The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Trevor Turnbull - Scotiabank Global Banking and Markets, Research Division - Analyst
: My first question, I guess, is related to La Colorada skarn and the update. You were talking about a potentially larger scope project and the
investigation of bulk mining with sub-level caving. And I just wondered what this means in terms of the processing plant if there's upgrades in
terms of capacity that you're considering or just general upgrades to the facilities that would have to go hand-in-hand with this. So yes, whatever
you can tell us a bit about that, please?
Question: Trevor Turnbull - Scotiabank Global Banking and Markets, Research Division - Analyst
: I appreciate that, Michael. I was trying to get a sense also kind of thinking about the M&A question that was asked. Something like this would
transform La Colorada to such a degree that potentially it would help with sustainability across the board with your assets. Maybe one last question
just on La Colorada. You talked about the twin ramps coming down to the top of the ore body. Do you have a time line for how long that might
take to get down there and -- or any cost scoped out just for those declines?
Question: Trevor Turnbull - Scotiabank Global Banking and Markets, Research Division - Analyst
: And I guess we would see at least some CapEx starting to get allocated as early as next year's budget for getting these -- getting moving on this.
Question: Trevor Turnbull - Scotiabank Global Banking and Markets, Research Division - Analyst
: Right. Then I only have one last question, and that's about Escobal and the consultation process. You talked about in the MD&A that there, I think,
has been -- there's been 3 meetings, and I think they were referred to as pre-consultations. And I just wondered what the difference between the
pre-consultation meetings and what I assume are the full consultation meetings are? And if you have any sense of how many of each of those type
of meetings need to happen before that process is concluded?
Question: Trevor Turnbull - Scotiabank Global Banking and Markets, Research Division - Analyst
: And so just trying to understand a bit better, with the pre-consultations, it sounds like you mentioned these are kind of a chance to set out the
parameters with, I guess, the leadership of the Xinka communities and then the consultations will be what more of a public forum where people
then can come in using the guidelines that have been agreed to, to voice their concerns or to ask questions?
Question: Don DeMarco - National Bank Financial, Inc., Research Division - Analyst
: Well, I think I'll ask a couple of questions on the skarn, if I may. I mean it's -- I think all my other questions have been answered already. But guys,
can you provide some indication on the timing of the release of the skarn PEA? And I apologize if you've answered this previously.
Question: Don DeMarco - National Bank Financial, Inc., Research Division - Analyst
: Okay. Fair enough. Well, we look forward to those updates and updated resource. And I think just a number of questions on this just reflects our
curiosity and we were looking forward to details in the PEA, but certainly, the reasons to postpone it are certainly valid. But just in an attempt to
maybe get a little color, is there any other mining projects across the current landscape that you might consider as an analog to the skarn?
Like, for example, I looked at Arizona mines tailored deposit at similar large tonnage sub-level open stoping, someone proposed mining method.
And I see the CapEx there was about $500 million or so, this goes back a few years ago. Are there analogs? And are we kind of in terms of CapEx --
like is that order of magnitude? Is there any at this early stage? Can you provide color as we await further details to be confirmed later?
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