A well attended meeting. RM
talked to the APAC presentation with only a little colour added by Qs.
Some 10-20 people watched online though I don't know how much could be heard from one early comment that showed up on the screen.
All resolutions will pass based on proxy votes cast.
Vibe a bit more subdued than I expected given the recent share price spike. Not just my impression as someone else noted the difference from previous meetings. Too nebulous a feeling to speculate much further with no obvious reason why that could be the case.
Minyari results have exceeded expectations, so far.
Having to sit on 70-90Kms of visuals and slow assays could be a factor in the interpreted mood.
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Slow assay results:
The company line is mainly slow assay turnaround.
- [Rio a special case,
- Paterson IGO is a regional program and I got the impression they may be withholding assays because of the exploration nature,
- Wilki? perhaps a variant of turnaround and exploration program.]
Rio as per
@blindfaith01........ and timing on last Minyari samples with final announcement after QAQC. (The Minyari assays are likely to be announced in batches, as each lot is received).
At a previous GM it was mentioned each project in AZY's Paterson had their own preferred laboratory and procedures.
AZY use ALS and the queue is apparently 100,000. Up to 4 months was mentioned as possible delay time with 2 more the norm.
AZY are sending their samples to Adelaide for preparation (drying, crushing and pulverising) then return the prepped samples to Perth. Apparently this reduces some of the process time.
Wilki Drilling finished last weekend. (Roger Mason (RM) passing comment.)
Paterson IGO farm in drilling ongoing. Diamond drilling not done this year if I understood RM correctly.
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From the presentation there is a timeline that RM is hoping to follow.
Patience is required by everyone for the assays. AZY are the same as the majority of other companies regarding turnaround. The yellow bars and arrows represent the probable time for assays to come out.
The MRE update on Minyari/Waca followed 2-3 months later by a scoping study and an as yet to be decided date for a PFS. Later in 2022 perhaps?
Some "arm waving" by RM about a scoping study around Q2 2022 for Calibre.
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Core projects:
Minyari Dome/Citadel
MD
35Kms of Resource definition and extension at WACA with 12Kms of above expectation assays returned to date. The Minyari composite section shows where resource extensions have been made by drilling to date.
Only holes with results have been added to the 2017 resource model showing:
Minyari East extension.
Some hanging wall extensions
Some gaps infilled.
Not obvious is how much of the previous MRE has been confirmed, upgraded to indicated or excluded.
Continuity and grade will come from further drilling data fed into the MRE.
Plan A is the preferred option for a standalone plant at Minyari suggesting the worst case scenarios for an updated MRE are not expected.
NCM may not be too happy about a standalone operation on their doorstep but the costs of transporting (0.1g/t mentioned by RM) and toll treating will need to be weighed against Capex for a plant at Minyari.
Plan B transport and toll treat.
[Minyari to Winu; Winu to Telfer (too low grade) will not be by a straight route RM. Maybe considered but highly impractical].
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Telfer Mill 20-22Mtpa
Some rough dates/tonnes
Telfer ore stops 2024?
Havieron 2-3Mtpa begins 2023
??2024+ means interesting times for throughput.
Minyari ore is compatible with Telfer though there isn't a cobalt stream (RM). Au/Cu/Ag OK (RM).
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Surveys this year Drone Mag, GAIP and Soils. The latter at Minyari Dome is probably a subset of a larger regional program done for the south part of the Paterson JV. Perhaps in an attempt to generate targets in the area shown on this image.
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Citadel:
Not much extra.
A detail magnetic survey was conducted over Rimfire. Ongoing GAIP.
Rio didn't 'like' AEM in 2016. Hence, the IP surveys. 2017 back to AEM and flew a magnetic target that gave an AEM response......Rest is History.
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As mentioned above Wilki and Paterson are in a more regional phase for target generation.
Wilki - no recall beyond the drilling finished 16/11.
RM said some 13Kms of Aircore have been drilled for Paterson and the diamond program delayed. At an average of 100m per hole that means a minimum of 130 holes which is way more than have been spotted on Sentinel imagery. 100+-m tend to be the deeper holes in previous holes through the central Paterson (Minyari to south Citadel) so I would expect many drill sites have not been seen.
@Shines2spotting some more sites - will take a look.
Diamond drilling was planned for Serrano but hasn't happened.
A large soil program is winding down around the Paterson ground surrounding Minyari Dome. 1000 sq kms or samples? forget which. This is the kind of program that is normally beyond the budget of a company like AZY. Probably ultrafine soil fraction which is the latest variation in trying to extract meaningful data from the near surface.
[An early soil program over part of the Magnum Dome gave some interesting results. Followed up? Meaningful?]
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Exploration:
I asked about the potential in the Paterson in relation to work AZY are doing on the 'postage stamp' sized block at Minyari Dome where results are promising. RM fully expects that more deposits will be found though it is not going to be too easy.
Since AZY "primed the pump" back in 2011 some 11 Moz of resources have been added outside of Telfer. AZY had a good look at Havieron before GGP but the cost of exploration would have bankrupted the company if they didn't hit with the first or second hole. Kudos to GGP for taking on the challenge.
[An aside from the Newgen conference: A significant targeting procedure involved re-evaluating the magnetics. Apparently there are factors that displace magnetic anomalies something like wind moving smoke away from the source of a fire. GGP were able to correct for this and Hole 1 was drilled into the combined mag/gravity target with great success.
Drilling through the 420m cover sequence has revealed there are likely to be significant geotechnical issues. Obviously nothing fatal but a deep surface weathering that will make the upper levels tricky followed by varying levels of unconsolidated and bouldery (especially near the unconformity) glacials. 100 or so holes will give the engineers a lot of warning]
Asked RM about AZY deposits with some resource already
Chicken Ranch - not likely to be Minyari size.
Tim's Dome - needs to be looked at like a Telfer system with deeper drilling.
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No cash raise for the foreseeable future (AZY remark). Famous last words from some companies, but probably no need for at least another two quarters depending largely on expenditures needed for 2022 at Citadel (my comment). The media release posted by
@Shines2 is probably correct in stating AZY will spend time digesting results from this years drilling at the Minyari Dome for the start of next year. Good results may change the programs, but hey we can live with that.
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9.5c Incentive options.
Set as a formula when the resolution was first considered in early October at 150% of the Vwap pre the meeting today. Not a known amount at the time but they filled in the appropriate parts of the equation and announced it yesterday.
When setting the formula the market had been apprised of all available data.
These are options which, if fully exercised, the company gets a touch under $5M into the kitty. Most incentive options do not reach the strike price. Certainly good if these do and go way beyond.
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Corporate Activity?
A question about AZY being taken over and split up by their JV/Farm in Partners was asked. Unlikely in that format and no real comment one way or the other as would be expected. Mark Rodda did mention there is a lot of M&A activity happening - true -
a subtle hint there is something in the wings for AZY? possible but IMO not too likely.
A good offer by Rio for Citadel might be considered especially if AZY are serious about a stand alone operation at Minyari and need significant funds. Does get very complex with NCM and IGO being major SHs. Interesting to speculate but that's all it is - random speculation.
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Good to see the SP holding above the 6c mark.
(20min delay)