Member Info for Bamps21

Hi Spades

If you look at what Newcrest said about their AISC for Havieron starter mine it was $743 per oz but that is for a gold eq the gold alone figure is higher . Ggp figure is $1060 for gold only. I’ve upped it for inflation.

I’ve not really included Telfer figures as the ore is running out but have included the costs at Telfer.

The AISC at Telfer is frighteningly high if they continue to mine. Costs will have to be managed and a lot cut out.

I hope that explains my thinking

Hi Speedie

The POG needs to remain strong if gold is to pay all Ggp costs. This allows copper to be all profit.

Taken as Ggp own 100% and Telfer

“Gold price say $2400

AISC $1200

Revenues $1200 per oz

MRE 3.5moz

That’s approximately $350m pa

Over a 12 year period

$500m debt divide x 12 =$41.7m plus interest 8% $3.3m =$45m

Capex $100m

OPEX $50m

Admin $10m

Exploration $20m

Royalties and taxes $100m

Total approx $325m”

“I’ve taken wild guesses at costs so don’t look into it too deeply but the point is the gold will pay all costs and may leave some profit.

The copper is the profit.”

(Included rehab costs in capex, but capex and debt will reduce over time leaving more profit from gold)

Copper is approaching $4.71 per lb

From the MRE

150,000 ton copper that’s indicated in the SE crescent.

Convert to reserves 86% = 129,000 tons

Need 13.8 years averaged out to produce that tonnage.

At today’s price that is = $112m per year

That should be all profit. 🙂

Looking at De Grey funding requirements of latest equity raise on page 12

This is Havieron requirements:-

Long lead items:-

Evasee fan

Paste plant

Early works:-

Complete decline to production level

Infrastructure:-

Access road to Telfer

Construction costs:-

Complete decline and stoping fronts

Working capital:-

Complete:-

Decline

Stoping fronts

Fan system

Paste plant

Evaporation ponds

Access road

Feasibility study

Fund Telfer plant and staff

As you can see most of the working capital is embedded in with the others, so $150m (not Aus $) is probably possible.

No matter who owns Havieron 30% 70% 100% there’s not that much more to get production going. Payback in 4 years.

Rest of working capital for the next phase of the decline will come from revenues.

Https://degreymining.com.au/wp-content/uploads/2024/05/20240508-DEG-Announcement-Investor-Presentation.pdf

De Grey presentation page 12 use of funds

Most of these items Havieron/ Telfer have already.

Certainly a lot of work happening on top of the tailings ponds.

A track has appeared at the 1 O’clock position and goes around to 4 O’clock.

Those 2 positions there has appeared a series of black rectangles, I’m presuming they’re holes.

You have to remember you can see this tailings circle from space so these marks are very big.

They could be strengthening the inside of the dam perimeter

Modula flotation machines

https://m.made-in-china.com/product/High-Quality-Gold-Platinum-Copper-Ore-Processing-Flotation-Plant-for-Ores-Separating-1953362895.html

If you scroll down there are other Modular machines mainly on skids

Notice this crusher is on tracks and note the price

https://m.made-in-china.com/product/300-Tph-Impact-Mobile-Crushing-Station-Vehicle-Mounted-Limestone-Crusher-Cement-Concrete-Crusher-Plant-2079737545.html

That £6m is what JLP are forecasting, each ore is different.

All these modules are portable some will come on skids. Most modern oil tanks and cement silos are all portable .

Telfer is a big old ancient plant built over many years, so won’t be as efficient as new tech.

Havieron only needs 3mt to get around 400k ounces a year, it’s a high grade mine it doesn’t need most of the Telfer plant.

Hi Red

Shaun did tell us in London that transporting that amount of ore to Telfer over the life of the mine is not sustainable and a more efficient smaller plant would be his goal in the long term.

You need to do some research before posting

Hi Speedie , Liam

Gaining Telfer is the big prize but it is possible to site equipment at Havieron.

Here is a section of what JLP are up to

“The copper Waste Rock Project scope targets the processing of in excess of 260 million tonnes of copper containing surface material. The project targets to initially implement four modular processing plants holding a combined processing capacity of 2.4 million tonnes per annum capable of producing more than 20,000 tonnes of copper in concentrates per annum, commencing in Q2 CY24 of which 30% will be attributable to Jubilee.

The copper modular processing units are similar in design to the Roan plant upgrade which seeks to upgrade the surface material to a copper concentrate which can be further refined to metal. The initial capital investment for the project is estimated at US$50 million.”

That’s for 260m tons so way bigger than our starter mine and there’s 4 modules for that, so Havieron plant could be done as and when required.

Telfer air strip camp and power stations could be sold separately as a going concern.

Solar and wind will progressively reduce the need for the power station.

Plus Havieron still needs the tailings for the paste fill, so that’s a saleable project

Great find Bellars.

2,000 ton per hour is about 17mt per year so more than capable

The tailings dams are not company specific guidelines but Newmont have said their procedures are superior to Newcrests.

This would mean that thorough investigations of the dams are being carried out probably resulting in these defects being found out.

There are global recommendations for detailed construction of tailings dams.

This is one https://unece.org/fileadmin/DAM/env/documents/2014/TEIA/Publications/1326665_ECE_TMF_Publication.pdf.

Regarding the processing plant, there will be manuals but there’s also the staff there to continue using them plus we have Otto who used to run it, so I would expect an easy transition from Newmont to Ggp. Although expect to see a lot of efficiency methods introduced. We have a lot of experts on the Board.

Regarding if Ggp doesn’t get Telfer and a new plant is required, you have to remember we don’t need a big plant to start off with 3mt a year is small scale. There are small modules on the market, check out Jlp in Zambia there planning loads around that country, I think the price is about £6m but would have to check that.

The main issue with a plant at Havieron is its on an environmentally sensitive spot so room is limited. I mentioned this to Shaun in London but he said it would be no issue.

I’m not convinced of that when you look at how big Telfer has become, from the satellite images it would cover the most of Scallywag.

Telfer at the moment can be seen from way up, Havieron is not visible.

The cubic metre of the Telfer pond is around 250m cubed, my top ovoid cube is around 175m down to 900m. They will be comparable eventually.

40% of Strickland has been surrendered but kept the best bits.

They were never going to get permissions to drill on the 40%, some heritage issues I believe but also salt flats so environmentally sensitive.

5,500m is not that great amount but more than what we are used to.

Last years Budgiedown drilling was about 2,728m total drilling plus a bore hole not sure if that counts for A$1.1m.

Skylar, Wilki and Basel:- 2 drills each on the first 2 plus 6 drills on the 3 targets at Basel could see 3,000m.

They may be able to drill at Atlantis if timing is right with permissions and survey results, it on the way between Skylar and Basel.

If they don’t complete it this year , then next year looks odds on to get the 51%.

Intending to drill Skylar, Wilki and Basel in H2 24

What will happen if they drill 5,500m and spend A$6m (£3.117m)?

Rio can elect for a formal jv agreement and Phase 2 may not be needed

51% Ggp 49% Rio

If Rio doesn’t want a formal jv and not share the costs Ggp can gain 75% interest if they spend A$14m and complete 17,000m of drilling within 3 years of Stage 1 completion.

After Stage 2 they might not want it all and not wish to contribute, similar to what Antipa are doing on their jv with Rio giving up % of the jv instead of cash.

Let’s hope they find something after Rio pull out 🤣

Cos the drill stopped it should have kept going 🤣

Page 21 on the timeline.

Had 005 157m that’s from top of ore 6.75 g/t aueq grade.

That’s where the First Ore coming from, could be an underestimation reason being miners report conservative figures.

That’s a tremendous figure to start with 🙂.

It’s fairly obvious to me that if they were pumping water out of the Decline before they reached the hold point then they would have to keep pumping afterwards.

This isn’t necessarily the lower aquifer water it’s the stuff dripping down from above.

I think they have been checking the flow rates down below not necessarily from a bore hole at surface.

You can see the pump line running up vertically from the portal in most photos, this discharges into the drainage trench which flows down to the waste mound and on into the ponds.

No secret service to this, I’ve had no hinkling of a video or RNS just common sense.