SPARTAN RESOURCES LIMITED (ASX:SPR) - Ann: Exploration Update - Exceptional Intercept, 72783979, page-98 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by speculator101 ↑

Some good discussion around what SPR might look to do in regards to development.

Before I delve in, I noticed this section regarding deep DD drilling by RMS back in 2022.

Suffice to say, they are some very deep holes (and expensive), which I think illustrates how important the next 12 months of drilling is on Never Never. As after that, the value of drilling any deeper will become very questionable (though in saying that, even when I read further, I start to second guess myself, for perhaps $4-5m, they could drill down to 1500.. and prove that NN will mine for more than 15 years.... if they hit gold). Better to focus on the huge list of targets that SPR have (still growing) sitting around the plant.

For further context, here is RMS numbers on it's Galaxy Underground PFS (which has been in development for just on 2 years this month).
This might interest you plough.

Another neighbor of SPR, is also undertaking U/G development projects (WGX). It recently gave the green light to it's Great Fingall U/G.
They basically plan to mine around 300-350tk p.a. Or around 50k ounces before recovery (at 5g/t). I also like this as an example because you can clearly visualize the long life potential of Never Never. To be clear, NN has a lot more gold PVM than Great Fingal does now (not the early version though!)
Also WGX is very keen to bring this into production because it will be much lower cost than almost all its other U/G operations, yet... if you just speculate a little about how much better NN will be....

For some further perspective.... Here is Great Fingal at 2000m down dip, versus Never Never (very rough btw!)

Just how big is Never Never.... I think a 10+ year mine life is now almost certain with... hmm.. don't want to get overconfident, but... if it can even just come close to Great Fingall, that will be something around 2m ounces (separate of Gilbey's). OPVM is likely increasing due to the strike length extending too.

Final example of how much dirt could be mined from NN over the longer term, if multiple mining fronts could be achieved -
WGX Bluebird U/G mine with a strike length of around 300m and 2 declines, is currently producing around 130kt per quarter, or 500kt+ p.a.
Again, I view this as a potential analogue for the main Gilbey's pit, with lower grade, but... higher tonnage U/G operations using LHOS.

Final context, RED has U/G mining occurring at it's KOTH project, under a massive open pit... (below are reserves)

The DFS planned to mine around 1mtpa from the U/G.

Anyway, just a few thoughts.

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Hi Spec ,
Thank you for that research note . Looks like the top section of Great Fingal mined 1891 to 1929 had around 4000 OVM - quite impressive .
Would WGX have the advantage they can pull ore from both Great Fingall and Golden Crown as they go deeper so mining on two headings ?
Yes I to feel Fingall is a good analogue to NN , ( I was using Penny feesibility study ) THink WGX mentioned in a video they have been able to increase their development advancement above 260M per month for a TBJ , by shortening the times between blasting and going back in , the modern jumbos can be remotely pulled back from the stope before blasting I believe which speeds up egress time , or there is some type of system they have got to make turn around times faster .
looks like they are planning their levels about 21 meters apart which seems a big interval must be confident the pinching and swelling does not have to much variability .
Looks like they are going down about 100M a year , in the longer strike section then 150 M a year deeper down where the strike is shorter ,
I am aware of in the Next few years new truck technology (based in Perth) that makes up to 60% more tonnage possible to be extracted from one decline ,
You have an IRR of 53 but a payback of over 4 years that seems to long a payback time for that IRR for Fingall , or Is the first 2 years really profitable which makes the IRR look good and then it gets less so ?