Cheers
@Jonnyash - a very interesting presentation.
Sort of hard not to respect his plain speak (cannot help but wish I had that sort of MD at my place of business, but....)
In any case, here are few things I picked up from the preso.
Stage 3 cuttback is going to cost $120m. So obviously it was deferred. However... with all the drilling that has occurred on the East Wall (which is a major part of the $120m). He clearly mentions that the deferment takes 3 years off the mine life (so... approx 240k ounces). SL clearly states that it will come back into the mine plan, especially with the drilling they have done (and continue to do incrementally...) , and will continue to do, to find ounces in the material that was simply going to be waste, and instead have ounces in the material, pay for the cuttback.
"East Wall is a huge part of the total cost, yet, now, it looks like instead of costing us money, we will make money"
"and that brings back like... I am being careful about using timeframes... but it brings back a substantial of the LOM & doesn't cost us anything".
Then he goes on to discuss the East wall as basically being a new open pit, beside the main pit and he explicitly states, it will have years of feed for the mill....... I am really starting to comprehend why GCY has mentioned a mine life well into the 2030's.
Gilbey's East is an extension of Plymouth.... very interesting stuff to say the least, plus he goes on to say, that inbetween the main pit, East Wall and Plymouth, it has not been drilled, and he hopes... with some success with the drill bit, that all 3 pits merge into one... and that is not even including any inclusion of the Gilbey's North discovery. I cannot deny, its some very bold statements from SL.
The success at Gilbey's has meant that GCY plan to spend $6-7m p.a on exploration at Dalgaranga, which is substantial for a company its size.
$1.8m spent on Gilbey's north... I agree with SL, money very well spent considering what its likely to give to the plant/project going forward.
SL also mentioned they drilled a deep hole in the bottom of the main gilbey's pit, 300m below, and it was mineralized the whole way. Did I miss this?
"What will you be doing exploration wise for the rest of the year" "drilling Gilbey's north to a much closer spacing, to allow permitting to be completed in Sept/Oct, and straight after, we will start mining the deposit".
"mineralised from surface, very low strip ratio & closer to the plant than even Stage 2" - very nice to have this confirmed by the boss.
SL also confirmed that they are moving mining equipment into the Gilbeys East (I guess that's what is should be called) to mine it, even though they don't have booked reserves, they have enough resource modelling done there to allow them to 'test mine' some areas and process it, which gives them more optionality in regards to ore sources. Suddenly, you have 2 pits to choose from (well, 3 really, with Plymouth also mining).
He is also very keen on merging Plymouth and Slyfox, which would allow a lot of the Sly Fox MRE back into the mine plan, "easy wins" in SLs opinion. Again, cannot deny feel some sense of calm at knowing I and others have not been too far off the mark.
Very interesting in regards to how vital it is they increase the grade... 20-30% increase in grade, basically doubles the margins GCY make. Huge.... upside to be had.
Either way, a very refreshing interview. Here's hoping that when they mine the East Wall, they get some more high grade sections to bolster the Sept Q production. Looking forward to the end of July too.
(20min delay)