George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
I have not got a clue what Shaun is like. I know 100% what Banks are like. They will not hand over money if they think they will never get it back. They will want answers. AS for an issue aprt from me. We have stopped digging the decline. Is that not an issue?
I would like to know how the water pressure is dropping and what estimates they have for it reaching level where they can continue digging. I do know they will not be able to raise money from the banks for buying Telfer and the other 70% of Havieron. As they are stuck at the aquifer the Banks will want a detailed analysis of what the issue is before they hand over their cash.
I am very reluctant to call anyone a liar. At certain times people have to chose their words carefully. If he came out bouncing with statements like the water pressure is falling rapidly and we hope to restart the decline in a few weeks. Is the water pressure falling? Very little information about the actual state of the aquifer.
Your estimates and others have been proven over optimistic. Until the aquifer is resolved all talk about the decline is guess work. Estimates for digging again have been based on digging 3km of tunnel but over 2.1km of decline. No real idea what is happening at the face. Estimating with the lack of information we have and no real idea of the conditions is conjecture. I hope the aquifer issue is fixed and we are digging the decline.
Shaun controlled language around the aquifer was a red flag. I am sure they will get through, not sure when.
His timeline is not right it is a guess, an estimate. So far all estimates with respect to mining have been highly optimistic. We do not know if the aquifer is in a state that the decline can continue. We have been given no real indication how large this aquifer is. The largest aquifer in the world is the Great Artesian Basin in Australia. Reaching the ore body this year cannot be predicted until the aquifer is sorted. Stating 6m a day is making up numbers.
Its a big cost. It is a cost that will get bigger, with greater environmental concerns and inflation. Telfers high ASIC value which means lower revenue to produce a profit and revenue for rehabilitation. No buyer being able to put a final figure on the cost of rehabilitation, this is a risk. The local authorities will want guarantees that who ever runs Telfer has the resources to close the mine. Newmont may have to put a bond down. Newmont may close Telfer, I do not think the local authorities will be happy. It may have a negative affect on future mining in the region. I think it is a buyers market.
The big guys have big overheads. They want big mines with big resources. That needs lots of money. Havieron may not give Newmont the ROI they want. Wyloo see Havieron differently. It explains why Wyloo are on board.
The only thing I can see that Newmount have in the Pilbara region of any value is Havieron. Unless I am missing something.
Does anyone else supply ore to Telfer? The gold mined at Telfer is just about economical. Why would anyone buy it knowing they would have to pay closing down fees?
To get the best price Newmont will need something that can keep Telfer open, otherwise it is a big closing down fee. Telfer is running on vapours. I do not see any other mines that supply Telfer. Getting closer to opening Havieron or having it open maybe the best option for Newmont. Anyone coming in to buy Newmonts share of Havieron other than Wyloo is not something I see. GGP going it alone is not an option. Newmont will want someone big enough so the regulator is happy they have the financial clout to close Telfer down in the future. GGP financially are not at this point. Wyloo may have that financial clout. It means that the buyers for Havieron are limited. For a Wyloo they get 70% share of a Tier 2 mine for peanuts. I find it hard to believe the mine will not go ahead. Only a few meters from 8 million ounzes of gold.
According to Shaun he was really excited about EG. Bit of a damp squid if you ask me. Another contributor to this forum that is a lot more knowledgeable than me suggests that many of the potential sites will be small, million ounce etc. If we do find them. Similar in size to other sites in the region. Shaun rejects Tasmania as it is to small, looking for Tier 1 mines?
Tasmania sites were both gold mines. Both have great potential. Both sold for a pittance. We on the other hand have RIO tenements. Here were pay for exploration giving RIO 30%. Flinn pay for exploration but pay 1%. Not seeing a great wheeler dealer to be honest.