Notes from GGPHelp Interview with Shaun Day Q4 2022 Update - 25 Jan 2023

[DipSard]

Notes from GGPHelp Interview with Shaun Day Q4 2022 Update - 25 Jan 2023

Interview:
https://youtu.be/vjuurXQdPC0

RNS:
https://greatlandgold.com/wp-content/up ... Update.pdf

Created from a software transcript export

00:00:00:08 - 00:00:25:18
Voiceover
Information investor views and comments in this webcast are for general information purposes only. This podcast should not be used as a basis to pass those shares. The opinions and comments expressed are the intimate, the belief that the information is correct is on publication is subject to change as new information arises. The webcast will not accept responsibility for decisions made with the information contained within those shall or in great and gold.

00:00:28:24 - 00:00:43:05
Liam
Hello and welcome to this GGPHelps The Board Interviews, my names Liam and today I’m pleased to be please presenting another quarterly catch up for you for Q4 2022. And joining me from Greatland board is Shaun Day managing director. Welcome back to the show Shaun.

00:00:43:24 - 00:00:46:01
Shaun
Hi Liam, thanks very much and good to catch up again.

00:00:47:02 - 00:01:03:15
Liam
Today's a little different because for the first time we're trialling this with a live audience who will be submitting questions during the show. Hopefully this will work out as planned, be a raving success and we can open up to a wider audience throughout the year. As always, I like to leave with an icebreaker or two and todays in two parts.

00:01:03:15 - 00:01:21:19
Liam
The first is really easy. It probably won't make it to air, but to earn me a brownie point and the opportunity to win a bet, the second might need a moment to think about. So, thanks to a very quiet day over the festive break and a bunch of random shareholders with very little going on. I've been challenged to see if I can get you to say the word splendid.

00:01:22:04 - 00:01:25:10
Liam
So, Shaun, can you?!

00:01:25:10 - 00:01:36:00
Shaun
I think splendid is in my repertoire. So, I think you will come across that. I think I. I think it forms the odd tweet with me. So yeah, that's fantastic.

00:01:36:07 - 00:01:55:01
Liam
Strudel. You owe me a box of Freddo’s, so I would donate those to the feedback. Thank you. Moving swiftly on as through this icebreaker to the audience before we went on air and they voted for me to lead with… So, Shaun, how soon did Sherry mention the word ‘hoist’ during the most recent barbecue?

00:01:55:01 - 00:02:19:27
Shaun
Sherry has, as you know, been appointed the CEO of Newcrest. I have some existing relationship with her and indeed do intend to continue to kind of meet and catch up. So yeah, we really appreciate that. We have that relationship with Newcrest and continuing that relationship that we formed with Sandeep at the managing director level.

00:02:20:21 - 00:02:44:02
Liam
Thank you. Okay. So, for those who do not know and catch in the quarterly catch up for the first time, Greatland Gold is a leading mining development and exploration company focused on precious and base metals. The company's flagship asset is the world class Havieron gold copper deposit in the Paterson region of Western Australia, discovered by Greatland presently under development in joint venture with Newcrest Mining.

00:02:44:02 - 00:02:57:09
Liam
There's a bit less for us to get through for the Q4 catch up with the festive season and us being a little out of sync with the quarters. But since we last spoke, Shaun, we've sold our Tasmanian assets to Flynn Gold Ltd. Could you elaborate on this deal for us please?

00:02:58:16 - 00:03:23:11
Shaun
Yeah, look, I think that works really well for us. The Tasmanian assets just couldn't compete for exploration budget against the other assets that we have, particularly in the Paterson. And when we think about the scale of Havieron, we didn't see the scale or the order of magnitude, you know, opportunity in Tasmania to allocate resources too.

00:03:23:18 - 00:04:01:20
Shaun
So really what we thought, they could be held with someone more focused on Tasmanian exploration and with Flynn kind of taking over that it allows us to focus in on our preferred exploration licenses. Whilst we have kept an ongoing exposure to those assets through an equity and some milestone payments, and because we like the assets, particularly Firetower where there's existing mineralization encountered similar Warrentina is a little bit more early in development.

00:04:01:20 - 00:04:21:26
Shaun
But we like the geology, so we love the plain there of finding someone that we trusted both socially and technically bought and had confidence could optimize that asset, but that we had the opportunity to have an ongoing exposure to them. So, we think it's a real win win for both sets of shareholders.

00:04:21:26 - 00:04:36:27
Liam
We also had both Mark Barnaba and Elizabeth Gaines join the board, whilst we spoke about them rather in-depth last time. I wondered for anyone who's new, could you please give a quick overview of who they are and for a follow up, have you managed to meet up around the table this year yet?

00:04:38:22 - 00:05:02:25
Shaun
Yes. So, look, the board updates that we did back, I think it was around September or October that we announced it with Jimmy Wilson joining with a BHP pedigree and as an executive, he really hit the ground running here from day one and has spent a lot of time in the office, and particularly with the technical team, which I think has been tremendous.

00:05:04:00 - 00:05:23:26
Shaun
Mark and Elizabeth and I have spent a lot of time over the back half of this year, and Mark had given me a great deal of guidance and somewhat acted as a mentor for me over the past 12, 18 months. So, he's kind of very familiar with the Greatland story, but just for everyone's knowledge…

00:05:23:26 - 00:06:12:13
Shaun
So, Elizabeth Gaines has joined here. She's just stepped down as managing director of $50 billion USD Fortescue Metals, a hugely successful organization that really has become incredibly successful in iron ore. And she was leading that organization. And then we've had Mark Barnaba join as well as Elizabeth joined as deputy Chair. Mark is joining as chairman or has joined as chairman and his background is global head of resources with Macquarie Bank, also has a role as Deputy chairman with that same Fortescue Mining and sits on the Reserve Bank of Australia board much like the Bank of England.

00:06:12:13 - 00:06:29:09
Shaun
So, a couple of incredibly high profile and well-respected people have joined the board augmenting the team we already had and I think we're extremely lucky to have one of the best, strongest boards in mining, certainly here in Australia.

00:06:29:09 - 00:06:45:04
Liam
Thank you. And the only thing that has happened really since we spoke in early November is that there's been some director dealings, whilst it's nice to see it does raise that age old question, I'm sure you've had enough of me asking has your close period ended yet?

00:06:49:22 - 00:07:38:00
Shaun
It ebbs and flows and there’s a statutory one 30 days before the announcement of financial statements so it does ebb and flow. Obviously, those directors traded during an open period they exercised some options that they'd been held for a long time, dealt with the exercise price and taxes. But those directors increased their shareholding. And what was really pleasing about it is they have… we were able to cross that stock to an institutional shareholder up in London and as I think you've heard me say before, part of what I've tried to spend a lot of time, energy and effort to achieve is bringing that institutional demand to augment the shareholder base that we already have marvellously successfully have in the retail sector, but try to get the both best of both worlds. So, I really pleased to see the benefits of that institutional interest in the stock coming through when our line was available.

00:07:56:03 - 00:08:18:29
Liam
That's great. Thank you. Our audience has been slowly adding questions during the chat, so let's have a quick look at those now. Have you managed to connect with Sherry yet? And now that Sandeep has decided to retire gracefully and if so, what's her impressions of Havieron in the JV?

00:08:18:29 - 00:08:44:07
Shaun
So yes, I have. I say Sherry was, originally spent some time in in Perth, Western Australia, so we knew each other. I don’t want to overstate that relationship, but during that time I'd met with her during her period as CFO of Newcrest and yes, we continue to connect as I think as is the Newcrest organization. Yeah. She thinks very highly of the Havieron and indeed Telfer platform. I think Newcrest has a number of really strong assets and I think they continue to view Havieron as a wonderful element of that portfolio.

00:09:03:16 - 00:09:24:06
Liam
I think next question up is do the brokers know what is coming in an RNS ahead of time? Our friends at Berenberg seem to realize released their updates the day before the news, but never after without any explanation or rationale. I appreciate we've covered this a few times, but the questions come in.

00:09:25:00 - 00:10:00:12
Shaun
No, I look they get there early in the morning and probably have their announcements ready to go. But the RNS release should be consistent, although there are kind of wall across discussions that can happen. But the Berenberg broking is very much separate and typically they would receive the RNS around the same time as the rest of the market will but often, we’ll have chats with them in real time is that lodged so that they can add it to their daily, their morning notes and update their research in a timely manner.

00:10:00:25 - 00:10:17:29
Liam
Hmm. Okay. Thank you. This one has quite a few people asked this one and so it's there. Please can provide an update with the ASX cross listing. Is it still your intention to proceed with a compliance listing or will you be carrying out an IPO?

00:10:18:02 - 00:10:41:09
Shaun
Well, an IPO and a compliance listing I think is one in the same. But where we are trying to draw the distinction is that presently we're not resolved to raise equity, we really just want to get the platform set, so that is our intent. Our intent is to try to achieve that IPO listing in the first half of this year.

00:10:42:14 - 00:11:02:10
Shaun
A well-run IPO takes 3 to 4 months. We have kind of started walking down that path. But I think previously I might have guided to around April. I think that's still ballpark when I'd say but really, we need to get some regulatory input before we start giving any genuine guidance on time frame.

00:11:03:08 - 00:11:26:14
Liam
That's fair enough. And with no obvious signs of ore coming from another source, do you think it would be prudent to tap into Havieron on another mining front quicker than planned? I think that sorry, I think that's in relation to the fact that Telfer has got two massive trains (Train A & Train B), but we're only going to be sending a very small amount over the next few years to it.

00:11:27:29 - 00:11:52:11
Shaun
Yeah. Well, I think you're… these fits in perhaps to the part of the narrative around that the present quarterly which is the success we're seeing in the Eastern Breccia and Liam you and I have just spoken today about why we're so excited about that Eastern Breccia is, is it's growing hugely. It's a multiple of what it was 12 months ago.

00:11:52:25 - 00:12:30:02
Shaun
But not only has it grown in size, but it's probably doubled in grade. And that makes it a really attractive mining area. And I think when you think about Havieron and a 3 million tonne per annum Havieron (NOTE: 3mtpa annual production rate is expected in upcoming DFS from Newcrest) in the context of having a train B at Telfer, which is a 10 million tonne train dedicated to Havieron, there's clearly some attraction to contemplating whether you can fill more or indeed all of that mill and take to a 10 million tonne per annum operation.

Now on that single decline SLOS space, I think 3 million tonnes is a really full target and I think if we achieve that, that would be a really great credit to the operational team and the efficiency of that decline management, I think there is a broader opportunity there which won't, which is an ongoing process to understand. But then as a secondary mining front to open up, say that eastern breccia on more of a block mining basis or a cave, a bulk mining basis, be that a sublevel or a or a block cave and presumably at least your starting point would be to fill the mill.

00:13:12:10 - 00:13:47:22
Shaun
So, you try to take 6, 7 million tonnes out of that, that second mining zone and run that mill as efficiently as possible. The… I think that is an ongoing process, but that's certainly how we think we'd love to develop Havieron in time and I have previously spoken to why do I think Eastern Breccia is that the next place to go in the mine, partly because of that growth and that improved grade, but also it kind of sits towards the bottom of the ore body.

00:13:48:00 - 00:14:12:23
Shaun
If you're doing a block cave, which is a bottom-up mining methodology, it'd be ideal to put that infrastructure down at the bottom of the mine, mine up through that eastern breccia. And at some later point you could reuse that infrastructure to tackle the northern breccia again in a bulk zonation. So, I think that is that the really big picture opportunity at Havieron.

00:14:13:18 - 00:14:33:22
Shaun
But for now, we are very focused on this south east crescent, sublevel open stoping and that is the immediate focus of the study, that is the immediate focus of the team to get that cash flow. And then once you've got that free cash flow (FCF) the future developments or upsizing of the mine can be self-funded.

00:14:35:05 - 00:14:52:08
Liam
That's a brilliant answer. Thank you very much. Is there any… wait for it to load? Is there any timeline on the submission of the stage two mining plan to the EPA, which NCM said would be released in early 2023?

00:14:53:16 - 00:15:18:10
Shaun
Yeah. Look, we I think we've previously guided that it would be early this calendar year. So certainly, in the March quarter, I look, I'm going to be measured what I say because we haven't announced anything as yet. But I'm I think your expectation should be that we've continue to advance that and that yeah, that that is a that's going to happen early in this quarter.

00:15:19:01 - 00:15:34:22
Liam
Fantastic. Thank you. Will further exploration drilling be limited now until the underground drilling platforms are in place? And actually, I've noted that we're going down to three drill rigs for the next three months for the wet season.

00:15:35:19 - 00:16:05:08
Shaun
So, so well, again, just to clarify that. So actually, as we did last year, we demobilised all the rigs from Havieron over that summer, to this late December early January period. Now it's multifactorial why we do that. Part of it is just to give some people who spend a lot of time in a remote area kind of flying in and out a little bit of additional time with their families.

00:16:05:15 - 00:16:34:24
Shaun
But also, the rigs themselves need maintenance. So, it is quite an efficient time just to demob. We're remobilising initially three rigs, which I believe are on site for February to recommence that drilling campaign. And I think what you're going to see different in calendar year ‘23 as opposed to what you saw ‘22 is we're going to be more focusing on drilling out that south east crescent.

00:16:35:23 - 00:17:02:19
Shaun
Last year we were trying to just understand that Eastern Breccia, understand the system a little bit more, now we're going to kind of refocus around that South east crescent, which should be really good. And of course, we really love growing and understanding more that South East Crescent, which will be our first mining area and of course is tremendous grade.

00:17:02:19 - 00:17:18:07
Liam
Brilliant. Thank you. As we’re now into 2023 and we start to move forward with possible other avenues of exploration. Any update on how any Ernst Giles and the access to negotiations are proceeding?

00:17:19:18 - 00:17:42:23
Shaun
Yeah. So, look, I think due to that broader exploration portfolio, I'll come to Ernest Gile’s, but there's a couple of things to unpack there. Firstly, we're also looking at some targets, additional targets on that Havieron lease. So, there's no better place to look for gold and copper where it's already been found and I'd use that same thing to talk about or that same extension of logic into Scallywag and indeed JURI, this is all along strike through that Paterson. We like that, we continue to have… to generate targets and have targets we still haven't drilled. And of course, every time we do some exploration there, again, I think I've explained before, our philosophy is not to pattern drill. We'll do one or two drills, understand the stratigraphy, compare it to our model, recalibrate and come back.

00:18:08:12 - 00:18:33:20
Shaun
So, it's a very technically and efficient mining approach to exploration. We're then excited about the exploration portfolio outside of Havieron or outside of the Paterson. Of course, we've talked about, you know, partnering on those Tasmanian and letting someone else manage those projects. But I think for us Ernest Giles that you mentioned is the jewel in the crown.

00:18:33:20 - 00:19:10:22
Shaun
We're super excited about getting there. We are really respectful of the Indigenous owners there and we want to work with them cooperatively. We've done it to date. We have a good relationship. We have had some communication about when the next meeting is and we like to think we're really close for our part. So, I'm, I remain optimistic positive expectant that we will be able to drill during the course of calendar year 2023, that that is our plan.

00:19:11:02 - 00:19:33:14
Shaun
But you know, we cannot be definitive on that until we have the final access agreement. I think you're also going to see some activity on the ground around the other exploration assets, Panorama and Bromus, during the course of 2023. We want to start walking those opportunities along as well.

00:19:34:11 - 00:19:50:04
Liam
I've just had one question actually flash up on my screen there about Panorama actually with relation to the tenement is due to expire. So, someone was just checking to see if we would be chasing that. But as you've just alluded to, that's something you'd like to do.

00:19:51:00 - 00:20:21:18
Shaun
Absolutely. So, yeah, I think Panorama is quite prospective for gold and nickel, so we're open to both of those there. So yeah, it's a, it is good. And indeed, another major has come and approached us about at least understanding the data there. I think it is seen as quite a prospective area, not sure what we would like to do with that because I do I think we're of a size now where we can stomach some of that risk and keep all the upside.

00:20:21:18 - 00:20:43:04
Shaun
But it's always nice to share technical information and have insight from large and established exploration teams. And again, I think it reflects well on our technical team. They are viewed strongly in the market. They have good connectivity with their peers and all of that helps build into our cycle and our probability of success.

00:20:44:11 - 00:21:06:24
Liam
Brilliant. This next question is Shaun has previously alluded to director buys in December with the potential for buyers of exclusion in short term. Why has this not happened and can you give any updated update and assurance to shareholders that new board members will be taking up positions? I don't know if you can answer that one.

00:21:08:04 - 00:21:39:23
Shaun
Well, look, I think that is their intent. As you've probably seen previously. You know, there's always an attraction for directors to buy shares around an equity raise and participate in that, both from a regulatory compliance and to show confidence in the stock at the time. They're asking other people to put new money into the company. I think all of those things come into the equation, but certainly, you know, a number of the directors have expressed to me an interest in acquiring some stock.

00:21:40:15 - 00:21:45:28
Shaun
I can't speak for them, but I believe that interest is ongoing.

00:21:46:10 - 00:21:55:28
Liam
Have you confirmed with Newcrest if they'll be changing their resource from reserve statements from February to August, as communicated by Tom Dixon, the Head of Investor Relations?

00:21:58:15 - 00:22:23:27
Shaun
We have. So that's a good question. So, look, we are currently walking, working through the resource and reserve with, you know, we you know, we share the geological model. And again, I think the teams are quite close and I think we saw technical alignment with them last year where we really even though we did it independently, we came out with numbers within 1% of each other.

00:22:24:09 - 00:22:53:23
Shaun
Now I think that's just testament to the calibre of the team here that they are every bit as good at a much larger and more resourced team in, in, in Newcrest. And you know, I think the Newcrest team is excellent as well. So, I think we do understand that pivoted to a annual update based around the August annual report as opposed to a separate report in February.

00:22:54:10 - 00:23:21:14
Shaun
That does put us into a position where we are thinking about whether we should go unilaterally again or whether we should dovetail with that August. I've kind of said both to the market is as I’ve said our strong preference is to remain aligned with Newcrest. However, if we felt Newcrest was unnecessarily delaying a resource update, we continue to have the courage and conviction and focus to go unilaterally.

00:23:22:02 - 00:23:51:01
Shaun
I think in this case and again, it's nice to take us back to that Eastern breccia, the growth in that Eastern breccia and the technical interpretation there is actually quite exciting and a lot's happened this year. I think there is a natural time where our team wants to continue investigating that. So, whether that leads us to a place where we both converge on August or whether we feel we should do something ahead of time.

00:23:51:14 - 00:24:41:18
Shaun
But I think what we should do is, is acknowledge that Newcrest is seeking to update that resource and reserve in really beautifully consultation and lockstep with us. And we value the relationship with Newcrest. So, there is some gravitational pull towards us wanting to do that together with Newcrest. So, without being definitive, I think the probability of us updating in August is higher than maybe what it was two months ago when our expectation was still that Newcrest, all things being equal, would have a global exploration update in February. So, without being definitive, I think all those factors will come into our calculation.

00:24:52:01 - 00:25:19:11
Liam
Thank you. And I guess in some ways it's the word that popped into my mind as you were talking about is harmony and the harmonics of it all coming together with he says as he clicks the button with regards to increasing production at Havieron, passing bays in the decline being the primary option. What's next on the list and is this likely to be included in the feasibility study?

00:25:20:05 - 00:25:46:07
Shaun
Well, just to be clear that the passing bays and so forth have always been part of the decline development and the decline plan. And this goes back to the optimisation of the capacity of that decline. The more passing bays, the more stockpiles, the more flexibility you have around your truck movements and the efficiency of those truck movements with passing bays.

00:25:47:10 - 00:26:19:11
Shaun
So that is that is a focus for us. You know, we announced that we're over 1500 meters of decline advancement or sorry Decline development. I think people should understand that in terms of change that is actual decline development. It's probably closer to about 1300 meters with the delta there being in that stockpile development and passing bays. That's always been part of the plan.

00:26:19:22 - 00:26:31:13
Shaun
It's how we get better productivity from that decline, more tonnes, more ounces out of the mine. So, I think it's positive and what it allows us to do is run a lower cost, more efficient Havieron.

00:26:33:05 - 00:26:53:22
Liam
This comes back to something we talked about last quarter and we've been noted that you've withdrawn the application that was put over on Scallywag, which was a copy of E4570. Has the risk of this tenement being overturned, I think, as you elaborated to been eliminated?

00:26:54:28 - 00:27:24:23
Shaun
Well, yeah. Look, I think when we talked about that we said it was a very. Yeah. Western Australia is consistently ranked well I think it's presently number one in the global mining jurisdictions Fraser index, it is consistently ranked top five and is broadly seems as the if or as one of the premium mining jurisdictions on the on the planet, that part of that is the security of tenure.

00:27:25:07 - 00:27:51:11
Shaun
Now I think I did elaborate that there was a case where someone disputed a tenement, the West Australian government immediately came out and said that what they will prioritise, regardless of how that case is, is ongoing tenement security of title. We were ultra conservative, but we should be ultra conservative around prize assets to put in a new overlapping application.

00:27:51:23 - 00:28:13:05
Shaun
Now, as with the passage of time, and I think also when you ask the law firm for their instinctive reaction to risk is to be highly conservative as they will have had time to assess and understand the government response. The view is that was it was always I think I referred to it as belts and braces approach.

00:28:13:09 - 00:28:24:18
Shaun
Yeah. But the view was that's no longer necessary. So yes, the advice we have is that there is sufficient certainty that a duplicate application is not warranted.

00:28:25:10 - 00:28:46:10
Liam
Wonderful. Thank you very much. With Elizabeth Gaines and Mark Barnaba now and our board, will Greatland and Newcrest be following? Um, FMG's approach (Fortescue)? I've absolutely just forgotten their name. That's not. It's not. But is it with automated mine haulage fleet? Havieron? If so, is that accounted for within the CapEx buffer?

00:28:47:15 - 00:29:32:14
Shaun
Yeah. So, when you asked about Mark and Elizabeth before, one of the things I didn't specifically say is have we met in person? Well, absolutely we have. And we've had everyone around the board table and yeah, they've really hit the ground running. What I would say is went into the question around how we will optimise Havieron, is certainly the application of EV’s, Electric Fleet or other systems of power generation are very much part of how we're thinking about the optimisation and where EV’s can perhaps save money is that there's less diesel particulates, less ventilation.

If you're installing less ventilation, that's less CapEx. If you're running less ventilation or less air through your system, it saves OpEx. So, there is this cost written or cost benefit analysis that you do around EV Vehicles, clearly having additional expertise on the board and connectivity with Fortescue, which I think would be widely viewed as one of the global leaders in that technology.

And without these turning into an advert for Fortescue, they actually bought, as I understand it, the Williams F1 racing team engineering group. And because they were doing a whole lot of work with batteries for racing and aerodynamics on vehicles and all these things which can translate to productivity for mining fleet, but that is I think, spectacularly innovative thinking, but also gives us this, you know, this splendid ability of fertilisation, of technology and understanding the latest and greatest potential application.

00:30:44:27 - 00:31:11:01
Shaun
Now that doesn't mean we have any kind of information sharing or alignment with Fortescue. We are completely separate companies, but knowing what else is going on in the marketplace, knowing where opportunities may exist, perhaps gives us a competitive advantage to be the first to be second. I'm not sure we're big enough to innovate and develop an EV fleet, but would love to be the first to be second if something was tried and tested. To say that is a great idea and it has application for us.

00:31:17:20 - 00:31:46:04
Liam
That's, that's really good. And actually, what got me there was the saving of money through operation with the less requirement of air. You know all those fans take a lot of money don't they. To operate so not having those running so hard. I mean it saves money through maintenance and everything. So it's almost like a win win switching to an all-electric fleet sooner rather than later I guess as well.

00:31:46:22 - 00:32:14:26
Shaun
Well, this is the cost benefit. You know, you're not you're not shifting or you know hauling diesel and bunkering it. Yeah. That, that they have less moving parts in the engines you know no gearboxes. So, there are multiple facets that go into the saving, diesel engines are marvellously efficient. They've been optimised over what must be close to 100 years.

That said, you know I think we all see the future in that kind of electric vehicles and lower carbon footprints. And that crossover point is earlier because of those ancillary savings around mine ventilation and the OpEx of delivering that and creating better environment. So, it is a really interesting field. And I think Australia and is incredibly fortunate to have a group like Fortescue that that can put the resources into advancing that technology.

00:32:51:19 - 00:33:05:01
Liam
Okay, thank you. And the Alpha 9 target and Tama, what does no significant results actually mean?

00:33:05:01 - 00:33:31:05
Shaun
Well, it means no mineralization. So, if we if we hit gold or copper, we would, we would be announcing that intercept. So, I think again, it goes back to a recalibration of what we're expecting. Sometimes we run EM and the team will assess these, but we might run electromagnetic probes down there to understand the geophysics and then recalibrate targets.

00:33:31:14 - 00:33:53:07
Shaun
But what it does mean is, you know, where there is no intercept of mineralised core and we continue to assess those targets and recalibrate. And it's too early for me to say how we think about those targets. But that is what those statements mean.

00:33:53:10 - 00:34:05:12
Liam
Okay. So, it's not just the way it is. It's not the it should just be viewed of that set the targets finished. It's no good. It's just a question of actually, we just need to take a little bit more time to investigate what we think is there.

00:34:06:04 - 00:34:48:19
Shaun
And then there that a distribution curves of outcome. Some we will say, look, we've tested it. We can… I what I what I really like to see in our exploration and I think is are again our very technical approach is we like to explain anomalies, so why do we drill that area and has that drill successfully explained what we were trying to... the reason why we tried to drill it, what we found is we actually weren't exactly on the target and we've recalibrated with more target, with more information because you are trying to infer spacing through hundreds of meters of rock.

But if we've we feel we've tested the target and intercepted it and now we can explain it and that it's the generation of the gravity signature or the magnetic signature is explained and is not mineralization, then we may walk away from that or at least feel that we've tested it adequately. So, there is a distribution curve of outcomes.

I'm not saying everything remains a tier one target, but certainly one sparrow does not make a summer made, much the same with drill holes .

00:35:20:11 - 00:35:38:01
Liam
That's. That's great. Thank you. Sorry, I didn't mean to laugh like that. Suggested that there's a thought of one of the Skandia big rigs now having high downforce package on it from Williams to make it more efficient as it goes through the decline so that's what made me laugh there that.

00:35:38:07 - 00:35:41:25
Shaun
I get from one group had to another quicker as well.

00:35:42:23 - 00:36:00:24
Liam
And that's not to mention the pit stops as they change the tires. If directors tend to buy open equity raises. But you've said the intention isn't to raise equity on the ASX should shareholders be concerned about further raises outside the ASX cross listing?

00:36:01:18 - 00:36:29:06
Shaun
Look, I really was just being illustrative there that, you know, directors are always cautious about open periods and these things. I think I was more just trying to say that I understand and I have an intention to buy whether they buy on market or whether they're more inclined to take a conservative path and wait for an equity is ultimately their decision and it's not something I discuss with them each time I see them.

00:36:29:11 - 00:36:44:02
Shaun
Yeah. So, I, you know, I respect their space and yeah, around that. And I guess I was really just sharing my thoughts to the question without really trying to, to, to give any guidance there now.

00:36:44:16 - 00:36:45:21
Liam
Thank you very much.

00:36:45:21 - 00:36:49:25
Shaun
And let me be even more let me be more specific. There is currently no plans.

00:36:51:11 - 00:37:03:25
Liam
Thank you. But off the back of something you said earlier, where does the resource update sit with the feasibility study timeline? Is that something that you can elaborate on?

00:37:03:25 - 00:37:30:17
Shaun
Well, why don't we why don't we just talk to the feasibility study briefly in that and then we'll work our way back to the exploration update. So, look, the feasibility study from Greatland’s perspective, we would have loved that to have been finalised in the December quarter of 2022. That was the stated intent of the Newcrest of the Havieron joint venture stated by both Newcrest and Havieron.

I think people understand for whatever confluence of reasons, Newcrest were not satisfied and decided that they wanted to spend additional time, energy and effort on that feasibility study. And we are supportive of that to the extent that we think it is sensible to pursue optimisations and improvements. I think it's also sensible to bring in additional resource and I think I had been a little bit… I had observed that there was going to be a 13-month lag between the last update to the resource or the drilling cut up off of it and the information going to the feasibility study.

So, we were a little bit like going into a time machine and looking at what it was like back in early 2021 that that all said. So, I think some extra time to do that is useful, I would have thought. I think there is some commentary around Newcrest targeting the June 2023. But I don't think that's a definitive commitment we... but I would have thought you would want to bring in this resource update, now you can include a resource update as part of a feasibility study. So, there's different to achieve it, but you would certainly want to calibrate that information and that information is presently being worked upon.

00:39:12:03 - 00:39:23:22
Liam
I think they have to include a small amount that's not been previously published as part of their TSX listed. I'm struggling to find the actual document that says that.

00:39:24:13 - 00:39:56:14
Shaun
So, I think just to clarify that, I think the TSX listing means, whilst Australia has a.. there's more flexibility around it, including resources, my understanding is the TSX is more prescriptive of that. Really you can only include reserves and a relatively small percentage of material outside of reserves, which is incremental to the mining shape. You're within your study rather than including entire areas of appraisal.

00:39:56:15 - 00:40:21:09
Shaun
So different ways to solve the same puzzle between the TSX and the ASX, but Newcrest would seek to have compliance there. So that has always been a limiting factor on Newcrest studies… is that they've always been confined to reserves notwithstanding, that is only a fraction of the overall size of Havieron.

00:40:21:09 - 00:40:37:11
Liam
I've closed questions now because I appreciate, we are very tight on your time and this one will make you smile. Has our team investigated the nickel at the eastern Breccia?

00:40:37:11 - 00:41:14:21
Shaun
Well, we can try to understand the base metal environment at Havieron. I think previously I have indicated that in addition to the copper, there are areas where we think there is additional base metal material in meaningful quantities. It is certainly something that the Greatland team is advocating should be advanced and that those other base metals are assayed as part of the drilling program.

00:41:15:23 - 00:41:50:10
Shaun
I think for Newcrest to be comfortable with an announcement around that you might expect and perhaps us as well, that they would want to have some understanding of the capabilities through a processing… to understand that there is a probability, not a possibility, that it will be economically recoverable. So yeah, we want to continue to understand that and understand that the potential follows there and it's something that we do spend time on.

00:41:51:15 - 00:42:03:09
Liam
Thank you. And nice easy one this one What is the GGP board’s rough estimates for first income from Havieron. Are we still on that same timeline?

00:42:04:17 - 00:42:33:15
Shaun
Yeah. Well, again, I think the pre-feasibility study tells us that the answer to that which you're testing my memory a little bit, but I think that's June 2024. I think the decline advancement that we saw in today's quarterly would give people comfort that we are at least achieving the decline advance rates consistent with that kind of time frame, what I what I'll probably talk to more confidence on is I think we would be in a position to start stoping in early ‘24 and I think yeah, we've previously talked around that first quarter into the first quarter. I don't think there's any information right now that would suggest that more time is needed.

00:43:00:29 - 00:43:21:12
Liam
Thank you. My last question for you from the group chat there… explaining, explaining anomalies is a disciplined approach to exploration. What details can you share, please, to explain the anomaly of the extended DFS as we move through 2023 without even a window for guidance?

00:43:22:15 - 00:44:01:28
Shaun
No, I think I've got the gist of it. Yeah. The anomaly is that the approach to not giving specific guidance on the release of the feasibility study. Newcrest is the of the project, only the manager can give guidance as to when they will deliver the study. It is certainly the Greatland’s preference that a date be clarified and, in the market, announced, we continue to advocate for that, but we really respect our joint venture partner and we work through them in these kind of issues in a very engaged bit, in a very engaged manner, and we do respect that, that sometimes these issues are technically driven around understanding issues, around understanding anomaly theories, understanding technical improvements and resource upgrades. So, I can understand or I have some sympathy for a group being able to say, well, let's yeah, we'll know when we know or we'll when we solve these things.

And we then we have the building blocks in place and then once we have those building blocks, we can be definitive about the time frame to release a study. Yeah, I do have some understanding for that. I think what is different is that Newcrest's level of materiality against a business I think has five operating mines. I guess they probably are comfortable that they can sustain some additional ambiguity there than what I think is ideal from our perspective.

00:45:09:02 - 00:45:34:00
Shaun
But there are many benefits in entering a joint venture with a global major. The different perspective on materiality of these kind of issues is perhaps the point of difference. But again, I think these differences are at least understood in a framework of positive engagement and technical discussion.

00:45:34:17 - 00:45:43:23
Liam
Thank you. And that brings me to the end of my questions. Shaun, thank you so much for joining me and our audience for this quarterly catch up. Do you have anything else you'd like to say?

00:45:44:27 - 00:46:16:10
Shaun
Look, just Happy New Year again, Liam. Really appreciate the support and the engagement of everyone who's dialled into this. So, I certainly enjoy the engagement with you all, and I'll probably be up in London for one of those. A town hall meeting in, I think, March, if not before. So, looking forward to that. And again, just to say thank you and hopefully people have enjoyed the initiative you've had with experimented with the new format, Liam.

00:46:18:24 - 00:46:33:25
Liam
Thank you. And that brings us to the end of this webcast ladies and gents, if you want to reach out so as you can contact us on the Twitter that's on the screen there. And you should also really subscribe to this channel so that you do not miss any more of these. We hope you enjoyed it and they're pleased to hit that thumbs up button if you did.

And we hope to speak to you again soon. My name is Liam and you've been watching GGP Help’s ‘The Board interviews ‘ with Shaun Day, managing director. Until next time, I bid you all G’day.

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