Issue link: http://resourceworld.uberflip.com/i/855838
8 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 7 Kinskuch Pyramid Road accessible gold-rich copper porphyry environment. Large geochemical and geophysical anomalies with coincidental porphyry alteration located within the prolific Quesnellia Terrane, home to BC's largest operating copper mines. Cu-Au porphyry and epithermal project located within the prolific Golden Triangle. Historical drilling bottoms in copper-gold mineralization. Underlain by the prospective "Red Line" Stuhini-Hazelton contact. OK2 Minerals is a Vancouver based Canadian precious and base metals exploration and development company with two exploration projects in British Columbia, Canada. Our technical team has been actively advancing the Pyramid and Kinskuch projects. Both projects have p have presented highly prospective porphyry Cu-Au and epithermal Au targets. TSX-V:OK | FRA:1KO our power requirements. We're working with government agencies with regards to permitting. Our goal is to have the mine to where it can be operational and ready to produce within the next 18 to 24 months. RW: Building and operating a mine involves different skill sets than explora- tion. How are you handling this challenge? DL: Speaking for myself as a geologist, my background has been working over 15 years for Placer Dome. I had the benefit of working in exploration, operations, both underground and open pit, and the benefit of bringing in assets from exploration into feasibility, through permitting and into production. To address some of the other skill sets, we've brought in Ken Donner, our VP of Operations since September last year. Ken is a very experienced operational manager. He's managed underground mines for 30 years including the Snip, Snap Lake and Julietta. He brings a different dynamic to the team. He's hands on and is really driv- ing us towards operational readiness. As we continue to move towards production, we will grow that operational side of the team. RW: You have a pre-production CapEx of $20 million. This seems low for an underground gold mine. Is this because you already have a mill, and much under- ground development already existing? DL: That's correct. The Madsen prop- erty has a long history as a producing mine. It does have the benefit of infra- structure with a mill, tailings facility and a ramp. That existing infrastructure provides us an opportunity to move into a producing state with a low capital cost. There's over $200 million in infrastructure replacement costs at Madsen. As we move forward, we're looking at a larger scenario and that may require additional capital. RW: Do you have an OpEx figure in mind? DL: We've got a preliminary estimate from our base case PEA which suggested it has very robust economics with all the sustaining costs about US $700 per ounce but I will caution that was a base case PEA. With an update coming this fall, we'll have a better idea of those numbers. RW: Do you know how many workers the mine and mill will employ when in production? DL: Our assessment suggests there'll be well over a hundred mine workers employed when the mine goes into pro- duction plus some mill and maintenance workers. Numbers will be driven by the scale. RW: What are your plans for raising the CapEx and OpEx funds? DL: We're not committed to any partic- ular funding path, but with a low capital cost, it gives us multiple opportunities to look at various options. RW: Graeme, why do you think Pure Gold Mining is attractive to the current market? GC: Safe jurisdiction, established mining