Transcript: Erdene Resource Development (ERD) - Shovel Ready Gold in Open Pit
Erdene Resource Development is a Canada-based resource company focused on the acquisition, exploration and development of base and precious metals in Mongolia. The Company holds approximately 4 exploration licenses covering approximately 10,730 hectares and a mining license covering over 6,040 hectares. These include Altan Nar, a gold-polymetallic project that the Company is advancing toward a production decision; Bayan Khundii, an earlier-stage gold discovery; Khuvyn Khar, an early-stage copper-silver porphyry project with multiple drill targets and copper intersections; Zuun Mod, a molybdenum-copper porphyry deposit, and Altan Arrow, an early-stage gold-silver project.
0:00 – Company Overview
1:30 – Headlines, Progress, Impact of Covid
4:07 – Open Public Meeting, Standard Fluctuation, Reduced Income for Labor
6:24 – Impact of Big Players on Mining Business in Mongolia
7:56 – Molybdenum & Copper Project, Visibility, Targets, Time & Patience
13:28 – Project Phases: Tight Space Drilling, Enhancements, Discovery & Expansion
17:57 – Explaining Australian Model: Balance between Initial Production & Foundation
25:10 – Execution Funds, Shareholders, Joining Economic of Multiple Projects & Infrastructure
30:26 – Near-term Developments for Potential Shareholders
32:44 – Local Conditions of Mongolia as a Mining Jurisdiction
34:06 – Discussions for Next Interaction
35:55 – Outro
Peter Akerley: Hi Matt, great to be back at crux. We are a TSX listed company focused on Mongolia. I am the CEO of that company and my name is Peter Akerley. We effectively have a two-pronged approach. We have a shovel ready Gold project, high-grade, open-pit that we're moving forward with. Alongside of that, we're developing a multi-million oz Gold district. We've had some tremendously exciting drill intersections recently that I'm looking forward to talking to you about today.
Matthew Gordon: Brilliant, Peter, thanks for coming back on. When were you here, like July sometime?
Peter Akerley: About mid-June, I think.
Matthew Gordon: Look I appreciate you coming back on especially as I know you happen to be in Mongolia. How are things there?
Peter Akerley: Finally made it back, it's been almost 2-years since I was in Mongolia. And typically, I'd be here 5, 6, 7 times a year. So yeah, it's great to be back in the ground, lots of activity here, drilling is underway so back in the thick of it.
Matthew Gordon: Brilliant, well, cool. I think last time for people who haven't heard your story before we spoke to you we talked about business plan, strategies, teams, money and how this thing gets built out if all goes according to plan. I thought today, we might sort of dig in on the assets like we said we were because you've been putting out some nice headlines, some nice numbers there, which I think have caught the eye. Should we talk about those today? I mean, you obviously must be quite pleased with some of the grades.
Peter Akerley: Absolutely, so we've drilled 2 targets since we last spoke. We've had some tremendous success at a project called Dark Horse, which is about 3.5km to the north. But more recently, we stepped up to the west of our Bayan Khundii deposit. We've had some very thick intersections at the Ulaan discovery in excess of 200m of 1g of Gold, a core of 50m of 3g. So just a very significant impact on our exploration programme through that Ulaan discovery. So now we have 2 targets, outside of that pit one 3.5km north and one just 0.5km to the west, that are going to have a significant impact on the ultimate development that we see here at the Khundii Gold district.
Matthew Gordon: So you're back in Mongolia now. A lot of people will be looking at and going well, Mongolia, what's that like for doing business? They may be slightly uncomfortable but you've been operating there for many years. How has it been affected by the COVID restrictions? Has that impacted mining as a whole and your ability to do business?
Peter Akerley: It's interesting, I've obviously had an opportunity to meet with some of the business elite government members as I've been here for the past week. The mining industry in this country is largely dependent on Coal and Copper production. Coal has become massive over the last 10-years and millions and millions of tonnes is crossed in the border into China. The same with the Copper concentrates coming out of Oyu Tolgoi and Iron ore also. You can imagine that the impacts at the border going into China would have caused delay, but it's shut down periodically. You just can't get any of these industrial metals or block materials across that border. So that's had a major impact on the economy here but what it's done, I guess, in favour to us is it's had people look much more closely on those commodities that they can produce and not worry about the transport into China. So in our case, obviously production of a Gold selling that into the state, allowing the government to increase their financial reserve base is becoming more and more important. And I think you see that around the globe in a number of countries similar to Mongolia, but certainly a lot of focus here on accelerating and incentivizing hard rock Gold.
Matthew Gordon: Well, that is good news, and talking of which last time we spoke you're about to sit down and have an open meeting with the public. Did that happen? Because obviously your EIA was dependent on that happening.
Peter Akerley: That's right, that was one of the biggest roadblocks we had faced in getting our permits to allow us to move towards construction. Under Mongolian law, you have to have a consultative meeting with the local community. In our case that finally came to fruition in late June just after last time we spoke. We had 200 local people on the steps of the local community and multi sort of our discussion and feedback but at the end of that we received majority support from that local community to push forward with our developments. That was a very significant milestone for us. And that's now open the door for us to proceed with our detailed Environmental Impact Assessment, which is in front of the regulators being reviewed now. We expect to have that meeting in the next few weeks. So hopefully next time I speak to you, we’ll be able to check that.
Matthew Gordon: So there's an important one for me in the sense of, people are talking about ESG in every single conversation we have, do you find in countries like Mongolia, where it's very low density of population in a big country, mineral rich, has COVID constraint in terms of being able to transact with China and presumably reduction of tax incomes or reduced ability for people to work and get paid, has that changed their attitude to things like the EIA, have they dropped their standards?
Peter Akerley: No is the short answer. I think the Mongolian regulatory system has remained exactly the same. We're going through the same process as we would have 2-years ago for the other projects. So no, but those impacts, they are very significant as you can imagine, this economy depends to a large degree on mineral exports, I think 30% of the GDP is generated through those mineral exports. So it's having an impact, but no, not an impact on the regulatory process of going through the regulatory system.
Matthew Gordon: Right, and how much this, sorry slight segue here, but I promise to come back. How much do the big businesses, the big mining businesses, like as you say, the Copper and the Coal how much influence do they bear over the mostly from mining? I mean, are they driving that thing or is the country again got a strong ministry, strong code and a good sense of who they want to be?
Peter Akerley: Yeah, absolutely the latter. I see, great independence, strong mining ministry, and then mineral implementation authority. You know, the big players here, obviously, Rio Tinto is one of them, there's a multitude of large Coal companies, both public and the Hong Kong Stock Exchange, but also state run. When I look at this, they're all following the same rules and regulations across the board, whether it's us or Rio, or those Hong Kong listed Coal companies. And it is a fairly strict system that came out of the former Soviet systems when you look back into the 1980s. So there's a lot of bureaucracy associated with it, but their bureaucracy, their bureaucrats and middle management have learned the mining industry over the last decade and it functions pretty well.
Matthew Gordon: Okay, the only reason I ask because you see some countries in Africa bend to the will of the larger companies because the dependence on the revenues are coming through. Right, last time we spoke June ish time you say reminded me, I’m kind of keen to get an update on the Molybdenum Copper projects, try to understand what you're doing with that because obviously all the headlines have been Gold Gold and they're great, great. I would love you to dive in and get into the weeds with me, what can you tell us about that project?
Peter Akerley: Now, I think it'd be helpful if I just step back for a moment to walk through the various projects in sequence because Zuun Mod kind of sits at the end of that.
Matthew Gordon: I just want to get rid of the outliers though, what's the focus the order of play for you and that'll be helpful.
Peter Akerley: Let me speak about Zuun Mod for a moment. So Zuun Mod is a very large, perhaps one of the largest undeveloped Molybdenum Copper projects in the Central Asian region. It sat dormant for the last almost a decade because of low Molybdenum prices. Moly prices have jumped up to I think they're $22/lb today, which is triple from where it was during that period of dormancy. What that means to us is we have 400Mlb of Molybdenum at Zuun Mod at current prices, that's in situ, better than $8Bn worth of metal. The previous internal studies we've done back in the mid-teens was suggesting, 14 to $16 Moly which started to make this economic. When you're talking about a big bulk tonnage porphyry development, the numbers add up pretty quickly. There's a lot of value sitting in that project now for us, and that's what pushed us into revisiting it effectively. We've engaged with one of the big engineering firms, we've began to revive the Scoping Study which will bring back all the work we did previously. And over the next 6-weeks or so we'll see that delivered and have a new set of economics we can look at. We're already seeing approaches from the Steel industry in China to look at the Zuun Mod project, the Stainless-Steel industry in particular. I don't know how much you're aware of in China but there's 2 major Molybdenum producers that supply the Steel industry there. And they went into deficit last year, which is part of why the Moly price has peaked. If they're going to look for a new Moly project, it seems like the logical place to look would be at the border where rail and highway has already been built, we’re within 200km of it. Great metallurgy, very large project, a reasonable grade similar to some of the other producers in China and globally. So yeah, we're excited about it. But the reason I said let's look at it in sequences, we're looking at that as a sort of stage 4 development, we'll get the cash flow from the Gold project, enlarge that and consider Zuun Mod as something that we would consider developing with a partner, when you look out 5 to 10-years from now. If somebody comes along and offers the right financial opportunity for us, then we'll consider it and that's part of getting it back on the radar, bringing it, refreshing it.
Matthew Gordon: But that's interesting in terms of how you play those things because obviously, is the market going to get better than it is today. Moly's high at the moment, you look at the deficit in China, do you as 110, $120M company, depending on the day of the week, have the time and patience to wait for some event, which may be bringing strategic partner in or capturing some value, or act actively going do you know what, I think we could get a real chunk of change, which will release all of these other projects that we've got going on. We'll also last a step up, because I think questions sent in by one of your shareholders to us was, why don’t you go and raise a big chunk of change and just get after that Gold now, why this careful approach?
Peter Akerley: Well, back to the first question there on Zuun Mod, that's part of bringing it back to the markets attention is to increase the visibility. So those that are interested may approach us and we can look at doing a transaction along the way. My view of Zuun Mod is it will be a mine, it's a question of when and when it is, it's going to be a terrific value. We have a roadmap here to get us into production where we don't need to sell up assets prematurely before we can maximise value out of them. So if the right deal is there, obviously we're going to consider it but it's not going to be a fire sale, it's a great asset in the future and we'll continue to add to that value. You know, why not go out and raise $20M to do exploration? I think you can ask every company that question and answer is always going to be it's too much dilution at these levels. So, I've always been somebody that employs a measured approach to using shareholders money, and we'll continue to do that. We're well funded enough now to continue to add oz and continue to make discoveries. This is not an expensive exploration district, when you think about a $20M programme, some of those deep targets in Ontario or you know, working in northern BC, it can get really expensive. Here, we're at $87 a metre, and we're shallow and the targets are sitting at surface. So I'd be hard pressed to spend $20M in exploration. A big programme for us 20,000m, CAD$5M and that's kind of the framework of what we're looking at, as we move into 2022. Now firm of the Dark Horse, Ulaan opportunities with the current drilling and then embark on what I consider to be a large programme, but it's not at the magnitude that question of..
Matthew Gordon: Okay, well, let's get back, we've discussed briefly phase 4, so what's Phase 1, 2, and 3 then, if you run through that?
Peter Akerley: Sure, so I kind of look at this as initially, obviously, the production. We have a 65,000oz per year, shovel ready project, we'll get to production in 2023. And immediately after that, we see an opportunity to enhance that production. So stage 2 is really what I consider enhancement. Around that pit, we've had intersections, just in the last year in areas we've previously deemed waste or low- grade material. We're hitting in a couple of different areas, 15m of almost an oz of Gold, this is within 10m of surface. So those areas require us to go in and do very tight space drilling that will come with great control. And so that's the first sort of low hanging fruit I see in that enhancement stage. That 65,000oz per year is going to be padded with that material that we consider low-grade or waste. Also, around that pit right now we have 400,000 in reserves, but we have another 200,000oz in the 2g range that we can start to look to bring in depending on where Gold prices is. So that's the first of those opportunities for enhancement.
Moving north to Dark Horse, 3.5km we have an oxide cap on that new discovery. The grades in that we reported since we last spoke, we're seeing 25-30m of 5g material sitting, in some cases starting 5m below surface. We're now drilling that up into an M&I level of spacing so that'll be sitting there at surface again, ready to bring into that pit in the 2nd, 3rd, 4th years of production. And that's sort of the second of the low hanging fruit. The 3rd is the project is the Altan Nar to the north. We've already confirmed about 200,000oz of near surface material that's amenable to the CIP plant. That also needs to be brought into Measured & Indicated, some of its inferred. And that's what we're doing in 2021 is defining further what I call the enhancement stage. So all of those opportunities, give us at least another 250,000oz to bring into that plant beginning almost immediately. You're into 1st year production, that materials is there waiting for you. So I see that as the ability to move this from 65 to 80,000oz per year and that 80,000oz per year would ideally be going out 8 or 10- years and that's the stage 2. Stage 3 is the bigger opportunity for an expansion. We see that in some of those targets I just mentioned, the one that I didn't mention because it is on an exploration licence so it's not going to be part of that enhancement stage. But the Ulaan opportunity is proving itself to be a very high priority for expansion. When you can start to pull repeatedly 100 to 200m of 1g of Gold with 15m core of 3g and we haven't really even pushed the envelope on that drilling yet. That's going to be the opportunity for a big expansion here in my mind. Now lots of work to do and it's a fairly fresh discovery, but it's 0.5km away from the pit. It's the same metallurgy as you may remember, the metallurgy at Bayan Khundii is very good, no deleterious materials, recovers very well. So Ulaan is a perfect fit for an expansion there. When I talk about expansion, now effectively looking at doubling the size of what we have today plan for Bayan Khundii so you're getting up into that 120 to 150,000oz per year. So Ulaan is part of that. Dark Horse, I mentioned the oxide, we have not drilled deep in Dark Horse yet, we have intersections that are 30m of almost 2g and the one hole that we drilled deeper. So that now is just starting to be drill tested and that would be the next opportunity for something I consider expansion potential. And thirdly, is Altan Nar, I talked about bringing in sort of the CIP amenable material there. There's a very large opportunity for a million oz plus at Altan Nar but still needs to be drilled. So those are the 3 targets that I see provide us with the opportunity to get up in north of 2Moz of resource and support a 150,000oz per year expansion opportunity.
Matthew Gordon: Right, okay. I know you said at the beginning, you probably want to whip out a couple of charts before we started actually I should say. The thing that I'm intrigued by and maybe if you do that when we are talking, it'd be great. And the thing that I'm intrigued by is this scale of this because 1) it's a big country, I just wonder where the projects are in relation to each other for one in terms of your economics and G&A but also in terms of the scale of the projects themselves, because you described some scenarios, there are some quick wins where you kind of pieced them together, it's either shallow oxides, or there's some it's a small resource, but you'll add to it later. You want to kind of seems to me, you want to kind of get things going and build it up as you move along, rather than the sort of I guess, North American model, certainly Canadian model, where it's let's build the resource out let's get to 2, 3Moz or more, before we do anything, am I right in saying that or is there a bit more subtlety to it?
Peter Akerley: I would say we're leaning more towards that Australian model. I'd like to think there's a balance in here where we can move rapidly towards that initial production format foundation and get the cash flow. At the same time, we’re carrying out reasonable amount of exploration to be pushing us next year through that 2Moz mark and becoming more aggressive as we move into that cash flow period in 2023.
Matthew Gordon: By Australian model, you mean get into cash flow first, less dilution and then build it up over with your cash flow?
Peter Akerley: That's right. I'm looking at page 1 and I just wanted to reinforce the opportunity that we see here regionally. This is one of the world's great Gold Copper belts. It is part of the Tianshan mountain block belt, known as the Central Asian orogenic belt. It's anchored by 2 of the largest Copper Gold deposits on the Far East, here with Oyu Tolgoi and on the far west you have Nomin Tal 100Moz plus. There's a multitude of multimillion oz deposits in here. And this is really what attracted me in the first place but more so than that is there's a part of that belt that sits in southwestern Mongolia, the Khundii Gold district area known as the Edren Terrane that had never before witnessed modern exploration. And so that's really the attraction that brought us in here. The Edren Terrane itself is sitting in one of those sweet spots of an intersection of major structures, right host rocks. We've narrowed down that work after a decade of regional exploration to discover what we call the Khundii Gold District, which is shown on this next slide. So here comes back to your question and trying to place geographically where our key prospects are, this is slide 2. You'll see that Bayan Khundii deposited in this host, the Blue line project just directly adjacent to that to the west, Dark Horse with 3.5km to the north and then Altan Nar 16km north of that. So when I spoke about the idea of the enhancement stage, you're effectively beginning your development at Bayan Khundii looking at the opportunities around that pit as you get up and running. Moving to the north to pick up the Dark Horse oxide material, prior to starting to bring in any of that material you may need from Altan Nar which is CIP amenable. If you look at this next slide to get a better sense of the prospect in the direct vicinity of Bayan Khundii Gold deposit. So here we are page 3, Bayan Khundii to the south, Ulaan you can see just 300 to 400m to the west, and then Darkhorse 3.5km north. So this would be what I would consider the opportunity for the enhancement stage, just get that Bayan Khundii deposit up and running and then look at that oxide material at Dark Horse.
Here, you can see at the top of the page, that oxide blanket at Dark Horse and that's about 15m deep. This is on page 4, you'll see some of the grades we are intersecting here and we announced since we last spoke 27m of 5.86, 30m of 5.6. We're currently drilling this off, so that would be in a Measured & Indicated category. We can move that into the reserve stage as we move into next year to have that available for the pit. But you can also see here, now there's very little has been done deeper in the Dark Horse prospect. So we're currently doing some deeper drilling up here, we received our geophysics and that looks underway. This is a 1.5km long system you can see on the bottom of the page. So the oxide is the low hanging fruit opportunity but there's a tremendous opportunity for a big system to be discovered here. We're just getting started in that effort.
Switching over to Ulaan, this is on page 5. You can see on the right-hand side the section line, we have 5 holes, which you can see in section on the left, and they're drilled over 150m north south line, and those 5 holes are averaging 120m of 1.2g/t. You can also see in red, these high-grade intervals that we've intersected 75m at 253m of 3.6. And we're now waiting for the next batch of holes to the west to come out of the lab which we should see in the in the next few weeks. So this is as I mentioned, the 3rd stage of opportunity the enhancement being Dark Horse and Altan Nar. But here we have an opportunity for something that's a bit of a game changer, big volume, large expansion of our open pit. This gives us that opportunity to start to look at doubling the size of the Bayan Khundii plant and seeing that vision of 120 to 150,000oz come to fruition so very excited about what we're seeing at the Ulaan discovery.
This final map is page 6 and this is showing the proximity between Bayan Khundii and Altan Nar. On the right-hand side, you can see the pits we've defined near surface and those were brought to PEA level and that is where we have almost 200,000oz of material defined that can be brought down to the Bayan Khundii plant. So again, easily accessible, material conducive or capable of being brought into the CIP plant at Bayan Khundii. So hopefully that puts things into geographic perspective for you and it gives you a bit of a sense of what that staging looks like as we move towards development and building out those oz. As I mentioned, we expect to be able to get into that 2Moz plus range with the drilling we see in front of us over the course of the remainder of 2021 into 2022.
Matthew Gordon: Thanks a lot, Peter, it certainly gives the idea of scale there. A couple things, how much money have you got today to actually deliver those plans?
Peter Akerley: We are sitting on about CAD$5M in cash that's relatively slow, reflecting what I mentioned to you earlier the cost of exploration. There's not a significant amount of expenditure currently taking place on the construction side until we get past those permits. We just have actually launched a small financing here in Mongolia for US$5M on the Mongolian Stock Exchange, expect that to be successful. So by the end of this month, we'd be sitting on somewhere around CAD$10M.
Matthew Gordon: That's interesting to do it there. I know you've got a lot of Mongolian shareholders about 6000 or so but why did you do that? Why not open it up to all shareholders?
Peter Akerley: Well, I do expect to do some future opportunity for the international shareholders to participate. But in terms of the intangibles that come along with financing, we get tremendous value out of the financing here in Mongolia, just from a shared benefits perspective, and giving them that opportunity first is important. There's also environment here where warrants are part of a financing so this will be done as a single share unit as opposed to share and half unit.
Matthew Gordon: Okay. So obviously, I think you are over the EIA, and applied for now. When will you be in a position to actually start joining up the economics of all of these projects, because I know they are open-pits phase 1, let's go, that's great. But when you talk about, these sorts of intervals of, if I look here, 258m of 0.98 Gold, and similar sorts of numbers that we've seen from the press releases recently. It's all near surface and you're talking oxides, shallow stuff, it's all the language of this should be low Capex development, it should be in theory, if you're going to improve up the scale of this but you're going to need for it to come together and work as one at some point to maximise the efficiencies, because it's all relatively close, you’ve just shown us all relatively close, you'll be sharing a lot of the same facilities. So what’s the timeline in terms of getting the total picture in terms of the economics?
Peter Akerley: So, when you look at the prospects that are on the Altan Nar Khundii licences, they are mining licences, but we had to go through a tremendous amount of work to get them to that stage. I'd estimate 2-years, another $1M of studies with the Mongolian regulatory agencies. So you can apply that to the Ulaan discovery. We have the ability to move very rapidly on what we see on Khundii and Ulaan and that allows us to get into that 80,000oz range, maybe it pushes up into 100,000 oz depending on how we play with it. But I'd say that that's in the next 2- years. Ulaan you have to look out 3 or 4-years to get through that process and that's the expansion stage that I'd be looking at.
Matthew Gordon: Okay and in terms of the infrastructure that is there now because we're looking at some maps there, satellite imagery, it doesn't look like there's a whole lot going on there but what’s it like on the ground in terms of roads, energy, water, etc.
Peter Akerley: We're 200km from the Ceke border crossing, which is the pathway into China. And that's been built up the infrastructures there because of the Coal mining district that exists in that area. There are plans to extend that rail line further north west past our projects but that's the extent of major infrastructure in this region. We have plans to put in place a diesel solar hybrid facility about 10 Meg that will support that initial plan. When we start to look at expansion, there's an opportunity to tap into the state grid power, which would lower those energy costs but we're not at the scale yet to consider capital play. From a water perspective, we've been heavily investing in water exploration since we discovered Zuun Mod, probably US$3M has been invested into a number of aquifers. The one that we're planning to use for Bayan Khundii is a relatively small one, but it's just 2km south west of the site and provide sufficient water for the plant size that we're intending for Bayan Khundii which is 1800t per day so pretty low water usage. We have those plans in place, the water been appointed to the state reserve so it's available to us. We have companies that have bid on that diesel solar hybrid package so yeah, all of that is very advanced.
Matthew Gordon: And so with the water it’d be you talk about building pipeline or you're talking about trucking it in, I mean, how's that work?
Peter Akerley: No, that would be a PVC pipeline. I think, keep in mind here that this is pretty flat, gently rolling area so you've got a short trench to lay a PVC pipeline and to put that water into the plant.
Matthew Gordon: Okay, fine. What should we be looking at, what's it gonna be so what moments for us as potential shareholders? Okay, I get the raising some money on the local exchange, which is great, take it to $10M and you’ve laid out the order a play there but what are the near-term things that we should be saying, oh, look, they've done what they said they were gonna do?
Peter Akerley: Well, I think when you're looking at the development side, obviously that the EIA is a major milestone for us. We push through that, and we can immediately get out there on the ground and start moving some dirt, which we intend to do this fall. So I think the EIA and launch of early works construction this year are critical path items. As we move past that, we're in to finalising our financing package. And as we talked about before, we have export development Canada and EBRD is part of that. So those announcements, I would expect to come to fruition, in latter part of this year, or first quarter of next. And that ties up the financing and allows us to move into full construction, at which point you just be following the course of that. Shifting over to the exploration side, we just completed that first very high density drilling out the Dark Horse oxide. So those results should be in the market in the next several weeks and that will really allow the investors to understand the scale and whether or not there's continuity to the oxide zone and allow us to tap into it. Those results will be out. The expansion of the Ulaan system, what we've reported on really is that line along the eastern side we're stepping out to the west. And if we can continue to see these 100m plus intersections of 1g, ideally, with those high-grade zones, that's going to really start to put some materiality on that discovery and people will be able to understand okay, this is looking like that Moz opportunity. There's a tremendous amount of room to the west of that that we've yet to explore where there's never been any drilling. You may remember that Ulaan was only owned 51% of us until late last year. So this is the first time it really given it a good shot. So Dark Horse and Ulaan would be the keys on the exploration side.
Matthew Gordon: Okay, fantastic. Can I just ask about local support, ESG we've mentioned a couple times already, but ESG is such a big tick box exercise for a lot of institutions. I know you are not quite at the size yet, but at the point you will be. Mongolia is not that well known as a mining jurisdiction to international investors, I think that's fair to say. There's other places that people look, first. You've described an environment, which is very pro-mining, but at a local level, how do you engage with them in terms of is it just the promise of jobs, promise of local taxes? I mean, what's getting them over the line with companies like yourselves?
Peter Akerley: I think what comes to mind first is the fact that we've had the luxury of being in the same place for 15-years. We're a company that committed to that long term exploration effort, which I'm not sure there's another company in Mongolia that's been out there for more than several years. So the same faces, the same Mongolian team on the ground that's been interacting with the community leadership in these 2 sub provinces for that length of time, allows us to create that trust. People can talk about trust all they want, but it comes with time and going back over and over and over again, and doing what you said you're going to do and that's what we've done. I'd also say that team that we've built, it's in their DNA to see things get better in that local community. This isn't just about, we put some money into a scholarship, that means we're going to be able to get a permit. So these are people that really want to make a difference for this local community. I think that's what's most important. I can go on about all the other things we've done right up to the Mongolian listing, which are great for social licence, but it's about those people on the ground earning trust and that's me as well when I get out there and do same thing.
Matthew Gordon: Right Peter, I appreciate you coming back on, I really enjoyed the last conversation in terms of the plan about how you're going to go about and what you're trying to do. And also getting into a little bit more detail about the order play today is really useful, too so let's stay in touch. Let us know how you get on and I know we've actually, Peter and I've actually talked about the potentiality of getting some people from the Ministry, I want to hear from them. I want to hear from some locals and we're going to maybe put a little panel together where I can ask some dumb questions about how much they like companies like yourselves in country and what their expectations are. So we've got that to look forward to.
Peter Akerley: Yeah, I think that'll be a great opportunity. As you said at the outset, a lot of people just don't know enough about Mongolia. There's obviously scepticism about the ability to invest here and be able to make things work. I think it'd be a tremendous opportunity for your viewers to actually hear it from the horse's mouth and get some people from the Ministry and get some people from business on that panel and allow you to ask some questions.
Matthew Gordon: I appreciate the offer and also thank you for putting it together for us. So Peter, thank you very much. We'll see you soon and hope that you enjoy your rest of your visit in Mongolia.
Peter Akerley: Thanks, Matt, appreciate it.