Australia's largest stock trading and investment forum Australia's #1 stock forum

LRV

Click for more information

1.37%

7.2¢ larvotto resources limited

Morning all. I have really enjoyed looking up some of the...

First 13 Last

Share
Profile

Follow
Wack

4,147 Posts.

6235

27/01/24

06:41

Post #: 72085521
Share

Originally posted by Wack: ↑

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.

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.
I am sure you will see the Arsenopyrite and Pyrite mentioned.

Again here.

I have made some attempt to reference these excerpts as per this one below which relates to the Hillgrove project.

This pic shows small flecks ( as described by QH in the vid ). It is also the HG veins that are similar and need to be considered.
These are from Hillgrove and can also be compared to those found in both projects that QH is discussing.
The difference here is that of Brecciation that is present in this hole at Hillgrove.
Brecciation is usually in the upper regime which suggests the best part could be below.
Just look at the number of them.

I have included this pic to remind us of the grade and the Antimony values but also the current depth.

This is an excerpt from one of the ann from RVR and draw some attention to Bakers Creek.
Yea well, " whoopy doo".
Well actually that is where we are currently drilling.
So what?
It is a long way down the valley, hosts a decent amount of historical gold and presents a very high potential target.
It also puts us about 500m deeper in the stratigraphy.
The deeper the better I say. Remember that Fosterville Swan Zone sits around 1600m deep.

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.
I need to read, re-read and listen to videos like this one attached many times so the info sinks in.

Keep in mind that the size of the Swan zone is not that large.
As QH explains, the geometry is within 100m, so if you space the drilling too far apart, YOU CAN MISS IT.

I notice that SXG are drilling a very nice project and yet I see many comments on what posters on that thread describe as Directors Specials.
They continue to question why the drill holes are only 10m apart.
QH again explains extremely well, just why that is done.
From that, I take my hat off to Michael Hudson for his skills to identify and hence, not miss the paydirt.
I also regret not understanding this earlier so that I could have jumped on that stock.

Here is another pic of the suggested drill plan to lessen the risk of miss.
This is from the 39 minute point in the video above and clearly explains just why the drill holes in these types of deposits and hence at Sunday Creek are conducted this way.

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

Expand

Morning all.
I have really enjoyed looking up some of the history of the Hillgrove Mine from back in the mid 1800's or so.
In doing that, I stumbled across some info.
I really wanted to know what had been observed from drilling by the previous owners, namely the occurrence of Vuggy crystallisation in the historical drilling.
That wasn't easy but it was rewarding.

Here is an excerpt from Wiki that explain the vug and how it forms.
This was referenced by QH in the comparisons between those other 2 projects that we find similarities to here at Hillgrove.
I am no geo but I give a real importance to this being present in our case.

Now this excerpt gives a description of the observations of what we have at Hillgrove.
I make emphasis on the Fissures and point to the description above.
Fissures provide open spaces within Breccias and otherwise termed as Vug.
I put a pic in my previous post that shows the quartz veins with Breccia and quite a bit of free flecks of gold.
QH refers to those small flecks of gold within the quartz in the video.

That is what we want to see imho and excites me that we are seeing all the similarities to other high grade discoveries and also suggests that we need to drill and may need to go quite a bit deeper yet.
The decision to explore Bakers Creek is one that I admire and hope to see some early results, (no kidding?)
I was wondering where this excerpt above came from and was targeting previous owners.

Bingo- it is from Straits Resources.

Here is a screen shot of the history of Bakers Creek and why this early drilling could provide some early success.

Again, I remind everyone that nothing is certain in exploration.
We do however have some very good signs here from historical mining with all the hallmarks of what could be a HG vein deposit which previous drilling has already proven.
Now for extensions to those HG veins and higher grades at depth with larger ore bodies.
Bakers Creek is around 500m below in a valley. Drilling here gives us some good depth into the system.
If we drill 1000m from there, we could be 1500m into it.
How deep is the good stuff at Fosterville that was totally unknown prior to the suggestions from QH?
1600m
I recall the question, Why did 4 previous attempts to resurrect this project fail?
I would suggest that all this knowledge of HG epithermal systems and the presence here was not understood until what eventuated at Fosterville. That could suggest that only RVR was within that time frame and knowledge.
How good is the timing for us and all thanks to the hard work of LRV.
Fingers crossed.

Enjoy your weekend read everyone.

Kind reagards, Wack.

LRV Price at posting: 6.9¢ Sentiment: Hold Disclosure: Held
13 Upvote

4 Great analysis

Reply

There are more pages in this discussion • 27 more messages in this thread...

First 13 Last

Add LRV (ASX) to my watchlist

(20min delay)
Last 7.2¢		Change -0.001(1.37%)		Mkt cap ! $15.87M

Open	High	Low	Value	Volume
7.3¢	7.3¢	7.0¢	$108.6K	1.505M

Buyers (Bids)

No.	Vol.	Price($)
1	100000	7.1¢

Sellers (Offers)

Price($)	Vol.	No.
7.2¢	182493	2

View Market Depth

No.	Vol.	Price($)
1	100000	0.071
5	197145	0.070
2	200000	0.069
1	250000	0.068
1	1500	0.067

Price($)	Vol.	No.
0.072	182493	2
0.073	190298	2
0.074	137623	2
0.075	50000	1
0.085	64303	2

Last trade - 13.02pm 29/04/2024 (20 minute delay)


Last 7.2¢			Change -0.001 ( 1.37 %)
Open	High		Low	Volume
7.3¢	7.3¢		7.0¢	599848
Last updated 13.02pm 29/04/2024 ?

LRV (ASX) Chart