Member Info for sandgrounded

Please give us some news on drilling, so we have something new to talk about.

Thanks Bamps.I just thought that with the probes they put in the holes, they could measure ( roughly) where the gold is and goes to and so drill at the correct widths and use those assays to go straight to an indicated figure.
I know it’s not as easy as that, but these probes do seem to have indicated the gold goes much deeper than we have drilled so far, so I just assumed they could use it to target horizontally as well as vertically.
I have a lot to learn, but thank you.

Zoros, why wouldn’t Newcrest/ GGP include a new inferred area targeted at the growth drilling outside the initial MRE, when they have the data available. Yes increase the resource to indicated in the initial MRE, I understand that, but why leave everything else to a later date, when they could calculate an inferred figure for the growth areas?

I also have a question for Bamps, if he doesn’t mind.

When we have a resource like Havieron where every drill seems to encounter gold, why do they still space the drills at a certain distance, where they have to come back and do infill drilling to get the resource from inferred to indicated?
I understand they have to be a certain spacing, for indicated, but with the sophisticated devices they have now for detecting the gold, wouldn’t they save a lot of time and extra drilling if they just spaced them out at the correct distances rathe than drilling twice?
I think with some other prospects, it would be prudent to do exploratory drills, but Havieron seems very different with gold apparently everywhere.

Thanks in anticipation of a reply.

Where did th@t come from lol!

Maxwell, you have a similar M.O. to Spy.

I wonder if we may get some unexpected news tomorrow?

Maybe buying a mine using shares at a vwsp of 16/17 pence?

Thanks Star Bright.

A dispute once arose between the wind and the sun, which was the stronger of the two, and they agreed to put the point upon this issue, that whichever soonest made a traveler take off his cloak should be accounted the more powerful.

The Wind began, and blew with all his might and main a blast, cold and fierce as a Thracian storm; but the stronger he blew the closer the traveler wrapped his cloak around him, and the tighter he grasped it with his hands.

Then broke out the Sun. With his welcome beams he dispersed the vapor and the cold; the traveler felt the genial warmth, and as the Sun shone brighter and brighter, he sat down, overcome with the heat, and cast his cloak on the ground.

Thus the Sun was declared the conqueror, and it has ever been deemed that persuasion is better than force; and that the sunshine of a kind and gentle manner will sooner lay open a poor man's heart than all the threatening and force of blustering authority.

We have discussed the Lassonde curve on here many times, which shows that the most productive time for a companies sp is when they reach the mining stages. Without looking at their history, Pretium should have reached that stage as they are a producing mine, unlike Havieron which is near to the bottom of the first curve on the Lassonde chart.

The fact that Newcrest paid a 25% increase on top of Pretium’s sp, speaks loudly that Havieron’s sp will increase in time, especially if someone is prepared to buy us out at a later date.

People need to hold their nerve, and stay the distance, to see the full rewards of their investment.

Good luck allholders.

I believe the US inflation figures are due tomorrow. Let’s see if they have an effect on the gold price.

SAS a much more thorough and better explanation than mine below……

“ The process of price discovery looks at a number of tangible and intangible factors, including supply and demand , investor risk attitudes, and the overall economic and geopolitical environment. Simply put, it is where a buyer and a seller agree on a price and a transaction occurs.”

Thanks Prof Q.

All anyone can do is make an educated guess at the value of GGP, so appreciate your figures.. Circumstances and more detailed drilling data will change things as we progress, but as you say, we the shareholders, believe we are currently undervalued, by some way.

Good luck.

Prof Q, have you accounted for the silver as an AU equival3nt or is the annual figure just gold production?

Not sure if I have got this right but I make the gold equivalent for silver as approx 270,000 ounces.

Let’s round it up to 3.5 Million ounces of gold (3.1 m ounces of gold and 400,000 of gold equivalent).

They are paying C$3.5 billion, which when converted to US dollars, makes it US $800 an ounce.

Would someone please check my figures please.

Thanks SAS.

The total equity value pursuant to the Transaction is approximately C$3.5 billion on a fully diluted basis. Newcrest currently owns approximately 4.8% of Pretivm’s shares. If consummated, the Transaction would result in Pretivm shareholders owning approximately 8% of Newcrest, on a fully diluted basis.

0.8 C$ to the US$ which makes the deal worth 2.8 billion US dollars.

Does anyone know what amount of gold this company has? We could work out how much an ounce, Newcrest have paid, to give us a guide about Havieron.

Before last years AGM, there was a lot of discussion about resolution 5, ( I think), which would have allowed the company to allocate shares above the normal limit, without needing to consult the shareholders for permission. This caused some anxiety and it was dropped before the vote took place. Some discussions took place on this bulletin board as to the reason for resolution 5, one of which was a suggestion that Newcrest could take a 10% share in the company. If it had taken place, I believe that GGP, would have had the money needed to pay their 30% share of costs. As a result of the vote being cancelled, another way had to be found to raise GGP’s share of the costs and the Juri j/v was announced.

A few months later resolution 5 was passed, but has never been used.

I am now wondering if Newcrest may be approached to take a 10% stake in GGP, to act as a white Knight in the event of a hostile takeover.

Fanciful perhaps, but who knows?

Matty, my understanding of the answers to your questions may be challenged by people with more knowledge on these matters, but here goes.

1.) I thought the PFS was very explicitly based on 14mt and very explicitly excluded 37-ish mt, rather than 'covering' 53mt

The initial inferred MRE did indeed cover the 53 mt, and the drilling for that area was completed in February of this year. However to use any resource in the Pre Feasability study, it needed to be upgraded to the next level ( indicated). Only part of the 53 mt was upgraded to indicated before the PFS was written which amounted to 14 mt. This is why Shaun has said that the PFS only covers a fraction of a fraction of Havieron. The 14 mt being a fraction of the 53 mt, which in turn will be shown to be only a fraction of the total resource at Havieron.

2.) For MRE2 - I don't really understand the upgrade/update definition - is this inferred to indicated that is being suggested? I did though think that the inclusion of growth drilling would mean inclusion of some volume outside that included in the original MRE?

Since the initial MRE was completed in February, lots more drilling has been completed in other areas of Havieron as well as going deeper than the area covered in the 53 mt. I would imagine that this additional drilling will be used to expand the inferred resource figure for many more parts of Havieron. Again however, don’t expect it to cover all of the resource at this time.

Much of the new drilling will need to be upgraded to indicated for the definitive Feasability study (due next year), so further upgrades in total volume and total indicated resources will follow.
For now, I believe the upgrade in the MRE in q1 will just be an inferred upgrade of those new area that have been drilled.

Omission of a word apologies….

Maybe this is why SD brought in the team of exploration experts to make sure the calculations were NOT conducted on one side only. We have already seen a difference of opinion on the calculations for the initial PFS.

Tall chap, you raise an interesting point. The original j/v terms outlined the tenements that were covered in the agreement so I would say they get 70% of everything covered within that area..

The fact that some areas may not have been drilled yet and could in theory contain another ‘HAV”, is a problem that anyone selling or giving up an area will have. Newcrest being a prime example with Havieron.

I can see why SD would not like the wording of the agreement if you apply the above or indeed what you say about what they value the 5% on. I can only surmise that areas that have already been discovered must be included in any negotiations as they have drill results for them and so a resource could be calculated even if only to inferred level. However I am only guessing.

Maybe this is why SD brought in the team of exploration experts to make sure the calculations were conducted on one side only. We have already seen a difference of opinion on the calculations for the initial PFS.