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Right gentlemen uh I believe we are live welcome everyone to our live Q&A here with Toano gold great to have you here thanks everyone for joining and with me are Julio and Jeremy from Toano and my co-host Ste yes welcome everyone to the Toano gold live stream now two uh
Updates up front real quickly uh number one is actually that we’re here for you and uh if you have any questions to ask to Julio and Jeremy please do not hesitate to ask them in the chat message board to the right of your screen and then second we actually already have
Done quite a bit of content with Tucano gold we’ve actually also been onite there produce a bit of content there with Julio even as well so that the playlist of toan videos will be in the description down below so after this live stream is over you can head over
There and watch those videos immediately after now AR yeah let’s start with an update Jeremy Julio well thank you very much Anie and Stein this is our third event together all four of us we really appreciate the support from Battery commodity group you guys are amazing
Hello everyone I’d like to hand it over to our country manager Julio and uh CFO to give you an update on um our our production plans as we go into producing gold in in April mate hi thanks Jeremy AR and S let me just say hi to my Brazilian colleagues H to um
Um so yeah just let me start with the update on the side where we are uh we have done the deing dewatering of the ab pit so we mobilized already one bulldozer is now working to clean the area there uh also on the low grade material we are mobilizing in the next
Days some excavators articulated trucks and another bulldozer to really start the operation we have ordered uh all the consuma that we need to run the plant uh so we are pretty ready to to work that sounds exciting Julio and perhaps you can quickly explain why we’re waiting with the restart of the
Plant until a couple of months from now uh we are now waiting like we we order the consumables the cyanide call we already have the metab bifi the the balls for the mes uh we are turning on the energy uh it’s like back to 10 megawatts we are nowadays at 2.5 so this
Is the only thing outstanding at the moment on the plan to run uh while we are working on the on the fleet that we need to to start loading the feeding the plant all right clear picture regarding that I suppose quick note for the viewers at home please do not hesitate
To ask your question in the chat board to the right of your screen we’re here to answer your questions now Jeremy perhaps you can explain the importance of this restart of this gold mine that was previously operational in this favorable current gold environment oh Stein it couldn’t be a
Better time to turn on Min Tano again the Market’s above $2,000 uh we’re seeing 10,000 real an ounce um timing is uh it’s important you know there’s a little bit of luck to this and I think you know we hopefully will be doing our first shipments well
Above $2,000 an ounce the market has been incredibly strong let’s be honest I mean I think it was eight weeks in a row where the price of gold stayed above 2,000 it had a small dip this week and ended Friday um back above at $22 so yeah we’re really excited to
Bring Mina Tano back on um the uh the ability to ramp up quite quickly the mill is you know to remind everyone on the call it’s a 10,000 ton a day Mill ab1 is pushed back completely thanks to the previous owners great Panther so a
Lot of the work’s done um I know Julio and the team are working on a a reline of the SAG Mill that uh means that both Mills will be operating perfectly from day one and we just want to make sure that when we start we don’t have any
Stops we just go straight for it and our near-term Target is 6,000 ounces a month over the coming months and then slowly build it up so remember this was uh for everyone who’s not familiar this used to produce around 120 to 140,000 ounces a
Year so it’s a big it’s a big big unit it’s uh it’s highly leveraged to a rising gold price and the timing couldn’t be better okay and Jeremy we’ve got our first question here for meai how is the current status of mina Toano operation and when do you anticipate the
Restart I’ll hand that to Julia yeah thanks Jeremy um yes now we are mobilizing the excavators uh and trucks uh so we are also ordering the consumables so we are fitting the plant uh end of March beginning of April and then we can start like uh having some gold uh throughout the process
And perhaps you can dive a bit deeper into those what steps will actually be taken on the short to medium term of course we know from what you’ve told us previously we’ll start with AB what are the steps after that so yeah thanks uh good questions like we are starting on
The ab uh then uu North uh just in sequence are those that stripping was already done uh so the our body is exposed so it’s pretty easier to start production on that uh while we start the push back of the euron Central South where we have some good uh Reserve there
Uh that we can just be do a big boost on the on the production all right we have the next question from the viewers at home Bianca Zoe uh lined up can you provide an update on acquisition of mina Toano because of course this property was uh acquired through bankruptcy and its
Impact on the company strategy going forward yeah uh yeah uh well Tano gold was the the successful beid with uh working with Julio and the team at Mina Tano to acquire the asset out of judicial reorganization we acquired it uh the 20th of October it was a 12-month
Process it was we worked extensively on that transaction for 12 months um so it’s 100% owned business and um uh we have only um 52 million shares out right now in terms of capital structure um that micro around 60 million shares in the near term so if you put that in
Perspective Stein that seed round was only 50 Cent so uh the valuation even at 60 million shares is 100 um that’s 30 million Canadian dollars for a business today that would cost 300 million us to build uh let alone all the the infrastructure the resource the 2,000 square kilometers of tenaments and
What’s really important for us is to bring employment back uh into the state of the beautiful state of amapa um Min Tano was the largest employer in the state and uh that’s our goal this year to to do to come back and be the largest employer and bring employment to that
District which is a beautiful part of the world and you you know it you’ve been there yeah and so just to recap that we’ve got basically different impacts coming here together so one is the replacement cost where obviously you’ve done a great deal with the creditors creating that additional value
Second is the go price which is now of course much higher than it was a few years ago and then operational Excellency so setting up a new mind plan bringing in the expertise from your group from livea and from pil that also will make a difference because I mean
Just because there’s gold in the ground doesn’t always mean that you will have a successful and profitable mind absolutely Anie it’s really um the combination of all of those features makes I think this potentially going to be the most one of the most successful listings on the tsxv this year when we
Come out and we’re definitely in that process of listing the company by the middle of this year to give our investors that liquidity event and to to uh really enjoy that reating that I think we we will get when we listed in public yeah and we’ll come to that topic
As well just coming back here to a question from yens how many people work for Tucano Julio maybe from you um nowadays we have 150 uh we just hired the some uh some people to get back to operation uh one mind manager a lot of people for the lab uh also to maintain
The pl so we are like now wrapping up with the contract hiring the people in order to to operate uh so uh one question that I’ve seen here also Arie is that uh we are also giving priority for the local team uh where we prefer to
Have people in amapa than any other any other place in Brazil of course the technical part is important because we have to run the the mine with safety uh so uh but our priority is the local community Julio quick uh oh sorry I was going to say and Julia quick full up
Question on that one actually from Adam do you have an employment projection uh going forward for Toano gold good good question stay like we have been operating the mine with 1,500 to almost 2, employees and subcontract direct and indirect uh we want to be in a lower
Level than that uh we don’t want to have so many employees uh as I’ve mentioned in many many times before and and call uh we want to keep the cost very low we want to make sure that the returns of on the investment happens so and this comes
With a very good discipline on cost uh which is not only on the employment side but uh on the buying consumables having uh good deals with suppliers and everything so uh but yeah it’s like maybe like 1,00 1,500 back uh would be great yeah I mean absolutely makes sense
That you want to bring in a better efficiency with that transfer of expertise from the other operations within the the live at Tucano pill group so that makes sense um guys thank you everyone for sending in your questions I mean we’re struggling a bit right now we
Have a bit of a backlog so please cut us some slack right now coming right next to the next speci from Laura um what’s the weirdest thing you’ve come across in the Tano mining area have there been any surprises buried like Platinum so have you discovered anything
Else Beyond gold I guess actually can I say one thing uh because obviously Julio’s been on site for for a couple of years the big surprise to me actually was I didn’t realize we have an iron or Mill in our gold circuit and uh this
Week we’ve spent a a lot of time um talking to the guys out of Perth Australia who built this circuit and what it is is um we basically Tano is a very large sort of iron or sort of system with gold as a high-grade gold
System and for there is a a plant inside our circuit where the tailings uh basically come out of the goldmill and they go through the this beautiful magnet iron oril plant and produce effectively a 66 to 67% iron or concent tra um and it hasn’t operated
Since 2014 but it’s become a big Focus for me and I know Julia’s been on on two calls this week as to just what that potential uh is uh for um basically mean kind of developing a very profitable byproduct that would substantially reduce the group’s overall um all-in
Sustaining cost per ounce um Stein you you will you’ve seen it yourself I mean have you got any pictures or anything there that you you you wanted to show the guys when you were there that was my big surprise at least yes sure so we were actually told by the people on side
That uh this uh plant wouldn’t be the the most interesting one but we’ve managed to shoot a bit of footage uh of this plant which you asked me to prepare for the session uh this is the the iron plant that you’re talking about very small plant but apparently potentially
Very lucrative but uh you’re about to find it out correct Jeremy you know uh byproducts are a very interesting subject if you’re lucky enough as a mine to have a byproduct now obviously Mina Tano is a gold company uh there you see in the video there the two big ball
Mills from the gold and as you fly closer over there you see the circuit for the iron or but basically um this plant was designed to produce a th000 tons a day of high-grade ion or magnetite um it was producing about 150 tons so we we’re trying to work out why
Didn’t it produce 1,000 tons 1,000 tons at today’s price is um about $130,000 a day of salable product to give an example so it’s a very meaningful potential Revenue stream so we think the reason this plant never really ramped up to a th000 tons a day is because the
Feed that was coming through um as at the back end of the gold circuit was mainly oxide it was hematite ion or it wasn’t the lovely magnetite and I wouldn’t Hazard to guess if they the previous owners Bell had stuck with this wonderful idea and I think it was a
Wonderful idea that someone in Bell resources in Australia came up with they spent $14 million building it um I I think it’s because now um you’re you’re in the we are now basically mining much deeper so we’re having magnetite or rather than hematite and I think that is
Now the prime time to turn this Mill back on so yeah Julie and I have been on calls with uh the Boys called Min ryzen out of Perth who uh they developed this plant and I had to I had to try it was very hard for me to find them and track
Them down and it’s the wonders of LinkedIn because uh a group called promet engineering proprietary limited built this back in uh 20121 13 it then disbanded and we’ve now found the crew and we’re bringing them back to do initial studies to restart that so you
Know at 1,000 tons a day um they think the cash cost is only $10 a ton $ a ton would make this little plant um the lowest cost iron oril Mill in the world and it would also make it importantly the greenest because the emissions that come from this production are basically
A fraction of a standard iron orine because it’s a byproduct coming out of the mill and I think if you show Stein you might have a map to show how far you’d have to truck this to the to the port of Santana and and we still have
Lots of work to do um because the train line doesn’t work anymore um from the Anglo mine but it’s a 25 kilometer truck I think so you produce it at $10 um we think it’s about $25 to make that Journey along that road so it’s $35
You then load it at the Port of Santana um and produce hopefully with a regrind um with potentially a 70% product so a 70% product into the Middle East cost another $20 loaded onto the Amazonian River and over to the seas in the Middle East so all in you’re looking
At say let’s call it $55 a ton landed into your German Mill or your middle eastern Mill super high grade super green uh iron or and the price is about 150 because of the premium so that’s uh let’s call it $90 or8 even just be conservative let’s call it $60 profit
Per ton and you making in theory we could make $1,000 a day sorry 1,000 tons so that’s what’s that 60 $60,000 a day of clear profit uh times 30 what’s that St per month 1 $1.8 million is an example of how that can reduce your overall cost on your gold production so
Yeah that’s been definitely a surprise for me I’m sorry for the very long answer no and talking about reducing your cost you’ve also just um sealed the deal on Silver royalties with the crown silver royalties so that was quite good so that you basically selling the silver
That you also recover as part of the gold mining process to a third party who then takes care of selling that on of yeah kind of basically making sure that you utilize that to the maximum and from what I understand with the iron ore you could do something similar or sell it
Off as a separate business all together yeah that look that we we’re early days I don’t want to get ahead of ourselves but I do know um there were a lot of really great intentions when they built that and honestly I would be I would have as a guess if they’ actually stuck
With that ion or production um and just uh kept a second stream of Revenue so Dr risks your gold production it might have been a really different story for great Panther because you have such a steady Revenue stream you remember the ion or Price spiked to over $200 a ton uh back
In 2020 um you know the numbers in inor went at so low cost at $10 I give you an example Rio tinto’s ior cost $22 um a magnetite producer of similar grade like Savage River in Tasmania their cost is $70 So in theory this plant will produce it at $10 and we know
When Bell was running this little iron or Mill their their cost was only $4 so these are staggering CS of numbers but that we do need to do a lot more work and I don’t want to get ahead of ourselves but I I I do remember once I
Went to a trip to uh to uh Kennicott in um the middle of America America kenot riotinto mine where the Mormons live where’s that state where all the Mormons live in America you can’t UT it’s a place you can’t get a drink which is actually a
Good thing and it’s uh the kot copper mine is actually as a bit of a um it’s the deepest hole or the biggest hole on on the planet so if you go if you’re from the Moon you can see the kott copper open pit now why I’m bringing
That up is kott also has a byproduct called malanum or what’s referred to as Molly and when the Molly price is strong sometimes the the actual cash flow from the Molly from a very small plant uh that sits to the right side of the gates when you drive into the ukar kot copper
Mine can make sort of 1020 million a month just from a very small byproduct so byproducts when they work can be absolute bonanzas for operations like me and Tano that’s that’s uh anyway I won’t I won’t talk go ahead get ahead of ourselves but that’s what I wanted to
Let you know let’s just recap here a lowest cost iron or Mill in the world and a very very good footprint in terms of ESG or very high ESG score meaning minimal environmental impact um but yet few future forward looking statement as such so we’ll see how that plays out we
Have quite a few questions coming in so um suggest we do a quick speed Brown here Julio on HR there have been a few questions now coming in on hiring are you going to hire more what kind of Roads do you need what’s the Outlook who could people contact who should they
Reach out to in order to get in touch with tuano uh thanks AR let me answer that in English and Portuguese English very fast in Portuguese because probably uh the most uh Portuguese audience is interest on that uh so we have a specific web uh email address uhan resource.com
Uh where they can send the the CV so let me quickly do in Portuguese um sounds about right okay right then we have the then we have the next question lined up I suggest we go into a bit of a rapid fire mode currently there’s about 250 to 300
People watching and we’re getting quite a bit of questions so let’s try to get through them quite quickly uh next up question from V what will will be the biggest cost over the next few months and what will be the expected running cost for the foreseeable
Future Julia do you want to yeah so uh the the cost the cost um cash cost uh will be very low because we are having the own Fleet instead of sub contractor so we presume that will be 1,400 1600 in the beginning uh because
We have a lot of items to to resume uh the operation uh but definitely the current uh forecasted uh uh cost structure is going to be much better than before while uh when we were operating at uh Toano okay next question from Daniel are there initiatives or studies being
Conducted at Toano to assess the commercial viability of iron or recover during gold extraction yeah I think we just talked about that uh that there is the potential longterm for the lowest cost iron or Mill in the world with the green high ESG score okay then we the next question yes next
Question from Shuff I believe I pronounce your name in correct uh correctly what are the company’s long-term grow strategies in the Brazilian gold mining sector uh well I think I think it’s fair to say right now uh we’re very focused on making Mina Tano an amazing success
We do have our po business that’s in in the state of goas but that’s a completely separate business and I don’t think we’d ever really put those two together together um but there’s lots of opportunity I guess in the north of Brazil and I guess Julio and I and the
Whole team will always assess uh m&a opportunities as they come along but at the moment we’re just thinking about producing gold pouring gold at Mina Tano this year and making a really high cash flow in business all right that sounds about right next question from Oscar K how
Does the current gold PR influence the company’s investment exploration and expanding activities uh it certainly helps you know like I must admit I do watch the gold price um more than once a day and um but at the moment I think until we are generating really good cash flow we won’t be
Embarking on a huge exploration program but I know Julio’s just uh made a payment for the for the first drill rig for Lola amarella which is really focused on trying to find the next open pit uh we have several open pits but we want to find a new brand new one and to
The north of eurom to North is Lola amarella looks in a very nice targets had a lot of holes already shallow holes put in like down to 20 M uh but this drill rig will allow a program of 50 to six 50 to 60 meter holes to to give us
That opportunity to find a big open pit uh project as we also as you remember we’re going underground eurom North so there’s one great thing about this operation is there’s no shortage of potential feeds it’s a very big um very big system so at the moment though we
Just want to get in production we just want to get uh um cash flow going get things right initially and it’s a very important time for us uh to make sure the little things are done uh properly okay next question from Olaf there is an
Iron or Mill as well as Bell shut it down in 2014 why do they do this and what are your expectation for the iron or Mill going forward so it seems that the iron or Mill seems to be a Hot Topic sorry guys I’m I’m a little bit uh
Excited myself but uh look Bell closed in 2014 I think because the inor market collapsed to $35 it’s now for that premium grade nearly 150 so and I think also they weren’t producing anywhere near the th000 tons a day they’re doing about 150 and I think um the reason we think is
Because they’re mainly processing oxide material which is at the top of right at the you know the the oxidized material they weren’t producing the L the deeper stuff the harder Rock the fresh rock that we’re now focused on so um I think they just decided it wasn’t and also the
Third reason we shouldn’t forget in 2014 they were making incredible money out of duckhead the super high-grade gold mine that we still have and we’re very excited about so I think at the end of the day it was just a bit of a distraction for them but if they’ stuck
With it I’m sure they would have got to a th000 tons a day um and slowly build it up and I do yeah I know men RIS in per are very excited the you know Brian uh Jim and Steve have been tremendously helpful and we’re going to send 20 assay
Samples off to Perth to get those tested in the Davis uh tube test results that ALS do in Perth but we also have our own lab that tests magnetite o so you know we’re probably going to do several hundred more tests in all the different areas like the tailings dam in all the
Different pits um historical drilling I mean we had have 35 40 million tons of potential feed just in the tails that could be reprocessed back through the iron all circuit so you know could it one day go to 2,000 tons a day why not um and that’s you know but again Jeremy
The community is killing it with questions thank you everyone for joining more than 300 people absolutely amazing I think we’ll do a separate session on the iron or mill on the INR opportunity we’ll also do some recordings on that and coming back to the questions um
Is there a way to invest in South Africa because we have the biggest mining gold we just need investors um do you have any thoughts if you compare South Africa with Brazil in terms of the opportunities in gold mining look both are amazing countries I used to work in
South Africa and the DRC I haven’t been to Africa in 14 years but geologically South Africa is the alltime greatest of all time right I mean they say one in 5 ounces above ground came from South Africa it’s just a geological fre freak so I can’t really answer any more than
That we don’t have any plans to go to South Africa at the moment but I’d love to have a holiday in Cape Town this time of year but it’s a a wonderful part of the world and has its own challenges as well you know every every country has a different
Challenge definitely true we have next question from Lucas Lucas are there any plans to adjust the production strategy at Min Toano in respons to the gold price trends I think we’ve already entered this one quite in depth Johanna said C asked so it means it’s only gold
Uh at the mine no other materials we’ve talked extensively about the iron or plant so there’s definitely also iron or associated with this uh with this gold plant and the silver royalties so to deal for its uh silver production yes so then we have actually a question that
Came in in in Portuguese and was translated uh I see your medium-term production Target is 100k ounces per year which is close to the previous operator’s annual gold production what sort of company valuation would you like to see on the reaching this target taking into respect the previous operators valuation it’s a great
Question Julia can answer in Portuguese but just remember when this was part of great Panther they took the market cap to 350 million Canadian our total shares fully diluted out right now is only 52 million and the last round was 50 cents so 26 million Canadian so we like to
Think that the potential upside and re rating is massive uh for Tana gold but as it was in Portuguese Julio maybe a quick comment from you in Portuguese all right thank you Julio next question from Mrs Finance how does Toano gold plan to leverage techn technological advancements in mining for operational
Efficiency that’s a great question Julia have you got some some thoughts on that no can you repeat the question sorry S I didn’t pick up that oh that’s quite all right it was regarding um does Theo gold plan to leverage technological advancment advancements in mining for more operational efficiency going
Forward uh yeah we are always uh investing on the technology on the plant uh also the we have recently uh done some analysis on the automatic uh loading the cyanide in order to reduce the consumable of the cyanide to be more efficient we are also working on
Thinking on uh as to replace the ox the liquid oxygen uh also to be more efficient on the ox siding the material uh so we are always investing on technology to be more efficient uh not only in terms of equipment but also in terms of process that sounds
Good yes then we actually have a question from yance another one thank you for your participation in this in the session the question is what kind of IPO price are we looking for with Toano gold Jeremy and Julio well if if Julia and the team can
Hit 6,000 to 7 ,000 ounces a month and you’re starting to head towards 100,000 then 100,000 ounces in this market um should be around 250 to 300 Canadian and let’s just call it 52 million shares for argument sake it’s a two to $3 stock um if any investors are
Interested in uh talking to our our head of invest relations Edward B on participating on on getting involved in the investment by all means go on the website Tano gold.com and you’ll find Ed’s details there and would love you to join the the journey so okay and then the next question
Coming up here from old gold what do you think the underground feed grade will be uh that that’s well that’s a great question I mean eurom North I must take my hat off to Great Panther they did significant Drilling and and work and feasibility studies of eurocom North did
Over 400 holes Diamond drill holes spent a lot of money doing that in the last three or four years and um the grade looks to be about four four and a half grams consistently head grade now that’s a great grade for us at pil we’re doing
One to one and a half and uh I think that could be a very lowcost business for a very long time and the theory goes and I really believe in Paulo and Lis and our whole geology team that every pit that’s mined uh to a certain depth uh continues underground and urom North
Is just one of those seven pits and there’s no reason why the whole system doesn’t continue all the way back 7 kilm back to the mill and and and Stein you saw it yourself you know you could see the huge potential of the system that we’re we’re mining today we will be
Shortly mining yes definitely we’ve actually also done a video with uh someone from geology team um that video is in the playlist down below so definitely check out the exploration potential that Toano gold has that’s what the video is called I believe then you have the next question from hendrik
How’s the IP process going and what are you targeting TimeWise we’re targeting the middle of the Year we’re talking to a shell group right now we’re trying to uh we had a pre-filing call with the tsxv and uh we’re very focused on um getting a listing we know our
Shareholders are Keen for a listing you obviously want to be sure the Market’s good and you want to be producing good numbers before you go out and that’s our focus is to just at the moment at least focus on production do the work needed for a listing and uh and when that time
Is right I’m sure our shareholders be very well rewarded next question coming up from wo I hope I pronounced your name correctly is it possible to buy shares pre IPO so before you’re publicly listed absolutely go on to Tano gold.com you’ll find Edward Edward’s details I heard of
Investor relations please reach out to Edward we uh we’ve built this business our group has got three mining go group companies Tano gold P gold and livea gold and we’ve done that through the amazing support of nearly 600 um sophisticated Mom and Dad investors so
We don’t we don’t have um you know we’ve never had a big large investor that’s helped us on the journey but we’re certainly talking to one or two at the moment but um we we we have built this this company from the success of people that have joined the core today so we’re
Really uh very grateful for all the support that will be received excellent then we’ll ready next question we’re going through them rapid fire as as we shoot from from jents again are institutional investors already on board Jeremy and Julio no not on Tana go no we’re just as
I said we are we’ve we’re entirely retail at the moment we don’t have any institutional investors when great Panther was trading and it was very successful three or four years ago I think Julio there were some big names out of London like ruer gold and um investtech but at the moment we’re we’re
Really um we’re unknown we we’re we’ve been forgotten about and I think we’re going to come out and surprise a lot of people that sounds like a good forward-looking statement Jeremy and next question here from alesandro Evangelista could you give us a highlight about the plan for near area projects Tores Yona amarela
Tapi jul um yeah so that that that’s a very good question so uh we uh focus on the on the shortterm uh to in order to have more NE mine uh production like a new open pit like where where we can operate open pit and underground at the same
Time uh so the probably the first Focus will be the near mine on the top seat that has a huge potential you have yunov being very explored ab and in the middle we have not done so much ding so we probably might do some dring like for
The next two three months uh and then after that we are going to mobilize the the rig that we bought to L marel as Jeremy mentioned that we can find a brand new pit that is not even uh forecast it’s going to be a huge upside
So very anxious to do a Dre hole and find some good grades there and it’s Gonna Change totally the story that sounds very exciting Julio thank you for your answers on that one next question from safier safier what plans does t gold have for a public listing timeline we’ve already answered
That one one then we go into doggy can you discuss the potential for underground mining at the eurom North project and the estimated I think ounces produced from that area yeah the underground would do probably 50,000 ounces initially at eurom North at four to five grams but the potential to just
Grow that is significant because it’s all about underground working and development um like I said at pal in goyan we in goas we we mine a much lower grade and the potential we we know the potential when you get good grade at that 4 four and a half you can really
Start to grow quickly um I know Julio’s and the team uh sort of looking we’re looking to restart go underground at least to start development uh probably middle of next year maybe even sooner if the gold market gets good and we can find uh and things really start to run quickly for
Us then there’s no reason we probably can’t do underground development later this year the great thing about underground development in the Amazon is it’s not affected by the rainy season so um it just uh yeah you just march on and it’s uh yeah the potential is huge absolutely massive underground
System okay yeah that sounds uh really good Jeremy and the question from Johnny we actually talked before on LinkedIn and Johnny I promise you that even the ESG questions will be put forward here so guys this is not scripted um how does Toano go plan to address environmental concerns associated with mining
Operations well I think just on the inor it will be the cleanest and greenest I in the world so uh that ticks a that that ticks a box in fact it’s the only Mill of its kind in the world that does capture iron ore from tailings and produces a super high-grade magnetite
Ore with very little carbon footprint so on that front I think it’s uh Best in Class and in Gold Julia I think it’s fair to say we maintain extremely high standards on the environmental front it’s very important to us as a group and uh we take it very seriously
Yeah I think juli maybe a comment from your side just on what you’re doing with the tailings in order to ensure that there’s a minimal impact on site yeah no as Jeremy mentioned like we have very good standards on the environmental uh policy safety and everything uh also the
Community relation so we have transferred the training line to inside of the training Dam uh which gives a big uh uh um like avoid a lot of environmental risk uh so so like we have very good practice on the estg great thank you for your quick note
There Julio then we have a question from David Williams can you provide insight into the challenges and opportunities facing the gold mining industry in Brazil going forward yeah I think uh I think Brazil went through a patch of where things were difficult for gold mining partly because the currency was very strong I’m
Talking 200 14 to 2019 and I think the Tailwind of a a favorable currency is really important for the industry because generally speaking you know you that is really important to get that margin expansion um look Brazil is a great jurisdiction for mining you do have to go through a
Process we understand there’s a lot of process but we you know there’s uh you have to do it anywhere in this world and um I think you’re going to see a real boom back in Brazilian gold mining so it’s uh it’s probably been a little bit forgotten about I think as people have
Rushed off to other P grade areas but let’s be honest people we um in Caro gold we have duckhead which was the highest grading gold mine in the world for three years between 2012 to 14 and the grades were as high as 59 gram in fact duckhead pulled out 20,000 ounces
In one month at 59 G which is unheard of today and it’s open in all directions poo and Lis and the whole team are really excited about drilling duckhead and um yeah we’re just um that is potentially our lonel Messi or you know young Christian raldo looking for a club
At 16 years of age tell us the exciting stuff that the dreams are made of Jeremy definitely we actually have a question of old gold uh regarding dugad the question is is duckhead minded out um you can interpret it in two ways is it currently being mined or is it already depleted uh
Jeremy and Julio please feel free to answer yeah has a massive system there and I recommend there’s a great video um that on Lea frog where Roberto Cobra our goo on on Lea frog just shows just how big the system is underground and um I would say duckhead the only mistake that Bell
Made when they turned on this operation in 2013 was the fact that the gold price started to fall consistently for the next 5 years so there was probably a little temptation to rush a lot of things and I think they may have rushed duckhead they pulled out a lot of ounces
In the pit but they never drilled underground and um but it was it was it was a very very high great um mine and we think it’s a huge system to the south of our our Mill so yeah watch this space I we we’ve only got one drill rig so we
We’re going to start at Lola amarella first and then move to duckhead uh later this year probably yeah and like we discussed in the beginning it’s also a combination of you had a lower go price the real Deval against the dollar massively over the last five years then you had operational shortcomings which
Um reduced the efficiency of the mine and if you take all of that together then um a mine even in Brazil which is very favorable for gold mining can go out of business yeah look it’s it’s everyone’s facing margin pressure and cost pressure but I would say look I
Think Brazil is the greatest country in the world I think the people are amazing incredibly highly skilled miners we can’t wait to bring a lot of those back to mina Tano and it’s a land of opportunity and I just love we all love Brazil um the
Opportunity to if this I’ll give you one example if me and Tano came on the market in Western Australia there would have been 50 very well spoken promoters that would have bid for this and um we were just very lucky that they didn’t come to to Brazil so it’s a the system
Here is massive if it was in Australia someone like Gina Reinhardt or Andrew Forest these high-profile billionaires would have bought this mine so um yeah it’s a really exciting opportunity yeah it is really EX for us that we could take part in your preo financing I think it’s also really a
Nice opportunity that retail can take the stage here which normally at the early stage is not possible as you said there will be other people jumping in and taking the whole cake before the buffet is even open you know Annie at the end of the day Mina Tano is the most
Advanced gold restart in the in the industry there’s nothing like this it’s ready to turn on and as as Julio said we are mobilizing Fleet we are just about to turn things on and we have this extremely lowcost iron or mine that we I didn’t even know we’ll buy that’s
Sitting there ready to turn on and and Stein you were on that call with Min ryen from Perth only a few days ago and I think you were surprised even like wow this thing is amazing right you were there definitely surprising it’s uh kind of like a a second stage rocket right um
The potential there there is truly insane um quick note for viewers at home thank you very much for your support close to four 500 viewers on on stream right now uh we are slowly approaching the end of this live stream so if you have any questions you still want to ask
Towards Jeremy and Julio I would highly recommend putting them in the chat and we might be able to cover them still then the next question we have is from Mr helan what steps is Toano gold taking to ensure the health and safety of its employees admit the production
Restart um yeah very very good uh thing question like we are like hiring train uh people to train the employees uh in order to be very o operational be very safe for everybody uh so we are now hiring one uh safety coordinator um in order to also assist on all the trainings electrical
Trainings all the rules that we have in Brazil to get the right skills for the people uh definitely one of our main commitment is safety and environment those are uh uh principles that uh is in the first is in the first uh line yeah and I think it’s fair to say
The higher your safety standard is um the less accidents you have that’s also about operational Excellency because it saves you money and every accident uh also is is a cost an additional cost um next question coming up here as we are wrapping up from Mr Kaya I hope I
Pronounced your name correctly um it’s in Brazilian now okay so uh there I have to pass um and uh maybe Julio you can help us out here I’ll take uh I’ll take a pass on that one we have a question from Mr Maranda I hope I pronounce your name
Correctly can Toano gold share any hatching strategies in place to protect against full our gold prices no we don’t hedge um great Panther hedged uh back in 2020 and lost $26 million and uh we we’ve waited we have waited 10 years for this gold market to move I’m not about
To just leave the party now no way I think the Market’s going to take off and I think the price sometime this year will be $2,500 an ounce and if we hedge at 20 2050 you’re never going to forgive us so yeah I think that’s also a good hedge
That if you have amongst the lowest production costs in the market then even if gold does retract to a certain level um you’re still making turning a profit which is uh what of course then less as at a higher gold price but still the business is protected as long as you
Have a positive bottom line free cash flow was there a question in Portuguese for Julia yeah let answer let me answer that uh is from Mr Kay right uh so let me answering in Portuguese Uh so AR back to you okay yeah Stein I think we don’t have any further questions so thank you everyone for joining today amazing session hope to be back soon with another update in the next quarter Stein final words from your side yes thank you everyone for watching Jeremy
Do you have any final words for the viewers at home oh what a great effort guys you’re amazing battery commodity group is the best mining YouTube channel and they just hit 10,000 subscribers and I’m sure by this time next year there’ll be 100,000 because you your product is
Just incredible thank you very much for giving us this opportunity really appreciate it Jeremy really appreciate you for
1 Comment
A Tucano Gold pode compartilhar alguma de suas estratégias de hedge para proteção contra a volatilidade dos preços do ouro?