Marginal ounces at Havieron

[Hydrogen]

When gold hits $2200 the magical marginal ounces in play at Havieron will be eye popping... imo

That I think, is what the FUDers realise… and therefore they have been trying to get you to “let go” over the past 6 months.

Check out the absolutely massive Yield Curve inversion soon to be the biggest inversion since 1981 ...

https://twitter.com/LynAldenContact/sta ... 7723433984

Inversion happens when people start buying long-term bonds (10yr), rather than short-term(2yr)

Surge in demand for longer term bonds over short signals major risk aversion. It says that investors are worried about economic recession and want to lock-in long term US bond yields.

The bond market is basically saying it believes the FED and the US administration are making a major Policy Error - tightening into a slowdown.

The collapse in commodity prices oil in particular, also confirms this scenario. I suspect a $50-60 floor for oil which would broadly be the inflation adjusted equivalent to oil in $30s pre pandemic…

We know the paper gold price is being suppressed. All we have to do is look at the ongoing JPM “gold racketeering” trial in Chicago.

This could be being done with the unofficial approval of US FED / Government, because it makes the dollar look better, which in turn, suppresses 'market fears' because fund mangers globally use the gold price as the 'barometer of fear'.... Thus they want to try to prevent a dollar collapse.

We all know that we couldn't walk away from Covid, with a giant stock market bubble... The covid recovery so far was terribly "K" shaped ... ie the rich much richer the poor much poorer. That's about to change.

Lynn goes on... "The Fed wants to raise rates more to quell inflation, but the market is starting to say that they're tightening into a likely recession. The combination of high inflation and high debt leaves little room for central banks to navigate policy".

And this IMO should in principle leads to a much higher gold price structurally. But Given the obvious US dollar strength, it's incredible that gold price has performed so well... maintaining a $1680 floor... This is most probably because there is major physical gold accumulation by Central Banks globally.

And we all know why they would be doing that don't we... ?

A fundamental revaluation of gold helps the Central Banks debt to asset ratios - ie their balance sheets .

That's why the huge volume of "Marginal Ounces" at Havieron are so very very important… I don’t know how many Marginal ounces there would be but it could easily potentially be 5-8moz (as an rough estimate). It basically brings into play all the low sub economic grade in relatively easy reach of the existing mine infrastructure. This is where the small (area) footprint of Havieron is so valuable… and why Shaun talks to the perfect shape of the Havieron ore body ….

So what could go wrong? Well the gold price could go down. If Powel does a Paul Volker and crushed everything…

[Rotherby]

Your comments are well made, I would like to see Bamps appraisal of the situation @2200 and @2500 gold does look like it is awaking after its rest.

[speedymeadie]

Hi All. By the time Hav is being mined at full capacity i fully expect the POG to be well over the $2500/oz mark. I see the POG at $5000/oz before the decade is out. I say this due to 2 reasons (1) inflation is not going away unless the fed raise rates to the teens and that is not going to happen. (2) The paper gold price manipulation is now common knowledge and will have to stop. A class action from the gold producers should see that happening. Reason (1) is non profit making and marginal ozs will be more expensive to extract, but reason (2) will see a surge in real value and those holding physical gold and gold mining stock will benefit by a large margin. ATB Speedy

[JerryS]

Volcker may have crushed everything but I prefer to believe that the squeeze that the Bunker Hunts put on the gold and silver markets in 79/80 was ended when the US govt/cftc changed the rules on them and bankrupted them forcing mass liquidation.

[Bamps21]

I just want to clarify what the 20m ounces is referring to.
This isn’t the amount of mineable minerals, it’s the amount of minerals in the ore body including the weak alteration.
Hydros post is a great piece about weak ore coming into play as the gold price rises.

I refer you to Telfer , where 4 or 5 years ago the mine was due to close in 2023. Weak uneconomic ore was known to exist and the price of gold used for the calculations was an average $1250.
The rise of gold to $1850 has brought that weak ore into economic viability.

At Havieron the calculations were based on a price of $1500 and is fine for the high grade gold as it’s economical value is much higher. This 20m figure is now being talked about because the weaker ore is now becoming an economical commodity but it’s still uncertain of the potential value until it’s brought into the reserves.

My calculations were based on 2 sized ovoids on top of one another, their 20m doesn’t include the gap zone whereas mine does and I’m at a range of 23-28moz.

My calcs were before recent increases in the ovoid sizes and I haven’t reassessed these sizes yet.
Hydro’s point is as the gold price rises further it brings more weaker ore into play increasing the 20m further maybe to my 28m .
This is still likely to grow, my calcs are down to 1300m of ore but when I’ve calculated down to 1900m (maybe the deepest we can get to) the figures go over 40m and that hasn’t taken into account of the Eastern Breccia grades average being higher than the main ovoid or the fact Ggp seem to have used an average of around 0.6g/t to my 0.75g/t before the high grade in the northern corridor and great grades in the Deeps.

This is just getting bigger and better