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I'd be interested to know from any geos whether it is practical to re-enter selected drill holes from last year's Havieron exploration campaign and drill them deeper?
iamgold stated that they performed this procedure in 2016 for drill holes in Senegal which were previously stopped in mineralisation.
Could this be an option for Havieron holes HAD006, 007 & 009 which all ended in mineralisation? Seems this would be a faster and cheaper way to test extensions to mineralisation at depth?
NCM were certainly looking at early-stage opportunities in late 2017 when GH posted this:
https://twitter.com/gervaiseheddle/status/930577298096394241
Love it.
1. Fails to read what others have written - makes spurious assumption they are talking about "grades".
2. Criticises others for hoping for "higher grades' from future drill holes than the last results, despite no one saying this.
3. Summarises his/her his own desire for holes averaging 3 g/t from future holes, which itself would represent CONSIDERABLY HIGHER AVERAGE GRADE than the last results.
Erm.......you know when you said "when will they ever get it" ........ pot, kettle........
Prospector - I think we're all on the same side. Wide intercepts with average grades of 3 g/t from the next drill campaign would be super. Have a good w/e.
Hope so! Looking forward to an update with further details on plans for the rest of H1 2019:
- What have the mgmt team have been working on for the last two months of near radio silence?
- What happened to the planned Firetower drilling?
- Are both rigs booked for March going to target Havieron or are they going to also hit Scallywag / BH with one rig?
- How much is the next phase of drilling going to cost? Have GGP secured another part-equity deal with the drillers?
- Can we see illustrations of the new 3D gravity and magnetic models announced in November along with representations of where the drill holes have intersected so far?
Lots of questions. Massively exciting year for the company.
"It’s all about the Next hole, Not the Previous One" by Brent Cook: https://www.youtube.com/watch?v=DxvAZNodDBw
Well worth a watch. Interesting case studies on Brent's past investment successes and failures in junior gold miners, especially their thought process when applying due diligence.
News - thank you for the link to the Telfer mine technical report.
Really positive to confirm the recent headline grades from Havieron drilling are significantly better than Telfer Underground's published resources. As you've commented, viewing this in conjunction with Sprott's note, Primorous' recent comments and the fact we've barely touched the magnetic anomaly starting at ~800m makes for an exciting year ahead.
I'm looking forward to GGP's next operational update. I'm hoping this will arrive soon and include: a clarification of the near-term planned work program across their asset portfolio; visualisations of the 3D magnetic models at Havieron showing existing and planned drill hole locations in relation to the mapped magnetic anomaly; and confirmation that there is no immediate need for a near-term fundraise. A JV with a major would be a plus!
Deas999 - adding on to the very valid points others have made, Gervaise Heddle covered your point about Newcrest's previous drills missing the Havieron system when he was interviewed by Share Talk and stated "basically, I think what happened is Newcrest just didn't go deep enough".
Below is the link to the video (quoted comments start at 1:48):
https://www.youtube.com/watch?v=JEPOQ4pn_bk
The latest drilling results were good. The market reaction is bizarre given that there's clearly a lot more to come from this discovery as outlined in Heddle's latest interview:
"we identified this large magnetic anomaly that BEGINS at about 800 metres and extends down to 1400 metres"
AND
"if you think about our drill holes to-date, we're really just scratching the surface of the very top of that magnetic anomaly"
AND
"the mineralisation [that Greatland has seen so far] does have a magnetic signature"
Roll on drilling next month.........good luck!
This interview published yesterday is pretty relevant to GGP's current situation and well worth a listen:
https://www.youtube.com/watch?v=N_V62ME3sPA
Good luck with your other investments TBTT. It's a shame to see you go as your posts were helpful and informative.
As a shareholder, I am hopeful that your concerns about a near-term cash call do not come to fruition. Rather than perform an equity raise, I believe there would be other avenues to raise cash in a pinch (e.g. financing from precious metal royalty streamers). Having said that, I completely understand you selling. Like you, I have been left with serious questions about the management following the BH disaster, although my concern is more about those who are meant to be providing guidance and oversight (e.g. the Chairman Russell King) as well as those meant to be the sage hands managing cash and project due diligence (e.g. the FD Thomas Hill).
Later this month I'm expecting 1) a pit wall update and 2) an exploration drilling update. Personally I have decided to wait until I see this information before crystallising a loss here.
Hi Blackfish, I saw earlier this month that Equinox Gold raised $75m, mainly for the acquisition of the Mesquite Gold Mine on the West Coast of the US, so I'm not sure Equinox have got the financial resources for HUM right now?
As you've highlighted before, I think La Mancha / Endeavour will be ones to watch. Compared to the $125m La Mancha paid in August 2018 for 30% of Golden Star Resources in Ghana, I'd imagine that on a relative basis HUM do look like a very interesting target given recent share price weakness. My guess is that HUM could be acquired for ~$175m total consideration if an offer was to be made today (approx. 60% premium to current share price). This happens to be pretty close to the NPV8 at $1,250 gold price for the Yanfo project alone, based on current mine life.
Given the circumstances, it seems entirely sensible to focus 100% of management time on remediating the pit wall rather than taking time to prepare for a quarterly investor call.
The death of the Bunker Hill deal is a blessing, no more oxygen need be wasted on the subject from this side of the Atlantic........
The average grade has also held up well at just under 3g/t. All looking healthy on the ore front at this time.
This was a kitchen sink release - poor weather, pit wall problems, Bunker Hill money down the drain etc. etc. Hopefully that's got the worst of it out of the way.
There were no new drill results, which hopefully is a plus. I'd imagine if their latest intercepts had been received received and were poor they'd have thrown them in too. Fingers crossed their geos were right and forthcoming results (Gonka etc.) will be the catalyst for the share to begin its recovery (if we don't get acquired on the cheap first).
You'd hope so given that Endeavour has recently sold it's TABAKOTO mine in Mali for $60m cash. This had a lower life of mine that Yanf and consistently incurred an AISC of >$1200. Assuming HUM can sort out this pit wall issue fairly promptly this really is looking very cheap for the assets HUM holds.
At 16 minutes and 10 seconds in to the video below, Dan Betts discusses the steepening of the mining pit walls by an extra 10 degrees from the Goldfields' design based on work by a geotechnical expert who was hired from Randgold. Did the unusually heavy rains exceed the parameters of this modification?
https://www.youtube.com/watch?v=tfB2Nk_2E20
Earthling - I agree. HUM are presently in a really weird position where they're producing gold, have significant amounts of cash in the bank, continue to generate cash and have a market cap which values the whole company at <$14 per ounce discovered (including Dugbe), which is extremely cheap and materially lower than most firms could reasonably expect to discover gold through exploration. This ignores any potential exploration upside from the recent drilling including Gonka, and ignores Cora assets.
If Endeavour are looking, early next week would be the time for an opportunistic takeover offer.
I also agree with GoldenBull - we need to hear from Dan at 7am to steady the ship here.
From memory of a video interview Dan gave (on YouTube somewhere) around the time of the mine construction stage, they got a former Randgold engineer to redesign the pit walls to a steeper gradient than originally planned as part of their mine enhancement works to bring down AISCs. Let's hope this is a localised problem and can be overcome in a relatively short time period.
Gold production for Q3 looked fine given the rains and it's reassuring that they will have accumulated a good cash position. The share price reaction looks very overdone in the short term but we obviously need clarification on impact to mining and remedial costs ASAP from HUM before any proper judgements can be made. Dan needs to get in front of the cameras again to try and steady the ship here and bring a bit of reassurance to the market.