CSE:PSE 0.085 CAD | FRA:PNX 0.0550 EUR | Zinc: $1.07/lb USD

Passion In Exploration

Björn Junker: Steve, I don’t have to ask you how it’s been going. We just can take a look at the share prize.

Steve Williams: Yeah.

Björn Junker: And also I’ve been rounding…

Steve Williams: The zinc prize.

Björn Junker: …oh and the zinc prize and the people coming by the booth. But nevertheless, tell us then what have you been doing this last couple of weeks and what do you think you might do to make 2017 even better?

Björn Junker: I mean, things are going great. It’s clear that people are catching on to our story and recognizing that, you know, we’re serious about our zinc production. And that, yeah, we got our mines producing and profitable. Basically, that’s our story, the all in a nutshell. You know, this year, we’ve been building the mine over the last couple of years. We put in the new third adit in September and that really jumped up our production.

This year, it’s about delivery. This year, it’s about, you know, quarter by quarter, doing the production we expect to do. Showing our production numbers, showing our financial performance. Showing the profitability. And you know, this is gonna be a strong year for us. And we knew that and I think…I think we’ll get more recognition in the market.

Björn Junker: That would be certainly nice. But you know, you’re also talking about getting a resource out.

Steve Williams: Yes.

Björn Junker: I know, and I think it’s the right way, between the two of us, that you will continue producing even though, but still, you have to do some extra drilling to get the results out. And what is your time frame on that?

Steve Williams: Yeah. Okay. So we’re…yeah, we’re gonna work on getting the results out. We’ve actually got the resource in drilling because we’ve been drilling. Every year, we do 12,000 meters of drilling and so we’ve built our own internal resource and we use it for mine planning. But now we have to make an official, independent, certified resource.

So our time plan on that is to have it out by mid-late Q3. You know, we should achieve that. And you know, really, it’s just to say we know it’s there. I mean we’re mining it and we’re producing it. We’re selling it. And people will see that in the results. But it’s just so that we can put it out there into the market and say, “there it is. That’s what we’ve got in front of ourselves today.” The other thing I need to say, though, about that is it’ll just be what we have today. This project, this resource, this deposit, I think it’s still got a long way to grow. And I think it’s got a lot more tons to be added. And so, this is just the beginning.

Björn Junker: Also, because you not only have Pinargozu, you also have Ankara it’s called?

Steve Williams: Ankara.

Björn Junker: Ankara. Which at some time may be the next target. Have you been drilling there? Are you…

Steve Williams: Yeah.

Björn Junker: …low sided?

Steve Williams: Yeah. So, you know, the story…the last couple of years…we’ve spoken before and you know. But the story has been that the last few years were tough for the industry. You know, and our way through was to get the mine going. Develop the mine. Get the production out. We’re there now. We’re, you know, and I don’t think we’re gonna finish that exercise but we’re…we’re at a level that we wanna be at. So we’ve done that work and this year we’re gonna produce.

So now we’re in a position to step back out, and start to look at the regional opportunity, of which Ankara is one. And we think that there’s a lot more zinc to be found and we think actually Ankara is quite perspective. So we are going to start to do some regional work and get back into Ankara. We, basically, we stopped over the last couple of years while we were building the mine. But we…this year, we’re gonna back into it. So, yeah, it’s exciting because I mean, you know, if you think about this, Pinargozu, it’s exciting and it’s high grade and it’s a beautiful mine. Nature doesn’t just put this one thing right there.

Björn Junker: Probably.

Steve Williams: It puts more and it… The only question is where is it?

Björn Junker: But you think you’re on the right path and you can extrapolate, I think is the English word, where you might have to look.

Steve Williams: Yeah, we’ve been learning. The other thing about Pinargozu and focusing on Pinargozu and doing all the work we’ve been doing is we’ve been learning. We’ve been learning about, you know, the geology, the lithology, the structure. Some of the pointers that tell us where to look. Still doesn’t mean it’s going to be easy exploration. But we’ve learned a lot. We’ve come a long way. So, yeah.

Björn Junker: Certainly sounds good. Just give us your personal estimate of where you’ll be at the end of this year, also in terms of production volume.

Steve Williams: Our plan this year is to do 60,000 tons of production. I really think we should do it. And you know, that’ll be something north of $25,000,000 US in revenue and at least a 50% margin. We should do that. I don’t see why can’t do that. And you know, market can watch it quarter by quarter as we put out our financial results. So on that side, you know, that’s…that’s our target, that’s what we’ve set ourselves, and that’s what people can hold us, you know, and look at us and see did they do it or didn’t they do it.

And then on the…on the exploration side, it’s…it’s… I’ve already said it, it’s on two fronts. We’re gonna continue to drill on Pinargozu and try and find it as it goes deeper and deeper because we think it goes deeper and deeper. Keep…continue to drill and follow it as it goes deeper. So that’s priority number one, and that hopefully should be more sulfides. And then step out and get into regional exploration. So the accountability, if you like, is our production numbers, the 43,101, the continued exploration on Pinargozu, and start to put out some regional exploration.

Björn Junker: Okay. Thank you, Steve.

Steve Williams: Okay, thanks.