Member Info for zoros

Latest Hannam update: 26th May 2022:

SolGold (“SOLG”) has announced an updated Mineral Resource Estimate
(“MRE”) for the Tandayama-America (“TAM”) porphyry project at Cascabel in
Ecuador, just 3km from Alpala. M&I Resources total 528.5Mt @ 0.36% CuEq for
1.27Mt Cu, and 3.16Moz Au, with over double the contained copper compared to
Oct’21’s maiden MRE and significant quantities of open pittable material. The
results validate TAM’s potential to both bring forward production at Cascabel
and substantially derisk the cave development through supplementary feed to
the plant, with these options likely to be considered within the Alpala PFS
Addendum due later this year, and in the DFS due H2 CY23

cont'd

Afternoon Redirons - Solg is where it is because of this:
1. Alpala mine, Cascabel
On achieving nameplate capacity, average of approximately 190ktpa of copper, 680kozpa of gold and 1.3Mozpa of silver (>330ktpa CuEq8) over initial 5 years at an average negative AISC of US$(1.38)/lb . 2,663 Mt at 0.53% CuEq [1] in the Measured plus Indicated categories and contained metal content of 9.9 Mt Cu, 21.7 Moz Au and 92.2 Moz Ag
Twice the annual gold output forecast compared to GGP and at a negative AISC.
And gold is a by product for Solg!! Copper is what they are mining for.
2. Tandayama America (TAM) mine, Cascabel
Todays results have doubled this mines resources from its previous MRE, and it is an open pit - this will bring the Alpala mine production fwd by a few years.
And Solg have a further 73 tenements along the spine of South America in an unexplored region identical to Peru and Chile.
But not all that glistens, is gold unfortunately......still many hurdles to overcome, geopolitical/national corruption/permits etc. All of this is taking time....years and years.
This is why the SP is only in the 30's. But it will get there.
I have been invested for 9 years - and it seems forever.
GGP is by far the more exciting stock!
Z

Crikey, the SP is sorting the men out from the boys today.
Those who are twitching now - need to take a deep breath and consider one of two things: Bail out, cut your losses and invest in LLOY, or take up cycling or sketching and work hard at refraining from dwelling on the stock price ffs.
One of two things will happen here and BOTH will have been resolved in less than two years time:
The resource @ Hav will be bought out by a.n.other (almost certainly NCM), or
We will be in production.
Those are your operating parameters - suck it up, grow a pair and make a decision.....but stop coming up with moronic statements about blaming SD for the SP! Or complaining to the IRS/HMRC/FCA/LSE about shorting!
Take responsibility for your lifes decisions..................................

Z

Chris - are you in a rush? Do you nned the money urgently? Have you kept pace with the roadmap?
I don't understand that if you know what's happening and when it is happening, you are panicking?
What exactly is the problem......let's see if we can all help maybe?
Z

Mixed feelings here on the board regarding this RNS.
I think it says it all in that this 'open pit' option will speed up cascabel (Alpala) by years (possibly 2) and expidite M & A activities no end! TAM is the key to Alpala.
Solg got even more attractive...........overall: excellent news.
Z

My favourite part was when SD talked about discovering the eastern breccia resource.
So the GEO goes down to the site to switch the rig off and finds they are still in some interesting breccia and suggests they keep running for a while longer.....they agree and 200m later BINGO! Welcome to Hav II, The office must have gone beserk!
Reminiscent of Nemont all those years ago, drilling..........but not quite deep enough....

Musings:
I think NCM will be reporting 8 - 10Moz in August.
I think Byrnecut will start reporting >154m/m over the next few weeks. This should drag first ore back into Q4/23. possibly Q1/24.
I think SD is 'uncomfortable' about the undervalued SP and the present and real danger of a hostile takeover.
We shall see.

Nice one Liam - respect.
Z

cont'd......

Q: Telfer has done 20Moz over time. How much is that worth compared to GGP value.
A: Telfer has been there for 35yrs. Taken them this long to process 20Moz. Puts it in context. We like to think Hav has that similar opportune ity. It will take 3 to 5 yrs of drilling to unlock that value. Goes down 1350m at an angle and under cover takes a long time to explore. The decline will accelerate the cycle time for drilling and assays. Unlocking hav will be speeded up over the next 3 yrs.
Q: If you had a major coming is it worth fragmenting the assets to be able to sell the fragments rather than the whole?
A: We would like to build a multi billion dollar asset and mining house. Always open to an early offer at a value that would normally take us years to unlock, then of course we would consider this but it would also need to be approved by shareholders too. I have created value in my career. Hav is a much better platform for launching this from.
Q: The crown jewels are Hav. If NCM came with a big enough offer, would you sell it all?
A: Good question. If someone offers us NOW the value that we would normally unlock over the next 5 yrs…we would have to take that seriously. But with a tinge of sadness…we have something special here. If we can take a short cut…we have to think about it.
Q: It’s a cash cow if you keep it.
A: From a GGP pov, the decline is started plus $480bn spent so far, it seems reasonable to assume NCM understands the quality of Hav. They want to keep Telfer running. GGP can reinvest their earnings for the broader portfolio. We are fortunate to be aligned with NCM.
Q: Anything you think could derail GGP over the next few years?
A: We would have liked the PFS to be a 100 times bigger! None of us are going to die of boredom, Phil! Nothing is linear in progress.
Q: Do you think the SP is undervalued?
A: We continue to create value. Phil: Thanks for not answering!

Z

Maybe it's time to refresh our memories, even address some of the queries that have resurfaced yet again over these last few weeks......No harm done...
I have precised the podcast but you'll get a fuller picture if you sit back and listen:

https://audioboom.com/posts/8023506-midweek-takeaway-with-shaun-day-ceo-of-greatland-gold-aim-ggp

Feb 2022
Q: Recent broker story is 5% valuation option. Good way to value company?
SD answer: I have inherited the process so I will make best value of it. We would normally agree a value, alternatively we might go to a lengthy drawn out process. This a multi decade asset. It will take 3-5 yrs to continue drilling to assess this project.
Q: If you can’t reach agreement, you will use the VALMIN code?
A: Confirmed.
Q: If I use 20Moz x $1000/oz because of AISC, is that a close valuation for the 5% valuation?
A: It comes down to valuing at a relatively early stage of the development. 20Moz is not a JORC resource currently…too early. If it goes to VALMIN process there is a broad range of outcomes.
Q: Other opportunities other than Hav. Give us an overview of the rest?
A: Two parts: Tier 1 jurisdiction / multi decade asset/copper (20%) and gold / low risk area. Early days, low cost free cash flow generation. Secondly: Unlocking option value in portfolio. Elephant country. Up north….this is the post code for drilling. Scally / Juri…all of that is rich area. Finding even another quarter of a hav would be a tremendous outcome. Modern techniques allow us to peer thru the cover. Ernest Giles is under cover, under explored. Just agreeing access agreement, to be confirmed later this year. Panorama/Bromus…Au and Cu assets…drilling this year too.
We talk to other companies about where we can add value to their process. My team is developed now, strengthening the board in future. ‘A’ grade board is essential. Maximise potential of our portfolio.
Q: At some point in 2022, you are going to receive a lump sum. What you going to do with it?
A: Fully fund Hav. Pay off our $50m debt to NCM. Engaging with banks. A dozen want to engage with Hav. Bring in sum debt may be our pathway to fully funded. I intend to complete the debt process. Well funded too, to unlock other portfolio’s.

cont'd.......

No worries.
Z

Costa, having read your posts over the last few months, I tend to believe you know what you are talking about when it comes to markets and ongoing manouevres therein.
Could you tell me, in your honest opinion if you think the level of shorting which has been ongoing for months and months, is nothing other than 'normal' business activity and at a level which is insignificant (0.5%) or otherwise?

Secondly, I would be grateful for your views on the following:
"...AIM MM dont run aggressive books - they are not allowed to - they have a Risk Manager who sets their limits and reviews regularly (BARINGS etc) most of their trades will be automated trades from you and me thinking our £20k trade is a monster - its not of course. An AIM MM will be given say £50k either way as a limit and if they go over that they have to square the book off - this means get the exposure back into the limits - thats why prices move - a MM sells £100k of shares to Zoros and needs to cover that quickly - MM will charge you a spread premium for a trade that size and then will quickly whizz around the other MM and Dealers to cover inside the price.
MM dont make their money by risking their capital - they make it by buying at one price and selling at another - they want to make 1p on 100,000 shares in 3 minutes - not £12p a share over the next 18 months. They don't have the capital to do this.
Anyway - AIM stocks are way too illiquid for most professionals - the door closes to almost nothing once the market gets fast - thats why Directors are advised to dribble out regular share sales every month on share options etc. ..."
Graetful for your views.
Z

I agree with TT on this one. I invested in GGP primarily because I firmly believe it will fall under a M&A. There should/will be more meat on the bone down the road if GGP becomes a JV miner after the bulk underground mine goes into production but that is years ahead. And for me, time IS money.
I struggle to list many juniors who have survived a M&A. Of the 3000 juniors who have existed over the last several years, I can think of two. The main success story: Fortescue Metals with Twiggy Forrest @ the helm and of course we can never forget Northern Star who had Shaun Day as their CFO!
I am sure there are a couple or so more but there are only 50 majors.....QED!
This link by Crux is easy reading, though a long one. Very good homework for anyone who wants to understand the fabric of the junior miner business.

https://www.cruxinvestor.com/articles/beginners-guide-junior-mining-stocks

A couple of extracts related to M&A:

"...The goal of most junior miners is to be acquired by a larger company. It’s become increasingly common for major and mid-tier mining companies to dedicate their extra cash to acquiring junior miners, rather than exploring for new deposits. M&A is the best way for junior miners to survive. The costs of building and operating a mine are so high that only mid-tiers and majors can sustain them. Keep this in mind when evaluating junior mining companies. Good juniors will complete all the technical and logistical work required to get the mine into production, positioning themselves for acquisition. Look for juniors who are transparent about their data and financial status, and are open to working with partners...."

"...some investors choose to hang onto their junior mining shares for longer time periods. This strategy can pay off big if a junior miner’s discovery gets into production and they sell the project to a mid-tier or major...."

The good news here and now is that we are watching poetry in motion, where a major is running the show, spending millions, pressing all the buttons to get Hav to market.....and GGP is along for the (almost free) ride!
What's there not to like?
Z

Tx DBW,
I agree copperpot- what with up to 900 workers in Ecuador now, 93% of which are locals, it might unnerve the government and local communities if a bruising major took complete control.
So perhaps the best deal for all parties might just be a JV with solg selling a major chunk of their holdings and retaining a small portion of the mine but guaranteeing the workforce’s future. This might even be a government directive going fwd perhaps?
Z

A deep dive into what's going on in the background Coldcut - excellent, thank you for your research.
Z

Very many thanks for your efforts regarding enquiries with solg- appreciated.
Z

A fantastic find - many thanks.
This interview has shed more light on what’s going on than nearly all previous newscasts on solg.
ESSENTIAL reading necessary by all solgolders.
Z

Good. And not a single insult in sight.
Thank you hydrogen.
Z

Hydrogen im not going to stoop to your level .suffice to say your response says it all really.
You probably frothed at the mouth spending 10 minutes venting your frustration only to confirm you agree with me. The negotiation quite rightly as we both now agree is the 15th.
Nothing after that gets included. Ironically it is the reverse of what you said earlier this am.
Glad we sorted that out eventually.
This is why SD is grumpy with this clause too.
You say we're both on the same side........probably. But you need to calm down if you wish to retain some semblance of respect.
Try not to make it personal or rude, perhaps.
Abientot.
Z

100%
Z

Good post Texlas30

Where time does come into it is if the negotiations drag on past ncm's mre2 in august.
This will support ggps mre2 and can only be good for the arbitration panels assessment based on everything up to dec 15th 2021.
Where it might go pear shaped is if ncm manage to persude the arbiter to ignore ggps mre2 for some strange reason.
That is why we might need to get past the august ncm mre2 date.
As has been said countless times before the sums involved are pretty meagre bearing in mind the big picture.
Z

Hydrogen, not sure you understand the negotiation framework.
The 5% fmv is based on a period up to the 15th dec 2021.
They could find 20moz gold tomorrow and it wont be considered by the arbitration rep.
So NCM have their figure, ggp slipped in the mre2 (in time in my opinion) and now the assessor will due due dilligence over 'x' months and agree on one or the other valuation.
IMO i'm going for $65m from ncm and $95m from ggp.
NCM don' t care how long it takes frankly........it has no impact on the framework they are both working within.
Z