Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Five weeks! That's all the time there is. 23 trading days to the Newcrest qrtly.
What am I hoping for?
Several 200m+ intercepts of ~2.5g/t Au equiv.; clear & obvious continuity; and Newcrest increasing the rig count to 10!
That's not too much to ask is it?
similar JV to GGP but with cash payments. US$100m cf $65 for GGP.
Amazingly, mkt cap is only one third GGP! One is very cheap or the other is very expensive!
https://ceo.ca/@nasdaq/gfg-signs-option-and-earn-in-agreement-with-newcrest
Hi TGF,
Carrapateena is a great comparison for Havieron.
It is shaped like a near vertical pipe and sits under approximately 500 metres of unmineralised rock cover. Sound familiar?
Carrapateena will be mined at a rate of 4.25mtpa at a head grade of 2.3% Cu equiv (which is equivalent to 2.9g/t Au) using a process called sub-level caving. Using this method, the deposit is blasted in 25 metre sections and then collected by loaders. From there it will be crushed and loaded onto a conveyer belt that transports the ore up the decline to the surface.
Here is a file with all of the costs. NB. CAPEX is ~$900 but includes, plant, airstrip, camp which I assume are all at Telfer and covered under OPEX in toll treatment charge. See Table 9.3 on P.105.
https://www.asx.com.au/asxpdf/20170824/pdf/43lp2ntchsqq70.pdf
OPEX forecast is in Table 9.4 on P.109. Converting to g/t Au = 0.7g/t.
Pretty remarkable coincidence!
Hey strudel, if I may be so bold, I'd say it's another important piece of the Havieron jigsaw.
What we've got is a statement from Sandeep Biswas saying the high grade zones are ~2.5g/t Au equiv or higher, so look out for assay results end of next month.
We have had GH point us to Telfer OPEX as a guide as to what to expect at Havieron for mining and processing costs i.e. ~0.7g/t Au.
What about CAPEX & transport incl. road maintenance? Based on PG's $500m CAPEX & commentary here on transport costs I can't see it being more than $15/t i.e. 0.3g/t.
So it's looking like all-up costs of about 1g/t.
People have been asking about what size to expect e.g. minimum 3moz (based on Newcrest's Tier 1 mantra) or speculating wildly about 20moz.
What would Newcrest be happy with? Telfer 2020 guidance is for 400-460koz of production so I guess it would be happy with say half a million ounces per year.
Assuming 10 year mine life, 90% recoveries, average grade of 1.75g/t then we are looking for an orebody of about 100mt.
Gross operating margin of 0.75g/t i.e. USD35/t, 10mtpa gives $350m and GGP gets 25% i.e. ~£55m pa after tax.
All are ballpark figures but you get the idea that a 10 bagger is a possibiliy!
Those haul trucks are impressive. Nothing like the CAT trucks I see at mine sites. Obviously each type of truck has a particular function.
I am greatly relieved and appreciate your input and the video from Lesotch24. There is a rumour that the transport cost was estimated at ~USD1 per tonne per kilometre which equates to 1g/t of gold! It appears it will be nowhere near that.
I know a road needs to be build to cater for these monster trucks and the trucks themselves must cost a fortune but in the context of transporting 5 or 10mtpa of ore it is all a manageable cost.
https://www.asx.com.au/asxpdf/20191220/pdf/44crt21g68stps.pdf
Not nearly as good as Havieron but SP up 10%.
Thanks trucky, that is awesome!
5l per mile is 8l /km so above my calc below of 6l/km. But in the ballpark.
Fuel cost is a big factor. Add in maintenance. What do you think? Roughly similar to fuel cost for tyres etc etc?
Newcrest has to bild a raod too.
Nighthawk Gold - NHK on TSE. What do you think?
https://www.youtube.com/watch?time_continue=2&v=zywfK2L4Jjs&feature=emb_logo
Trucky, is 6 litres of diesel per kilometre reasonable for one of the CAT785D carrying 140t payload?
It sounds like you should be able to give us an accurate figure since you drive something similar.
90km round trip = 540l
what's diesel cost out there? $2/l?
That's $1080 per trip just for fuel.
Anyway we are all interested in your actual numbers if it is not a trade secret. :-)
Hey CB, seems you are one of the resident experts. Can a Cat truck like these do the 90 km round trip or are they for short haul trips? https://www.cat.com/en_AU/products/new/equipment/off-highway-trucks/mining-trucks/18089285.html
I did some research and it seems like diesel fuel costs would be ~$A1000 per round trip for a ~140t payload but it this too heavy for a haul road to Telfer?
Here's a 13 year old CAT with a payload rating of ~60t selling for $3m! https://www.machinerytrader.com.au/listings/construction-equipment/for-sale/30098591/2007-cat-785c
It's going to cost a fortune to truck ore to Telfer. I just don't know how much.
Hi kieffy,
One of my plays has shut down rigs because of a total fire ban in SA. At least that isn't a problem in the Paterson but what about the wet season?
Some resuts for holes drilled into the NW quadrant would be handy looking for HGZs between 400-600m.
whoops, too many thoughts leads to poor execution
My mistake - my industry colleague thought $40/t to get ore to Telfer i.e. $1t/km. Broker looking at NQ development nominated a figure of $60-70/t depending on govt. contribution to road maintenance etc.
MFU - I am not a resident expert, just an amateur punter hoping to find information that helps me make my decisions.
Your question is a very good one. The issue of ounces at Havieron comes up all of the time. But total oz should not the question but grade. You can have 3 or 20moz but if it is low grade than that resource will never be converted to reserves unless the gold price moves higher.
The problem for Havieron is the 45km to Telfer. What do you think the transport cost is going to be? Lots of things go into calculating that including but not limited to: cost of building and maintaining the road (what sort of road?), cost of buying and maintenance of trucks, cost of operating those trucks - wages, fuel etc.
I had a guess at $A40t/km from a colleague in the industry. Maybe it's higher. Another estimate , this time from a respected broker, for another project in Queensland, has a number of $60-70t/km. That is a serious number because that is the equivalent of 1g of gold. Is it true? We may have to wait for a PFS or Scoping Study to find out unless others here have done some work on it. But it's a crucial part of the puzzle.
So what is 3moz worth? A. It depends! What's the grade, how deep is it, what's the CAPEX? etc., etc.
The rampers will tell you look at Cadia, look at OPEX there, without mentioning CAPEX.
PG has pointed to Oz Minerals development of Carapeteena. Have a look there as part of your DD.
All the best,
T