Absolutely brilliant interview - he could literally have been talking about Havieron to a "T" and the fact that Newcrest are in the process of building the mine means GGP is an absolute no-brainer IMO.
Great find by whoever posted it first. Cheers - Paddy
Again if people have any doubts about the direction that Newcrest have in mind for Havieron and the Paterson in general then have a listen to Sandeep again presenting at the Denver Gold Forum in September just gone. Listen for the Telfer / Havieron section from about 9:30 mins in.
Some interesting comments regarding the fact that Newcrest are gaining invaluable information from Havieron about how to discover and drill test other potential targets on their own and JV tenements in the region - very relevant considering the line in the last quarterly report -
"Further targets outside of Havieron, but within the joint venture area with Greatland Gold, have been identified with the potential to conduct drilling to test these targets in the future."
He is discussing the potential to start the decline even though we know at this point they had submitted detailed plans and were just waiting for approval and when he says commercial production should be achieved with 2/3 years of commencement of the decline then I would fully expect them to exceed that timeline again as they have with every timeline that has been set up to now.
Sitting very comfortably and looking forward to the tsunami of news that will be washing over us in the coming months.
ATB - Paddy
GGP will manage it for the first year, so Callum and team will decide where and when to drill, obviously with the blessing of the joint committee that GH referred to in his tweet earlier, but NCM will pay for all costs.
IMO - GGP will have no financial outlay on the Juri JV until the AUD$20million is spent over the next 5 years. When that happens then Newcrest will have their 75% and if we find anything worthwhile it will be a carbon copy of Havieron, where we either renegotiate the terms or we sell our 25% interest to Newcrest.
That's my understanding but DYOR - Paddy
Agreed @napthman1, remember we have already had decent results from Black Hills and we know the cover is minimal there. A decent hit there or at Parlay would set this alight.
I know Bamps has a soft spot for Black Hills and who am I to argue with his assessment.
GLA - Paddy
Regardless of all the speculation and chat on this board, Twitter, etc. - take one look at this satellite image from today and understand that Newcrest are literally moving heaven & earth every single day in one of the most inhospitable environments on planet Earth to enable them to get the high grade ore that is 420m under the desert into Telfer asap.
If that fact is not enough to persuade you to hold or buy more GGP then nothing else will.
GLA - sit on hands IMO and please DYOR - Paddy
It won't be that much as the NPV will be discounted and I'm sure there will be risk factor weightings, etc, etc but IF and I accept it's a big if, we continue to be a minority partner in the JV then it's easy to see the possible revenues that can be attributed to GGP over the coming years & decades.
Havieron would be the foundation rock that SD could build a new mid tier company on - his aspiration of a multi-asset company would definitely be within his grasp. I intend being around as it plays out.
GLA - Paddy
Looking at your volume figures which I have no doubt you have worked out diligently then we are just shy of 1 billion tons of material.
Using the NSR figure of $50AUD / T @30% to GGP works out roughly £8 Billion in my calculations.
It's worth remembering that the NSR figure allows for all transport, processing and royalty/tolling costs and is based on $1,400/oz Gold and $3.40/lb Copper.
Why was it again Hydro that the barrow boys have been sniffing around GGP for multiple weeks - sit on hands folks.
ATB - Paddy
I would also like to point out the following from the Newcrest MRE report:
"The NSR calculation takes account revenue factors, metallurgical recovery assumptions (outlined below), transport
costs and refining charges and royalty charges with the gold price of US$1,400 per ounce, copper price of US$3.40 per
pound and a 0.75 AUD:USD exchange rate."
Take your volume calculations and now work out what Havieron is potentially worth using the $50AUD/t NSR value that NCM used in their MRE report.
I have just done that and worked out what 30% would be worth to GGP - it's a scary number and I would like someone else to verify it before posting.
ATB - Paddy
That's fine, GGP have their field season for 2021 chock a block with Scallywag and controlling the Juri JV anyway.
I would expect them to do desktop work and perhaps some survey work on it this year with a view to drill testing it in 2022.
Remember to achieve Shaun's objective of becoming a multi asset company, GGP needs to keep moving forward.
For anyone interested in some research on GGP tenements - I have managed to find some old exploration reports from 2002/2003 for our new license in the Paterson.
The Tabletop 1 anomaly that is described in the Appendix 1 of the second report is the large one that is shown on the map of our license application. There are some pretty 3D modelling images of the interpreted gravity anomaly that sits above a magnetic anomaly (where have we seen a co-incident magnetic/gravity anomaly before I wonder).
This paragraph caught my attention -
In contrast modelling of the magnetic data showed that the source of the Tabletop1 magnetic anomaly is the order of 1250 metres deep (see Haynes 2001(a), and Figure 10). Hence the source of the Tabletop1 gravity anomaly is shallower than that of the magnetic anomaly, yet directly overlies it. Therefore this dense source is a quality target for:
(i) Olympic Dam-type mineralisation, and/or possibly
(ii) Telfer-style mineralisation
And then further down.
"In terms of Telfer-style mineralisation it has been suggested that the gravity anomaly may arise from sulfides within sediments above an intrusive source. While this is possible – with a density contrast of 0.05g/cc indicating that approximately 1.1% sulfides could give rise to the gravity anomaly, it is noted that no gravity anomaly is evident over Telfer, nor is it directly underlain by a magnetic intrusive (Sexton, 1994)."
Well we now know that Telfer-style mineralisation with a sulphide magnetic/gravity signature is eminently possible from our experience with Havieron.
All in all - it looks like Callum has turned up another first -class prospect in the Paterson.
GLA - Paddy
The latest Sentinel update is available this morning - nice clear cloudless image for a change.
The second cut into the box-cut seems to be progressing nicely - they appear to be about 2/3rd's along the length of it but it obviously gets wider towards the portal entrance so plenty to do there.
Maybe Bamps might know roughly what sort of depth they would excavate at each cut as they dig progressively deeper.
Lots of other clearance work going on for the various bits of mine related infrastructure also.
It's a little difficult to make out which drill pads are active at the moment as all the older sumps appear dark from the recent wet weather that they have had, as the inactive ones start to dry out then it should become a little clearer but suffice to say they are not hanging about - 65,000 metres by the end of June means their productivity will need to be maintained 24/7 for the next 4.5 months.
ATB - Paddy
There are other forces at play here as well - good post by Pr0t0n on ADVFN,
Just as a matter of interest:
6th of January POG was $1950, GGP share price was 34p, GDXJ $58
Today POG $1775, GGP share price 21.5p, GDXJ $47
Sentiment in this space will change - it's only a matter of time, GGP is so well positioned to take advantage when this happens and before Bamps or Mickey gets my case don't forget the copper, now at $3.9/lb and rising.
ATB - Paddy
Spot on Bamps - great post,
The problem is - a lot of so called "investors" haven't got a time frame of 12 days in mind - never mind 12 months.
Still holding and sitting on the handies - 52 months and counting, bring it on - Paddy
I'm pretty sure that's why Newcrest are currently digging a great big hole out in the middle of the Australian desert.
How long until the first gold is poured at Telfer from Havieron ore? before the end of this year IMO, it will be longer to commercial production but resign yourself to the fact that it's gonna happen.
ATB - Paddy