Alamos Gold Inc (AGI) 2024 Q2 法說會逐字稿

Good morning to all participants. I will now turn the call over to Mr. Scott Parsons, Alamos' Senior Vice President, Investor Relations. Please go ahead, Mr. Parsons.

所有參與者早安。我現在將把電話轉給阿拉莫斯投資者關係高級副總裁斯科特·帕森斯先生。請繼續，帕森斯先生。

Thank you, Paul, and thanks to everybody for attending Alamos' Second Quarter 2024 Conference Call. In addition to myself, we have on the line today John McCluskey, President and Chief Executive Officer; Greg Fisher, Chief Financial Officer; Luc Guimond, Chief Operating Officer; and Scott RG Parsons, Vice President of Exploration.

謝謝 Paul，也謝謝大家參加阿拉莫斯 2024 年第二季電話會議。今天除了我本人之外，我們還有總裁兼執行長約翰‧麥克拉斯基 (John McCluskey)；格雷格·費雪，財務長； Luc Guimond，營運長；和勘探副總裁 Scott RG Parsons。

We will be referring to a presentation during the conference call that is available through the webcast and on our website. I would also like to remind everyone that our presentation will be followed by a Q&A session. As we will be making forward-looking statements during the call, please refer to the cautionary notes included in the presentation, news release and MD&A as well as the risk factors set out in our annual information form.

我們將參考電話會議期間的演示文稿，該演示文稿可透過網路廣播和我們的網站取得。我還想提醒大家，我們的演講之後將會有問答環節。由於我們將在電話會議期間做出前瞻性陳述，因此請參閱簡報、新聞稿和 MD&A 中包含的警示說明以及我們的年度資訊表中列出的風險因素。

Technical information in this presentation has been reviewed and approved by Chris Bostwick, our Senior VP of Technical Services and a qualified person. Also, please bear in mind that all of the dollar amounts mentioned in this conference call are in U.S. dollars unless otherwise noted. Now John will provide you with an overview.

本簡報中的技術資訊已由我們的技術服務資深副總裁兼合格人員 Chris Bostwick 審核並批准。另外，請記住，除非另有說明，本次電話會議中提到的所有美元金額均以美元為單位。現在約翰將為您提供概述。

Thank you, Scott. We recently announced the closing of the Argonaut acquisition, and I'll start off by welcoming all of the Magino employees to the Alamos' family. The editing of the Magino and Island Gold Mines to form the Island Gold District is a pivotal moment for the company. Together, we are building an even brighter future by creating one of the largest and lowest cost operations in Canada, led by an even stronger workforce.

謝謝你，斯科特。我們最近宣布完成對 Argonaut 的收購，首先我要歡迎所有 Magino 員工加入 Alamos 大家庭。對馬吉諾金礦和島嶼金礦進行編輯以形成島嶼黃金區對於該公司來說是一個關鍵時刻。在更強大的勞動力的帶領下，我們正在共同建立加拿大規模最大、成本最低的營運機構之一，以創造更光明的未來。

We delivered an outstanding second quarter marked by numerous records. This included record production of 139,100 ounces, exceeding guidance for the quarter. Our costs also declined from the first quarter and combined with rising gold prices, we generated record revenue, cash flow from operations and free cash flow of $107 million. With a solid first half of the year, we are well positioned to achieve full year production and cost guidance.

我們的第二季表現出色，創造了多項記錄。其中包括創紀錄的 139,100 盎司產量，超出了本季的指導價值。我們的成本也較第一季有所下降，加上金價上漲，我們創造了創紀錄的收入、營運現金流和自由現金流，達到 1.07 億美元。憑藉今年上半年的強勁表現，我們有能力實現全年生產和成本指導。

Now turning to slide 4. With the closing of the Argonaut acquisition 3 weeks ago, the integration of Magino and Island Gold is well underway. The combination of the two mines will create one of the largest operations in Canada with annual production of more than 400,000 ounces of gold at first quartile costs once the Phase III expansion is complete.

現在轉到投影片 4。隨著三週前完成對 Argonaut 的收購，Magino 和 Island Gold 的整合正在順利進行。一旦第三期擴建完成，這兩個礦山的合併將成為加拿大最大的礦山之一，以第一四分位成本計算，年產量將超過 400,000 盎司黃金。

The two deposits host over 11 million ounces of gold. And given the exploration success we are seeing, we expect the reserve and resource base to continue to grow. Given the proximity of the two operations, the utilization of one centralized Mellon tailings facility will result in a considerable amount of capital and operational synergies totaling $515 million.

這兩個礦床蘊藏著超過 1,100 萬盎司的黃金。鑑於我們所看到的勘探成功，我們預計儲量和資源基礎將繼續增長。鑑於這兩個作業點距離較近，利用一個集中式梅隆尾礦設施將產生總計 5.15 億美元的大量資本和營運協同效應。

The combined operation also unlocks significant longer-term upside opportunities through the further expansion of the Magino mill to accommodate the large and growing reserve and resource base and other near-mine opportunities such as North Sheer. With the inclusion of Magino, we expect production to increase to a new record of between 145,000 and 155,000 ounces in the third quarter. We will produce additional details in September on our second half outlook as part of our updated consolidated guidance incorporating Magino.

合併後的業務還透過進一步擴大 Magino 工廠，以適應龐大且不斷增長的儲量和資源基礎以及 North Sheer 等其他近礦機會，從而釋放重大的長期上升機會。隨著 Magino 的加入，我們預計第三季產量將增至 145,000 至 155,000 盎司的新紀錄。我們將在 9 月提供有關下半年前景的更多詳細信息，作為納入 Magino 的更新綜合指南的一部分。

Now turning to slide 5. The addition of the Magino mine has increased company-wide gold production to a rate of approximately 600,000 ounces per year. In 2026, the completion of the Phase IIIs expansion at Island Gold is expected to drive annual production closer to 700,000 ounces per year and at lower costs. We expect the PDA project in the Mulatos District to take us to over 700,000 ounces per year. The Lynn Lake project provides additional growth as early as the second half of 2027 and will take us to a long-term rate of around 900,000 ounces per year.

現在轉到投影片 5。Magino 礦場的增加使全公司的黃金產量增加到每年約 60 萬盎司。到 2026 年，Island Gold 三期擴建工程的完成預計將使年產量接近 70 萬盎司，且成本更低。我們預計 Mulatos 區的 PDA 計畫每年將為我們帶來超過 70 萬盎司的產量。Lynn Lake 計畫最快將於 2027 年下半年額外成長，長期產量將達到每年 90 萬盎司左右。

All of this growth can be funded internally and all of this growth is lower cost. Beyond that, there is a considerable amount of upside both on the expiration of funds through a potential longer-term expansion of the Island Gold District. In addition to the planned expansion of the Magino mill to 12,400 tonnes per day in 2026, we started evaluating a longer-term expansion scenario to between 15,000 and 20,000 tonnes per day. Ultimately, this could increase our consolidated production to close to 1 million ounces per year.

所有這些成長都可以透過內部融資，而且所有這些成長的成本都較低。除此之外，透過島嶼黃金區潛在的長期擴張，資金到期還有相當大的上行空間。除了計劃在 2026 年將 Magino 工廠產能擴展至每天 12,400 噸之外，我們還開始評估長期產能擴展至每天 15,000 至 20,000 噸的方案。最終，這可以將我們的綜合產量增加到每年近 100 萬盎司。

Now turning to slide 6. We continue to add value in the second quarter. In addition to the Argonaut acquisition, we also completed our acquisition of Orford Mines through which we added a highly prospective Qiqavik project in Quebec.

現在轉到投影片 6。我們在第二季度繼續增加價值。除了收購 Argonaut 外，我們還完成了對 Orford Mines 的收購，透過該收購，我們在魁北克增加了一個極具前景的 Qiqavik 項目。

We have our largest exploration budget ever planned in 2024 at more than $60 million, and we are seeing the benefits with exceptional results across our operations. In May, we announced the discovery of a new style of higher-grade gold mineralization in the hanging wall of Young-Davidson. More recently, we outlined the broad-based exploration success we're having across the Island Gold main structure and within the hanging wall in football.

我們計劃在 2024 年實現有史以來最大的勘探預算，超過 6000 萬美元，並且我們在整個營運中看到了卓越成果所帶來的好處。5 月，我們宣佈在 Young-Davidson 的上盤發現了一種新類型的高品位金礦化體。最近，我們概述了我們在 Island Gold 主要結構和足球上盤內的廣泛勘探成功。

We expect this will drive another year, another increase in high-grade reserves and resources at Island Gold for the ninth consecutive year. Last month, we released our 2023 ESG report outlining our progress on several key metrics. This included an 8% decrease in Scope 1 and Scope 2 greenhouse gas emissions and a 5% reduction in our total recordable injury frequency rate. We have a number of catalysts coming in the second half of the year. We expect to release our PDA development plan and provide updated consolidated guidance incorporating Magino in September.

我們預計這將推動 Island Gold 的高品位儲量和資源量連續第九年再次增加。上個月，我們發布了 2023 年 ESG 報告，概述了我們在幾個關鍵指標上的進展。這包括範圍 1 和範圍 2 溫室氣體排放量減少 8%，以及我們的總可記錄傷害頻率減少 5%。今年下半年我們將出現許多催化劑。我們預計將在 9 月發布 PDA 開發計劃並提供包含 Magino 的更新綜合指南。

We also expect to provide additional exploration updates outlining the success we are having at Mulatos and other operations. Towards the end of the year, we plan on releasing the results of a study incorporating burnt timber and Linked into the Lynn Lake project, outlining another value driver as upside to the 2023 feasibility study. I'll now turn the call over to our CFO, Greg Fisher, to review our financial performance. Greg?

我們還希望提供更多勘探更新，概述我們在 Mulatos 和其他業務中的成功。到今年年底，我們計劃發布一項將燒焦木材和 Linked 納入 Lynn Lake 計畫的研究結果，概述了作為 2023 年可行性研究的另一個價值驅動因素。我現在將把電話轉給我們的財務長 Greg Fisher，以審查我們的財務表現。格雷格？

Thank you, John. On to slide 7. In the second quarter, we sold 141,000 ounces of gold at an average realized price of $2.336 per ounce for record quarterly revenues of $333 million. Total cash cost of $830 per ounce and all-in sustaining costs of $1,096 per ounce were down 9% and 13%, respectively, from the first quarter. We remain well positioned to achieve our full year production and cost guidance given the solid first half performance.

謝謝你，約翰。轉到投影片 7。第二季度，我們以每盎司 2.336 美元的平均實現價格出售了 141,000 盎司黃金，季度收入達到創紀錄的 3.33 億美元。每盎司總現金成本為 830 美元，總維持成本為每盎司 1,096 美元，較第一季分別下降 9% 和 13%。鑑於上半年的穩健表現，我們仍處於有利地位，可以實現全年生產和成本指引。

Our reported net earnings of $70 million in the first quarter or $0.18 per share included unrealized foreign exchange losses of $16 million recorded within deferred taxes and foreign exchange and other adjustments net of taxes of $11 million. Excluding these items, our adjusted net earnings were $97 million or $0.24 per share. Operating cash flow before changes in noncash working capital increased to a record $191 million or $0.48 per share. Free cash flow totaled a record $107 million, a significant increase from the first quarter.

我們報告的第一季淨利潤為7000 萬美元，即每股0.18 美元，其中包括遞延稅項下記錄的1600 萬美元未實現外匯損失以及扣除稅款後的外匯和其他調整淨額1100 萬美元。排除這些項目，我們調整後的淨利潤為 9,700 萬美元，即每股 0.24 美元。非現金營運資本變動前的營運現金流增至創紀錄的 1.91 億美元，即每股 0.48 美元。自由現金流總計創紀錄的 1.07 億美元，較第一季大幅成長。

All 3 operations generated solid mine site free cash flow, including a record $40 million from Young-Davidson. The impressive free cash flow generation occurred while continuing to fund the Phase III plus expansion at Aon Gold and is net of $15 million in cash taxes paid in Mexico in the quarter. Capital spending totaled $88 million in the quarter and included $21 million of sustaining capital and $59 million of growth capital, the majority of which was focused on the Phase IIIs expansion.

所有 3 項業務都產生了穩定的礦場自由現金流，其中包括 Young-Davidson 創紀錄的 4000 萬美元。在繼續為 Aon Gold 的第三期及擴建項目提供資金的同時，產生了令人印象深刻的自由現金流，並且扣除本季度在墨西哥繳納的 1500 萬美元現金稅。本季資本支出總計 8,800 萬美元，其中包括 2,100 萬美元的維持資本和 5,900 萬美元的成長資本，其中大部分用於第三階段的擴張。

With the acquisition of Magino completed in July and the Island Gold mill expansion no longer required, we are in the process of updating capital estimates, which will also include required upgrades to the Magino mill as well as the impact of ongoing inflationary pressures. Our balance sheet continued to strengthen in the quarter with our cash balance growing over 30% to $314 million. At quarter end, we remain debt-free. However, subsequent to quarter end, we withdrew $250 million on our credit facility to pay off Argonaut's term loan and revolving credit facility that were inherited through the acquisition.

隨著 Magino 工廠的收購於 7 月完成，Island Gold 工廠不再需要擴建，我們正在更新資本估算，其中還包括 Magino 工廠所需的升級以及持續通膨壓力的影響。本季我們的資產負債表持續增強，現金餘額成長超過 30%，達到 3.14 億美元。到季度末，我們仍然沒有債務。然而，在季度末之後，我們提取了 2.5 億美元的信貸額度，以償還透過收購繼承的 Argonaut 定期貸款和循環信貸額度。

With a strong cash position, more than $550 million of total liquidity and solid ongoing cash flow generation, we remain well positioned to fund our organic growth initiatives, including the Phase IIIs expansion, optimization of the Magino mill and development of PDA and Lynn Lake.

憑藉強勁的現金狀況、超過5.5 億美元的總流動性和穩定的持續現金流生成，我們仍然有能力為我們的有機增長計劃提供資金，包括第三期擴建、Magino 工廠的優化以及PDA 和Lynn Lake的開發。

In July, we completed a gold sales prepayment agreement for the delivery of 49,400 ounces in 2025 based on forward curve prices of $2,520 per ounce. We used the proceeds to eliminate Goldcorp contracts inherited from Argonaut totaling 180,000 ounces that were hedged at an average gold price of $1,840 per ounce.

7月，我們完成了2025年交割49,400盎司的黃金銷售預付款協議，遠期曲線價格為每盎司2,520美元。我們用所得收益消除了從 Argonaut 繼承的 Goldcorp 合約，總計 180,000 盎司，這些合約以每盎司 1,840 美元的平均黃金價格進行對沖。

Through this transaction, we have eliminated all of the hedges we inherited from Argonaut in 2024 and 2025 and significantly increased our exposure to rising gold prices on attractive terms. We continue to review opportunities to eliminate the remainder of the Argonaut hedge book, which is comprised of gold forwards totaling a combined 150,000 ounces in 2026 and 2027. I will now turn the call over to our COO, Luc Guimond to provide an overview of our operations.

透過這筆交易，我們消除了 2024 年和 2025 年從 Argonaut 繼承的所有對沖，並以有吸引力的條件顯著增加了我們對金價上漲的曝險。我們將繼續審查消除 Argonaut 對沖帳簿剩餘部分的機會，該帳簿由 2026 年和 2027 年總計 150,000 盎司的黃金遠期組成。我現在將把電話轉給我們的營運長 Luc Guimond，以概述我們的營運情況。

Thank you, Greg. Moving to slide 8. Young-Davidson delivered a strong quarter with production of 44,000 ounces, a 10% increase over the first quarter on higher mining rates and grades processed. Costs also improved with total cash costs down 13% and mine site all-in sustaining costs down 19% quarter-over-quarter. The grade is expected to continue to increase in the second half of the year and milling rate is expected to remain at 8,000 tonnes per day, the operation is on track to achieve full year guidance.

謝謝你，格雷格。轉到投影片 8。Young-Davidson 季度表現強勁，產量達 44,000 盎司，由於採礦率和加工品位提高，較第一季成長 10%。成本也有所改善，現金總成本較上季下降 13%，礦場整體維持成本較上季下降 19%。預計下半年品位將繼續提高，磨粉量預計將保持在每天 8,000 噸，營運預計將實現全年指引。

In the second quarter, the operation delivered record mine-site free cash flow of $40 million and $55 million for the first half of the year. Young-Davidson is well positioned to generate over $100 million of free cash flow for the fourth consecutive year as well over the long term given its 15-year mineral reserve life.

第二季度，該業務創造了創紀錄的礦場自由現金流，分別為 4,000 萬美元和上半年的 5,500 萬美元。鑑於其 15 年的礦產儲量壽命，Young-Davidson 處於有利位置，可以連續第四年以及長期產生超過 1 億美元的自由現金流。

Over to slide 9. Island Gold delivered a solid quarter with production increasing 25% from the first quarter to 41,700 ounces and mine site all-in sustaining costs decreasing 27% to $805 per ounce. This was driven by higher grades mined and processed. Mine grades averaged 14 grams per tonne in the quarter, above the annual guidance range, reflecting the planned mining of higher grade stopes as well as positive grade reconciliation.

轉到投影片 9。Island Gold 季度業績表現強勁，產量較第一季成長 25% 至 41,700 盎司，礦場整體維持成本下降 27% 至每盎司 805 美元。這是由開採和加工的更高品位所推動的。本季礦山品位平均為每噸 14 克，高於年度指導範圍，反映出計劃開採較高品位採場以及積極的品位調節。

This more than offset lower mining rates earlier in the quarter as we focused on maximizing the extraction of significantly higher grade ore within the 1025 mining horizon. In addition, we experienced lower haul truck availability from older units in the fleet that are being phased out. Mining rates improved in the latter part of the quarter following the receipt of the two new haul trucks. Mining rates are expected to average similar levels in the third quarter, reflecting planned downtime in the latter part of July to upgrade the underground ventilation infrastructure.

這足以抵消本季早些時候較低的採礦率，因為我們專注於在 1025 採礦期限內最大限度地開採品位明顯更高的礦石。此外，我們發現車隊中正在淘汰的舊設備的運輸卡車可用性較低。在收到兩輛新的運輸卡車後，本季後半段的採礦率有所提高。預計第三季採礦率將達到類似水平，反映出計劃在 7 月下旬停工以升級地下通風基礎設施。

The ventilation upgrade was successfully completed earlier this week with mining rates expected to increase to average 1,200 tonnes per day in August and through the rest of the year. upgrade to ventilation capacity was completed as part of the Phase IIIs expansion and will support increased development rates in the near term and higher underground mining rates over the longer term, following the completion of the expansion.

通風升級已於本週稍早成功完成，預計 8 月和今年剩餘時間的採礦量將增加至平均每天 1,200 噸。作為第三期擴建的一部分，通風能力升級已完成，擴建完成後，將支援短期內提高開發速度和長期提高地下採礦率。

With the strong operational performance, Island Gold generated $15 million of mine site free cash flow while continuing to fund the Phase IIIs expansion. Given the strong performance in the first half of the year, the operation is well positioned to achieve annual guidance. Over to slide 10. While the Magino mine was not under our control in the second quarter, the operation continued to show improvements. Production increased 36% quarter-over-quarter to 22,700 ounces. Average mining rates increased to 53,200 tonnes per day in the quarter, including 16,300 tonnes per day of ore, up 24% from the first quarter.

憑藉強勁的營運業績，Island Gold 產生了 1500 萬美元的礦場自由現金流，同時繼續為第三期擴建提供資金。鑑於上半年的強勁表現，該業務完全有能力實現年度指引。轉到投影片 10。雖然馬吉諾礦在第二季不受我們的控制，但營運情況繼續出現改善。產量較上季增加 36% 至 22,700 盎司。本季平均開採量增至每天 53,200 噸，其中礦石每天 16,300 噸，較第一季增加 24%。

Mill throughput also increased 33% to 8,400 tonnes per day relative to the first quarter and recoveries improved to 94%. We expect similar production in the third quarter, reflecting downtime to implement various approvements to the Grizzly, crushing and conveying ore flow and mill liner design. These improvements are expected to positively impact the fourth quarter and ongoing production and costs. As John noted, we will be providing more detailed guidance on Magino as part of our updated consolidated guidance to be released in September.

與第一季相比，工廠吞吐量也增加了 33%，達到每天 8,400 噸，回收率提高至 94%。我們預計第三季的產量將類似，反映出為執行 Grizzly、破碎和輸送礦石流程以及磨機襯板設計的各種批准而造成的停機。這些改進預計將對第四季度以及持續的生產和成本產生積極影響。正如 John 指出的那樣，我們將在 9 月發布的更新綜合指南中提供有關 Magino 的更詳細指南。

Moving to slide 11. The Phase IIIs expansion continues to move along with the Shop sync advancing to adapt the 403 meters as of June 30 and tracking towards the 1,000 meter level by year-end. During the second quarter, we made considerable progress, including completion of the buried services of the shaft area, commissioning of the upgraded voltage regulation facility, and we commenced construction on the Bin house. Detailed engineering for the pace plant is now 90% complete, and earthworks are currently underway with construction activities expected to ramp up in the second half of the year.

轉到投影片 11。第三期擴建繼續推進，Shop 同步推進，截至 6 月 30 日將調整至 403 米，並在年底前向 1,000 米水平邁進。第二季度，我們取得了長足的進展，包括井區埋設服務的完成、調壓設施升級改造的調試以及倉房的開工。佩斯工廠的詳細工程現已完成 90%，土方工程目前正在進行中，預計施工活動將在今年下半年加快。

Over to slide 12. As of June 30, approximately 60% of the total initial capital of $756 million have been spent and committed on the project. With the acquisition of Magino now complete, we no longer need to expand the island go mill or tailings facility. The expansion remains on track for completion during the first half of 2026. It will be a significant driver of our expected production growth and declining costs over the next several years. Over to slide 13. The Mulatos District had another solid quarter with stronger-than-expected production of 53,400 ounces at costs below full year guidance. This was once again driven by La Yaqui Grande, which benefited from both grades and stacking REITs coming in at or above the top end of guidance.

轉到投影片 12。截至 6 月 30 日，該專案的初始資本總額 7.56 億美元中約 60% 已投入使用。隨著 Magino 收購的完成，我們不再需要擴大島上的磨坊或尾礦設施。擴建預計將於 2026 年上半年完成。這將是我們未來幾年預期產量成長和成本下降的重要推動力。轉到投影片 13。Mulatos 地區的季度產量又好於預期，達到 53,400 盎司，而成本則低於全年指引。這再次是由 La Yaqui Grande 推動的，該公司受益於評級和堆疊 REITs 均達到或高於指導上限。

With the onset of the rainy season, stacking rates are expected to decrease to average 10,000 tonnes per day in the second half of the year. Grade stack are also expected to decrease slightly through the remainder of the year, leading to declining production and costs increasing to be consistent with guidance. Given the very strong first half of the year, the Mulatos District is well positioned to achieve annual guidance. Mine Site free cash flow increased to $70 million in the second quarter, net of $15 million of cash tax payments.

隨著雨季的到來，預計下半年堆放量將下降至日均1萬噸。預計今年剩餘時間內，牌號堆疊也將略有下降，導致產量下降和成本增加，以與指導一致。鑑於今年上半年的強勁表現，穆拉托斯區完全有能力實現年度指引。第二季礦區自由現金流增至 7,000 萬美元，扣除 1,500 萬美元的現金稅。

For the first half of the year, Mulatos generated $120 million of mine site free cash flow, an impressive performance considering this was net of $60 million of tax payments. Work on our development plan for the Puerto Del Aire deposit is advancing, and we plan to release that in September. We expect this will outline another attractive project and significantly extend the mine life of the Mulatos District. I will now turn the call over to our VP of Exploration, Scott RG Parsons to review our exploration success through the first half of the year.

今年上半年，Mulatos 產生了 1.2 億美元的礦場自由現金流，考慮到扣除 6,000 萬美元的稅款，這一業績令人印象深刻。我們正在推進艾爾港礦床開發計劃，我們計劃在 9 月發布該計劃。我們預計這將勾勒出另一個有吸引力的項目，並顯著延長穆拉托斯地區的礦山壽命。現在，我將把電話轉給我們的勘探副總裁 Scott RG Parsons，回顧我們今年上半年的勘探成功情況。

Thank you, Luc. Moving to slide 14. In May, we announced the discovery of a new style of higher-grade gold mineralization within the hanging wall of Young-Davidson. This mineralization is hosted in conglomerates, whereas the majority of the current reserves and resources at Young-Davidson are hosted within cyanide. The zones are located 10 to 200 meters south of existing infrastructure with great intersected well above the current reserve grade.

謝謝你，呂克。轉到投影片 14。五月，我們宣佈在 Young-Davidson 的上盤內發現了一種新型的高品位金礦化體。這種礦化位於礫岩中，而 Young-Davidson 目前的大部分儲量和資源都位於氰化物中。這些區域位於現有基礎設施以南 10 至 200 公尺處，交叉點遠高於目前儲備品位。

Drilling is ongoing and is focused on testing the extent of the conglomerates and to evaluate the controls and continuity in higher-grade mineralization. Additionally, we are relogging the sampling core that was historically drilled through the hanging wall zones from surface, which had limited sampling for gold outside of the cyanide. Given the proximity to existing infrastructure and higher grades, these zones could potentially provide meaningful production upside.

鑽探正在進行中，重點是測試礫岩的範圍並評估較高品位礦化的控制和連續性。此外，我們正在重新記錄歷史上從地表通過上盤區域鑽取的取樣岩芯，該岩心對氰化物以外的黃金取樣有限。鑑於靠近現有基礎設施和較高的品位，這些區域可能會提供有意義的生產優勢。

Moving to slide 15. Last week, we provided a comprehensive exploration update Island Gold, where we highlighted the broad-based exploration success we're experiencing across the district. This included an extensive list of exceptional intercepts, which have extended high-grade mineralization across the main deposit and with multiple hanging wall and footwall structures. Some of the highlights in the main auto go structure includes 37 grams per tonne over 7 meters in Island West and 17 grams per tonne over 10 meters to the east, both beyond existing reserves and resources. Within the annual and footwall, we continue to define new zones of higher-grade mineralization and expand upon recently defined zones across the main Island Gold deposit.

轉到投影片 15。上週，我們提供了 Isl​​​​and Gold 的全面勘探更新，其中我們強調了我們在整個地區取得的廣泛勘探成功。其中包括大量特殊截距，這些截距將高品位礦化延伸到主礦床，並具有多個上盤和下盤結構。主要汽車結構的一些亮點包括島西超過 7 公尺的每噸 37 克，以及東邊超過 10 公尺的每噸 17 克，均超出了現有儲量和資源。在年度和下盤範圍內，我們繼續界定新的更高品位礦化區域，並在主島金礦床最近界定的區域上進行擴展。

This included multiple intercepts from recently defined zones grading above 70 grams per tonne over 2 meters. These zones represent significant opportunities to continue to grow near mine reserves and resources, which are low-cost development produce given their proximity to existing infrastructure. In the 2023 reserve and resource update, we added 1 million ounces before depletion with the additions in the hanging wall footwall zones accounting for approximately 70% of this growth. Given our ongoing success, we expect these zones to be a significant factor in Island Gold's continued growth.

其中包括從最近定義的 2 公尺範圍內分級超過 70 克/噸的區域進行的多次攔截。這些區域代表著在礦山儲量和資源附近繼續發展的重大機會，由於它們靠近現有基礎設施，因此是低成本的開發產品。在 2023 年儲量和資源更新中，我們在枯竭前增加了 100 萬盎司，其中上盤下盤區域的增加約佔這一增長的 70%。鑑於我們不斷取得的成功，我們預計這些區域將成為 Island Gold 持續成長的重要因素。

Within our donation drilling program, which is focused on resource conversion in I&E, we've defined a significantly wider and higher grade zone than typically seen within the deposit over 80 by 130-meter area. Highlights from this zone includes 102 grams per tonne over 17 meters, 135 grams per tonne over 8 meters. Collectively, these exploration results are expected to drive further growth in high-grade reserves and resources with the year-end update for what continues to be one of the highest grade and fastest-growing deposits in the world.

在我們的捐贈鑽探計劃中，我們的重點是 I&E 中的資源轉換，我們定義了一個比通常在 80 x 130 公尺區域內看到的礦床更寬、品位更高的區域。該區域的亮點包括 17 公尺以上每噸 102 克，8 公尺以上每噸 135 克。總的來說，這些勘探結果預計將推動高品位儲量和資源的進一步成長，年底更新仍將是世界上品位最高、成長最快的礦床之一。

With Island Gold main structure opened lately and down plunge and an increasing number of high-grade zones being defined in the hang wall and footwall, we see excellent potential for this growth to continue well into the future. Moving to slide 16. We are also starting to defy longer-term upside opportunities through the integration of Island Gold and Magino. One of those opportunities is the expansion of the Magino open pit. Gold mineralization has been intersected east of the Magino open pit reserve supporting the potential for extension of the Magino deposit to these beyond the previous property boundary.

隨著 Island Gold 主體結構最近開放並開始下降，以及越來越多的上盤和下盤界定的高品味區域，我們看到這種成長在未來持續的巨大潛力。轉到投影片 16。我們也開始透過整合 Island Gold 和 Magino 來應對長期上行機會。這些機會之一是馬吉諾露天礦場的擴建。金礦化已在 Magino 露天礦保護區以東交叉，這支持了 Magino 礦床延伸至先前礦區邊界之外的區域的潛力。

The North Sheer is another near mine opportunity as a potential source of additional mill feed for an expanded Magino milling complex. The North Sheer corridor is located in the northern north limb of an antiform within and along the northern portion of the Webb Lake Stock. The North Sheer corridor is 20 to 30 meters wide near surface, appears to widen the depth to 60 meters and has been interpreted to be over 1,000 meters in strike, has been drilled to a depth of 600 meters and remains open at depth.

North Sheer 是另一個近礦機會，可以為擴建的 Magino 選礦廠提供額外的選礦原料。北謝爾走廊位於韋伯湖群北部地區內和沿線的反形態的北側邊緣。North Sheer 走廊近地表寬 20 至 30 米，似乎將深度加寬至 60 米，據解釋走向超過 1,000 米，已鑽探深度達 600 米，且深度仍保持開放。

Higher-grade mineralization has been intersected within the North Sheer, both this year as well as historically, and we plan on following up additional drilling and modeling to continue to evaluate the potential for underground bulk mining. Given the larger capacity of the Magino mill with further expansion potential, the North Sheer will be one of the many opportunities will be evaluating as sources of higher-grade feed for the centralized mill. With that, I'll turn the call back to John.

無論是今年還是歷史上，北謝爾地區都出現了較高品位的礦化，我們計劃進行額外的鑽探和建模，以繼續評估地下批量採礦的潛力。鑑於 Magino 工廠產能較大且具有進一步擴張的潛力，North Sheer 將成為評估集中工廠高品位飼料來源的眾多機會之一。這樣，我會將電話轉回給約翰。

Thank you, Scott. So that concludes the formal presentation. I'll now turn the call over to the operator who will take your questions.

謝謝你，斯科特。正式演講到此結束。我現在將把電話轉給接線員，他將回答您的問題。

(Operator Instructions) Ovais Habib from Scotiabank.

（操作員指示）豐業銀行的 Ovais Habib。

John, a couple of questions from me. At Island Gold, it was great to see grades improve over 30% quarter-over-quarter. What was the average grade you were expecting in Q2? I mean I'm trying to figure out what was expected and how much was actually positive rate reconciliation. And the second part of that is also, are these high grades expected to persist in the second half?

約翰，我有幾個問題。在 Island Gold，我們很高興看到成績環比提高了 30% 以上。您期望第二季的平均成績是多少？我的意思是，我試圖弄清楚預期的結果以及實際的正利率調節有多少。第二部分也是，這些高成績預計會在下半年持續嗎？

Yes, it's Luc here. I can take the first part of the question. I think I missed the second part, so I'll get you to repeat that. But as far as the forecasted grades for Ireland in Q2, we were looking to be about 12 to 12.5 grams in the quarter. I didn't catch your second question. Maybe if you can repeat that for me, please.

是的，我是路克。我可以回答問題的第一部分。我想我錯過了第二部分，所以我會讓你重複一遍。但就愛爾蘭第二季的預測等級而言，我們預計該季度的產量約為 12 至 12.5 克。我沒聽清楚你的第二個問題。也許您可以為我重複一遍。

So yes. So I just wanted to understand, are these grades expected to persist going into the second half?

所以是的。所以我只是想了解，這些成績預計會持續到下半年嗎？

Our grades in the second half of the year are going to be more in line with our reserve grade. So about 11 grams is what our expectation is in the second half of the year.

我們下半年的成績將更符合我們的儲備成績。所以我們對下半年的期望是 11 克左右。

And would you be in the same zones that you're currently mining in? And I'm trying to, again, figure out if there would be any sort of potential positive reconciliation going into the second half as well?

您是否位於目前採礦的同一區域？我再次試圖弄清楚下半年是否也會有任何潛在的積極和解？

Similar mining areas, yes. I mean there's a high-grade complex at 1025 that we're mining in. We'll continue to mine there in the second half of the year. But I mean, the positive reconciliation we have seen has been not just specific to that high-grade zone, but some of the other areas that we're mining with some of the other mining fronts as well.

類似的礦區，是的。我的意思是，我們正在開採 1025 處的一個高級綜合體。下半年我們將繼續在那裡開採。但我的意思是，我們看到的積極協調不僅針對該高品位區域，而且還針對我們正在與其他一些採礦前緣進行採礦的其他一些區域。

Okay. Got it. And just a second question for me. Again, very early days regarding Magino. Have there been any surprises so far either from an operating or financial standpoint?

好的。知道了。我還有第二個問題。再說一次，關於馬吉諾的事情還很早。到目前為止，從營運或財務角度來看是否有任何意外？

No. From an operating standpoint, based on our due diligence and no surprises. I think as we mentioned on the call, through Q3, we're looking to make some continual improvement certainly through the mining operations as well as milling operations and then looking to obviously pick up production as we move into the latter half of the year. And then as we move forward into 2025.

不。從營運角度來看，基於我們的盡職調查，這並不令人意外。我認為，正如我們在電話會議上提到的那樣，透過第三季度，我們希望透過採礦作業和銑削作業進行一些持續改進，然後在進入今年下半年時希望顯著提​​高產量。然後，當我們邁入 2025 年。

Sounds good. Again, that's it for me guys. I look forward to the PDA study.

聽起來不錯。再說一次，這對我來說就是這樣。我期待著 PDA 研究。

Kerry Smith from Haywood Securities.

海伍德證券公司的克里史密斯。

Kerry Smith Haywood Securities Inc.

凱利史密斯海伍德證券公司

Thanks, operator. John, I may have missed it in the release, but you had mentioned that the Phase IIIs expansion was still on schedule. Is it still on budget as well with the CapEx, the $756 million, knowing that that's going to be adjusted once you incorporate the Magino mill and no tailings.

謝謝，接線生。約翰，我可能在發佈時錯過了它，但你提到第三階段的擴展仍在按計劃進行。資本支出是否仍在預算之內，即 7.56 億美元，因為知道一旦合併 Magino 工廠且沒有尾礦，就會對其進行調整。

Kerry, it's Greg here. I'll grab that question. Yes, obviously, there are savings that we expect as a result of not needing to expand the island mill. We do have costs that we will need to incur to expand the Magino mill to hit that 12,400 tonnes per day by mid-2026, when we complete the Phase III expansion. But we've also seen inflationary pressures, especially around labor over the last couple of years, and we expect that to persist. So overall, we're looking at the updated estimates. But I suspect that if anything, we'll have a modest increase compared to the $750 million that we had released a couple of years ago.

凱瑞，我是格雷格。我會抓住這個問題。是的，顯然，由於不需要擴建島式工廠，我們預計會節省成本。我們確實需要承擔擴建 Magino 工廠的成本，以在 2026 年中期完成第三期擴建時達到每天 12,400 噸的產量。但我們也看到了通膨壓力，尤其是過去幾年圍繞勞動力的通膨壓力，我們預計這種情況將持續下去。總的來說，我們正在研究更新的估計。但我懷疑，與幾年前發放的 7.5 億美元相比，我們的撥款將略有增加。

Okay. And that modest increase, that would not reflect the $140 million savings obviously for no mill expansion in the tailings right? Just on an apples-to-apples basis, it would be modestly higher.

好的。這種適度的成長顯然不能反映出尾礦廠不擴建所節省的 1.4 億美元，對嗎？僅從同類的角度來看，這個數字會略高一些。

No, no, no. On an overall basis, including the savings that we have on the mill, but also including the additional capital that we need to spend on the Magino mill will come in somewhere around the original budget of $750 million, potentially a modest increase.

不，不，不。總體而言，包括我們在工廠上節省的資金，還包括我們需要在 Magino 工廠上花費的額外資本，原始預算約為 7.5 億美元，可能會略有增加。

Okay. Got you. Okay. Perfect. That's helpful. And then you had kind of guided earlier in the year that first production would be second half weighted. With the better first half than I guess you were expecting and you were guiding, are you still expect second half production to actually be higher than first half production?

好的。明白你了。好的。完美的。這很有幫助。然後你在今年早些時候就得到了指導，第一批生產將在下半年加權。上半年的產量比我猜想的要好，並且是您所指導的，您是否仍然預計下半年的產量實際上會高於上半年的產量？

The biggest driver of this the higher production in the first half was in Mexico. But with the onset of the rainy season in Q3 as well as we're expecting some lower grades in the second half of La Yaqui Grande. We're going to see a potential decrease in Mexico. So overall, we're comfortable with the guidance that we have. That said, we're releasing an updated 3-year guidance in September, and we'll continue to monitor that.

上半年產量增加的最大推動力來自墨西哥。但隨著第三季雨季的開始，我們預計 La Yaqui Grande 下半年的成績會有所下降。我們將看到墨西哥的潛在下降。總的來說，我們對現有的指導感到滿意。也就是說，我們將在 9 月發布更新的 3 年指南，我們將繼續對其進行監控。

Okay. Okay. That's helpful. And just so I'm clear, the that, let's call it, $756 million CapEx might be slightly higher than that. Will that number when you update it, will it include the cost to expand the Magino mill to the 15,000 to 20,000 tonnes per day rate? I assume not, but just to be sure.

好的。好的。這很有幫助。我很清楚，7.56 億美元的資本支出可能會略高於這個數字。當您更新這個數字時，它是否包括將 Magino 工廠擴大到每天 15,000 至 20,000 噸的成本？我想不會，但只是為了確定一下。

No, it will not. It will include the cost to expand the 12,400 tonnes per day, which is inclusive of bringing the island or into the Magino mill.

不，不會的。它將包括擴大每天 12,400 噸產量的成本，其中包括將島嶼搬入或搬入 Magino 工廠的費用。

Got you. Okay. Perfect. And then while I get, what is the rough interest rate that you just remind me the interest rate on the debt on your facility that you drew down.

明白你了。好的。完美的。然後，當我得到時，您剛剛提醒我您提取的貸款債務的利率是多少。

It's based on SOFR, but right now, we're paying just over 7% of the interest rate on the credit facility.

它基於 SOFR，但目前我們支付的信貸額度利率剛剛超過 7%。

Okay. Okay. Perfect. And then just one for Scott, RG, how many holes and why did you have in that hanging wall conglomerate so far?

好的。好的。完美的。然後，請告訴斯科特，RG，到目前為止，那塊掛牆組合體上有多少個洞，為什麼有洞？

We've drilled from two drill days, we're about 5,000 meters of drilling in approximately 15 holes, and it's ongoing. And the first objective is defining the extent of the conglomerates, which we're making good progress on. And then those holes will continue to be targeting the continuity and the plunge of the mineralization within the conglomerate. So it's looking positive. It's still early days, and we're continuing to evaluate about 15 holes and 5,000 meters.

我們已經在兩天的鑽探中鑽探了大約 15 個孔，鑽探了大約 5,000 米，而且還在持續進行中。第一個目標是確定企業集團的範圍，我們正在這方面取得良好進展。然後這些洞將繼續針對礫岩內礦化的連續性和暴跌。所以它看起來很積極。現在還為時過早，我們正在繼續評估大約 15 洞和 5,000 公尺的情況。

Cosmos Chiu to from CIBC.

Cosmos Chiu 來自 CIBC。

Maybe my first question is on guidance again. Just to confirm, I guess, I heard it. So in September coming up, you're going to be putting out 3-year guidance. Is that on production, cost and CapEx?

也許我的第一個問題又是關於指導的。只是為了確認，我想，我聽到了。因此，在即將到來的 9 月，您將發布 3 年指引。是關於生產、成本和資本支出嗎？

That is correct, Case. I mean the main triggers being the fact that we've obviously acquired Magino and need to incorporate that over the next little bit as well as the PDA study that we plan to put out in September. So those two items are the main triggers for putting out that updated 3-year guidance.

這是正確的，凱斯。我的意思是，主要的觸發因素是我們顯然已經收購了 Magino，並且需要在接下來的一段時間內將其納入其中，以及我們計劃在 9 月推出的 PDA 研究。因此，這兩項是發布更新的三年指導的主要觸發因素。

Perfect. And then I guess, brothers, you need to get comfort on guide. I was just wondering which you need to get comfort on ahead of the September update. Is it the cost? Is it the grade? Is it milling, mining? Like which key areas to the extent making?

完美的。然後我想，兄弟們，你們需要從導遊那裡得到安慰。我只是想知道在 9 月更新之前您需要獲得哪些安慰。是成本嗎？是等級嗎？是銑削、採礦嗎？例如在哪些關鍵領域做出了哪些貢獻？

It's Luc here, Cosmo. I think I got your question there. It's a little bit difficult to hear you. But with regards to Magino, certainly through the second half of the year, the continuous improvement with regards to mining operations. I mean, there was increased performance from Q1 to Q2. We expect that as we continue to move through Q3 and Q4. to get to our ultimate mining rates by the end of the year to about 64,000 tonnes per day, which is ore and waste combined.

我是路克，科斯莫。我想我已經聽到你的問題了。聽你說話有點困難。但就 Magino 而言，下半年採礦業務持續改善。我的意思是，從第一季到第二季度，性能有所提高。我們預計隨著第三季和第四季的繼續推進，情況會如此。到今年年底，我們的最終採礦量將達到每天約 64,000 噸（礦石和廢料的總和）。

On the milling side, as we mentioned in the call, there's some improvements that we're going to continue to make through the course of Q3. So we look at that from a processing and gold production point of view to be pretty flat line relative to Q2 results, but then looking to increase that as those improvements are completed in Q3 to see better performance in Q4 towards the end of the year.

在銑削方面，正如我們在電話中提到的，我們將在第三季度繼續進行一些改進。因此，我們從加工和黃金生產的角度來看，相對於第二季度的業績來說，這一點相當平坦，但隨著這些改進在第三季度完成，我們希望增加這一點，以便在年底看到第四季更好的表現。

And also the objective, as we've talked about since we announced this deal was to we think with these improvements that we're going to make with the Grizzly arrangement, the crushing conveying arrangement and some configuration changes to the mill liner design with pulp lifters and operating parameters of that mill itself. We'll get it to 11,200 tonnes per day by the end of the year or early into 2025 at the latest.

正如我們宣布這筆交易以來所討論的那樣，我們的目標是透過 Grizzly 佈置、破碎輸送佈置以及紙漿磨機襯裡設計的一些配置更改來進行這些改進該磨機本身的升降機和操作參數。到今年年底或最晚到 2025 年初，我們將使其產量達到每天 11,200 噸。

And maybe just talking about the reporting here. How are you going to be presenting guidance from a Magino/Island Gold. Is it going to be as an integrated basis? Is it going to be one number? Or are you going to be giving us separate numbers for the different operations in terms of Island Gold and Magino separate?

也許只是在這裡談論報道。您將如何提供 Magino/Island Gold 的指導？它將作為一個綜合的基礎嗎？會是一個數字嗎？或者您打算向我們提供不同業務的獨立數字（即 Island Gold 和 Magino）？

Yes. I mean we're still working through that. I think the thought process is for 2024, it would be separate because they're running under separate mills. As we move into 2025 and it's offering out of an integrated mill, we'll look at it as one operation.

是的。我的意思是我們仍在努力解決這個問題。我認為思考過程是針對 2024 年的，這將是分開的，因為它們在不同的工廠下運作。當我們進入 2025 年時，它將由一家綜合工廠提供產品，我們將把它視為一項業務。

Great. And maybe quickly on Island Gold. Just to follow up, I saw that, I guess, the throughput was lower in Q2 as part of the equipment refresh. I think two home trucks had to be renewed or replaced. So Luc, maybe if you can talk a little bit more about your refreshment cycle here in terms of machinery and equipment on site at Island Gold. Is there anything else planned for Q3 and Q4? And how has that plan changed now with Magino?

偉大的。也許很快就會出現在金島。只是為了跟進，我發現，我猜，作為設備更新的一部分，第二季的吞吐量較低。我認為兩輛家用卡車必須更新或更換。Luc，也許您可以多談談 Island Gold 現場機械和設備的茶點週期。第三季和第四季還有其他計畫嗎？現在，馬吉諾的計畫發生了怎樣的變化？

Well, in relation to Magino, no change. Our fleet replacement is really based on operating hours of that equipment. So as those haul trucks leads there maximum operating hours over their life cycle, then we actually change them out and replace them as part of our fleet replacement strategy with new units. So the two new units that we were expecting earlier in the quarter ended up arriving later in the quarter, which is what affected the overall mining rates in the quarter.

嗯，就馬吉諾而言，沒有改變。我們的機隊更換實際上是基於該設備的運行時間。因此，當這些運輸卡車在其生命週期內達到最長運行時間時，我們實際上會將它們更換並替換為新設備，作為我們車隊更換策略的一部分。因此，我們在本季早些時候預計的兩個新設備最終在本季晚些時候到達，這影響了本季的整體採礦率。

But we did receive those in early June. We do have two more trucks that are scheduled to arrive this year in the second half of the year, which was also part of our fleet replacement strategy. And that would be the full replacement as far as our requirements for 2024. But obviously, as we move forward in 25, 26 as these older units age out based on operating hours, then we would have new units coming into the mix to replace those older units as part of our fleet replacement strategy. So it's always an ongoing thing, Cosmos, year-over-year, depending on the operating hours of the equipment.

但我們確實在六月初收到了這些。我們確實還有兩輛卡車計劃在今年下半年抵達，這也是我們車隊更換策略的一部分。就我們 2024 年的要求而言，這將是完全替代品。但顯然，隨著我們在 25、26 年向前邁進，這些舊設備會根據運行時間而老化，那麼我們將有新設備加入其中，以取代這些舊設備，作為我們機隊更換策略的一部分。因此，Cosmos 始終是一項持續的工作，年復一年，取決於設備的運行時間。

And then maybe one last question on YD. I see that you started using some hybrid production scoops. Is that a transition you think you're going to bring on more hybrid scoops? And it seems like they're working out pretty well so far. Is that what I'm reading? And would it be a full transition later on, do you think?

也許還有關於 YD 的最後一個問題。我看到你開始使用一些混合生產勺。您認為這種轉變會帶來更多混合獨家新聞嗎？到目前為止，他們的表現似乎還不錯。這就是我正在讀的內容嗎？您認為以後這會是一個完整的過渡嗎？

Yes. I mean it's the new phase, obviously, with the technology coming in with that equipment. We did get two new units this year. They've been actually performing very well. Availability has been very high on them, plus 80%, which is what we would expect as far as availability on those units. They've been very productive for us. So as we continue to move forward again with our fleet replacement strategy for our production scoops at Young-Davidson, we would start to probably mean more towards these hybrid units moving forward.

是的。我的意思是，顯然，隨著該設備所採用的技術，這是一個新階段。今年我們確實得到了兩個新單位。他們實際上表現得非常好。它們的可用性非常高，達到 80%，這正是我們對這些設備的可用性的期望。他們對我們來說非常有成效。因此，當我們繼續推進 Young-Davidson 生產湯匙的機隊更換策略時，我們可能會開始對這些混合動力裝置的發展更加重視。

And does that help on cost as well? I guess it does because the efficiency if it's going up, is up, that could help with cost as well.

這樣對成本也有幫助嗎？我想確實如此，因為如果效率提高，效率就會提高，這也有助於降低成本。

Correct, Cosmo. I mean obviously, as these older units start to get aged out from our point of view of operating hours, there's more cost to maintain these units. There's less availability on these units, which obviously affect the overall productivity of the operation. So by replacing them with new units with higher availability and lower maintenance costs, it improves the overall cost profile of the business.

正確，科斯莫。我的意思是，顯然，從我們的運行時間來看，隨著這些舊設備開始老化，維護這些設備的成本會更高。這些設備的可用性較低，這顯然會影響營運的整體生產力。因此，透過用可用性更高、維護成本更低的新設備取代它們，可以改善企業的整體成本狀況。

(Operator Instructions)

（操作員說明）

Michael Parkin from National Bank.

國家銀行的麥可‧帕金。

Starting at YD, can you just revisit what made you look for that conglomerate zone? Was that a fluke spending a whole and you hit it? Or was there something from like a mag survey or something like that, that kind of indicated something might be there? Like what prompted that initial discovery goal?

從 YD 開始，您能否重新回顧一下是什麼促使您尋找該集團區域？花掉一整塊錢你就成功了，這難道是僥倖嗎？或者是否有來自雜誌調查之類的東西，表明可能存在某種東西？例如是什麼促使了最初的發現目標？

Mike, it's Scott. What initially prompted obviously, the search for higher grade in and around Young-Davidson is a key objective for our exploration group. So we basically compiled all historic exploration results and recognized opportunities from limited sampling that occurred in 2008 surface drilling to the south of the deposit and the hanging wall. And there was mineralized -- high-grade mineralization intersect had not (inaudible).

麥克，這是斯科特。最初顯而易見的是，在楊戴維森及其周邊地區尋找更高品味是我們勘探小組的關鍵目標。因此，我們基本上匯總了所有歷史勘探結果，並從 2008 年礦床以南和上盤的地面鑽探中進行的有限採樣中發現了機會。而且有礦化——高品位礦化相交還沒有（聽不清楚）。

So we had drill bays available from underground to initially follow up on that intersection in the hanging wall and sample from top to bottom of the hole and sure enough, started getting high-grade mineralization in conglomerate. It wasn't obvious. I mean it's associated with pyrite (inaudible) typically see, but certainly high grade. So that initially will led us to targeting in the hanging wall.

因此，我們在地下有可用的鑽台，最初可以追蹤上盤的交叉點，並從孔的頂部到底部進行採樣，果然，開始在礫岩中獲得高品位礦化。這並不明顯。我的意思是它與通常看到的黃鐵礦（聽不清楚）有關，但品位肯定很高。因此，這最初將引導我們瞄準上掛牆。

Okay. And is that kind of taking precedence over like the YD West I remember that was kind of a bit of a higher grade zone, but obviously, down the bottom of the reserve, is this given the grades and the proximity to infrastructure, it would seem like you would allocate more resources there versus chasing something at depth just give us --

好的。我記得那是一個等級較高的區域，但顯然，在保護區的底部，考慮到等級和與基礎設施的接近程度，這似乎是優先於 YD West 的就像您會在那裡分配更多資源而不是深入追逐某些東西，只需給我們--

That's a correct assumption. And we're taking a balanced approach to continued expansion of the resource, but obviously, given the grades and the proximity of this gold mineralization in the conglomerates to our existing infrastructure. It has now shifted to more of an area of focus for us for the balance of the year.

這是一個正確的假設。我們正在採取平衡的方法來持續擴大資源，但顯然，考慮到企業集團中金礦化的品位以及與我們現有基礎設施的接近程度。現在，它已成為我們今年餘下時間的重點領域。

Okay. And then one last question, maybe a little too early for this one, but obviously, it's just a recent discovery. But any thoughts towards metallurgy? Would there be mill modifications required to bring that material into the mine plan? Or is the way the mill set up actually good for that different style of mineralization.

好的。最後一個問題，對於這個問題來說可能有點太早了，但顯然，這只是最近的發現。但是對冶金有什麼想法嗎？是否需要對工廠進行改造才能將該材料納入採礦計畫？或者磨坊的設置方式實際上是否適合不同類型的礦化。

Mike, it's Luc here. No. I mean certainly early stages. But I mean, based on the early results that we've seen, no, we don't expect any real challenges from a metallurgical point of view to be able to treat that new zone from within the existing plant that we have at YD currently. What we're seeing is free gold associated with that pyrite. So it's quite right in the major conglomerates with gold around the margin. So I don't anticipate it being an issue from a metallurgical perspective.

麥克，我是盧克。不。我的意思當然是早期階段。但我的意思是，根據我們所看到的早期結果，不，從冶金角度來看，我們預計不會遇到任何真正的挑戰，能夠在我們 YD 目前擁有的現有工廠內處理該新區域。我們看到的是與黃鐵礦相關的遊離金。因此，對於黃金在邊緣的大型企業集團來說，這是完全正確的。因此，從冶金角度來看，我預計這不會成為一個問題。

Okay. And just one last question there. Your current TSF permit and design comp, is that in excess of your current reserves? Just kind of getting at, could you either make it bigger? Or would you have if this additional zone proved to be a size would you have to look for potentially another TSF site to store the added potential reserve upside here. Good problem to have, obviously, but just kind of wondering longer dated future, what things might look like?

好的。還有最後一個問題。您目前的 TSF 許可證和設計補償是否超出您目前的儲備？有點明白了，能不能把它弄大一點？或者，如果這個額外區域被證明是一個規模，您是否必須尋找潛在的另一個 TSF 網站來儲存此處增加的潛在儲備上升空間。顯然，這是個好問題，但只是想知道更長的未來，事情會是什麼樣子？

Yes. Mike, you're still referencing YD, I assume, right?

是的。麥克，我想你仍然在引用 YD，對吧？

Yes.

是的。

Yes. So with regards to these new finds, I mean, we would certainly have capacity under the existing footprint that we have for the new construction facility that we built a couple of years ago. It certainly handles all of our reserve and resource base, and we have some upside to that as well. So capacity-wise, we would be okay.

是的。因此，對於這些新發現，我的意思是，我們肯定會在幾年前建造的新建築設施的現有佔地面積下擁有產能。它當然可以處理我們所有的儲備和資源基礎，而且我們也有一些優勢。所以就容量而言，我們會沒事的。

Thank you. There are no further questions at this time. This concludes this morning's call. If you have any further questions that have not been answered, please feel free to contact Mr. Scott Parsons at 416-368-9932, extension 5439.

謝謝。目前沒有其他問題。今天早上的電話會議到此結束。如果您還有任何尚未解答的問題，請隨時聯絡 Scott Parsons 先生，電話：416-368-9932，分機號碼：5439。