Notes from GGPHelp Interview with Liam - Part 2 - 09 June 2022
Posted: Sat Jun 25, 2022 4:54 pm
Notes from GGPHelp Interview with Liam - Part 2 - 09 June 2022
PART 2 -: https://www.youtube.com/watch?v=TSER3ftyTcw
PART 1 -: https://www.youtube.com/watch?v=Ja7ERAlsxQg
PRESENTATION: https://greatlandgold.com/wp-content/up ... -22-vF.pdf
(**Remember to subscribe to this new YouTube channel***)
* And welcome back to part two. I'm here with Shaun Day, managing director of Greatland Gold and Shaun, thank you for coming back for this second part. I wanted to touch on the 5%. It's been the topic of conversation for us now for the best part of six months. The shareholders are really excited to see how this unfolds. I just wondered if you could comment on the 5% and how it's progressing, please?
- Yeah, look, thanks Liam and chatted around this off-air, just that we're somewhat restricted around the confidentiality agreement so I am a little bit more restricted in my comments than I'd otherwise choose to be.
- But I think what we can say is, yes, since this has been initiated, we're closer to the end than the beginning of the process, which is really encouraging.
- You know, we've put a lot of time, energy and effort into preparing for this. And shareholders should have a lot of confidence around the degree of preparation that's gone in. And this is all around the price discovery.
- And that price discovery is structured around the content of the joint venture agreement.
- You know, there is a starting point there with the with the pre-feasibility study, but albeit I think we believe there's a lot of additional growth at Havieron that can still be captured.
- And one of the examples I'll give here is, we came out with an updated resource and reserve and we came out with that unilaterally, you know, for a number of reasons.
- Chief amongst that was we were undertaking a funding process, but that was still absolutely critical to understanding the value at that point in time of Havieron. And of course, with the passage of time, the value of Havieron continues to grow and increase.
- And to some extent, it's a shame that the feasibility study won't be out by the time this is determined, because I think that will be another positive mark to showing the growth of the asset. But it continues to grow. But this is a snapshot in time and we have thoroughly prepared around that.
* That's great. Thank you for that update. Looking ahead for Greatland Gold, the project is ever evolving. What's the ideal timeline for you now as this expands and grows?
- Well, in terms of the expansion, I think you're expecting to see ore in in the second half of FY23 (The Australian financial year starts on 1 July and ends the next year on 30 June) so effectively early calendar 2024, I might say. And so that's becoming, you know, very close, which is exciting.
- And that's just the SE Crescent, and I think this is still something that shareholders should be excited about, I think we increasingly have a very good understanding of the SE Crescent which continues to grow.
- But there are also the bulk mine opportunities and when I look at this mine, I actually see two block caves potentially forming, you know, one centred around that new Eastern Breccia and then potentially a second around the Northern Breccia.
- So, there are potentially three mining areas within this one mine, it’s a beast of an ore body and the continued growth of it as we continue to drill it is terribly exciting.
* That's absolutely crazy for you to suggest that there's the potential for three block caving opportunities……..
- Well two block caving plus the SE Crescent, which is sublevel open stoping (SLOS).
- So, a more selective mining methodology where you're doing paste fill to try to minimise dilution and take as much of that high grade material as you can.
* Thank you for clarifying that. Yeah, I didn't want to try to mislead anybody there. So how then, because obviously there's a lot of Capex needed to get that far, the transition to growth - how do Greatland grow from here?
- Well, let me answer that in in two parts. Firstly, just because in the preface, you talked about a lot of Capex, one of the brilliant elements of this and indeed of the joint venture with Newcrest is that Newcrest is effectively developing this as a mid-cap would, which is tailor made for Greatland’s balance sheet.
- What are we doing? We're driving in and developing the SE Crescent hitting that high grade ore, we're going to then take that through and process it and then have ounces of gold and tonnes of copper to sell and that will generate cash flow and then we can reinvest that into the mine to continue to grow that, continue to advance the decline to all the way to the bottom of the SE Crescent.
- But that also opens up additional access to these additional mining areas. It opens them up in terms of infrastructure so that when we do want to open them up for mining, we're sitting right next to them but also opens them up for drilling.
- Once you can put in an underground drill rig sitting right next to the Eastern Breccia or halfway down the decline to drill out that Northern Breccia, it's a shorter drilling length and that is obviously cheaper, but equally it shortens the cycle time for information. (Reporting cycle between results).
- So, you have these beautiful, you know, positive kind of feedback where drilling is cheaper and quicker and you understand those elements of the ore body quicker. And because you have infrastructure already near those elements, the potential to bring them on as mining zones is also improved both economically and from a time perspective.
- If I answer your question in the second part, which was talking about you know, how do we see the expansion?
- Well, we've got the ongoing growth drilling to the end of June, I think we're looking to still complete, you know, 40,000 meters of growth drilling in the second half of the year. But beyond that in FY23, we have a very substantial growth drilling program planned again, so that's incredibly exciting.
- We have the feasibility study coming in and again, although that pre-feasibility study was centred around 2 million tonnes per annum of ore, we did flag that the feasibility study would be looking to take that up to around 3 million tonnes per annum. Now I think 3 million tonnes per annum is about as much as a single decline access can do.
- So, look it could be a little bit over, a little bit above. My sense is, you know, that will come up and that could be as much as a 50% increase in mining rates which is, you know, that in itself is tremendous growth.
- Our decline continues to advance very positively. And remember the Permian zone we're mining through is not homogeneous. As you get deeper through it, it’s had more time, more pressure. It's a more solid mass and that allows longer cuts and more efficient mining methodology.
- So, I think that's very exciting. And you know, we expect and hope to see and plan to see mining rates.
- So, coupled with the evolution of the mining methods at site where we start with the sublevel open stope, but then we have the opportunity to bring in these bulk mines.
- And when you hear Sandeep speak, he talks about ultimately having one mine and two mining methodologies. This sublevel open stoping down this high-grade SE Crescent. But then opening up the broader Havieron with these with potentially block caving or at least bulk mining methodologies. And you know that is tremendous growth to have sitting inside our known ore zonation.
* It's just fabulous. Recently you announced the 23rd results for Greatland and the joint venture with Newcrest. What's your biggest takeaway from these results please?
- Yeah, we talked about the SE Crescent just now and that for me was the takeaway of this, we've punched a hole below that which shows another hundred meters of vertical extent where we're still getting that typical and consistent high grade SE Crescent intercept.
- And that takes us to a thousand vertical meters and still going.
- Again, we are, you know, we are blessed by this ore body.
- It is a world class ore body and has the capability of being one of the largest gold mines in Australia and we should celebrate that.
* I'm just looking at page nine of your recent presentation deck to see that growing from the stage one PFS and then the updated resource and then just trying to envisage how that's going. That is just a phenomenal, as you keep relating to it, a beautiful ore body, which is, is just amazing.
- It is. And I think this is an audio file. But for those that haven't seen Slide nine I'd recommend you to go to the site and take a look at the presentation there. (Click Here or see link at beginning of this document).
- But there's two things on that slide. It's a bit of a before and after shot. What the ore body looked like at the time of the PFS and what it looks like today after our March update and remember it continues to grow but the amazing number in that page, the number which is the best I've seen in my career is that conversion rate.
- 86% of the resource converted into a reserve, that's basically telling you on that SE Crescent that once you put all of it…. fits into mining shapes.
- Of course, there's access and a little bit you don't want to take the edges to and overly dilute but really everything you find translates into economically mining material because it's high grade and sitting next to infrastructure and for as long as that 86% continues it just talks to the quality of this ore body.
- And when I say it's world class it's multifactorial why it’s world class around size, potential ongoing growth that that conversion factor or conversion rate, it points you to the quality of this ore body.
* That's, that is just mind blowing. I genuinely am just mind blown by how this is shaping up. Shaun, I think it's probably best to leave it now, I've had you on for some time and I appreciate you've got other things going on and I always like to ask my guests if they have any final words or statements or if there's anything else they would like to say……is there anything else you'd like to say to the Greatland shareholders at all?
- Look, we really value the ongoing support.
- I think a fairly consistent theme when I talk to the shareholder base is I've described this as a transition period where we're taking the company from a junior explorer.
- We've put in place a team that is more capable across all the domains of mining, engineering, processing, resource, and include geology and finance and legal.
- I think we have a more complete team and a more complete understanding of our ore body and also a team that can put in place a funding.
- And, that's really what I want to celebrate with our shareholders is getting through this transitions phase, dealing with the 5%, being fully funded.
- And then I think we have the platform to, just to focus on growth again, we've got, we get these kinds of significant issues that need to be addressed into the rear-view mirror and then we really just start to celebrate the growth in the ore body and what that delivers.
- And we're going to couple that with an ongoing regional exploration program.
- We're about to start drilling this month, we start with some more shallow RC targets and then we get into diamond drilling in a couple of months after that and some pre-collars just from an economic point of view to accelerate all of that.
- But look, there's lots going on - no one's dying of boredom here and we're pretty excited about what the second half of this calendar year brings our shareholders.
* Shaun Day, Managing Director of Greatland Gold. Thank you so much for joining me today. I really appreciate your time.
- Liam. It's a pleasure as always and nice to connect again. Thanks now.
PART 2 -: https://www.youtube.com/watch?v=TSER3ftyTcw
PART 1 -: https://www.youtube.com/watch?v=Ja7ERAlsxQg
PRESENTATION: https://greatlandgold.com/wp-content/up ... -22-vF.pdf
(**Remember to subscribe to this new YouTube channel***)
* And welcome back to part two. I'm here with Shaun Day, managing director of Greatland Gold and Shaun, thank you for coming back for this second part. I wanted to touch on the 5%. It's been the topic of conversation for us now for the best part of six months. The shareholders are really excited to see how this unfolds. I just wondered if you could comment on the 5% and how it's progressing, please?
- Yeah, look, thanks Liam and chatted around this off-air, just that we're somewhat restricted around the confidentiality agreement so I am a little bit more restricted in my comments than I'd otherwise choose to be.
- But I think what we can say is, yes, since this has been initiated, we're closer to the end than the beginning of the process, which is really encouraging.
- You know, we've put a lot of time, energy and effort into preparing for this. And shareholders should have a lot of confidence around the degree of preparation that's gone in. And this is all around the price discovery.
- And that price discovery is structured around the content of the joint venture agreement.
- You know, there is a starting point there with the with the pre-feasibility study, but albeit I think we believe there's a lot of additional growth at Havieron that can still be captured.
- And one of the examples I'll give here is, we came out with an updated resource and reserve and we came out with that unilaterally, you know, for a number of reasons.
- Chief amongst that was we were undertaking a funding process, but that was still absolutely critical to understanding the value at that point in time of Havieron. And of course, with the passage of time, the value of Havieron continues to grow and increase.
- And to some extent, it's a shame that the feasibility study won't be out by the time this is determined, because I think that will be another positive mark to showing the growth of the asset. But it continues to grow. But this is a snapshot in time and we have thoroughly prepared around that.
* That's great. Thank you for that update. Looking ahead for Greatland Gold, the project is ever evolving. What's the ideal timeline for you now as this expands and grows?
- Well, in terms of the expansion, I think you're expecting to see ore in in the second half of FY23 (The Australian financial year starts on 1 July and ends the next year on 30 June) so effectively early calendar 2024, I might say. And so that's becoming, you know, very close, which is exciting.
- And that's just the SE Crescent, and I think this is still something that shareholders should be excited about, I think we increasingly have a very good understanding of the SE Crescent which continues to grow.
- But there are also the bulk mine opportunities and when I look at this mine, I actually see two block caves potentially forming, you know, one centred around that new Eastern Breccia and then potentially a second around the Northern Breccia.
- So, there are potentially three mining areas within this one mine, it’s a beast of an ore body and the continued growth of it as we continue to drill it is terribly exciting.
* That's absolutely crazy for you to suggest that there's the potential for three block caving opportunities……..
- Well two block caving plus the SE Crescent, which is sublevel open stoping (SLOS).
- So, a more selective mining methodology where you're doing paste fill to try to minimise dilution and take as much of that high grade material as you can.
* Thank you for clarifying that. Yeah, I didn't want to try to mislead anybody there. So how then, because obviously there's a lot of Capex needed to get that far, the transition to growth - how do Greatland grow from here?
- Well, let me answer that in in two parts. Firstly, just because in the preface, you talked about a lot of Capex, one of the brilliant elements of this and indeed of the joint venture with Newcrest is that Newcrest is effectively developing this as a mid-cap would, which is tailor made for Greatland’s balance sheet.
- What are we doing? We're driving in and developing the SE Crescent hitting that high grade ore, we're going to then take that through and process it and then have ounces of gold and tonnes of copper to sell and that will generate cash flow and then we can reinvest that into the mine to continue to grow that, continue to advance the decline to all the way to the bottom of the SE Crescent.
- But that also opens up additional access to these additional mining areas. It opens them up in terms of infrastructure so that when we do want to open them up for mining, we're sitting right next to them but also opens them up for drilling.
- Once you can put in an underground drill rig sitting right next to the Eastern Breccia or halfway down the decline to drill out that Northern Breccia, it's a shorter drilling length and that is obviously cheaper, but equally it shortens the cycle time for information. (Reporting cycle between results).
- So, you have these beautiful, you know, positive kind of feedback where drilling is cheaper and quicker and you understand those elements of the ore body quicker. And because you have infrastructure already near those elements, the potential to bring them on as mining zones is also improved both economically and from a time perspective.
- If I answer your question in the second part, which was talking about you know, how do we see the expansion?
- Well, we've got the ongoing growth drilling to the end of June, I think we're looking to still complete, you know, 40,000 meters of growth drilling in the second half of the year. But beyond that in FY23, we have a very substantial growth drilling program planned again, so that's incredibly exciting.
- We have the feasibility study coming in and again, although that pre-feasibility study was centred around 2 million tonnes per annum of ore, we did flag that the feasibility study would be looking to take that up to around 3 million tonnes per annum. Now I think 3 million tonnes per annum is about as much as a single decline access can do.
- So, look it could be a little bit over, a little bit above. My sense is, you know, that will come up and that could be as much as a 50% increase in mining rates which is, you know, that in itself is tremendous growth.
- Our decline continues to advance very positively. And remember the Permian zone we're mining through is not homogeneous. As you get deeper through it, it’s had more time, more pressure. It's a more solid mass and that allows longer cuts and more efficient mining methodology.
- So, I think that's very exciting. And you know, we expect and hope to see and plan to see mining rates.
- So, coupled with the evolution of the mining methods at site where we start with the sublevel open stope, but then we have the opportunity to bring in these bulk mines.
- And when you hear Sandeep speak, he talks about ultimately having one mine and two mining methodologies. This sublevel open stoping down this high-grade SE Crescent. But then opening up the broader Havieron with these with potentially block caving or at least bulk mining methodologies. And you know that is tremendous growth to have sitting inside our known ore zonation.
* It's just fabulous. Recently you announced the 23rd results for Greatland and the joint venture with Newcrest. What's your biggest takeaway from these results please?
- Yeah, we talked about the SE Crescent just now and that for me was the takeaway of this, we've punched a hole below that which shows another hundred meters of vertical extent where we're still getting that typical and consistent high grade SE Crescent intercept.
- And that takes us to a thousand vertical meters and still going.
- Again, we are, you know, we are blessed by this ore body.
- It is a world class ore body and has the capability of being one of the largest gold mines in Australia and we should celebrate that.
* I'm just looking at page nine of your recent presentation deck to see that growing from the stage one PFS and then the updated resource and then just trying to envisage how that's going. That is just a phenomenal, as you keep relating to it, a beautiful ore body, which is, is just amazing.
- It is. And I think this is an audio file. But for those that haven't seen Slide nine I'd recommend you to go to the site and take a look at the presentation there. (Click Here or see link at beginning of this document).
- But there's two things on that slide. It's a bit of a before and after shot. What the ore body looked like at the time of the PFS and what it looks like today after our March update and remember it continues to grow but the amazing number in that page, the number which is the best I've seen in my career is that conversion rate.
- 86% of the resource converted into a reserve, that's basically telling you on that SE Crescent that once you put all of it…. fits into mining shapes.
- Of course, there's access and a little bit you don't want to take the edges to and overly dilute but really everything you find translates into economically mining material because it's high grade and sitting next to infrastructure and for as long as that 86% continues it just talks to the quality of this ore body.
- And when I say it's world class it's multifactorial why it’s world class around size, potential ongoing growth that that conversion factor or conversion rate, it points you to the quality of this ore body.
* That's, that is just mind blowing. I genuinely am just mind blown by how this is shaping up. Shaun, I think it's probably best to leave it now, I've had you on for some time and I appreciate you've got other things going on and I always like to ask my guests if they have any final words or statements or if there's anything else they would like to say……is there anything else you'd like to say to the Greatland shareholders at all?
- Look, we really value the ongoing support.
- I think a fairly consistent theme when I talk to the shareholder base is I've described this as a transition period where we're taking the company from a junior explorer.
- We've put in place a team that is more capable across all the domains of mining, engineering, processing, resource, and include geology and finance and legal.
- I think we have a more complete team and a more complete understanding of our ore body and also a team that can put in place a funding.
- And, that's really what I want to celebrate with our shareholders is getting through this transitions phase, dealing with the 5%, being fully funded.
- And then I think we have the platform to, just to focus on growth again, we've got, we get these kinds of significant issues that need to be addressed into the rear-view mirror and then we really just start to celebrate the growth in the ore body and what that delivers.
- And we're going to couple that with an ongoing regional exploration program.
- We're about to start drilling this month, we start with some more shallow RC targets and then we get into diamond drilling in a couple of months after that and some pre-collars just from an economic point of view to accelerate all of that.
- But look, there's lots going on - no one's dying of boredom here and we're pretty excited about what the second half of this calendar year brings our shareholders.
* Shaun Day, Managing Director of Greatland Gold. Thank you so much for joining me today. I really appreciate your time.
- Liam. It's a pleasure as always and nice to connect again. Thanks now.