Member Info for TimberTrader

2020 in review: A mining bull market or just a recovery, with the best yet to come?
Proactive - 10th December 2020

2020 has been a year that most of us would like to forget, the global COVID-19 pandemic and associated enforced lock-downs created turmoil in global markets with the retail, tourism and hospitality sectors hardest hit.

Against the negative backdrop, the performance of the mining sector has been much hyped, with some commentators claiming 2020 has been a bull-market year for mining companies pointing to a slew of fundraises that demonstrate investors are returning to the sector....

...The bull market for mining companies hasn’t occurred in 2020, it is coming in 2021 and beyond and a range of companies are likely to benefit.

Large high-grade copper discoveries that are being advanced up the value chain are few and far between. SolGold plc (LON:SOLG)’s Cascabel Copper-Gold Deposit, located in Ecuador, and Sandfire Resources NL (ASX:SFR)’s Kalahari Copper Belt Project, located in Botswana, are two such projects well positioned to see substantial value uplift.

While recent gold discoveries such as Greatland Gold PLC's (LON:GGP) Havieron Project, located in Australia, IronRidge Resources' (LON:IRR) Zaranou Gold Project, located in Côte d'Ivoire, and more advanced projects such as AEX Gold Inc's (LON:AEX) (CVE:AEX) Nulunaq Gold Project, located in Greenland, could attract further interest from larger companies that need bolster their low reserve bases.

https://www.proactiveinvestors.co.uk/companies/news/936229/2020-in-review-a-mining-bull-market-or-just-a-recovery-with-the-best-yet-to-come-936229.html

@ cashandcard

An excellent, accurate & succinct post on the valuation, Havieron, Telfer & Scallywag.

One of the best today!

Thanks! TT

As Biswas stated earlier this year about the HIGH grade gold in PARTS of Havieron (ie. mainly/all the Sulphide zone), and very relevant:

“So this mineralisation is quite different in many ways to what we are seeing in Telfer”

“For a start its much higher grade, I mean, we haven't seen these sort of grades at this sort of volume in the Paterson”

"Which will involve high grade stoping, which we will truck to Telfer. So this is, you know, 10 times the grade of what we're currently treating at Telfer."

"It will come with much higher margins and lower costs, so there's a real fundamental economic equation there, which, I think, when we do the PFS and confirm it all will look pretty good," he said.

"The first stage, ideally, would be a high-grade selective stoping operation and, it's hard to say, I hope it's 1 million tonnes.

"If you think of 1-2 million tonnes at the grades we're seeing, that's quite a bit of ounces in a small amount of material.

"We're excited about it for a reason."

TT

Newcrest's Telfer (A$2513/oz)

Posted 4th December:
Figures are in AUD

Latest figures for the calculations:

QUOTE

THE average all-in sustaining cost for gold mines in Australia and New Zealand rose in the September quarter, according to Aurum Analytics and PCF Capital Group.

AISC for the quarter averaged A$1422 an ounce, up 3.2% or $45/oz quarter-on-quarter.

The average spot gold price for the quarter rose from $2604/oz to $2669/oz.

The lowest cost producer for the quarter was Evolution Mining's 30%-owned Ernest Henry operation in Queensland, which reported AISC of -$515/oz due to copper by-product credits.

Newcrest Mining's Cadia mine in New South Wales, which also produces copper, reported AISC of $158/oz.

On a co-product basis, Aurum estimates Ernest Henry's AISC as $875/oz and Cadia's as $921/oz.

Kirkland Lake Gold's Fosterville mine in Victoria was third with AISC of $488/oz, but was the lowest cost gold-only producer.

Saracen Mineral Holdings' Thunderbox open pit and underground operation was fifth and the lowest cost producer in Western Australia with AISC of $790/oz, while Evolution's Cowal mine in NSW had the lowest costs for an open pit-only operation at $1026/oz.

There were eight gold mines that reported AISC of over $2000/oz, six of which were in WA.

They were St Barbara's Gwalia ($2592/oz), Newcrest's Telfer ($2513/oz), Superior Gold's Plutonic ($2261/oz), Red 5's Darlot ($2126/oz), Northern Star Resources' Kalgoorlie ($2116/oz) and Wiluna Mining Corporation's Wiluna ($2012/oz)....

UNQUOTE

https://www.miningnews.net/research/news/1400575/gold-aisc-rise-in-q3

Hannam
Started: jon1966, 10 Dec 2020 08:37

That pint is yours if you're at next years AGM, and I make it too! TT

"EXCELLENT" used in the Proactive interview too!

Impecunious2 got it! TT

From Hannam & Partners:

Outside of the current resource shell, mineralisation still remains open in
multiple directions with four target regions identified: (1) Breccia Zone and
South East Crescent, (2) Northern Breccia, (3) North West Breccia and (4) the
Eastern Breccia. With a significant part of the mineralisation footprint still not
covered by the maiden resource, we still see significant potential for the
resource to grow upon completion of further planned drilling. The 2021 drill
campaign at Havieron will focus on both infill and step out drilling and thus the
resource is highly likely to grow significantly in our view.

Proactive Interview with Gervaise Heddle - 10th December 2020

https://www.youtube.com/watch?v=qGRgNNtygsU

Gervaise Heddle, Greatland’s chief executive, praised Newcrest’s progress at the deposit.

“To have achieved this within two years of signing the Farm-in is a testament to the expertise of Newcrest and their commitment to fast track the potential development of Havieron.

"The Initial Resource of 4.2Moz gold equivalent provides us with a strong platform for future growth through exploration while providing a clear focus point for ongoing studies and potential mine development.

“Importantly, the Initial Resource estimate is centred on just the South East Crescent and adjacent Breccia, and a portion of the Northern Breccia, suggesting that there is significant potential to increase the Inferred Resource over time.”

https://www.proactiveinvestors.co.uk/companies/news/936177/greatland-gold-announces-42mln-oz-maiden-resource-for-havieron-prospect-936177.html

@ Saxondale Indeed! Not a bad start at all.

Just taking the Newcrest Cadia mine PURELY as one example, and not saying anything is necessarily related, but the initial MRE at Cadia was 4.2Moz, but today is 38Moz!

Nevertheless, Havieron has been described as probably a once in a generation resource, maybe two generations. What does that tell me, anyway. TT

"We are very pleased by the latest set of EXCELLENT drilling results at Havieron , which further demonstrate the potential to expand the footprint of mineralisation at Havieron. We look forward to the growth drilling programme in 2021 and working to establish a full picture of Havieron's potential right across the four exploration target areas."

Nope!

Clearly it is INITIAL, restricted purely to the South East Crescent and Breccia Zones, and only a portion of the Northern Breccia Zones. These alone are still BOTH OPEN at DEPTH, and to the north-west in the case of the Northern Breccia Zones.

The MRE doesn't even touch on the North West Crescent and Eastern Breccia Zones, all OPEN and at DEPTH.

We're still only just scratching the surface! TT

Gold miner Newcrest Mining has reported an initial inferred mineral resource of 52-million tonnes, grading 2 g/t gold and 0.31% copper fat its Havieron project, in Western Australia.

The project is estimated to contain some 3.4-million ounces of gold and 160 000 t of copper....

https://www.miningweekly.com/article/newcrest-reports-mineral-resource-at-havieron-2020-12-10/rep_id:3650

https://stockhead.com.au/resources/thor-identifies-magnetic-targets-at-ragged-range/

@ JamesGGP Nice one! TEA! My favorite beer, which happens to be from my local brewery, Hogs Back! TT

Nice to be on the winning team, but, quite frankly, so surprise here! TT

Some great new one's here, but I feel my pint is still safe for those to be likely from the CEO! TT