thank you welcome to CEO insights I'm Marilyn De Guzman with investing News Network I'm speaking with Mark English managing director of Oreck mining a gold Explorer and developer based in Perth Australia and we're talking about the current gold market and its impact on the resource sector hello Mark hello Marilyn how are you today I'm good good to have you my pleasure so I know that there's a lot of exciting stuff happening in your company but before we talk about that for our


viewers who are not too familiar with what org mining does could you just give a sort of an overview what the company is what the projects you're working on are yes Eric morning was established about four years ago we then did our IPO enlisted on the ASX in February 2021 we've got four projects all between Calgary and Norseman in West Australia we're a gold focused company as I said we've got four projects and we can talk about um two of them in particular throughout this interview


great exciting news is happening can you talk about the uh your Jeffers find project and I understand your introduction there now yes um we acquired Jeffrey's finding February 2020 um we have now built that project up got the necessary approvals completed all the necessary work and we actually started mining that project um about three weeks ago we're mining that project in conjunction with a group out of kalgoorlie called BML Ventures they're The Operators we're now effectively a silent partner


the project is a is a discrete project it's a it's a smallish gold project in total it's around 50 000 ounces of gold it's going to get processed at a gold Mill at a place called cool gardi which is about 210 kilometers away from Jeffrey's find while satin might seem a bit distance in lots of countries and lots of jurisdictions in the world in Western Australia it's 210 kilometers is not far at all how you're mining so there's cash flow um is that um you know that what does


this cash flow will do for for your other projects look it's very exciting for us um we expect the first gold poor to be in early to mid July the the way that business is structured is that the from the initial gold sales Jeff BML will be repaid their money that they've advanced in working capital wages all those costs and then from the profit of the sale of the gold we split that 50 50. so From oryx perspective we're we're a smallish company at this point in time we don't have a lot of


cash we certainly would not have been able to finance the working capital and all those requirements so from our perspective we're using Jeffries find as a setting Stone to take effectively the gold in the ground and convert that into cash so that we can use that cash to manage the business and further exploration and other opportunities throughout 2023 and 2024. current market for gold and the racing prices of gold to record levels that we've seen in the last few months how has that impacted your operations


are certainly putting it in to say contact sir Jeffrey's find the gold price is outstanding for us at the moment it's it's Circa Australian three thousand dollars an ounce we did a scoping study back in July 2022 and we used the gold price of 2 600 an ounce so for that extra 400 an ounce it's really pure Surplus cash to us Bureau of profit look I think the gold price is being driven by some World macroeconomic issues that Russia Ukraine war China and Taiwan rattling their Sabers


um the issue in America and their in their debt ceiling inflation I think is a is a big problem in the world of all these things Orca will for gold price I'm not a I'm not a uh a qualified Economist so I don't want to talk too much about about the gold market but the gold Market's very strong um certainly with the price where it is a lot of additional projects so much for being looked at but one of the most important things that I want to emphasize about oric and how we're doing it is we're not building


gold Mills we're not building substantial um capital expenditure not building major development we're mining a smallish as a certain discrete deposit we'll truck that to a gold Mill that gold Mill will process the oil for us so it's effectively like renting an office space we'll rent that office space the gold Mill for a period of time it'll produce the gold the gold gets sold principally through the Perth Mint in West Australia and we'll be able to generate good cash


out of that process right and you do have exploration projects as you've mentioned earlier that um you know would need Capital to you know continue your exploration work um how does that correlate like are you with the cool prices that are um you know with the oil prices at school prices soaring obviously it's good for production but has had we seen those sort of does it typically translate to more investments in Gold exploration and development uh yes and no um certainly in the world at the moment


there's a lot of um exploration um being done for both nickel lithium and to a certain extent Rare Earth gold has not been effectively the flavor of the month we're not sure why because the Dynamics and the prices uh are exceptional we're going to we have another project called the Munda gold deposit it's a far bigger deposit it's about four times the size that Jeffries find it's even in a better location than Jeffrey's find we're going to use the cache that we generate out of Jeffrey's fine to do


three things principally run the day-to-day operations of the business which is understandable it's definitely developed the Monday gold project that's going to take a fair bit of time and a fair bit of work and thirdly is to carry out other Regional exploration we've still got some fantastic exploration opportunities where we are we have some projects north of London we have a big project south south east of Monday so we're going to use the cash that we generate out of Jeffrey's fine as I said is virtually a


stepping stone to use that cash to maintain our capital structure to run the business to the next 18 to 24 months right um yeah so you know let's talk about those uh other projects that you have um if you want to sort of provide an overview of those projects what are the value profits propositions for those um and what's exciting about them okay so firstly as I said the Monday project that's a development project that that project does require further work by us it requires further drilling


it before requires further management time we are putting in a scoping study that we hope to have completed by the 30th of June and that project will keep us busy throughout the rest of 2023 and 2024 doing great control drilling metallurgical work um finalizing a couple of permits those sorts of things that are necessary to undertake the other projects that we have we have a project called sparkleville which is about I don't know 25 to 30 kilometers north of Munda that project is we haven't done much work on it it's


surrounded by some other exciting gold opportunities but it's also got some nickel opportunities which which will be a key focus of ours then we have a large project to the south west of of Munda it's called The Chalice West project we acquired that project last year we've carried out two draw programs there we've got a lot more work to do it's an enormous project it's a it's around 510 to 520 square kilometers so it's an enormous piece of land it's it's never been explored


before so as I said we've done two small programs but they're the inaugural programs that we've done um and we've got we've got good opportunities to continue their principally for looking for nickel and for Rare Earth opportunities right are you um obviously you'll have the cash flow coming from the um you know from the mine production at just Jeffers find are you also uh doing other Capital racing um programs initiatives or you know you're just focused on the mining side of things right now


look look um you can never say never for Capital you can always as long as you use your Capital correctly you can use capital for m a activities or for further exploration We believe We will require additional Capital to get munder in production we will require Capital to develop that project it's quite a large project as I said it's around 200 000 ounces of gold in situ it's mostly in the top 10 projects in this geographical area so to develop that project you you will require Cash There's different ways


to to get cash but if we need to raise raise Equity Funds we don't believe that we'll need to do it until mid late 2024. and um are you ex what some what are some of the Milestones that the investor Community can expect from your company for the next few months oh look I think it's going to be at least 3K miles times two will come from jip respond one will be the first gold Port which will be an exciting event for everybody associated with their company secondly will be the first Transit cash


that we get from Jeffrey's time that that that again will be an exciting thing and lastly when we um make the Monday scoping study announcement to the ASX on the work that we've been doing at Munda escaping study is like the first part of a definitive feasibility study and then you can lead on to bfs's and other things but escaping stay will tell the market really what we believe the parameters for for Munda are great well thanks I appreciate your uh taking the time to speak with me today


my pleasure Marilyn thank you and thank you everyone for watching join us again next time for another engaging conversation on Co insights [Music] foreign