Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Paddy, those lines around Scallywag show the rocks have been very busy! If the gold was going to find its way to surface you'd think there was an easy pathway there.
There are 3 NS structures that cross the NE/SE trending Havieron Fault in what appears to be the area of the hinge zone where Kraken is located. It looks exciting from every angle: surface geochem, geophysics, regional geology, similarities to Telfer, etc.
I would be cautious about ranking this anywhere near Havieron at this stage. Havieron is a once-in-a-decade discovery.
There's no chance that management will let Scallywag go down the same path as Havieron. It will want to put down 20 holes - five into each of the four high priority targets. After that hopefully one is proved up as the main target. At that point we have to hope that the data is good enough to interest RIO so that Newcrest doesn't assume it is the only viable JV partner. And this time GGP needs to ensure cash payments as well as money spent on drilling. Management has to stop the continual need for CRs.
Plappers, ignore the holder and this wine bottle approximates what Havieron might look like. The top of the bottle is in the northwest - https://www.getinhours.com/products/details/resin-abstract-horse-head-sculpture-wine-bottle-support/1683.htm
You are asking good questions Jerry.
The fact that NCM has changed drill direction means that they have a better idea of the shape & orientation i.e. Havieron is vertical, plunging steeply to the SE so drilling SW/NE will give geos a better idea of true widths. ATM we don't know true widths although there seems to be a good sense of the footprint. True widths are important for the high grade zones.
The Havieron fault may be a control as it runs SE/NW.
If the plunge is very steep then calculations about true depth are immaterial but drilling across the cylinder will be a big help in seeing where this series of high grade zones are located and their actual size.
That's why NM want to drill 100 (?) holes in total over the next 9-12months.
Another question: "When did it become accepted wisdom that blockcave mining would be the method?"
I have talked to a mining engineer about Havieron. He thinks if the high grade zones are wide enough NCM could selectively mine those before coming back later to mine the low grade envelope.
We really are just speculating ATM in the absence of a whole lot more required info.
Yes, that's correct. The 2g/t au equivalent is a number that's been bandied about. I have no idea if that number has been calculated from results to-date or is the lowest number used by Sprott and so has become the de-facto base case.
In the metals space RIO's strategy is primarily copper whereas Newcrests is primarily gold. RIO is not interested in NCM for that reason. Winu is not yet big enough for RIO. It is 60-70km from Telfer. I'm not sure of Winu grades to know if trucking to Telfer is an option. If it became a stranded asset for RIO I assume NCM would be interested.
Thanks Paddy, I did say "lower" because FDN is pretty damn good!
Jerry, I think we are still speculating at to size but it appears 300m diameter cylinder 1000m deep is reasonable. I think it is possible stretching further NW based on the latest drilling news & images. The problem is extrapolating this 300m (or other) diameter footprint down plunge. It needs more drilling. I think we should be excited by then NW trend and Paddy's find about the Havieron fault which is also trending NW.
FDN has indicated reserves of 24mt @9.5g/t Au for 7.4moz. It has another inferred resourse of 12mt @5.5g/t for 2moz.
That is seriously high grade. another thing at FDN is that the discoverer, Keith Barron, believes there are more high grade deposits still to be found. That is partly why Newcrest invested. Lok at it's JV agreement with LUG about regional exploration. Newcrest is looking for elephants. Which is why I'm also invested in Cornerstone Capital in Canada. Junior partner to SOLG at Cascabel too.
Havieron is looking to be a lower grade, huge tonnage bulk mining operation. Our big hope now is for a significant extension to the NW as per Paddy's link and of course exploration luck that might turn up a series of significant high grade zones.
Big news coming from Newcrest at the end of Jan.
Other than Newcrest & RIO, name two companies you think could possibly entertain a bid for GGP? Company tied to a smelter or metals trader?
This whole "monetizing" theme that came out of the AGM has generated a lot of discussion.
Personally, I don't think Newcrest needs to bid & RIO couldn't be bothered for only a 25% stake. If GH approached Sandeep Biswas about an offer that's different.
one day, replace Cadia with Havieron!
https://twitter.com/NewcrestMining/status/1202415528922365953/photo/1
Whoa Looking! That very low OPEX comes from investing very high CAPEX up front hence my comment about deducting CAPEX as part of any valuation. Of course the beancounters have their spreadsheets so just press a few buttons and a valuation spits out!
What's the agreement re toll treatment? I don't see why Newcrest has to pay full price because it owns Telfer. It's mutually beneficial so I'd expect an in-ground valuation of $100-200/oz Au discounted for CAPEX. Who knows how much that would be.
BTB there is no 3rd party!
TomE I didn't say it would happen but a 60% premium is no joke!
Just wait for 1st hakf 2021 to get taken out at fair value. The beancounters will be happy to pay up because they will have their set of pretty numbers!
Big hitters e.g. RIO won't want to play 2nd fiddle to Newcrest which could offer 3p now and the party would be over. But it won't. Beancounters control the meta-narrative and will wait for hard numbers. No point risking your career!
Block cave mining techniques
https://www.srk.com/sites/default/files/images-20181122/North_America/Newsletters/56-Caving/caving-56-letter.pdf
Jerry, I have many ex-clients (I'm retired) who would dispute your assessment! :-) But thank you!
I can see GH & CB watching the temperatures at Telfer in late March ready to pull the trigger on drilling at Scallywag as soon as is reasonable from an OH&S point of view.
More images from Paddy, a NCM qrtly at the end of Jan , a ramp up in the no. of rigs at H, Sandeep Biswas cracking the whip, it's all happening as Bill Lawry was fond of saying. (If you were into cricket a decade ago.)
BTW Paddy, you might have to take out a loan and bring forward all of your planned purchases over the next 5 years.
If only I could convince my wife to sell the house!