Ann: Gascoyne RIU Explorers Presentation, page-34

Big thanks to all you poster's on the GCY thread. Lots of great posts with interesting insights.

Hey @wassa

You would Think SL would be pretty tempted to hedge with the GP at over $2650. My gut says he should wait to hedge but my head says he should hedge to mitigate future operational risks. He will probably be forced to hedge at $3000 as this would give him a large enough margin to re-introduce the stage 3 cutback.

Hey @speculator101

I had warmed to the idea of the Stage 3 cutback after looking at the sheer width of the ore bodies they will be mining. The AISC will drop considerably for a good few years. The strip ratio's far better than both Stage 1 and 2.
If SL can find a few high grade shoots wedged into the waste zones, or join Gilbey's North to the main pit, or enhance the cutback through gold discoveries on the eastern and western walls then it will be all systems go and Re-Rate time.

I do not believe they should undertake Gilbey's stage 3 cutback at current prices, particularly if they are forced into using the old cutback plan.
Archie Rose, Gilbeys North, Sly Fox, Plymouth and Hendricks look superior short term choices. Of these Archie Rose with some intercepts over 30m wide and Gilbey's North( assuming drilling success continues) combined will supply over a years worth of ore and at higher than current grades. This should give the new and improved geologist team some TIME and MONEY to drill the crap out of Dalgaranga and allow the mining division to start cutting back Plymouth, Sly Fox, Melville and Hendricks ready for the commencement of mining some time in FY24.


The stage3 cutback will uncover approx 200,000oz.
The cost of the cutback will be an estimated $160,000,000.
Even at this elevated gold price the margins will be tight.
Stage 3 should be profitable if mined at a margin greater than $800 an ounce.
That's an AIC of $1850 per ounce using today's prices. Once again these are pretty tight margins in a rising cost environment.

Hey @pbawley
I agree on your Melville call. It's a short term issue based on border closures (reopening soon), diesel prices, and supply chain squeezes( latest covid strains more mild and case numbers outlook improving).

I distinctly remember SL dismissing the chance of any UG mine at Sly Fox. He really wants to open the Plymouth and Sly Fox pits up whilst drilling the Southern end of the Gilbeys along strike. Knowing what we know now about the last geo, he probably missed several giant high grade intersects along strike there as well.

DYOR
GLTAH