Question-and-Answer Session
Operator
Certainly. (Operator instructions) The first question will be from Tony Lesiak from Genuity Capital. Please go ahead.
Tony Lesiak – Genuity Capital
Good morning, everyone. Paul given the significant increase in the resource at Kisladag, has the magnitude of the ultimate expansion potential there been impacted positively?
Paul Wright
Tony, I think at this point we don’t know what the ultimate expansion or production capability of Kisladag is. I think we – as you know – and a couple of months ago, we made an announcement as it related to an initial study where we looked at frankly taking advantage of certain surplus capacity we had in the circuit and looking into what we could with fairly modest capital to take advantage of that. And we are surprised to say we are pushing on with that and expect before the year end to feel to make that decision and make that commitment.
That expansion really as I describe will take advantage of opportunity that we see in front of ourselves, and would really be done frankly even if there was no increase in resources and reserves, I mean that type of expansion would be justified strictly on the basis of the present reserve of 5.5 million ounces.
As you can see from this year’s drill results and normally you want to add some comment afterwards. We are still I think ways from knowing and defining the ultimate size of the mineralization that may be relevant in terms of defining what this ultimate mine looks like. We, each year we drill, when we drill some more we add ounces and we create new targets.
So there is – to me, I think to all of us, there is still a potential for frankly a much larger mine here. And we have to continue to frankly drill to try to gain answers to those questions, because all as you know starts with what is the size of the resource. A long waited answer, but that’s where we sit right now.
Tony Lesiak – Genuity Capital
Okay. And the – I guess, the plan is to announce that to the market before year end.
Paul Wright
Well, I think in terms of what I would call as a no-brainer expansion certainly. And that will – what we are wrestling with a little bit right now because of this year’s drilling results is how do we allow the type of expansion we’ve envisage is a fairly modest capital. How do we make sure that we don’t waste capital? Because clearly when you look at the way this body is growing, it would be a surprise if a few years from now you didn’t have a larger mine there.
- To read the full transcript on Seeking Alpha, click here »
