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Hi RA

Rick is a very knowledgeable guy but probably hasn’t gone into depth re Telfer.

I am really excited about the prospects, the risks he mentioned aren’t the risks I’ve been looking at.

The mining plan processing lasts for 15 months and the mining 12 months. This leaves a gap in processing of about 9 months before Havieron comes on line but it will be a slow build up June 26- Jun 27, just over 1 mt is forecast that is around 1 months processing during that time.

According to Shaun there is 8.6mt of weak stockpile which is 9-10 months processing for 1 train. This takes the processing to Jan27.

There won’t be a gap in underground mining, Shaun told me there’s no capex required down there the miners will just keep going. I presume he means on one of the exploration targets but this is not a lot of tonnage yet.

Weaker open pit ore is crucial to keep the plant going in 2026 & 27 whether it’s on a 2 week on 2 week off or not.

Ggp will have to use any weak ore available while substantial alternatives are identified during 2025. This could be Stage 8 in the base of the West Dome pit 9.

Careful with a few things they said, especially about the rehabilitation costs, Shaun was quite adamant about some of the outdated practices going on at Telfer in regards to the shaping of the embankments. He’s going to cut right back on these and he stressed the final rehabilitation would happen in the year after closure he mentioned 2049 and it could be a lot longer than that.

A lot of Telfer has already been planted and going back to nature.

I wasn’t in agreement with his risk in the first 12 months, there must be guarantees on the plant within this time.

Rick mentioned Ggp mustn’t go after weak ore, what about when it’s still in forgotten stockpiles, will be cheap to process without the mining.

Well Newmont are still doing mining and fan drilling which is good news. The ore from the West Dome pit is being removed to the stockpile which is good news. Newmont are processing this ore at the moment but replacing it mainly from the West Dome which is not good news. It’s taking away Ggp tonnage but it is testing the plant and tailings dam.

Regarding the base of the West Dome pit Stage 8 Newmont seem to be pumping out the water meaning less Capex for Ggp. This area is the first Ore to be mined by Ggp after the initial mine plan, so a continuation of open pit works looks to be on the cards but there is an amount of capex not in the plan to strip back the sides to get at it.

The fan drilling continues into the West Dome deeps this is very good news and one to look out for in a few months time.

The last post of mine leads me on to the latest satellite images of the West Dome open pit.

The water build up in the base of the mine looks as though it’s being drained, the access ramp to it on the east side is reappearing.

On the north side of this lake at the top of this is a large area that is being worked at the moment. Over 5 days between images it’s not discernible enough but from April or May it’s noticeable. This is the area where the December MRE indicates open pit resource and contains most ore in the 21.6mt. This is where most of the 9.6mt stockpile is coming from.

I don’t know how deep this will go or whether it will go down to the base of the lower pit, it might possibly and all the water could be drained by then.

This resource looks to be the reefs trapped in the anticline running north to south. Shaun was saying the best zone to extract first would be under the pit, it’s noted as Stage 8 in the exploration targets. It can be seen on cross sections showing the high grade reefs dipping down sharply.

Going back to my earlier posts the benching will have to be widened at some point I don’t know exactly which way but the reefs are dipping to the south east. I would expect to see some costs involved with stripping back some of the benching but these could also involve weaker ore , the ends of the reefs are dipping steeply underground some have still got ore in them.

I would expect to see some thoughts of underground mining starting under the pits.

There are different sizes of capex expenditures of open pits.

When you look at Minyari for instance it’s a sloping orebody with a 45 degree slope coming up from the south.

Minyari has an oval shaped core sloping at 45 degrees, so when the cover is stripped back exposing this ore shape there will be a shallow pit.

If they were to remove say 20m depth the benching/ sides will widen out.

Now the next level will be further south because of the slope and the shape is still an oval.

This means the next level has a much bigger pit and the benching will be wider and deeper for the same ore.

The cover to be removed will get more and more as the pit deepens.

When you think there is “not much stripping”, you would be correct to start with but to get at the lower depths the costs become considerable for the same revenues as at the top.

A circular cone shaped orebody on the other hand the cover is stripped exposing a circular ore body, this capex will be quite large. Going down the benching doesn’t widen because the circular area gets smaller. The costs reduce in the same proportion as the revenues but more transport costs getting the ore out.

The Minyari pit will have cost limitations on the depth before underground mining becomes viable.

This is why a cut off of 0.1g/t can be used as revenue can be achieved quickly with a lower capex.

At Havieron the ore body is under 420m of cover so the capex expenditure is very high to get to first ore.

This is why the 3g/t cut off is used to make sure all this capex can be retrieved and create profits. Once the infrastructure is place and costs recovered other areas of the mine can be looked at to achieve a higher tonnage rate at lower cut offs.

Hi HT

Good question on why is the FS taking so long?

2 years of political manoeuvring we were being told the FS was being worked on. My own thoughts early on was that the constant drilling must be changing future logistics. The top 300m of the ore body is well understood or is it, the SE end has been drilled extensively, all the way out drills have entered the ore body from the sides not the top so the NW end is still unclear. Fan drilling will make this clearer. This will finalise future bulk ore mining which is why I say there will be future Feasibility Studies.

The Lower Confined Aquifer seems to be what’s caused some of the delays and Newcrest not really putting efforts in to really understand it. This LCA will cause issues with the top layer of ore being mined, so studies may be ongoing to see how best to keep the aquifer in place and not let it drain into the mine.

The other issues could possibly be the sustainability plans. Now owning 100% Ggp can now decide how to go about achieving zero carbon ambitions. I know Shaun is very keen on this I’ve emailed him a few times and now with Wyloo owning a % of the company all electric/ hydrogen may be a goal and has changed timelines. To me that is a huge achievement to go for.

“How does SD blow the doors off”? Does he need to i think he’s just blown it down. Steady increase in ounces and revenues for 5 years will leave the company in great shape if he departs in 5 years time.

You mentioned short term and long term, 2028 is still short term, I feel 6mt will come but 2035-2040, so I would prefer quality, quality, quality.

The production plan is showing from memory June to June:-

2026-2027 1m+t

2027-2028 2.6mt

2028-2029 2.8mt

Hi HT

Check out a railveyor on google much more realistic option for the starter mine but would still require time for infrastructure and capex.

This coming FS is for the SE crescent it may give enhanced areas to be mined hopefully some pockets of high grade breccia ore in the Northern corridor. It needs to only concentrate on 3g/t “Quality over quantity “ equals more.

There will be other FS for other zones but it may point to future thoughts.

The Havieron Decline will not take 6mt, they’ve reduced the current plan to 2.8mt to make it more achievable. The Feasibility Study is considering a better bulk handling system to possibly upgrade the amount to 3mt.

The 3mt is based on a cut off of 3g/t , it’s has such a high value due to the fact they need to make this project economically viable.

A 6mt operation will maybe halve the achievable grades as there is only 3mt pa available from the sulphide ore body, the remainder will come from the surrounding breccia.

More revenues and reduced costs will come from higher grade ores.

The Newmont loan is to come from Havieron ore not Telfer ore. With Havieron only producing 1m+ tons upto Jun 27, I doubt Newmont will get the full $50m that year.

Hi Have Telfer

Is 6mt written down anywhere?

This is detailed in the acquisition documents, TSF7 is not going to be used at the moment. It’s been sprayed to seal it.

TSF8 is going to be used and will be raised in stages until it reaches the same height as TSF7, at that point remediation should have taken place so that they can both be lifted together many years from now.

Nothing to be concerned about unless monitoring indicates more movement but Newmont have indicated they will still be at hand for their expertise to assist with issues.

Ggp have been drilling the London deeps target looking for the elusive Tier 1 the ultimate goal. If they don’t find one what next. Well I asked Shaun in London and he told me he was still excited by Scallywag there’s still lots to go at. Will they be Tier 1s no one knows but in the past Shaun said a half or a quarter Havieron would be game changing. This could be more likely an outcome at Scallywag , keeping my fingers crossed for London Deeps as I said before could be game changing with possible access gained from the Havieron Decline at depth.

Thing is it looks like we may already have a half or quarter Havieron but it’s not at Scallywag it’s the West Dome Deeps. Shaun was enthusiastic about it at the Town Hall and rightly so.

Newcrest drilled 4 drills into, the acquisition document shows a sketch with the fan drilling shown by Newmont.

A Decline spiral and access to the hoist has been shown and all the stoping levels.

My thoughts when I saw was WOW they’ve already done a mine plan on the results of 4 drills and now they’ve constructed an exploration Decline and have put in at least 29 drill holes that I can see on that section.

This is super confidence of a significant orebody, not a Havieron but a quarter or half a Havieron.

As Shaun said a game changer, he said 10 years mine life but it could be more according to a historical document from 2014 there’s a shadow breccia anomaly alongside.

Bring on the results early 2025

Hi Jet

Studying what’s that 🤣

Finished a long time ago.

Hi Scottie

You may have to stop smoking 🙂

Each Dore’ bar could contain somewhere between 50-75% gold so you are a bit high.

Hi Jet

The issue of keeping both trains working during the 15 months will probably enhance the revenues but at some point maintenance periods would kick in. Shaun was quite clear in London talking about shift patterns 2 week on and 2 weeks maintenance. I would think this will be after the 15 month period.

Stockpile Dore’ bars for 3 months.

Send to Perth mint

Process the gold and silver

Payment next quarter

The copper concentrate will have different timelines

After processing sent to Telfers concentrate warehouse.

Transport to Port Hedland warehouse

Shipping to Asia probably to Japan

Time to process into copper matte, then copper anode then copper cathode.

After that produce credits eg gold and silver and any debits.

Payment

Maybe 6-12 months overall

Hi MH

That thread is poor no real detail, Saltpetie is the only one with any knowledge.

“ propel to number 3 gold miner in Australia”

They’re having a laugh, sounds like the Wishbone Board.

Hi Speedie that’s a good question about when do they get the first payment.

A Dore’ gold bar weighs around 25kg and that contains I believe around 50-75% gold.

One train processing is about 700-900 tons per hour , so that’s around 10,000oz per day. That’s about half a Dore’ bar per day so in a month about 15 bars.

I’m not sure how many bars they would want to transit and one time but 45 bars per quarter may be the figure.

I find it curious that Antipa aren’t mentioning a reserve resource to base their mining plan on.

It’s like basing the Havieron mining plan on our 8.4moz indicated and inferred resource that would give over a 30 year mine life.

No mention of how they would feed their standalone processing fascility, that would involve an infrastructure corridor from Telfer similar to the Havieron one.

That has taken some time to get through the approval system.

The infrastructure corridor would also need to take traffic from Minyari to get on to the Telfer road to Port Hedland.

On Landtracker maps you can see the circuitous route that is in place at the moment, to straighten it will involve crossing numerous sand dunes therefore onerous environmental issues.

These capex costs do not seem to be there.

Whether they will have the technical skills involved to produce cobalt is quite another thing, it’s costly to produce.

I couldn’t see anything about Newmont still fan drilling the West Dome Deeps. I did see they’ve spent $202m on Lihir and Telfer that might include this drilling.

The historical drilling results show some really high intercepts 29m @11.8g/t was one I remembered. The results from this fan drilling could be extremely encouraging and may take the pressure off a Havieron start date.

The FS should not hold up the current guidelines, they have to 2028 to get up to full production. They have said the FS will provide an optimisation to achieve greater than the 2.8g/t, I’m suspecting a change from diesel trucks to hopefully an electric railveyor . If that’s right a railveyor would need to be installed at commencement or need its own Decline for later installation.

They’ve mentioned it’s too late for a hoist, I’m presuming the capex cost of this would be too excessive for current plans.

The West Dome Deeps could provide later continuity as Telfer mine plan diminishes, could be a 10 year mine life there according to Shaun. The historical reports indicate breccia orebody surrounding the high grade so the Mine life might get extended further.

The SRK report indicates there may be an option to extend the SLC downwards under Main Dome Deeps. I’m not sure whether this would entail further capex or not. Most of the underground workings is described as not needing further capex due to the mining advancement.

The West Dome Deeps will need capex to get a production Decline and ventilation to it but will utilise the hoist.

Yes but capped at $50m per year and a total cap of $100m

Hi L-A

Beggars belief that you can have a higher market cap on something you don’t own.

Another load of codswallop.

You have to watch where you walk these days.