Investor Briefing Call About 1/2 hour discussion. It's worth mentioning a couple of highlights. I've paraphrased the following discussion.
Adam McKinnon (Group Manager Geology): April 2019 discovered and have completed over 30,000m of drilling.
Federation is one of the most significant discoveries in the region in the last two decades. Value of the metal endowment at Federation is approaching the original undepleted resource base at Hera. Is similar in metal value to the as yet undeveloped Great Cobar discovery, and has eclipsed the reported resources all the recent regional discoveries.
Relatively still a new discovery with considerable upside both near the deposit and in the immediate region. The NE remains completely open at depth with additional potential along strike in both directions. Initial resource infill drilling will target the gold potential in the upper portions of the deposit. In Adam's opinion the presence of high grade steeply plunging gold tubes within Federation are also a significant possibility.
Dan Clifford: Material value of this asset. Gold equ 8-9g/t across 2.6MT at current spot pricing driven by significant base metals contents in the resource. IRR - capital light. Simple bolt on to Hera - in essence the ore type matches the Hera plant. It has shallow early gold, and from an MPV perspective, that's low risk, early value in a resource and that's important.
On comparative basis it's a logical life extension to Hera, but it's more than that from what we are seeing, it's only early days, 12 months old but on an undepleted basis there is a
30% improvement on the NSR over Hera and it's primarily driven by its grade. It 's a very exciting project for us.
Ramped up drilling in the last two weeks with 3 rigs running full time - 2 diamond and a RC drilling rigs. Intent being infill and step out.
Early July release the June metal production numbers. Mid-July/2nd half July - Qtrly report and Resource and Reserve update. Not long after that there will be a Strategic Outlook to lay out the direction of the company. Actual guidance will be in and around the release in the normal course of Full Year results.
All the best
KKR
(20min delay)