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Thanks for the clarity CB! There's gold in them thar hills! I'm happy to leave it in Newcrest's capable hands. We're on a winner and sometimes the mkt is just too cautious to price in what we think is obvious and needs its hand held. Today's action in Adriatic Metals - ADT on the ASX (soon to list in London!) - is a case in point.
Great post CB
Newcrest know what they have got on their hands and so do we!
BTB
And to add Paddy
At its Cadia mine in Australia, Newcrest has dug down more than 1 km (0.6 miles) to access the orebody column above, which is twice the height of any other block cave in the world, Biswas said.
Ensuring the method is successful with the tallest ore bodies requires specialist engineering, a type of rock preconditioning in which natural flaws are exploited to destress the rock and make it stay in shape, as well as plenty of computing heft, he said.
"Imagine this big block a kilometre high, we can now find out which way the rocks are moving in there. We put sensors in, which give us a ping now and then as to where they are and we can actually track the rock movements through that entire block right down."
More data and more computing power were driving innovation and savings throughout the industry, he said.
"It's going in leaps and bounds literally as we speak."
So being deep is not a problem with the expertise of Newcrest
Thanks for confirming that CB.
MS
Hey Paddy
short answer is Hav, like Telfer will be volume game. Higher grade (possibly +3gpt) is all well and good but what actually matters is an average grade over vast tonnages.
Every Mill, and Recovery Circuit/s is "tuned" to a blended grade. This can be both feed and grind size; Gravity, float and CIL/CIP set up as well.
Cadia is a fantastic example of this.....overall the mined grades <1gpt are nothing flash at all.....but look at he volume economic outcome of $132/oz AISC is gobsmacking!
The world of underground mining has changed and the economies of Block Caving is something id never thought id see in my lifetime.
Havieron will have the best of all worlds, high grade to blend with low grade to give a constant feedstock over any years and 10s of millions of tonnes!
More I think and look at those Sat images the more I'm convinced she will be in the 10Moz ++ category.......you blokes just need to keep cool and watch the facts and not the noise.
Cheers
CB
I dont know why somebody hasnt asked SB 'Basis what you know now, can you say whether Hav is going to become a NC mine?'
Timid,
I guess it is what you want to read into it.
The report actually states at the top of page 2 (can't copy) that: "Drilling has defined up to 4 sub vertical zones of 'higher-grade' mineralisation..." and "Drilling is ongoing to demonstrate the continuity and extent of 'high grade' mineralisation."
I conclude 2 things:
1. They do not say what this high grade actually is as you indicate as well. Could be anything.
2. The fact that they are trying to determine the continuity and extent of the 'high grade' mineralisation doesn't mean they will not take in the lower grades as well as they do in other locations as outlined as indicated by the cut off grade I the same report at 0.2g/t.
In the end NC's goal is to extend the life of Telfer by finding a commercially viable ore resource. Hav is their prime target for that cuirrently. They need to do this shortly as a business decision about Telfer is due, keep it open or plan for closure.
As they are actively recruiting for people at Telfer I believe that decision has been made on the basis of what they have found at HAV. They are now just getting their heads around how big this is.
The easiest way is to find the extent and continuity of the high grades ass they have already found the zones. The rest (0.2g/t and upwards) will come in due course.
MS
Agreed that we could do with more technical input from any experienced engineers.
It could be that they want to prove as much HGZ as possible to allow for the dilution of the lower grades - they still used 0.2g/t as the cutoff in the table of results at the end of that report. Like I said if the overall grade at Cadia is only 0.36g/t then even zones that are less than 0.2g would be brought up in average by the HGZ's.
All only guessing on my part though.
Cheers - Paddy
Yes, I get that and held that view until I read thru what Newcrest was actually saying, which is pretty clear, see top of P.2 https://www.asx.com.au/asxpdf/20191024/pdf/449t5t2f4ccmgl.pdf
Mind you I have no idea what NCM means by high grade as it hasn't stated it but it seems to be referring to the at least +2g/t Au equiv. cut-off which might mean 3-4g/t ave. And I have no idea how geos track the HGZs when drilling.
I have no doubt NCM will mine it all one day but who knows how. No geotechnical work has been done yet as far as I know.
It would be great to have geos, mine engineers etc on this site to comment.
Timid,
I hear what you are saying about the higher grades and of course that would be the ideal scenario but looking at the annual report on page 28 - Mineral Resources & Ore Reserves, Cadia East Underground has 2,900M tonnes @ 0.36 g/t and Newcrest can block cave mine that for an AISC of $132 (FY19) - from September Quarterly Report.
Obviously we would be looking at a higher AISC as we need to put in the infrastructure, transport to Telfer, etc. but I still think they could make a bulk mine operation very lucrative @ Havieron especially if they can get their ore sorting technology perfected - this means they could sort the ore as it is extracted from the ground and only transport the higher grades for processing at Telfer.
GLA - Paddy
https://www.brrmedia.co.uk/broadcasts/5dcd38f19535b1405a05be75/greatland-gold-black-hills-update
Not sure I like the 1.3g/t ****e. Newcrest targeting 3 or 4g/t ore? That would save $s on mining & transport costs.
At end 2018, the Super Pit had a mineral resource of 273 million tonnes grading 1.3 grams per tonne for 11.7 million ounces.
Included within that amount are reserves of 193Mt grading 1.2g/t for 7.3Moz.
Saracen will outlay $1.1 billion to acquire a 50% stake.
Good see I was in the ballpark for Havieron valuation - lower $100, upper $200. Now everyone can do their own valuations on Havieron. I think some people are too optimistic thinking this name will get to 10p with the next couple of years. But hey, 7.5moz valued at AUD200/oz gives a SP of 6.75p. Sounds good to me!
Seems that Barrick got $204 per oz for the gold in the ground at Kalgoorlie, if my maths is right. Mind you that is a producing mine with a good history of production. According to the FT it was greater than one brokers carrying value.