Ann: Portal Cut for Kanmantoo Decline Commences, page-5

I thought I was the dreamer. It doesn't look like hole KTMC51-1 is trying to intersect the main prize lodes. But good to be in with a chance of intersecting something with a bit of value.

The mine plan is certainly taking shape and the maximum possible value of the haul road has been taking advantage of.

There are so many really valuable things, that don't get a mention on the balance sheet, which you get when you buy shares in HGO.

The $2m grant from the SA government is only the beginning of the cost to complete the 500m decline. The haul road eliminates the need for an additional decline of circa 3600m. How much is that worth ?



The wall collapse in the giant pit in late 2018 caused a redesign that took 2kt of recoverable cu out of the open pit plan and at the end of mining a pile of blasted ore was left in the bottom of the pit because it was considered too dangerous to recover it.

We have been told that what was eliminated from the plan and left behind should be recoverable by underground methods. Whilst that is another off balance sheet asset the wall collapses in the past concerned me in relation to the stability of the haul road and that it might not be the fantastic free asset that it seems.

The mention of turning the wall monitoring back on in the recent update gave me further cause for concern.

I however found the attached steep slope study report which seems to indicate that the main concern is the West wall not the North and East walls which support the haul road.



https://papers.acg.uwa.edu.au/p/2025_72_Lucas/

"3
Slope stability controls
Pit wall stability in the Giant Pit is controlled by the structure sets described above with each wall experiencing particular interactions with structures. Sainsbury et al. (2016) described the stability controls of each wall in some detail.
Giant Pit was completed with relatively minor stability issues due to structures in the south, east and north walls.
The focus of this paper is on the west wall stability, where J1 and J4 structures caused numerous rockfalls and batter scale failures, and proved to be the greatest challenge in achieving the steep slope design.
HGO uses shear pins as a method of supporting bench crests against sliding on J1 joints. These are described in detail by Hutchison et al. 2020. Figure 4 shows an example of batters undercut by J1 joints, with crest losses, rockfalls, and crests supported by shear pins."