Member Info for Redtrader

What do Wyloo actually get. We have 30% of Havieron, Newmount 70%. Wyloo have 20% of us. Not sure I understand the Wyloo angle. They therefore get 20% of 30%?

True, One asuumption is that Flinn will find a decent amount of gold. Looking at the samples, the area, the history I think they have a very good chance of finding gold.

Tasmania Flinn are starting to see what they have. It has a very high probability of gold. Shaun, dismissed this as being 2 small. It is shallow, allmost at the surface. Being shallow it can be explored quickly and cheaply. A MRE with 100kozs is $200 milliion AUS. With a MRE we could sell It for many millions to Flinn or an other local miner. This could pay for all the digging at Havieron. This is a bad decsion for us. For Flinn it is good business, Lets see what happens.

We have an agreement we Newcrest, which I see no reason Newmount would no honour. This agreement is to dig the decline. Does anyone know when this current phase completes?

If Newmount divest. Then why would someone buy Telfer to process our gold.

Rehabilitation is the name for returning a mine back to nature. Telfer for us is 2 parts. The mine which is near the end of its life. The mill which we will need. If Newmount are thinking of divesting then they will have to pay a rehabilitation cost. It is obvious a deal between GGP and Newmount can benefit both. Newmount save the rehabilitation costs, We get the mill and hopefully a larger percentage, if not all of Havieron. Interesting times. I would like to know how Newcrest and Newmount calculate if a mine is worth owning or not. I guess their overheads are so much greater they need a larger return on investment. Something just as simple as that. If that is so Shaun knew this a couple of years back.

The best deal would be a percentage, They get 20% of Havierons profits. We have to decomission Telfer.

Redirons They have different metrics and logic. For Newmount, Newcrest I think they see it as to small. These guys have very big costs and expect a bigger return. They now have 2 mines, A small new mine with high grades, A older depleting mine that needs closing down, All that effort and work for very little return for them. Selling it on makes sense in their world. All that matters for us is that Haveiron is mined,

Once we reach the ore body there will be no going back. Several million ounces of gold all of it capable of being removed by a truck. A 100K ounces is a $180 million a year in USD dollars. It may be chicken feed for Newcrest or Newmount but no one will leave it in the ground. 300K is serious money. I find it hard it will to believe it will not be mined. The closer to the ore body the better a deal GGP can do with the banks to raise money. If they are extracting gold when Newmount give up they will have a cash generating asset they can use to raise money. Shaun has to keep Newmount in the game until the first trucks are extracting gold.

RIO have left, Newcrest and Newmount want to get rid of it. No first division miner will want it. All that comes to mind is Wyloo. If Newmount are looking to divest then they will be starting doing the sums now. Is completing project worth it. I hope so. Reaching this ore body is vital. Once you can drive the gold out with a truck it will go ahead what ever happens,

@Bamps. They have gone then. At the time excitement about drilling in different spots then it all went quiet. I will not get my hopes up.

Anything below Havieron is far to deep. Wasting time and money looking for gold that deep, IMHO.

Decka is interesting as it is shallow. If the rigs still at Decka this says a lot. Moved means, maybe have found some gold but not a lot.

Newcrest do not want us. Newmount do not want us. Why would RIO want us? Havieron is not big enough for these guys. Unless we find something exceptional in the Patterson region Wyloo are the miners we are dealing with. Havieron is once in a generation find. We could be waiting another 30 years for the next Havieron. What can Shaun do now?

It is obvious that Havieron is not the type of mine that Newcrest or Newmount want. Havieron is not meeting their criteria on size, return on investment etc. Not sure if Shaun said how far along the decline we are. The closer to touching the ore body the better for us. For Wyloo it could be a good opportunity. The cost to dig the decline is $400 million AUD. Wyloo get a deep mine already built and ready to go. I do feel Wyloo may scale back on the amount or gold they extract. Just go for simple truck extraction. Suspect they will go with a method that is cash generative asap . Newmount still have the issue of getting rid of Telfer. I am guessing that the local authority will want to keep the airport at Telfer running. Even if it is in a reduced capacity. I find it hard to believe that Wyloo would walk away from an ore body with even a few million ounces of gold. All ready to dig.

What reserves would Newcrest expect for a tier 1 mine. Would they expect that amount upfront?

Sorry James.

Just out of curiosity did I say anything was being withheld?

Never said it was in it. I do know lots of agreements, bond contracts have clauses that mean parties can walk away under certain conditions. Parties can get more share in sp falls etc. As it is obvious you do not know if these exist. I do not know if these exist either. You can check the contract out for us. While you do that it seems that Wyloo are happy so it is all good.

What part is fud? I also see it as good news, not bad news. Means Wyloo are still on board and positive about Havieron. I feel they know more about mining than most, if not all, on here.