GoldInvest Interview at PDAC 2018
Bjorn: Let’s talk to PDAC. Steve Williams from Pasinex Resources. Welcome, Steve. Good to have you back.
Steve: Thank you.
Bjorn: It’s not been that long that we talked. I think it was in November at the Munich show?
Steve: Ah, Munich. Yes.
Bjorn: If not after.
Bjorn: So we’re going to focus on the exploration side of things today but first of all give us an idea how are things running production wise. If you’re still doing good and what you expect for this year maybe.
Steve: Yup. Well we had a great year in 2017. We did 60,000 tons of production, 32% zinc. So we had a good revenue year. Good profitability year. 2018 we’re going to basically do the same. We’ll hold the production at around 60,000 tons. So we’re expecting similar revenues. Actually, the revenue will be slightly higher this year because the zinc prices continue to go up this year against last year.
Bjorn: Which is very nice for you.
Steve: Which is very nice. So, again, we’re expecting a very strong financial year from production. Yeah.
Bjorn: Good. So let’s get to the even more exciting things. Well you acquired a new project. Gunman it’s called, I think. We’ll get to that later but first tell us what you’re going to do at Pinargozu and what you’re going to do at Akkaya I think it’s called.
Bjorn: The joining property.
Steve: Yeah. So because we had a good year financially last year we’ve, got some cash that we can now increase our exploration. So this year we’re going to spend a bit over $3 million US in Turkey on Pinargozu and Akkaya. You’re quite right, fully said. Pinargozu it’s all about, aggressively trying to grow the resource. We’ve still got a smallish resource so our priority is not only to replace the tonnage that we’re depleting as we mine but also to grow it. So that’s a top priority. We’ve got some new ideas in terms of increasing our… what we call increasing the target size to try and increase our success. So we’re going to be doing all that this year. Then Akkaya, that’s the property right next door, we think there’s more zinc to be found there. I mean it’s as simple as that and so we’re looking forward to getting in there. Again, we’ve done a lot of work behind the scenes trying to identify targets and so later this year we’re definitely going to be drilling Akkaya as well. So grow the resource in Pinargozu and try to add some new zinc in Akkaya. So that’s what we’re about. Big year.
Bjorn: Looking to future and Akkaya, how far away is that and how difficult would it be to, well, produce there?
Steve: Yeah, it’s close. It’s, I don’t know, three kilometers away. Something like that so it’s close. It’s the same, Bjorn, as Pinargozu. It’s the Taurus mountains so, what we see and what we do in Pinargozu is really what we would see and what we would do in Akkaya. So, in terms of if we find zinc there and, we think obviously there’s some chance, that’s why we’re going there. If we find zinc there and it starts to prove up then could we open another mine there? Simple answer: Yes.
Bjorn: Okay. Perfect, that’s good to hear. Now we’re going to Gunman which is in Nevada.
Bjorn: Nevada. Commonly known or better known for its gold.
Steve: Gold, yeah.
Bjorn: But you think you have found something there already.
Steve: Yeah. So Gunman, it’s an earn in option agreement that we’ve acquired at the end of last year and, again, we’re going to spend about a million dollars this year. We’ll do some basic geology and then we’ll get in to do some drilling. We’re just waiting, actually, for the snow to go and we should be starting maybe April ish. We should be starting in the field. Gunman is, we believe, exactly the same geology as Pinargozu so that’s actually… not only is there evidence of the zinc there and there’s outcropping, high grade zinc but the other thing that really appealed to us is it’s the same geology as Turkey. As what we’re dealing with in Turkey. So we can take and will take our learnings from Turkey in terms of expiration, in terms of, understanding the geology and bring that to Gunman. So I think it’s an ideal project for us. We think, again it’s got good opportunity and there’s definitely… at surface you can see the zinc. So we’re looking forward to it and as I said it’s right in our knowledge base.
Bjorn: Okay. So certainly sounds interesting but also it costs money, but as you said you’re expecting a similarly good year this year as you did last year. So some of that incoming money would be used for Gunman?
Steve: Yeah. I mean… yes. Basically, we’re going to spend $3 million in Turkey and a million dollars in Gunman. That money we expect to be actually coming from our profit that we made out of the mine in 2017. So at this stage we’re able to step up our expiration because we’re in production in Turkey. So, it’s working right. The mine is making money and we’re now able to deploy more money into expiration to strengthen ourselves, grow our resource. It’s great and I expect that we’ll have another good year of production from the mine in Turkey. So that’ll help even more.
Bjorn: Certainly sounds like an active year for you. Looking forward to the news flow from the drilling and we’ll be sure to check in again. Thank you.
Steve: Thank you.