GGPChat

No apology needed to me Ponie - it’s an easy mistake to make.

Last night I was having a rant at one of the scum that is the Muti ID Troll Burnt Toast over on AVDFN. I thought it useful to re post the post as it has had wide respect... It basically addresses the point WHY DID SHAUN CHOOSE dilution over say a royalty deal - ( this is because we have seen a bunch of these recently eg Skeena and Soglold, and one I didnt know about - the 5% royalty that Tembo Capital had over Spartan's dalarangie.

I didn't realise this that much a few years ago - But basically Royaltys are bad. Really bad for miners but really good for Streamners like Franco Nevada. They may be good in the very short term but they are a noose around a projects neck if the project is marginal grade, even if huge...

I made the point that we couldn't do a royaty deal becuase we didnt have 100% and it was only based on NCMs data: Toast implied I was thick because the deal would be 'contingent' on getting 100% - so I made the following arguments

Here;s the lead in https://uk.advfn.com/cmn/fbb/thread.php ... &from=7304


Contingent on what you arrogant Twit?

Contingent on getting 100% closed, yes fair enough or contingent on excluding (thus giving away), 2-5% of the other 10-20 million ounces at depth that haven’t yet been delineated. And Christ knows how much future profit.

Jesus mate. You call me thick. Do you have an idea of the impact of such royalty on the economic viability of the very large but lower grade deposit like the surrounding Havieron breccias : and what if we made another major new high grade discovery, say 150m away adjacent to Havieron…?

Would the terms exclude that? Nope they wouldn’t.

What you just said says it all. You are arrogant and clueless Toast. Especially about mining.

Think about the De Grey DFS and then add something, anything, to the actual conversation.

Here’s a clue; Degrey are proposing 5 separate open pit and underground mines with refractory gold at sub 1.5g when history shows the cut off for underground gold mining was 2g. The Hemi PFS states the Hemi cut-off is 0.3g/t Au cut-off above 390m depth, 1.0g/t Au cut-off below 390m depth

Lower and lower grade deposits say 1.2-1.5g (over 10moz) are economically feasible (even with extremely complex POX metallurgy and poor strip ratio of 6.6:1) are still valued > $5bn by one of the largest miners in the world.

Have you even any idea of the implications of the above statement has for Havieron or Greatland ?

And do you therefore have any idea what you’d be giving away with a Havieron Royalty? Nope you wouldn’t. Hence a royalty was ruled out a long time ago. It may be a necessary evil for SolGold to survive and progress … but it’s not an option Shaun has to consider.

Spartan’s (formally Gasgoine Resources 5% Royalty was just sold for $50m. It now covers the latest 10g/t discovery of Pepper and Never Never… but it was only supposed to cover their Dalgaranga Gold Projec t. They just happened to discover the highest grade Pepper deposit a 10g/tone a 600m away last year.

hTTps://clients3.weblink.com.au/pdf/SPR/02888768.pdf.

Look how much profit Spartan SH are now losing out on following the Royalty which originally cost Tembo just $6m... -

hTTps://www.mining-technology.com/news/ ... e/?cf-view

Basically: The royalty holder Tembo Capital hit the jackpot. Spartan Shareholders have lost something like 10-15% of future profits (because the royalties holder incurs no capex requirement- they are carried for the life of the project. And the holder of that royalty , Tembo, still sold it for $50m to osika to invest $50m in GGP.

Go figure."