Notes from Proactive Results Interview - 28 Apr 2022
Posted: Sat Jun 25, 2022 4:52 pm
Notes from Proactive Results Interview - 28 Apr 2022
Interview: https://www.youtube.com/watch?v=YfbzI4XXN6s
RNS link: - https://greatlandgold.com/wp-content/up ... ges-vF.pdf
*Firstly, talk us through some of these results from the growth drilling?
- Key there is growth drilling, we continued to punch into the SE Crescent (SEC) across into the N.Breccia (NB) and again into the E.Breccia. (EB)
- All have returned good grade intersections that lend themselves to growing the resource base, not infill, they are expanding our understanding of the mineralisation envelope, really good hits and it really is the ore body that keeps giving.
*Tell us more about the HG (High Grade) intersection to the east of the E.Breccia?
- Probably the one that has the biggest buzz in our office, it’s the grade, another 150m hit but a really strong gold grade (plus carrying copper)
- What we’re seeing with two hits in a row into that southern portion of the EB is this crescent style mineralisation or HG, it’s the first time outside the SEC that we’ve seen this kind of HG
- We’re ‘2 from 2’ so good to be batting 100% in that area
- As I said last time we’re pretty excited about that first intercept so lovely to follow it up and confirm at even bigger widths
- So if that continues to bear fruit, that’s something that comes into a mine plan very quickly at that HG
- Excited – a brilliant hit.
*How are things as far as the construction?
- The construction continues, NCM updated that we’re still working through this slow ground (in regards to decline), as the softer the ground the longer it takes and the more harder the rock, the bigger a cut you can take rather than shorter cuts and then doing more cycles for a less efficient chainage of progress
- Still in this softer area, always expected it to be soft but softer than expected
- NCM have made some comments that they continue to progress through it but slower than expected (313m length of decline was reported)
- I’m aware we’re starting to come into firmer ground and the plan is to start taking bigger and more efficient cuts
- We’re turning the corner (physically and metaphorically!) and moving to where we believe the ground is more competent
- So we’ve had a couple of good days but ‘one summer a swallow doesn’t make’, it can be patchy but we’re confident we know we’re going through it, but we’ll know when we know that we’re through that area
- But as you go deeper you move from short cuts to medium cuts to long efficient cuts and it is consistent with the planning insofar as we knew this was the slow area, a little bit slower that we want but when we talk to the NCM guys they’re still a little bit confident they can pull it back as we go through the full decline
- And of course the actual time for First Ore hasn’t really changed, it’s still in that FY 2024 (Australian Financial Year runs from 01/07/23 to 30/06/24)
- Probably drifting a little bit to the latter half (01/01/24 to 30/06/24) but still a long way to go so that can still move either way, but hopeful we can bring that back earlier as well.
* What was on the itinerary when you made a trip to the UK in March?
- Really good, about building the relationships into the market but was good meeting shareholders. Both institution as there were some road shows but also took the opportunity to have a Town Hall meeting and some podcast type stuff
- Had circa 100 people at the Town Hall meeting which was well attended, so got to go through that presentation and have some team biccies afterwards to talk about the asset
- Look, it’s a good fun project to talk about, got some fantastic shareholders and I really enjoyed it and hoping to get back around June and continue that engagement, it’s good fun
- I enjoy being at the asset face as well but also good fun to get up to see the shareholders too.
* Update on the 5% option exercise with NCM?
- Continues to advance, we love Havieron, it is with some sadness that we contemplate that we might sell a certified 5% but having said that people should be really confident we’ve done a really thorough review and have a team that are good owners of Hav and can understand and articulate it’s value
- You saw that in the manifestation of the updated Resource and Reserves (R&R) and that was all us trying to make sure we fully understood the asset
- I think it was a really significant update on where that PFS was (remember the option kicked in post the PFS)
- Our intention is to move the paradigm from the option value being the PFS value which we think is too low to reflect the full understanding of that ore body and I like to think we're successful in doing that
- We continue to walk forward with that and at some stage an independent valuer will likely be appointed to come in (i.e. go to final arbitration stage) and I think that is months away rather than years away from being resolved
- Now I think that it’s good to resolve it because people want clarity and I think it’s part of the transition of getting through that and I think when we do it should be a good catalyst for shareholders
- I like to think it’s going to show this really good compounding average growth (CAGR) from Hav, you won’t need a lot of imagination to understand where this asset is growing just given the speed we can add value to this mine plan.
* Update on financing options to develop Havieron?
- Again, part of what we want to do and it kind of dovetails into post PFS and around this 5% option, we want to be fully funded for the project
- It’s great that we get to leverage all this existing infrastructure and that manages down the CAPEX spend for a project of this scale, in reality it’s a very modest amount of CAPEX but it still needs to be funded
- Spoken with a number of banks, fair to say we have a group of preferred banks that we’re talking to now but we had comfortably over half a dozen main street banks we’d engaged with
- This asset has some hugely strong characteristics and qualities and it’s a nice asset to bank when you’ve got….. is it 1,2,3 or is it 4 decades of cash flow coming out of an asset and growth potential too, it lends itself to funding
- It’s a busy time for us, a busy process, but we’d like to get that announced and when we do I think we can be fully funded and again that’s a huge milestone towards the process
- And from there the timeframe to first cash flow or first production is relatively short
- So all part of getting through this transition period; having certainty of ownership, certainty of funding and a platform just to grow value from
- We’re doing some hard yards now to get all this in place but I have confidence we’ll get it all resolved shortly which will be good for us and then get back to focusing just on the asset too, which will be good fun.
The END.
Interview: https://www.youtube.com/watch?v=YfbzI4XXN6s
RNS link: - https://greatlandgold.com/wp-content/up ... ges-vF.pdf
*Firstly, talk us through some of these results from the growth drilling?
- Key there is growth drilling, we continued to punch into the SE Crescent (SEC) across into the N.Breccia (NB) and again into the E.Breccia. (EB)
- All have returned good grade intersections that lend themselves to growing the resource base, not infill, they are expanding our understanding of the mineralisation envelope, really good hits and it really is the ore body that keeps giving.
*Tell us more about the HG (High Grade) intersection to the east of the E.Breccia?
- Probably the one that has the biggest buzz in our office, it’s the grade, another 150m hit but a really strong gold grade (plus carrying copper)
- What we’re seeing with two hits in a row into that southern portion of the EB is this crescent style mineralisation or HG, it’s the first time outside the SEC that we’ve seen this kind of HG
- We’re ‘2 from 2’ so good to be batting 100% in that area
- As I said last time we’re pretty excited about that first intercept so lovely to follow it up and confirm at even bigger widths
- So if that continues to bear fruit, that’s something that comes into a mine plan very quickly at that HG
- Excited – a brilliant hit.
*How are things as far as the construction?
- The construction continues, NCM updated that we’re still working through this slow ground (in regards to decline), as the softer the ground the longer it takes and the more harder the rock, the bigger a cut you can take rather than shorter cuts and then doing more cycles for a less efficient chainage of progress
- Still in this softer area, always expected it to be soft but softer than expected
- NCM have made some comments that they continue to progress through it but slower than expected (313m length of decline was reported)
- I’m aware we’re starting to come into firmer ground and the plan is to start taking bigger and more efficient cuts
- We’re turning the corner (physically and metaphorically!) and moving to where we believe the ground is more competent
- So we’ve had a couple of good days but ‘one summer a swallow doesn’t make’, it can be patchy but we’re confident we know we’re going through it, but we’ll know when we know that we’re through that area
- But as you go deeper you move from short cuts to medium cuts to long efficient cuts and it is consistent with the planning insofar as we knew this was the slow area, a little bit slower that we want but when we talk to the NCM guys they’re still a little bit confident they can pull it back as we go through the full decline
- And of course the actual time for First Ore hasn’t really changed, it’s still in that FY 2024 (Australian Financial Year runs from 01/07/23 to 30/06/24)
- Probably drifting a little bit to the latter half (01/01/24 to 30/06/24) but still a long way to go so that can still move either way, but hopeful we can bring that back earlier as well.
* What was on the itinerary when you made a trip to the UK in March?
- Really good, about building the relationships into the market but was good meeting shareholders. Both institution as there were some road shows but also took the opportunity to have a Town Hall meeting and some podcast type stuff
- Had circa 100 people at the Town Hall meeting which was well attended, so got to go through that presentation and have some team biccies afterwards to talk about the asset
- Look, it’s a good fun project to talk about, got some fantastic shareholders and I really enjoyed it and hoping to get back around June and continue that engagement, it’s good fun
- I enjoy being at the asset face as well but also good fun to get up to see the shareholders too.
* Update on the 5% option exercise with NCM?
- Continues to advance, we love Havieron, it is with some sadness that we contemplate that we might sell a certified 5% but having said that people should be really confident we’ve done a really thorough review and have a team that are good owners of Hav and can understand and articulate it’s value
- You saw that in the manifestation of the updated Resource and Reserves (R&R) and that was all us trying to make sure we fully understood the asset
- I think it was a really significant update on where that PFS was (remember the option kicked in post the PFS)
- Our intention is to move the paradigm from the option value being the PFS value which we think is too low to reflect the full understanding of that ore body and I like to think we're successful in doing that
- We continue to walk forward with that and at some stage an independent valuer will likely be appointed to come in (i.e. go to final arbitration stage) and I think that is months away rather than years away from being resolved
- Now I think that it’s good to resolve it because people want clarity and I think it’s part of the transition of getting through that and I think when we do it should be a good catalyst for shareholders
- I like to think it’s going to show this really good compounding average growth (CAGR) from Hav, you won’t need a lot of imagination to understand where this asset is growing just given the speed we can add value to this mine plan.
* Update on financing options to develop Havieron?
- Again, part of what we want to do and it kind of dovetails into post PFS and around this 5% option, we want to be fully funded for the project
- It’s great that we get to leverage all this existing infrastructure and that manages down the CAPEX spend for a project of this scale, in reality it’s a very modest amount of CAPEX but it still needs to be funded
- Spoken with a number of banks, fair to say we have a group of preferred banks that we’re talking to now but we had comfortably over half a dozen main street banks we’d engaged with
- This asset has some hugely strong characteristics and qualities and it’s a nice asset to bank when you’ve got….. is it 1,2,3 or is it 4 decades of cash flow coming out of an asset and growth potential too, it lends itself to funding
- It’s a busy time for us, a busy process, but we’d like to get that announced and when we do I think we can be fully funded and again that’s a huge milestone towards the process
- And from there the timeframe to first cash flow or first production is relatively short
- So all part of getting through this transition period; having certainty of ownership, certainty of funding and a platform just to grow value from
- We’re doing some hard yards now to get all this in place but I have confidence we’ll get it all resolved shortly which will be good for us and then get back to focusing just on the asset too, which will be good fun.
The END.