Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Delighted to see this RNS this morning. Statement of intent from the JV
@rkama - the decline will be used for both further exploration from underground and ultimately to extract the high grade ore from the initial stoping operation.
They can use smaller drilling rigs to complete the infill and deeper drilling as it means they don't need to drill through the 400m of overburden every single time.
3816 Hectares !
Another reminder of the potential size of the deposit(s) under the Havieron licence blocks.
Paddy, one thing is not clear to me about this decline. What is the purpose of the decline if it is not meant to start mining. Is is to evaluate the ground underneath and do open mines need declines as well. Sorry for my limited knowledge on this.
RK
The Mining Lease application could easily contain some sort of resource estimate with the proviso it's still subject to infill and exploration drilling where the resource is still open. Does not have to be released to markets? It's for NC/GGP and Aus Gov Mining Dept?
I think the important takeaway is that going forwards prior to the MRE is highly important. This is way ahead of the farm in stages and only goes to prove/signal that NCM are prepared to put the investment in for an exploration decline. Their confidence level is very high, to push forward this early (and commit resource) before gaining the 70% (from the farm in agreement) is a massive vote of confidence from them.
Thanks Paddy.
All coming together quite nicely.
(and thanks reddirt for earlier notification)
It makes sense thanks Paddy; I was always concerned that a ‘short’ MRE may have confused the market. Well worth the wait if it tends to signify that T2 OR better!
@Goldenl - the mining lease is being used to allow them to construct the "exploration" decline so technically they aren't actually starting to mine even when we do go underground. I think they will start the decline as soon as the lease is granted whether or not the MRE is issued.
ATB - Paddy
As a minimum NCM will need the MRE to increase their percentage ownership to 60% and 70%.
I do not think they will mine without MRE - just getting the permits in place concurrent to ongoing infill drilling and progressing the JV to its natural conclusion.
Real haste being shown, and real intent - not just words, which is very reassuring.
@UR - I'm of a mind to agree with that assessment - we will get the mining concept studies which will probably contain some sort of indicated resource to allow them to complete said studies but I think they may well delay the MRE and issue that at the same time they publish the PFS.
Either way it should be a whopper or a mega-whopper - Paddy
Paddy Greenmile,
That is interesting and has changed my views:
From Paddy.......Looks like they need to submit a "Mineralisation Report" provided they have sufficient drilling results to support this - it needn't be a detailed JORC report from my reading of it.
If that is the case gents then does that mean that there is no reason to rush out the MRE. I always thought that they would want it out ASAP even though the reported resources would not reflect the true potential.
If the above is correct they may want to continue infilling as long as possible within H2 2020 and then release a ‘whopper’.
UR
18. Additional information that an applicant may wish to submit, to further support the
existence of a deposit of minerals and the intention to extract those minerals, such as:
• proposed program of work and expenditure to be undertaken to upgrade the
status of the deposit of minerals after the proposed mining lease is granted;
• metallurgical test results;
• bulk densities of mineralised material;
• geotechnical characteristics of the deposit of minerals and its host rocks;
• potential penalty or credit elements or minerals; etc.
19. A final section in which a qualified person must sign the mineralisation report and
certify that they are a “qualified person” under the Act.
ATB - Paddy
Hi UR,
If you look on here it gives you the steps required to submit a mining lease application.
https://www.dmp.wa.gov.au/Minerals/How-do-I-Minerals-8044.aspx
Looks like they need to submit a "Mineralisation Report" provided they have sufficient drilling results to support this - it needn't be a detailed JORC report from my reading of it.
CONTENT OF MINERALISATION REPORT
11. Statement that a deposit of minerals has been defined within the boundaries of the
area applied for and the results of exploration activities indicate that there is a
reasonable expectation that mining operations can be undertaken to extract minerals.
In most cases this area will be within an existing prospecting or exploration licence
and the relevant tenement number should be quoted.
12. Plan showing the outline of the deposit of minerals (projected to the surface), the
boundaries of the existing tenement (where applicable), and the proposed boundaries
of the mining lease application
13. List of minerals that have been defined within the deposit. The term minerals”
includes metalliferous minerals, non-metalliferous minerals, industrial minerals, and
dimension stone.
14. Methods of defining the zone (e.g. drill intersections, costean channel sampling, old
adit sampling, etc.). The methods may include historical work undertaken by previous
tenement holders of the same ground.
15. List of analytical results and brief discussion in the text to demonstrate the existence
of significant grades and widths of mineralisation. These may include earlier results
obtained by previous tenement holders of the same ground. The list should include
only those drillholes (and/or costeans and/or adits) that appear on the plan referred to
in Note 16. Describe sampling techniques, drill sample methods and recoveries, and
quality of analytical data for all samples. In the case of certain industrial minerals the
results should include analyses of the physical properties which demonstrate that the
deposit can be economically extracted.
16. Plan showing the outline of the deposit of minerals (projected to the surface) and the
positions of all drill holes, costeans, adits, etc. that have intersected the deposit. The
plan should also show the locations of two or three representative cross sections (or
one or two long sections).
17. Cross sections / long sections (with drill profiles and/or costean outlines) to show
intersections of mineralisation and its host rocks, together with analytical results in a
generalized format (i.e. showing bulked intersections with average grades).
18. Additional information that an applicant may wish to submit, to further support the
existence of a deposit of minerals and the intention to extract those minerals, such as:
• proposed program of work and expenditure to be undertaken to upgrade the
status of the deposit of minerals after the proposed mining lease is granted;
• metallurgical test results;
• bulk densities of mine
Looking at the DMP guidance and flowcharts, it seems to be a reasonably streamlined process to gain approval to mine. Assuming no objections and native titles are sorted, a registrar gives the nod to the ministry, the mining minister signs off and ground can be broken.
Or am I missing something?
I think the important words there Urban are “may” & “could”...I’m guessing there’s more than one way to apply.
Thanks for confirming Paddy, great work as always. Reddirt is ALWAYS on the money.
Morning all,
Can anyone assist please.
I understood that a jorc compliant Mineral (Maiden MRE in our case) Resource Estimate needed to be reported and lodged when making such an application.
I have just looked at the guidelines and located the following:
‘Mineral or Coal resource justification.
The mineral resource legislation requires a mining lease (ML) application to provide reasons for the size and shape of the resource authority area being applied for and providing evidence in respect of the quality and quantity of the mineral occurrence in the area being applied for.
The type of information that you may provide to meet these requirements could include the following;
• geological confidence statements for indicated, measured and inferred JORC resources which describes the attributes of the resource status;
• a statement regarding the method of proposed mining and critical assumptions (e.g. strip ratios if known);
• a statement about potential infrastructure requirements and a map of their location in relation to the area applied for’ etc etc etc
How does a ‘Geological Confidence Statement’ compare to a jorc MRE, and how does such a release impact on aim disclosure rules (RNS)
Cheers
UR
Quick question : How long does the application take ??? thanks :-)
Hi tom, yeah that happened last year - they changed the address on the license from GGP's address to Newcrest's with their own specific PO Box number there. You can see the entries in the tenement register here.
https://ibb.co/P59Ngvn
ATB - Paddy
“Objections have to be lodged by 07/09/2020“
Marking Out and Applying For Mining Tenements
(Includes Mining Lease Requirements)
https://www.dmp.wa.gov.au/Documents/Minerals/Marking_Out_and_Applying_for_Mining_Tenements.pdf
Reddirt is spot on - I just logged onto the Aussie Government website -
https://twitter.com/paddygall1/status/1290202623992242176?s=20
ATB - Paddy
Could be 2 RNS's today then as we are already expecting the monthly "Issue of shares and total voting rights" RNS. Last month this came through at 11.03am on the first trading day of July
Well people, we are seriously on our way now.
GLA