George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
Lol Ace, got to fill the time somehow while we wait for the deal and no I wasn't aware of that link so thanks mate ;-)
I mean what's not to love, we had romance, betrayal, unrequited love, arson, Neighbours, Kylie, Night Parrots, homicidal androids in Westworld style and Oscar winning man love Hollywood movies... maybe I should have added Jedi's!
I think Shaun has that backwards about sequencing if divestment too Ben as I've seen correspondence from Newmont IR that Telfer and Aykem processes started sooner and while they can't comment on potential outcomes they'd expect that due to size these would complete before N.American deals ;-)
That's my understanding Ben but so many ways to structure funding that it's really hard to predict what may happen IMO mate, importantly I think in general that Wyloo and the banking syndicate with another bank or two added perhaps as Shaun intimated at TH will be capable partners to ensure GGP can close a deal ;-)
Might be they can gain enough via debt funding and only need to raise equity via ASX IPO with insto's as someone was suggesting on TG due to a large amount of interest, or NEM take a stake in GGP as JerryS was suggesting earlier...
Hi Ben, well I just closed a deal with Netflix for my new series with Ace and Fredoo so I'll let you off paying for my London trip lol
As you say, probably just a case of appearing to be doing everything by the book for appearances sake - but you know who you're going to go with and the LROR muddies the waters big time for any competition :-)
Shaun seemed to be suggesting months not weeks at the TH and that no formal process had been outlined by NEM yet, sounds about right as these things are not simple whether you approach from a relationship approach or not. perhaps NEM need to wait a certain period to see if any interest comes in from other parties to ensure they are acting in their shareholders best interests to gain maximum value as per their messaging.
I'd contacted NEM IR again as the Telfer mention under properties in their Annual Report was ridiculously concise and no specific references to Hav or Coffee projects up for divestment besides where needed under areas such as Reserves & Resources. Teh response stated as expected that Hav is being grouped with Telfer and also confirmed that as per press release is still being categorised as held on sale and expected to be divested within 12 months from the release/earnings call.
I think you have to look at how NEM are presenting these assets for divestment in Annual Report as a narrative/comms strategy and as I posted on TG, the approach all bodes well for GGP. You can't fully discount there was some noise in press about Regis Resources and Gold Road Resources were both names as potential bidders too vs Endeavour and NSR who seem to have ruled themselves out of any near term M&A but if true then the LROR card with Havieron can be played to gain advantage.
Just had a convo with H about the article and his point was more so:
'...that Newmont accepting any counter bid runs the risk of Newmont being essentially lumped with Telfer after the right is exercised ( as the Right could only be over Havieron alone). That itself is the real key here ...'
Just a quick note, that is definitely an interesting article but it deals with a Right of First refusal not Right of Last Refusal but does show how a Junior company and partner can utilise these kinds of rights.
In GGP's case it is ROLR so can match any counter bids IF any emerge, a ROFR in this instance was set on pre-agreed terms to have first dibs as such ;-)
Admittedly very loose timelines but what seems to be being suggested is that GGP expect to continue dewatering/depressurisation until H2 and then recommence the decline.
H2 is also when the expectations is to have the DFS published which he said will include the final development schedule.
* Okay that was a comprehensive answer Shaun, the same people ask and here's here a couple of big ones when will the feasibility study be released, you’re you said in the half yearly report that you're working on it, when can we expect first ore, so there's two questions for you feasibility study to be released and when do we expect first ore?
- yeah look I think we think about the feasibility study coming out in in the second half of the year obviously
- we do that in you know conjunction and together with our joint venture partner Newmont obviously a big part of this piece has been around you there's potentially some movement there how does that impact it does it accelerate does it slow it down or just you know right now our view that remains on track we think with the updated resource
- there's an opportunity to increase the reserve potentially with the updated feasibility study which we think is another really positive for our shareholders but also for Newmont in terms of their understanding of the asset
- and so I think it just continues to you know to progress and you I and I think that feasibility study ultimately dictates the final development timetable for Havieron
- but again I think it's all pretty consistent with you know with how we've seen it today
* If those, if you're back into the second half of the year and hearing I'm seeing the questions coming flying in live does that actually delay first ore?
- well I think what we've talked about is dewatering to the second half of the year and then the sequence being then recommencing the decline and getting down to the top of the ore body
- there I think I've explained to people before you know being in line with the top of the ore body you still need to decline down, you put in your drives
- there is a time frame with that but also the country rock so the rock below that Permian level is beautiful ground conditions
- so once you're in that you'll see really efficient mining processes, you'll be able to accelerate that and get that set up really smartly and first ore presumably will actually be a development ore which is basically those drives going in, setting up the stopes to then bring down the stopes above them
- but that development ore is typically your first ore
@Freddie, we were told in TH webinar that decline work is recommencing in H2:
https://www.ggpchat.co.uk/viewtopic.php?t=896
* Okay that's a very interesting answer and slightly different from the one that you gave to it previously so I'm intrigued by that, okay Shaun let's turn to some more operational questions and here we go this is this is today's favourite question by a mile and it's not the Newmont question actually, it's the aquifer (Lower Contained Aquifer).
Alan, Dip, Wendy, Alan, Philip, Steve all ask about the aquifer, I mean basically they're saying has the lower aquifer been dewatered yet, I think you indicated it was still work in progress and if so when will drilling restart, will drilling restart and will the water cause any long-term problems? So I've sort of bundled all those questions into one really.
- no look it's good to unpack and I did try to talk this a little bit on the slide but let me augment that
- so the dewatering continues there's no change and the depressurization from memory there's six bore holes into it which is extracting that water
- look this has always expected to take us into the second half of the year when we first articulated it, there's no change as we sit here today I don't think I've received any information which suggests it would take longer or that the flow rates are higher
- at the margin I think you know we've received at least anecdotally pretty you know positive indications of where that's headed
- I think importantly though you know, we in parallel with that depressurization and dewatering process we gather data we gather flow rates, we get an understanding and then that needs to be effectively reassessed in a model to re-calibrate for the actual flow rates we're seeing from those bore holes as opposed to like the initial test bore holes
- so we think you know that's you know a positive to have more information, we think once we have that information we can recalibrate and give more definitive guidance but right now I don't see there being any changes to where we spoke you know when we first talked to the market about this I'll just say in the December quarter of 2023 where we see the dewatering and depressurization just continuing into that second half of the year and I don't see this being particularly different to how we tackled the upper contained aquifer or the middle contained aquifer
- the approach to the lower contained aquifer is exactly the same it's punch into it put some bore holes in depressurize, dewater, get flow rates down to their sustainable level set up the pumping infrastructure and then drive through it as you do with any mine that generates water which is most mines in Australia because aquifers are just a part of the landscape
- but you know the flow rates at this mine are not particularly high so I think you know timing is always something people have a focus on but I think from a technical risk this is a pretty understood feature in the Australian underg
What was he going to say Freddie besides:
- aquifers are a normal part of underground mining
- perhaps a bit of geo related info. on how they are formed that you could google
- that he doesn't have any access to information we don't as a normal (albeit major) shareholder now
- and that he expects it to be dealt with and decline to be restarted... but unsure of exacttimeframes outside the loose H2 given by Shaun
- and that would have just ended up with some saying 'oh he would say that' etc.
Actions talk louder than words in this scenario now, that decline should be restarted at some point IMO around H2 and in meantime all we can do is keep asking Shaun or Newmont IR for an update, no one else can really give any meaningful updates, only opinions.
LOL Ace, I always say a White Knight is only ever one step away from turning into a White Shark :-)
I see you posted earlier you thought Twiggy might pick up Winu too, certainly won't discount as I know you know the local landscape and industry particularly well. All i can say is in that eventuality, hopefully we get a decent offer, more than a few might be happier for a shorter term cash-out due to the last few years.
Notes from GGPHelp interview with Callum Baxter - 08 Mar 2024:
Callum Baxter, Former Chief Geologist, and finder of Havieron stopped by for a chat and a catch up with all things Greatland Gold PLC with Liam at GGPHelp TV.
https://www.ggpchat.co.uk/viewtopic.php?t=900
GGPCHAT is back up so notes also posted on there now:
https://www.ggpchat.co.uk/viewtopic.php?t=896
PDF inc. Slides as below:
https://tinyurl.com/2bhjb3dv
Hi Rotherby, hope all good mate - don't forget the very dated data cut-off point as GGP themselves mentioned as below in an RNS in a protective capacity on 08th March after the valuation was published, these points could now work from Newmont's perspective. I suspect though that NEM will be in a mood to get a quick good deal based on the GS valuation to help meet that $2bn target within the next year as their shareholders are less focused on the minute detail on each asset.
From 08/09/23 RNS:
As is customary, the Newcrest scheme circular attaches an independent assessment by an Australian valuation advisory firm, Grant Samuel & Associates Pty Ltd (Grant Samuel), as to whether, in their opinion, the transaction is in the best interests of Newcrest shareholders. The assessment was produced by Grant Samuel independently of Newcrest. The Grant Samuel assessment includes a valuation for each material project in the Newcrest portfolio. In respect of Havieron, it is noted that:
§ The approach taken by Grant Samuel is to assess Newcrest's interest in Havieron (70%) on an aggregated basis with Newcrest's interest in Telfer (100%). Accordingly, Havieron has not been separately valued. The combined valuation therefore includes significant closure costs and other liabilities associated with Telfer (which Greatland has no exposure to).
§ Grant Samuel has applied its own assumptions and adjustments to arrive at their opinion as to the current combined value of hypothetical Telfer (100%) and Havieron (70%) scenarios.
§ Additionally, because Newcrest did not complete its own planned update to the Havieron Mineral Resource Estimate (MRE) in August 2023, the Grant Samuel assessment is based on Newcrest's August 2022 MRE update, which only incorporated drilling results up to November 2021.
As previously announced, the feasibility study for Havieron is ongoing, with value enhancing options being assessed to maximise value and de-risk the project. The feasibility study will therefore be a up-to-date, comprehensive and optimised assessment of Havieron.
Assuming that Newmont's acquisition of Newcrest completes in November 2023 as expected, Greatland looks forward to the opportunity to work constructively with Newmont to optimise the development of Havieron, finalise the feasibility study and progress to a decision to mine.
I'm not having a pop at you CP, just looking at the potential plan GGP might have in mind to extend Telfer LOM from reading the GS Valuation and two scenarios and comments made. If folk look through the team, plenty of operational experience in the team that might aid extending LOM at Telfer if there are still some economically viable areas (not my area of expertise by any means) , especially given the way the Gold price is now trending.
Projects that wouldn't interest a major with 10 x T1 mines already as Shaun says, plenty of proven success in projects shed by majors for 100's of millions being used to propel the growth of smaller companies to mini majors after major industry M&A and the optimisation that is action afterwards and where the laser focus of a smaller mining company can extend LOM of older assets too.
We've had some good feedback from TH where Shaun discussed potential ways to economise by reducing workforce and looking at staggering mining and maintenance teams for instance. Just food for thought and again, look at the team as plenty of experience of Telfer itself or of doing the above at other mines or just general operational knowledge at a world class level. This is where they will begin to earn their worth in spades I imagine if the deal comes through.
https://greatlandgold.com/about-us/team/
Also important to remember that having the likes of Gaines, Barnaba, Wilson and co. greatly increase the ability to attract funding by their very presence, we wouldn't have achieved the existing funding agreements with ANZ, ING, HSBC and Wyloo without them also being present - as Shaun said it was all interdependent. Still, a deal needs to be made and the numbers presented to us to judge individually how accretive we consider them.