 Daniel Koons is the lead director of Chesapeake Gold Corporation Dan. Welcome to the investor Intel studio via Skype Thank You Fred Dan you've been a senior officer of many different public companies and mineral exploration companies And you've been on the the team that found the huge deposit that OU Tolgoi in Mongolia You're part of the bench strength of the Chesapeake management team and board What's your view of the current market for producers needing to replace ounces? Well, yeah Fred I've been involved in production side and exploration side and the exploration business Is feeds the majors and we know it's been no Surprise in the last five years been quite difficult on the major mining companies most of them They've had to clean up their balance sheet to sort of retreat a little bit do some major write-offs and change personnel But we start to see now they're coming back We're starting to see activity Livening up, but it's been a tough five years therefore the exploration Pipeline might be less attractive than it was and I think the Sort of 20 million ounce gold deposits are hard to find Well Matate's project the Chesapeake project in Mexico is a huge gold silver and zinc project and In 2013 there was a pre feasibility study Another one updated things in 2016 What what are you giving? Producers looking for a potential asset in these studies Well Matate's the two studies demonstrate that it is a scalable project So we can start out small and then allow your cash flows in the future over a five-year period to To increase production to an expansion level or you can start out large and move straight to the largest possible production mine and either one of those has its own Rationale attractiveness etc lower capital is attractive in the smaller case Higher IRRs and production and throughput is is the attractive feature of the larger case So I think what we've done is demonstrated that it is scalable the two studies also show that we've de-risked the project Significantly as we move forward. We were using best best practices state-of-the-art technical uses for environmental Dry-stacked tails for example water that's been traded for desalination plant that we're putting up near the the coast and we also are using essentially Infrastructure in Matate's that is quite mature. There's a gas pipeline that Mexico just built and we're close to Cities labor. We have very good relationships with the with the social communities there My understanding is that the water has been a huge issue for a number of other operators Huge increase in cost in the last year alone in Mexico It's very true and the the nation is starting to View it quite seriously. Of course, there's been there's been subject to drought Subject to depletion of waters Let's call it ground waters and local waters. So as such, it's a very important issue I'm a totes will use water But we've gone through quite a bit of engineering and study to recycle as much as possible And also as I said to trade water that we will produce fresh water from the sea and then that will charge systems closer to the to the Plant and then we'll trade those waters for water up near the mine Essentially, you're fixing the cost of water for a future producer Absolutely right for the 30 plus year in my life Dan, what's the what's the expiration? Potential in the Matate's area Well, one of the big Issues about Matate is that we have a large deposit, but a higher capital Front-end associated with so you might say that capital intensity per ounce is pretty high If any of the features you look at that would be the one that that's a challenge and as such We've looked at satellite Deposits that may exist near Matate's and we have a program. It's going very well We're pretty excited about two of the nearby properties. So we're advancing those we see some potential there that could be very very beneficial to the The long-term live of the Matate's project by being able to feed some of the ore from a satellite bit into that existing Equipment and plant when it's built a couple of the reports that I've seen on Chesapeake suggests that the ounces in the ground valuation Certainly at the end of 2015 was substantially lower than some of the other public companies that have very large assets Is that still the case? It is still the case. We have seen an attractive run up from a very low share price At the bottom of this terrible market. We've been in over the last several years We're now up several hundred percent But this is nowhere near where we would be if we just did a simple comparison to a couple of our peers in North America here For undeveloped projects. We also have other features that are quite attractive We have a very low strip ratio at this project We have a non-artic environment for development when you compare us to some other properties up north and so when you start to look at these things It's really the cash costs of production the all-in cash costs that then make a project bulletproof through the next cycle And this project is quite attractive So we think we have a long way to go on getting our valuation recognition for what we have here at Matates Dan thanks for the update always good to chat with you. Same here. Thanks, Brad