Morning all.
Great article
@Kart535353 I have been watching this project for some time.
What got my attention was the grades.
It was also confusing as to why there was next to no, real value adding with previous owners.
In the last ownership, ( RVR ) I can understand with the other project at Charters Towers and the priority given to that instead.
That did look like the pick of their projects at that time but became a fatal mistake.
Here at Hillgrove they were faced with some adversities and all of a sudden this project falls into dormancy again.
I wasn't watching when LRV acquired this and quickly grabbed some when I did happen see it.
I would like to elaborate on why.
Here is a vid that I really put a lot of value on and suggest that those holding here watch.
I know that there are varying opinions on this but just offer it to those that see the possibilities of the Hillgrove project.
Yes the vid is about two completely different projects so how does it relate to us here?
Throughout this explanation, I am sure that you will identify similarities to Hillgrove.
VIDEO QH during the first minute describes the type of deposit and what they look like as well as the stratigraphy typical in these.
Remember that when QH went to Fosterville at the request of Eric Sprott, He was looking at a small plant, (840kt/a) by memory, but it is the grade that was important.
Now at this time, the grade was around 7g/t. Not too shabby by any stretch but still dependant on a small plant.
What changed?
Well QH noted that the Antimony was not only high but that it is above the best parts of this type of deposit.
As I understand it, He gave his stamp of approval and added that they need to drill deeper.
Well the acquisition of Crocodile Gold went ahead and hence Mr Sprott was the new owner of Fosterville along with it.
Next was the deeper drilling, Just like QH had advised and they discover the Eagle and Swan zone.
Well this catapults the value of this acquisition and also makes Fosterville one of the highest grade deposits on earth.
What great story and a great outcome for ES.
What we have at Hillgrove thanks to LRV is a deposit that is among the highest Antimony on the planet and ranked somewhere in the top 10 as I understand. Please varify these claims for yourself to make sure I have my facts straight and not suffering from visions of granduer.
At 15:30 minutes QH talks about the importance of Antimony in these types of deposits but remember what significance it had on the appraisal of Fosterville.
At 19:30 he speaks about the Magnetics and the importance of how to interpret that in these scenarios.
Now let's have a look at some pics that may draw some comparisons to these projects but also how easily they can be missed.
This one gives a description of the structure and the importance of Arsenopyrite and Pyrite at Fosterville.
This one describes the structure type at Hillgrove. Again here. I have made some attempt to reference these excerpts as per this one below which relates to the Hillgrove project. This is an excerpt from one of the ann from RVR and draw some attention to Bakers Creek. This pic further displays the importance of not just Bakers Creek exploration. And yet another reminder of those HG hits along with the Antimony among them. I am not a geo and I consider myself a little thick. Returning to Hillgrove and our next steps, One could ask a few questions,
Why didn't they raise more money instead of having a terrible bank balance at this critical stage?
LRV were still in the first 2 years since the float. That puts added restrictions upon their ability to freely conduct themselves.
It can have added burdens that prevent a better outcome so I would direct those complaints to the regulatory bodies and not put blame in the wrong place.
What LRV need to contend with now is managing on a shoe string budget.
From my very little dealing with Mr Meeks, I do feel a decent measure of confidence that we are now in good hands for exploring this project and to find a way forward that finally those that have had history with Hillgrove may see a payday on the horizon.
What now makes this different to previous owners of this project is that there has really only been one previous owner that missed it.
Why? Until QH went to Fosterville, these types of deposits were not well understood.
Meeks Knows what he has here.
What I will be watching for now is an exploration update that includes the word, VUGS.
I have not found this so far and would very much welcome it bought to this thread if anyone has seen this description given before.
I also hear that this is the fourth attempt or so at resurrecting this project.
My response is, So What.
Fosterville was only a 7g/t mine before QH came along and changed the fortunes of it along with the fortunes of Eric Sprott at that time.
Anyone noticed the grade at which this mine operated at historically? Better than 7g/t
One more thing to consider is that this plant is only ~250kt/a
Very small?
That depends on the grade, just ask Eric Sprott about that.
But keep in mind that RVR, during their ownership of Hillgrove purchase another crusher along with conveyors that will lift production to 500g/t.
Still too small?
Now take a look at the market value and ask yourself, Given the increased plant size and the possible exploration success, What could this project be worth?
Recently I watched a vid with ES and Craig Hemke. ES tells that it went from a valuation of ~$1b to ~$13b very quickly.
We can be wrong many times with exploration and our expectations of success but I like my chances here and I like it being under the watch of Mr Meeks.
The next thing we will need is more money.
Bugger!
If I was doing this with those restrictions, and given that we are now more than 2 years since floating, I would consider an exploration update and prey that we get lots of visible gold in the cores which will launch the SP and allow a raise with much less dilution.
Or We could do a take off on the Antimony for a lump sum that will allow us to drill as per that pic above. I would hope that we do not see any take of include the gold or any hedging.
Either way, as long as we do not miss the pay dirt.
Hope I haven't rambled too long.
Kind regards, Wack
(20min delay)