Operator
Your next question comes from the line of Chris Thompson from Raymond James. Your line is open.
Chris Thompson, Raymond James
Hi guys, congratulations on a good acquisition. Just a couple of quick questions. The first one is, do you see any capital commitments down the road, obviously capturing that five plus year mine life?
Mitchell J. Krebs
We don’t, no. It’s one of the attractive features is the low capital year-in and year-out. It’s been a — Goldcorp has done a nice job of running this operation. Just a fairly minimal sustaining level of CapEx unless we happen to — through our ongoing optimization work — identify opportunity to bump up the capital based on good justification.
Chris Thompson
So there is no path construction envisaged or anything like that? You can just run-off the existing paths?
Mitchell J. Krebs
That’s right. In the annual sustaining capital there’s soon be in there. The ongoing maintenance of that on/off process that is utilized there and that should be sufficient. Joe made a point to me here just on the side, the fleet, the Cat fleet is all leased, so there is no big capital outflows related to equipment, so it is pretty straightforward.
Chris Thompson
Okay, so if the mine produce 72,000 ounces this year and Goldcorp foreseeing 85,000 to 90,000 ounces over the last year, Goldcorp seeing 85,000 – 90,000 ounces this year, is that just on the back of more tonnes stacked or are we going see a difference in grade, maybe you can talk to that?
Mitchell J. Krebs
Yeah it is a year that they have been planning for. It is more driven by where in the mine plan they’ll be. They’ll be on some softer ores, some higher grade material that makes 2015 quite a bit better than the recent years.
Chris Thompson
Obviously a little too early to tell, I guess, but, you don’t produce a doré on site, so any thoughts as far as maybe putting a doré plant in? What is your first take at the moment on that?
Joe Philips
This is Joe Philips. They actually have all the equipment and facilities needed on-site to produce doré. They historically shipped out the sludge after processing outside for cost-savings reasons but it would not take a capital investment to produce doré ourselves.
Chris Thompson
Alright. Okay guys, I’ll be good at that. Congratulations.
Mitchell J. Krebs
Okay Chris, take care.
Operator
Your next question comes from Michael Dudas of Sterne Agee. Your line is open.
Michael Dudas, Sterne Agee
Hello gentlemen and Bridget.
Mitchell J. Krebs
Hi Mike.
Michael Dudas
You’ve been keeping Corporate Development pretty busy here lately, Mitch.
Mitchell J. Krebs
If you can see Mike here sitting next to me, he looks awful.
Michael Dudas
So just a little bit on how these types of opportunities maybe looking to the future relative to what your balance sheet is and how you are structuring this transaction. This is a very interesting opportunity for you to gather. Is there enough opportunity to do one of these a quarter or are the check marks on what you need to do — something of this size and this quality makes it a little bit more difficult as you look through the rubble that we have seen in the last 6 to 12 months in the market.
Mitchell J. Krebs
Now you just sent Mike off his chair here. He wants a quarter.
