Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Assay results on 4 holes expected shortly - if they are anything like the first hole (map072) - this could really take off in a big way. OMI's very own GGP had05 moment, the moment GGP realised they had a major deposit on their hands at Havieron.
Cash
I posted this a few weeks ago;
Really impressed and love this bit from the webinar (20.50mins) with Brad George;
"its far too early for us to be giving numbers but we are certainly at this point, madly scribbling diagrams on the back of a fag packet and.... you start adding dimensions to this thing.....50metres thick, 500metres high, 200metres wide and working out volumes and tons and you very quickly find you start adding up tons and ounces at quite a rapid rate. I mean its not beyond the possibility that if we start getting more of these hole 72 ...similar results at wide spacing, we're adding potentially a million tons and 100k Oz per hole, so it will be a very quick project to build the tons up".
Cash
Very good webinar. Really impressed and love this bit from the webinar (20.50mins);
"its far too early for us to be giving numbers but we are certainly at this point, madly scribbling diagrams on the back of a fag packet and.... you start adding dimensions to this thing.....50metres thick, 500metres high, 200metres wide and working out volumes and tons and you very quickly find you start adding up tons and ounces at quite a rapid rate. I mean its not beyond the possibility that if we start getting more of these hole 72 ...similar results at wide spacing, we're adding potentially a 1million tons and 100k Oz per hole, so it will be a very quick project to build the tons up".
This has the hallmarks of a large resource in the making.
Cash
Gervaise Heddle on brrmedia a couple of weeks ago;
hTtps://webcasting.brrmedia.co.uk/broadcast/5fbfc800b19325729a9d7eb7
From 4:40mins,
2021 will be all about growth and turning more of their targets into mineralised assets via exploration.
3 Major exploration programmes in 2021;
1) Havieron, seeking to expand the orebody boundary and convert into mineralisation.
2) Juri JV funded by Newcrest led by GGP (Parlay first target).
3) Scallywag & Rudall area exploration drilling campaign.
2021 - "We are going after ALL of these target areas"
"The goal at Juri-JV and Scallywag is of course to find another Havieron".
I think after drilling all those RC and Diamond drillholes at Scallywag, they definitely have an idea of what's there - thus have made it one of the major features of exploration nextyear. Can't wait for the SWAG assay results.
Cash
Kabaa,
Posted this a couple of weeks ago re. ECR on the advfn boards;
"I am in both GGP & ECR. There are certain very specific similarities, even though they are almost 2000km apart.
In 2017/18, both were minnows trying to open up a regional play - GGP have since achieved that and brought in a major partner that has 8 full time rigs drilling Havieron non stop. Yes, they handed over 70% in a 6year, $65mln earn-in deal - but Newcrest have smashed this out of the park and finished 6years work in 3years and have started box cut and decline for an actual underground mine (they have not even got to feasibility studies milestone yet!!!). Which speaks volumes about what they think about the size and magnitude of Hav. An analyst came out the other day stating he estimates Havieron will eventually be 12.5mln Oz (Berenburg?) - a global tier 1 Gold/Copper mine. The management decisions to bring in a big hitter in Newcrest to catapult the project forward was a masterstroke - GGP has seen more than 30,000% return in last few years. But it could be about to get very exciting overthere again, drilling results from scallywag area are imminent. They kept 100% of this area and its nextdoor to Havieron with 4 lookalike prospects - with results at one (Kraken) due very soon (Havieron Mk2?).
ECR is at the start of that same journey, they have a number of really exciting discoveries from drilling at Creswick and Baileston and it's entirely possible that like GGP brought in Newcrest, ECR could well bring in a big hitter to turbocharge Creswick area activity while they get on with drilling Baileston, having just purchased their own Diamond Drillrig. Baileston drilling is imminent.
So, with ECR the question is, how much gold is there? Well, if the figures of upto 11mln Oz are close, that'll be a rerate of some magnitude even after farmout. It's the farmout that will actually unlock the value - no one wants to lose equity - but if it means you can generate 20-30x the value you currently have, it's a great deal. Look at GGP - they are testament to this. Sitting on licences that see no action generates no shareholder value. GGP totally understand that it's about doing the best for shareholders. There are too many small explorers out there that keep control of assets but achieve little even after discoveries are made. I hope CB at ECR doesn't get precious and makes the right deal. No one has all the answers and partnering is a means to unlock huge value if structured right.
Victoria Goldfields are known to have rich nuggety gold - that means higher grades per tonne & very rich profitable gold. Kirkland Lakes Fosterville goldmine gives inspiration for Victoria explorers - the most profitable goldmine of any listed company as far as I can see - average grade of something silly like 39g/tn. The results at ECR thus far indicate Creswick & Baileston may well have some really rich fairways. Newmont are immediately N/NW of Baileston and Baileston is some 50km from
Gervaise Heddle on brrmedia a couple of weeks ago;
hTtps://webcasting.brrmedia.co.uk/broadcast/5fbfc800b19325729a9d7eb7
Listen carefully folks!
From 4:40mins,
2021 will be all about growth and turning more of their targets into mineralised assets via exploration.
3 Major exploration programmes in 2021;
1) Haveiron, seeking to expand the boundary and convert to more mineralisation.
2) Juri JV funded by Newcrest led by GGP (Parlay first target?)
3) Scallywag & Rudall area exploration drilling campaign.
2021 - We are going after ALL of these target areas.
"The goal at Juri-JV and Scallywag is of course to find another Havieron".
I think after drilling all those RC and Diamond drillholes at Scallywag (reference Paddygalls scallywag drill info in Sep-Oct), they definitely have an idea of what's there - thus have made it one of the major features of exploration nextyear.
TinktheKat,
Thanks. What PJ needs to understand is while communication is important, substance is more important. All these RNS to tell us data which is essentially unquantifiable in value - has little impact. Make a confirmed discovery with proper intercepts and grades then report.
That proactive Interview with Andrew Scott this morning, did I hear that right?
Talking about shareholders, the future and why Sean was brought in, GH stated that they will have 3 exploration programmes ongoing nextyear;
- Havieron
- Juri JV
- Scallywag & Ruddal
Is that a slip up re. Scallywag from Gervaise?
Cash
lesliez,
Put simply, Havieron is still growing - look at those intercepts OUTSIDE the MRE area. Decent is an understatement.
Scallywag could well lead to a massive rerate if they can prove the geology there is analogous - we will find out soon.
As for the other company you mention - they actually need to move towards resource and importantly development, otherwise its always just going to be a numbers in the ground company.
Cash
Given GGP is looking to take Haveiron through to production, we are probably looking in the region of 400-500k Oz once in production at Hav in a few years. To this extent - Newcrest are ahead of schedule and moving at lightning speed to get Haveiron into development and production. Grades are rich compared to Newcrests nearby Telfer mine - Newcrest desperately need to improve AISC at Telfer (reportedly around $2000+) = Haveirons rich ore is the answer. Words of all partners, the story at Haveiron has just started. The orebody is open in several directions and at depth (currently down to 1,100metres).
MRE is 4.2mln over just a small portion of the early drilling - the true resource probably dwarfs this already as they have done plenty more drilling thats not been included for purpose of the MRE. But I expect when this goes into production it will be alot higher and when resource is finalised some years down the line, it will be clear to see a 15-20mln Oz Gold/Copper deposit at Haveiron. GGP will have 30% of this (or 25% if Newcrest buy 5% at market value). Given the location within easy reach of Newcrests Telfer plant, and bulk mining being likely, this is going to be a low cost operation.
Now here is the $64k question; what have they got at Scallywag? Scallywag is on trend and shares similarities with Haveiron, if they confirm Copper/Gold discovery there similar to Haveiron - at 100% to GGP its going to be worth a fortune. The real value for anyone investing now is driven by two catalaysts. Firstly, to grow and move Haveiron towards production - but that's largely driven by Newcrest. Secondly, what GGP can control is what they discover at Scallywag and how they can unlock value there - this is very exciting indeed.
Gervaise Heddle stated in GGP AGM the otherday when pressed about Scallywag drill results, that labs were overwhelmed so there was a delay but we should hear something around Christmas or New Year.
That's just a few weeks away!
Its bizarre to me folk posting all these other minnows as the next GGP, they are not as derisked as GGP and do not have the potential for another 2-3-4 Haveirons in 'look-a-like' prospects with similar gravity and magnetic signatures. GGP with a firm Haveiron footing makes the rest of GGP's assetbase in the Paterson a call option on future growth. Can they do it again? I think yes and we will find out soon. Selling today is seriously premature in my opinion.
Lesliez,
Absolutely no chance GGP would have got Haveiron to its current stage of exploration and early development - even with dilution. The speed that Newcrest have moved at shows how a major with ample regional resources, clout and genuine incentive (Telfer is hungry for rich ore) to push a project can do wonders.
I am baffled by those going elsewhere when we know Scally results are just a matter of weeks away. I would argue that is the single most important catalyst going forwards now the MRE is out the way. There is a long wait wherever you go as labs are overwhelmed and results delayed across the board. Scally results almost 2months late - but getting close now (around Christmas/New Year per GH's AGM comments).
The MRE puts a baseline floor number to the resource from which it will grow massively. Look at Newcrests Cadia mine - MRE 4.7mln, today Cadia stands at 30+ million Oz equiv.
Hold your horses, those shares being taken at 29-30p are not being taken to then be sold at a much cheaper level, they are being accumulated in this shake and will be sold nearer where we closed yesterday or higher.
Elise,
Yes, that killer piece of news could well be Scallywag results. Around Christmas time as GH put it in the AGM interview.
BTB,
£10bln? - in time absolutely. The trajectory once they get into production is clear. This is showing signs of becoming another Kirkland Lake. Potentially with stakes in much bigger deposits than KKL.
Cash
Hi all,
Given the strong fundamentals and rising price of Copper, any thoughts on how much of a driver this could be for GGP?
Whilst Hav is mainly Gold, and Gold/Copper discovered in tandem in many a goldplay - Copper grades and intercepts at Hav look decent thus far.
Also, I wonder if this might be more prevalent in other areas of Paterson region, where we are looking at Copper. I note Rio Winu discovery may well be a feature in areas further to the north for GGP.
Cash
Hi All,
What are your thoughts at this stage in relation to acquisition timelines and values of the 5% 'at market value' of Haveiron which NCM have an option over?
How would you value it now &/or after MRE?
Cash
Can we all leave the political and legal discussion for some a little more relevant? Let's talk about GGP.
I previously mentioned a company held in one of my funds, Kirkland Lake gold. Marketcap is $C17.51bln (£10billion).
Given the sheer scale of what they have unearthed (and continue to do) at Haveiron, I think there is a longterm case to say over a few years, GGP may start to replicate the rags to riches story of KKL. Just look at a 5-10year chart and you'll see what I mean.
My own thoughts are; if they can replicate Haveiron - or thereabouts - across the Paterson range tenements, they will actually exceed KKL. In addition to that, Newcrest are moving rapidly to hire and start initial works to begin production within a few years. So there is the production element covered aswell.
I would have thought it highly implausible. But I can seriously see it may be possible the way they are making progress. What they need to demonstrate is they are able to unlock the geology and confirm mineralisation in SWag and the other tenements in Paterson area.
Why do people expect Bonanza grades to be the norm?
This is their first assay confirming Gold Discovery on the license at a reasonable depth.
There will be more assays as they are close to the lab in Kalgoorlie.
Look forward to more results.
Cash
MME,
This is it. If we consider for a moment, what potential future deals may look like (in a Scally or Goliath success case), it puts GGP in a strong position to to negotiate very lucrative deals. If they maintain the 30-40% stake in a potential analogue of Haveiron, get those interests funded to production - potential value add is mind boggling. I look at this and a quicker version of Kirkland Lake comes to mind (Kirkland Lake chart over last decade is a thing of beauty). One only needs to look at Kirkland Lakes metrics and marketcap to realise what that could mean in terms of value for shareholders here. As Bamps pointed out this morning, Kirkland Lake are very Gold heavy (20-25mln Oz) but have little in the way of base metals. GGP may well have plenty of base metals going by Rio Tintos Winu discovery and Haveirons Copper grades thus far.
Thinking about where this could go over the next few years, should they make any further Haveiron type discoveries, this is going to grow similar to Kirkland Lake. Looking at resource potential, to match Kirkland Lake they would need to get to 20-25mln Oz Au and become significant producer. Of course, they will need further JV's in different licences to make this happen, as it's cost intense requiring deep pockets. But I think there is a distinct possibility that could actually happen. The scale of what they have discovered and may have validated regionally is immense.