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Paddy - Thanks for the info. I’ve had a quick scan over the JORC, but I’ll need ‘cuppa time’ to thoroughly digest it.
The MRE will basically support a Scoping Study as defined below.
38. A Scoping Study is an order of magnitude technical and economic study of the potential viability
of Mineral Resources. It includes appropriate assessments of realistically assumed Modifying
Factors together with any other relevant operational factors that are necessary to demonstrate at
the time of reporting that progress to a Pre-Feasibility Study can be reasonably justified.
A Scoping Study must not be used as the basis for estimation of Ore Reserves.
If the outcome of a Scoping Study is partially supported by Inferred Mineral Resources and/or an
Exploration Target, the Public Report must state both the proportion and relative sequencing of the
Inferred Mineral Resources and/or an Exploration Target within the Scoping Study
The PFS will support an actual Ore Reserve.
39. A Preliminary Feasibility Study (Pre-Feasibility Study) is a comprehensive study of a range of
options for the technical and economic viability of a mineral project that has advanced to a stage
where a preferred mining method, in the case of underground mining, or the pit configuration, in
the case of an open pit, is established and an effective method of mineral processing is determined.
It includes a financial analysis based on reasonable assumptions on the Modifying Factors and
the evaluation of any other relevant factors which are sufficient for a Competent Person, acting
reasonably, to determine if all or part of the Mineral Resources may be converted to an Ore
Reserve at the time of reporting. A Pre-Feasibility Study is at a lower confidence level than a
Feasibility Study
ATB - Paddy
@Frannie - have a read through the JORC code, it's all there in black & white.
http://www.jorc.org/docs/JORC_code_2012.pdf
ATB - Paddy
Not sure if I’m recalling correctly as the interview was sometime ago, but thought GH said the PFS was a box ticking exercise after the MRE. Is it now the consensus that the PFS is confirmation of scale?
Paddy - really fascinating - I always wondered about the timing of the completion of the stages.
I thought stage 3 and the PFS would be completed long before the end of 2021.
From everything I have read, GGP do not have any liability for costs until stage 4, and are liable for their share of the Feasibility Study costs in excess of $20 million.
I am sure GH is well in control of everything, and NC must be exceeding the spend on the JV by a lot now.
The decline and camp - are these costs part of the exploration and JV or the CAPEX for the Haverion development?
I am pretty sure NC and GGP would come to agreement for GGP costs to be taken from GGP first production profits - purely because of the speed NC want this to be mined and the ore feeding Telfer - it looks like NC don't want anything to slow down this mine development.
I still think this are of the Pilbara will mirror Cadia - in lots of other resource will be found and this region will have gold and copper mining for many decades to come - hopefully a lot of the resource will be in our licensed areas!
I also hope Bamps and Hydrogen calculations are correct - I like to be optimistic, but not overly so.
I am here for the long term, will probably take some profit next year - hopefully - but have had some top ups recently.
Nice work, Paddy.
It will be interesting to see the design and location of the decline. If it is able to end up, or is designed to end up, where they are able to test bulk samples of both the HGZ as well as the Breccia. Will there even be a northern srm going over to the higher grade new northern Breccias?
Time will tell......
Having a think and being guided by a few more experienced contacts who are looking ahead of the MRE and not even bothered about what level that may contain. It will only be an inferred resource and even though it will be material to our SP in the short term, as @thelearner said earlier the PFS and FS will be far more revealing when they are delivered.
I've been having a look through the requirements for a PFS in the JORC 2012 code this morning - here's a link to it for anybody who's interested - http://www.jorc.org/docs/JORC_code_2012.pdf
Table 1 - Section 4 relates to the - Estimation and Reporting of Ore Reserves
It is quite detailed and shows the various milestones that need to be hit to convert a "scoping study" inferred resource to ore reserves.
There was one section that I found interesting - here's a screenshot of that section of the table.
https://ibb.co/mHjbZtR
So to complete the Metallurgical work on the ore-body to the satisfaction of Newcrest in would seem that they would need to collect bulk samples of the ore to then test through the system at Telfer. This got me thinking about the timescale that Sandeep outlined in the last presentations where he has publicly stated that the PFS would be targeted around the end of 2021.
So we can assume that Newcrest are aiming to have the decline completed to the orebody level by quarter 3 next year to allow them time to extract bulk samples from the ore-body, transport them to Telfer and trial them through the Telfer plant. They will have to tweak the recovery systems there to "cope" with the Havieron ore as it will no doubt be slightly different to what they are currently processing at Telfer.
Now all this "bulk-sampling" that will probably be extracted from the higher grade sulphide zone will be producing nice amounts of gold and copper so in theory we should have an income stream available to us even before the end of 2021.
MRE is an important step on the road to production but it is only that - the long game is the correct one here IMO.
Please DYOR and GLA - Paddy