back of the results I mentioned earlier, back in October, November, we actually have prepared a brand new sample from Iktates and shipped it to our lab.
53:40 The original work, we're going to expand the size of the columns that we're looking at to scale the test work up to the next level. So we're looking at 12 feet columns by 12 inches. So they're much larger than almost double the size of the original columns that were done earlier. And the whole point of that is to continue to scale it up and to move through the commercial process. And so that material is being prepared right now to be placed in columns and to start that next phase of work. Along with the technology, there's a couple of other things that are happening. I mentioned that there is other opportunities out there for the technology. 1 in 4 ounces globally. And like I said earlier, there's 2.6 billion ounces. So that's 580 million ounces that are considered refractory.
54:30 That's looking at $2,500 gold, that's a $1.5 trillion market. And so this is a really good opportunity. We have a technology that produces green gold, that's environmentally friendly, and there's no tailings facility. You know, that's a great opportunity for a lot of the other explorers out there. And so we're looking at a partnership opportunities to continue to advance the technology and look at other projects to run the technology on. So that's a key area that we've been working out. And really that all evolves out of the fact that last year we consolidated the ownership of the technology. And so now it's time to look at both the commercialization of metates, but also look at opportunities globally for the technology. And so that work is ongoing. The other aspect of the business, obviously San Vicente 3, that's a major catalyst.
55:21 We're continuing to move through the appeal process, but looking at alternative ways to find a resolution for the situation. And so that's ongoing right now, and I'm in communications with various parties to advance those kinds of discussions. And then finally, I never talked about it, but Lucy, it's an early stage exploration project. We've been drilling at the last 2 years, high grade, right near surface, 700 meters strike length, scar and deposit. We're continuing to work on that. Right now, we're in that in-between phase of consolidating the data from the previous drilling, setting up a platform to prepare for that next phase. So one of the things as an exploration geologist myself is you wanna make sure that you understand the lithogeochemistry, so all the different lithology types, create a library in house so that when you do expand to a larger program that the geologists on site that are doing the actual logging of the core, that they can take a sample from the core box, go up to the library, do a comparison to understand what they're looking at.
56:31 Because generally at this point, setting up the proper systems and infrastructure will help to ensure that the data that goes into the system thereafter is well defined and orderly to get the most information out of that next phase. There's structural geology work that's being done looking at the structural aspects of the business of the property. As I've mentioned in the past, we did mag and IP of the property and there's coincident targets on the property. And so getting understanding how that scorn fits into those deeper systems will help to understand the mineralization and where it's coming from and also where to look for for more mineralization. The other thing highlighted in this exploration program, we had a soil geochem program and it's highly successful of delineating additional mineralization to the Northeast.
57:25 We're looking at doing a more expanding process on that. And then following up with the metallurgical work that we announced last year around this time. Just going back, Lucy is an oxide deposit. We achieved up to 97% Gold recoveries and standard bottle roll tests within 24 hours. Doing additional work on that as well. All of that's been happening in the background and hopefully there'll be an update soon too on Lucy so we can keep the market just as excited as I am about it. Excellent. Gentlemen, thank you so much for the great conversation and thank you everyone that joined us today. Our team will make sure that the replay is made available shortly. You can find it on our website, six.com or on YouTube. But gentlemen, thank you so much for your time. Really appreciate the discussion today. Yeah, thank you everyone.
58:15 Thanks everyone. Yep. ♪
