Member Info for Bamps21

That Redsetter is showing very little chalcopyrites and at 566m is too deep, going to 630m is going to be very costly to drill out.

Rudall found 18m @ 22g/t at 926m way too deep but they were suggesting the folding went up to the top of the basement at 550m. Still way deep.

Hi Chippy

I used the PFS Newcrest model as a guide.

I’m expecting the FS capex to be higher it has to be. The PFS only covered work in stage 1 not the production stage 2.

The POG makes no difference to the construction costs, inflation does.

The addition of a second decline and conveyor will also be additional costs.

Once Havieron gets producing it will fund its own capex so debt is still a short term necessity

Hi Speedy

Ggp haven’t enough free cash flow to fund Telfer and Havieron.

Havieron upfront capex is going to be big, it needs to be debt funding, another raise now would cripple the sp.

Havieron will pay it back in 4 years according to the PFS model. The debt can’t be drawn down till the FS and decision to mine is released. Would be daft to use what cash we have.

Hi Speedy

They quoted A$800m

Well that may end up at that figure, I wouldn’t discount it but it will be over many years not one year.

If you look at the West Dome pit sections you can see there isn’t much ore inside the stage 7 zone. There are very few Kriging blocks shown which is one reason they want to drill it out.

They will be stripping layer by layer until they reach these blocks.

The further they go down the bigger the surface area, it’s going to be a big zone and looks like both pits will join up. This is not going to be cheap but there is a big prize lower down with zones of high grade ore. Hopefully the ore zones they come across will be paying for some of it till they hit the high grade ore.

At the Theale meeting I showed all this so what Zoros just reported in his post I basically had sussed most of that out.

Capex

The knock back by the Macquarie note was totally unjustified in my opinion.

Shaun could have sat back and not put any money into Telfer , played out the 15 month mine plan and then put the plant in mothballs until Havieron came on stream. He would have been crucified for that decision, he wants to make a success of Telfer.

The workforce seems to be backing him to make it a success, there’s a buzz about the place.

The 15 month mine plan needed little capex to continue it was ready to go, but as we have seen with the open pit one incident can disrupt any plans.

To increase the mine plan by 2 years the following was required:-

Continuous drilling to increase the resource MRE to the open pit including stages 2,7 and 8

Removal and replacement of infrastructure equipment in way of growth opportunities.

Increase drilling underground for further resource growth to the A reefs, Rey, LLU and the ESC

Repairs and raising of tailings dam walls

Maintenance to the plant.

Growth to further increase mine plan from 2 years upwards:-

New Decline to the West Dome deeps ore body

Drilling to form MRE to WDD

Drilling to form MRE to ESC

Multiple infrastructure declines, accesses, vents to the underground zones to increase production capability.

Reduced drill spacings to 25mx25m to increase confidence in grade control and Kriging estimation accuracy to prevent further grade reconciliations.

You either spend money now and reap rewards later or you sit back and wait for a slow decline, how they would have retained staff would have been a huge problem.

The other thing by spending out now with such high gold prices is that we haven’t had to draw down any debt.

Not spending out now we would have had to draw down the debt.

Peak District meeting at Calver next Saturday August 16th at the Calver Arms S32 3XH from about 12 -12:30pm for those eating and Presentation afterwards.

Please contact Rotherby for an invite.

Stirling meeting on Monday 15th at the Birds and Bees , Stirling from about 6:30pm

Please contact Rotherby for details.

AISC numbers

In the acquisition document an AISC $1454 was quoted for 15 months.

This $1454 in US$ has to be converted into Aus$:-

Before October announcement this figure converted @ A$1.45 to US$ = A$2108

Oct @A$1.5= A$2181

Dec @A$1.6 =A$2326

Apr @A1.68 = A$2443

Aug @A$1.53 = A$2225

The 15 month plan started pre acquisition in Oct with Newmont processing for 2 months, so Ggp had a 13 month mine plan at acquisition. Nearly 50% of this plan was from ROM stockpiles, the West Dome pit had about 3-6 months of resources and the rest from underground.

Ggp started with a higher AISC than Newmont had and by April kept rising.

The ROM stockpiles would have kept the AISC down.

A FY/26 forecast of 2600-3000 was an increase in the base case.

Big difference in where the mined ore is coming from between the base case and FY/26.

Base Case -

West pit stage 8 already being mined by Newmont for Ggp to continue.

FY/26-

Stage 7 a large amount of waste stripping has to be removed to achieve any ore for processing.

A new waste dump was required for this process and involved the repositioning of a communication mast.

Stage 2 a proportion was a continuation of stage 8 but its expansion involved the removal of the West Dome Deeps pumping system to a new location. This involved drilling new bore holes, new pump position, extract and intake pipe work relocations.

The flooding of the stage 2 pit caused additional costs and delays.

For all this extra work the AISC is bound to have risen

An average of A$2800 is a relatively modest increase when you consider it rose A$300 on currency fluctuations.

Images from the 7th August are showing up accelerating working on stage 7 stripping and new and extended waste forms to the east between 2 existing mounds.

The area is looking white, so hard to pick out actual size but certainly a lot more removed since the 2nd Aug.

The base of the pit stage 2 looked flooded on the 23rd July but is dry on the 7th Aug and excavation seems to have started again. There’s higher grades in this zone.

When the pumps are turned off at Telfer eventually the water table will rise to a known design level more than halfway up the pits forming 2 huge lakes.

It maybe a dry arid landscape but not underground.

Hi Sageman

The water at Havieron is in the cover above the orebody in the impermeable basement.

The water is contained in 3 aquifers, the top 2 flow into the salt flats to the west of Havieron. The lower one is confined at Havieron it doesn’t flow anywhere as far as anyone knows, it is hypersaline probably ancient water. It can’t be used for anything it needs to go to evaporation ponds.

There are subterranean organisms that live in these 3 aquifers some have protection orders on them. There are no problems with these at Havieron, the orebody will be a dry mine.

The Boxcut however was built in slushy clay mudstones, it needs a proper construction to prevent collapse. Evidence did appear of a collapse in one photo.

Telfer is different to Havieron it’s a wet mine and flows to the north to salt flats in the north of the Strickland project. Havieron flows SW to hit a paleo channel then SE to Lake Dora.

Telfer has underground crustaceans, I haven’t researched which ones.

There are night parrots about but evidence is difficult to find as they live in the spinifex.

There are marsupial burrows on the way to Havieron and the new road is kinked around them.

Hope that helps

Some works have started in the base of the pit at the NW end , that is Stage 2.

That’s good news as that’s where the best ore is coming from.

Waste stripping from Stage 7 right around the NW arm of the pit is continuing

Hi thedoors yes it’s fascinating what life is living down in these subterranean levels.

I don’t think the night parrots are down there though 🤣

Spades

You aren’t keeping up.

That cyclone had a detrimental effect on Stage 2 at the base of the pit, it’s practically stopped production from there.

Stage 2 was our main earner continuing on from Stage 8.

We are now relying on weak ore from Stage 7 and the has at least 1 ore to 3 waste strip ratio, and the ROM pads which have an issue with the grades supplied by Newmont not providing an accurate assessment of what is being processed. This is what the analysts have jumped on.

We need stage 2 to come back on line if it hasn’t already but the sat images are suggesting it hasn’t.

More reliance now on the ESC ramping up production to produce higher grades.

I’m still not on Facebook thank heavens 🤣

Checking the satellite images in February which come over every 5 days I didn’t pick up much evidence of the rains that flooded Telfer. There were ponds in both the West Dome pit and Main Dome, but they didn’t show signs of flooding the pit.

Sureasblazes showed me the video of the airport being flooded.

What the floods have done is making the current pumping system for the West Done deeps obsolete and these are being put right now. Unfortunately they are/ have been in the way of Stage 2 and 7 and should have been resolved by now as a big rig was brought in to redrill a big bore hole.

Hi Naughtyneil that image is from last year.

The small Turkeys nest ponds north of the waste dump has been removed. The bigger permanent Turkeys nest ponds can be seen on the north side of the ponds. This is where water enters the ponds and sands etc fall to the bottom while the water overflows into the next one.

The liners for the new ponds are there that black line

Hi Sageman

I wouldn’t want to adopt a team talk, no one would make the effort to travel to an event so they wouldn’t happen. It would be a non starter.

The pleasure is in meeting like minded folk, I’ve made so many good friends while doing these talks it’s much better in person.

Looking forward to it 🙂

The aquifer debate again and again and again.

I’ve read a lot of research that hydrological geologists have written so I know it’s not a problem for Ggp to get through that last aquifer.

I believe the issue here is that Newcrest’s design was blindly heading for the orebody with no real thought in putting the production infrastructure in line with the Decline Design.

The Decline was held back far enough so Design changes could be implicated in the FS, I’ve seen 2 or 3 changes since it was stopped.

The aquifer was a convenient point to halt.

Shaun wasn’t correct about the top and middle aquifers being confined, they both discharge near Havieron. The top one discharges into the middle one these combined aquifers then discharge to the west of Havieron into the salt flats around Teach.

The Lower one is confined at Havieron it’s discharge point has never been discovered but its refill point is known to exist way to the east, too far to have any detrimental effect on Havieron after depressurisation.

Shaun has stated the ponds will be constructed as and when required. There was an incident though where heavy rainfall caused a flooding effect so I am expecting at least one to be built. The liners for at least one of them are rolled up waiting by the existing ponds.

These ponds are large at least 6m deep with overflows into one another and controlled pumping system.

The aquifer itself is made up of glacial Tillite, this is the rocks, rubble, sands and clays dragged and eroded by glaciers from surrounding districts. It’s been heavily compacted overtime water can’t run through it easily it percolates. Its viscosity is highly saline so won’t flow easily.

The vent hole design should be placed in a position away from the mine to allow depressurisation of the aquifer without effecting the Decline.

There are no concerns about getting through this aquifer that standard mining techniques can’t handle.

The real issue is the unstable muds and clays at the portal I have always believed that Newcrests design was inadequate for those ground conditions and there has been some slumping of the Boxcut embankments. Ggp are having to correct this with a reinforced concrete heading to replace the Boxcut.

This should be carried while the 2 vent shafts are being constructed and the paste fill shaft.

A lot of work to do prior to the Decline. restarting

Hi Sageman

Last December if someone said to you we would have nearly A$600m in the bank and planning 240,000m of drilling and a new fleet , you would fallen on the floor laughing.

Why didn’t we all mortgage the house when the sp was at 5p? 🤣