Member Info for PaddyGall

Listen to this interview with Steve Todoruk from Sprott.

https://provenandprobable.com/significant-size-grade-returns/

There's also a transcript of the interview on here

https://www.streetwisereports.com/article/2020/03/13/identifying-miners-with-significant-new-discoveries.html

There's a couple of points - firstly he talks about a spectacular drill hole results from Aurelian Resources.

"The spectacular discovery back around 2008, a little no-name junior called Aurelian Resources announced a drill hole, I think it was about 242 meters of 5 grams gold, including about 60 meters of around 30 grams gold; that's a giant drill hole, that's the stuff that multi-million ounce deposits are made out of. That kind of a drill hole actually makes my job easier when I see something like that, because big drill holes like that don't tend to be in the middle of small deposits, they tend to be in the middle of the really big to giant ones."

Compare that to HAD005 -
· Total combined intercept of 275m at 4.77g/t gold and 0.61% copper returned from:
· An upper zone of 118m at 3.08g/t gold and 0.84% copper from 459m to 577m, including:
o 11.5m at 6.23g/t gold and 2.49% copper from 462.5m; and
o 7.5m at 32.83g/t gold and 1.20% copper from 482m.
· A lower zone of 157m at 6.04g/t gold and 0.44% copper from 660m to 817m, including:
o 113m at 8.30g/t gold and 0.61% copper from 663m;
o 5.5m at 16.62g/t gold and 0.91% copper from 663m; and
o 38m at 20.17g/t gold and 0.82% copper from 700m.

So HAD005 would have been considered a "GIANT" drill hole within industry circles when it was released.

Near the end of the interview he goes on to talk about areas they are looking at, at the moment and mentions there an 2 juniors in Australia that have good gold discoveries going on at the moment - My money is on GGP being one of them.

ATB - Paddy

Yeah - even my daughter had a text yesterday to say don't bother come into work today.

She has a Saturday job at the hair-dressers just making coffees and tidying up but so many people cancelled their appointments today they basically didn't need her - that's another £30 I'm gonna be down.

Hi Jim,
Not sure mate but I'm positive that NCM will be all over it like a rash. I'm guessing the original "structure" of the geology in the breccia was such that allowed more mineralising fluids to deposit there than what they have observed before.

If this is the case and that geological structure is widespread in the area then as schlemiel says it's very possible that this widely spread breccia zone "could" host a lot more high grade material than they originally thought.

Next set of quarterlies will tell us more - Paddy

Here's the link to the complete podcast. You have to register to access it.

Interesting listen and sounds like Newcrest are definitively the company to be in bed with. Nice section from about 30 mins where he talks about the relationships with juniors and why they want to be seen as the partner of choice. Can't see any hostile takeover coming from NCM.

https://www.miningbeacon.com/badges/726-podcast/posts/61541-lessons-learned-a-q-a-with-newcrest-s-outgoing-chief-development-officer-michael-nossal

Thank VC,

Did anyone see that he mentioned they are now getting quite good at predicting the high grade sulphide zones. I'm guessing they have calibrated their downhole analysis tools to be able to determine the high grade areas now against the background breccias and they probably have a very good idea of the extent of that mineralisation now.

ATB - Paddy

Gervaise mentioned in the interview that he'd been listening into a webinar with Mike Nossal from Newcrest talking about the Havieron results last week where he discussed the "new" type of mineralisation that was capable of hosting the high grades.

I managed to track down a podcast of the interview this morning. Interesting listen.

https://twitter.com/paddygall1/status/1238808630717276160?s=20

GLA - Paddy

https://www.kitco.com/news/2020-03-13/Trump-to-declare-national-emergency-over-coronavirus-Bloomberg-citing-sources.html

https://www.zerohedge.com/markets/gold-pukes-below-1600-massive-volume-wti-tests-30

Hi tig,

I knew I had read about the drilling being complete by the end of June half yearly report from GGP last week.

https://polaris.brighterir.com/public/greatland_gold/news/rns/story/x5ln32r

Outlook Highlights



· Havieron (Newcrest Farm-in):
o Newcrest to drill an additional 20,000 to 30,000 metres in the six months to 30 June to support the potential delivery of a maiden resource by the end of calendar year 2020
o Newcrest investigating the potential to start an exploration decline by the end of calendar year 2020, and studying both a stoping operation and potential for a bulk underground operation

Allow 6 weeks to get assays back (should be a lot quicker) and a couple of weeks to collate all the info - hopefully end of August or thereabouts.

ATB - Paddy

Hi Older,

Thanks for your comments, I've been using 2g/t Au and 0.5g/t AuEq for the copper in my calculations and also only allowing for between 50-75% of the ore to be mineralised. This may prove to be conservative but I'm more than happy with the outcome from these figures.
Newcrest will have a far better handle on the figures when they come to do the MRE - I'm more than happy to sit it out and wait for that to happen.

ATB - Paddy

Here's a link to the updated Google Earth with the latest drill holes & mineralisation image from the Newcrest report.

https://twitter.com/paddygall1/status/1238058893361786880?s=20

Gives an idea of the area bounded by the known mineralisation to date.

ATB - Paddy

"their"

Yeah that's what I was thinking too Spy. I'm sure I read somewhere that they were talking about the extra 20,000m of drilling to be complete by the end of June to support the MRE. Again this seems to tie in as they've done 10,000m since mid December with the Christmas break - so they've got 3.5 months to complete the 20,000m of drilling, then a wait for all the assays and how ever long it takes them to prepare they're modelling etc.

End of July / August seems plausible to me for the MRE - Paddy

Hi Spy,
So they've burnt through $20M in 10months bearing in mind they started with 2 rigs and increased it slowly over that period.

They've got 8 rigs going 24/7 now as well as all the permitting studies etc going on in the background - I'd say 3/4 months at the rate they are going - IMO.

Paddy

Probably MFU - to be fair I think GH will be a bit reticent to release news into this environment. It would just get lost in the general market malaise.
I was doing a bit of work on the new drilling layout from Newcrest last night - mapping the new drill holes and image onto Google Earth. I will post it up in a bit onto Twitter and put a link on here.

GLA - Paddy

Farm-in was announced 12 months ago today but we got the announcement to say Newcrest had started drilling on May 22nd. If Newcrest do finish stage 2 by the end of March that's 2 years spend squeezed into 10 months.

An expedited programme by anyone's standards. Don't know what to say regards the general market conditions but I'm happy to hold.

ATB - Paddy

Have a look at this feasibilty study from Oz Minerals for their Carrapateena mine.
See on page 22 there is a table with the costs associated with setting up their bulk underground mine.

https://www.ozminerals.com/uploads/media/170824_ASX_Release_Carrapateena_Feasibility_Study_Update_Presentation.pdf

Remember we don't have the plant, accommodation or airstrip costs as these are already at Telfer.

I reckon $500M would cover the costs of the mine & haul road construction which is roughly how much it will cost NCM to shutdown Telfer.
Telfer already processes ore at 0.7g/t and makes a profit - they will be printing cash when they start throwing 3-4g/t ore through it.

They know it makes perfect economic sense - ATB - Paddy

VC,
I asked this very question about haulage costs to an Australian broker that I know who is a retired Geo as well.

His answer was "50kms on a private haul road wouldn’t be much. Maybe an extra 10 bucks an ounce"

GLA - Paddy

4th time Stout

Tell that to Newcrest Ian - it's a year tomorrow since they signed the farm-in and about 9 months since they started work and we are literally days away from starting stage 3. I think it's worth a lot - even in the ground.

ATB - Paddy