Notes from Sunday Roast Podcast regarding grant for Ernest Giles and overview of GGP - 20 Oct 2022

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Notes from Sunday Roast Podcast regarding grant for Ernest Giles and overview of GGP - 20 Oct 2022

Interview:
https://audioboom.com/posts/8177946-mid ... ld-aim-ggp

RNS link:
https://polaris.brighterir.com/public/g ... ry/xo18edr

* Hello and welcome to mid-week takeaway I’m Phil, today we’re in the company of Shaun Day MD of GGP, welcome back Shaun how are you?
- yeah really well thanks, Phil l thanks for having me back on the program

* No problem, so we just heard news that GGP has been awarded a drilling grant at the Ernest Giles exploration project under the Western Australian government exploration incentive scheme to fund exploration drilling and mobilisation costs, a bit of a Brucie bonus as you say?
- One of our prize exploration targets, still need to close out access agreement with First Nations hopefully this year
- Plan to be drilling next year and W.A govt. providing a grant as part of that access means they’re effectively co-funding our 1st year program
- new area, under explored and looking through cover which is kind of things the W.A grant is designed to promote because it is such a tremendous opportunity

* Havieron aside, this podcast focuses on all the other GGP assets so give us your summary on the last month of Havieron which has been tumultuous and then let’s move on and look at the other assets and the grant today which helps and also shows that the Australian govt. wants to progress this as beneficial to its economy.
- In a nutshell Havieron continues to progress and an exploration update out next week which will give a good update on the drilling and the progress at the decline so will be another positive step forward
- And the funding package coming up to about 4 weeks ago now in terms of the debt, equity and strategic equity with Wyloo coming in I think with additional directors was incredibly positively received as it should be as sets us up for success
- Like today’s format to emphasise the rest of portfolio and hopefully Havieron is the start of many
- With that maybe try to walk through the asset base in maybe six or seven steps, I think it's important to talk about what else is in the Paterson and then walk through Ernest Giles, Panorama, Bromus and the Tasmania assets being Firetower and Warrentina.

* Okay great, fire away.
- So I think if let's start with the Paterson and again I think there is no better place to look for gold or copper where it's already been found, this is Elephant country, got Telfer, got Rio Tinto’s Winu up in the north and of course Havieron nearby with Telfer to its east
- but I think one of the things I most like is where our scallywag tenement sits along structure which is sitting up to the north-west from Havieron, that also leads onto a JURI JV which we hold with Newcrest and then further to the north you see the Paterson Range East
- you know what is probably useful for people listening to this if you get up the most recent corporate presentation there is an Paterson Exploration slide giving overview of holdings in the Paterson and following slide covers other exploration assets
- Gives you a good idea of why it gives you good proximity to other discoveries, it’s a long structure and got a program right now drilling through that Juri and Scallywag area
- Described to shareholders before we’ve done it differently this year, started with an RC rig and went through that unconsolidated cover cheaper and quicker
- And then coming back in with the Diamond Drill (DD) and drill through those exploration targets and take core out, it’s the core we cut and get assayed into that country rock
- Assay times are actually getting a little bit better, at the beginning of this year we were talking about 10 weeks and I think that’s better than halved so that should start to see information flowing a little bit quicker out of that campaign
- While we’re still in the Paterson, Pascalle’s an interesting tenement that almost sits between Havieron and Telfer and a good anomaly that we want to get on and drill and of course even closer to infrastructure than Havieron
- Rudall down to the south, kind of worked closer to infrastructure so secondary in our program but has some really nice targets on it
- Little bit further to South we get into Canning , some of those bought last year together with Pascalle and again some good anomalies, some good convergence of gravity and magnetics
- so the geophysics there help us to find why they are prospective and why we want to drill them because that's affectively what originally created Havieron as this target which was this confluence of grav and magnetic anomalies.

* So all of those that you just mentioned are gold orientated or gold and copper?
- gold and copper and if you look at the history of the Paterson, if you go further across a little bit further across to the west of Telfer then you have the Nifty copper mine that had gold credits and in fact it used to be an asset at Straits where I was so that more copper, Winu up to the north is more copper and Telfer has been predominantly gold with copper credits though
- and Havieron also looks to be gold with some copper and perhaps some other base metal credit
- so I think the way we think about this is you’ve got prospectivity for both, history tells you though gold is part of it.

* And the history behind this going back a long time is this is a fault in the earth’s crust has effectively created as you called it Elephant country, can you tell us a little bit more about that?
- if I think about the genesis of Havieron and what we're really looking for in this region is… this is a weakness in the structure which has allowed a series of intrusive to kind of force their way up like this molten Magna and then often what happened is in the simplest of ways is if that's at the right temperature gradient and it is in a reservoir with sufficient quantities of valuable metals get pushed up and get trapped as part of this kind of expression, the intrusive expression
- so what you see… what we're kind of looking for is other places where this has happened I think one of the interesting things about that Eastern Brescia is that looks like it's a different time event to the original Havieron series of intrusives
- so it does make the whole area look a little more appetising in that you can have this series of episodes where material is forced to the surface so kind of looking for where there is perhaps weaknesses in that earth’s crust which has allowed that to come up
- And trying to identify then initially through the geophysics, then trying to understand the stratigraphy when we drill that and then try to narrow in exactly where we think is the heart or trying to explain what is the geophysical anomalies we have identified
- and that's what we believe is that the basis of good exploration, is this confluence of lots of preparation and understanding…try to work out where you want to drill a hole, punch in only one or two drill holes then recalibrate against what you expected it to be then reinterpret to better define what you think you're looking for and then try to go back to that anomaly and try to do it until we think we can explain it
- until we can explain like we’ve found what it is but it doesn’t have sufficient economic material in it, it's a black shale so it comes up on the magnetics but that's not gonna be hosting metal or we say okay this is the kind of event we're looking for, it’s brecciated but it’s not mineralised here but where do we think is the epicentre, so where else should we be looking
- so it's a kind of forensic detective as much as it is geology but that's kind of the profile that we work through as we investigate those opportunities in the Paterson and I think that approach gives us the best opportunity to get… create the most value from our exploration program over time in a financially sensible way.

* Yeah it sounds to me like it's almost like you are digging for the roots of the tree analogy, as it has pushed out of the Earth itself and the roots of the tree have spread?
- yeah I think that's not a bad analogy for the Paterson way where you are under cover and I think one of the things we're trying to understand is this origin of Havieron, is it a 10 km is it a 50 km radius kind of Magna kind of area, so what is our search zone around Havieron along these roots
- so that’s all part of us trying to understand where is the genesis of this event and where can we find other similar events and understanding the structure through there, the geological structure allows you to stay on structures that are consistent with what you expect in terms of timeframe and other episodes as to where you expect another Havieron or Telfer type event.

* So we have other assets still to talk about?
- We also have an application up further to the north, up closer to Winu which we like as well so if we get that we also think that's an area where there is a lot of… clearly with Rio Tinto drilling there's a lot of copper and gold in that area and it's a little bit about can we find a particularly high grade pod of that but gain it’s a nice address to have.

* Okay so there's lots there basically and lots of exploration to go on in the next 12 months?
- yeah and it’s a big holding as well so in terms of square kilometres it is closer to 1500km2 so a big area to be walking through so let’s go for Ernest Giles next
- for a couple of reasons as its topical given today’s events but we’re also really excited by it and have been for a long time
- so firstly this grant, really please, great initiative by the W.A govt. and it helps us accelerate our program and helps us unlock value at EG
- It is Archean greenstone, Archean age deposit greenstone belt and this is where a lot of the gold in W>A is associated with these greenstone belts if you think of the Super pit (Kalgoorlie), Jundee.. a lot of super deposits have been in this setting
- so as we look out here we're a little bit further to the east, under cover again, cover is our friend, if these already expressed at surface they would have been found 50-100 years ago so we like cover, it allows us to perform these modern geological techniques to unlock value where they haven’t been stumbled across historically
- the Archean greenstones in W.A are tightly held and all been drilled like pin cushions so to have one that hasn’t been and then to have some really excellent geophysics across it does make us really excited and this all sits across this sort of Yilgarn craton which again is really the majority of W.A gold
- so we like the area, we have some really expansive holdings there and we’ve really picked out the eyes of that system
- we've got multiple targets from the geophysics that's been done and it's really a matter of getting boots on the ground but we love that area
- we wanna hold on 100% we want to do that drilling ourselves and understand exactly what is their and it will be an multiyear campaign to understand as I said we'll all take the same approach of punch in one or two holes recalibrating in and re-understanding exactly where the heart of these systems are and then trying to kind of walking into drilling that and explaining what we're seeing.

* And that's an interesting concept now because of the ability in the size of the company now because of Havieron you have the ability to go basically alone to a very large degree on any of the finds, is that fair to say or not?
- yeah I think that is very fair to say, I think we can keep more of the value for shareholders, we’ve got a proven capacity to access capital
- a more diversified and expanded skill set on our board and in terms of the executive team as well and we've got a broader cross-section of what you need to understand a deposit and maybe the confidence to tackle a discovery as well
- so I think Meadows is our first of many but the… if we were successful at one of these anomalies I think you're exactly right we would want to hold it and capture that value for our own shareholders.

* Yeah, which is very exciting in the upside potentially a vast then in that situation if Havieron continues to grow and produces free cash flow for you guys to do more things with other things.
- yeah correct, being able to re-leveraged that cash flow into other developments and multiply your cash flow generators is a perfect way to do it
- And I think across these systems we talk about Meadows being our first target, part of the discipline of running an exploration campaign is to rank your targets and I think that is very important to do
- having said that I think is actually very nuanced as to what sequence you rank them in
- I think there are no shortcuts in exploration, you have to systematically work through all targets to reveal the difference in probability between rank number one and rank number 42
- also, you wanna kind of attack all the ones that glow the hottest on the heat but really we have a dozen targets that look better than Havieron just from the geophysics
- now some of them may will end up being of interest but equally none of them may be but I think it's always hard to sequence these things so I think people should… yeah we might be lucky but think about these as multi-year campaigns but that’s good because we have that option value sitting there for some time to come.

* Okay so are there any other assets you’d like to talk about?
- so I think this is really Gold and Nickel with some copper prospectivity as well and we haven’t drilled this historically and I think that is something I’d really like us to do and we’ve got a program this year where we trying to get some geologists up there to walk the ground and identify drill targets for us
- there are some people next door that have some interesting expressions at surface which make us kind of excited about certain parts of Panorama as well so we like this ground and you will see us try to walk it forward over the next 12 months.

*So, is that the whole portfolio?
- Another 3, Bromus and the 2 Tasmanian assets and Panorama for what it’s worth I think the nickel should be particularly prospective although we have found some kind of alluvia gold which is positive
- Bromus is going down to the South end of W.A, interesting discovery recently to the north with Galileo mining
- So again we think its multi metallic, gold, zinc, copper, lead but this one’s more gold and nickel but I think there’s opportunity for nickel sulphides there which are kind of the prize to find so something we continue ot focus on and again want to get boots on the ground in this financial year budget to June and try to develop drill targets there.

*Okay, so Tasmania is a bit of an outlier so what’s going on there?
- Tasmania is interesting for us, to some extent Firetower is more advanced than some of those other projects as there has been intercepts and there is identified gold there but to put into context we’ve got a 6.5moz Gold eq. resource at Havieron say ballpark looks like 50,000 ounces identified so far at Firetower and that's not to say it doesn’t have more but I don’t think it has the scale to sit next to a Havieron type project
- Warrentina which is more gold focused while Firetower is more Polymetallic, there is some historic gold workings there and again you can talk about Victoria being an extension of the Gold Fields that have been prolific but we don’t necessarily see these projects sitting in the portfolio
- have had some chats around other companies taking an interest in them and running the exploration, we’d like to with GGP retain an interest in Firetower and Warrentina, had them in the portfolio for the reason we like them, little bit overshadowed now by their big brother over in the Paterson
- but that doesn’t mean they don’t have prospectivity and maybe someone else can so better justice to them so something we continue to think and talk about finding the right partner
- will be best to do that as what we think best is to find someone to accelerate activity there rather than us keeping on ice for an extended period of time.

* Which makes sense as they seem outliers and maybe the prospects are not large scale but that doesn’t say you just dump them.tp have somebody who is already exploring in those areas would make sense so….
- with the consolidation of the team into one office in W.A and Perth getting boots on the ground is just a bit more expensive in and time consuming to get across to Tasmania so again is there a more focused explorer that can show these more love and affection.

* I see that as a very comprehensive round up and people should not see GGP as a one horse story and I can see obviously from purchases that you've made even last year that is also the intention that there is an ability to exponentially grow this company by more and more exploration so that's an interesting chat and good to see that the Western Australian government wants to support that as well so yeah all looking very positive.
- yeah I think you're… investing in the drill bit and undertaking that exploration is one of our three growth pillars and I think when you look at that there is no better way to create shareholder value than through exploration success
- it is absolutely the cheapest way to add ounces to the portfolio so it is worth undertaking, I think we have some tremendous ground, we have a really good option value in the Paterson particularly if we can unlock that, some patience is needed
- at Ernest Giles equally so and also with Panorama and Bromus, I like them equally, Panorama continues to look increasingly of interest to us so like what we have there and want to understand them better and if we can create that event where we bring a second development into the portfolio I think that just has a huge impact on shareholder value.

* Well Shaun we look forward to you updating the market in the form of assays and quarterlies etc. and thanks very much for your time again, pleasure as always.
- yeah guys and I really appreciate your time again and I enjoyed the chat and hopefully that's helpful and we'll have an exploration update out next week so I appreciate the time and for those who have taken the time to tune in.

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