Andy was in SE Qld for the rising stars presentation earlier in the week and I met him yesterday. He was good enough to give me some time so I took the opportunity to ask him a few questions - thought I'd share ..
1) Anglo's claw back - the current decision is for the Rover1 field ONLY. Have a look at Pg 12 of the recent rising stars presentation and you'll see the pink shaded section that they are talking about. Andy thinks that given the current size of the resource it's most likely that they will NOT opt in and as a result WGR will end up with 100% of Rover1 rather than the $50m in cash. Good & bad was my conclusion. We've got it all but have to pay for it all. Note: Anglo will still retain a clawback right on the other WGR areas though.
2)It was fascinating to discuss the bigger plans as well. In particular the boards desire to add development to the exploration activities. I picked his brains about the timing and cost of adding a development plant + a mine for either Rover or 142. A very loose best case scenario = $120m + 2.5years but there are lots of contingencies. Aboriginal land owners (whom by the way Andy thinks they have a great relationship with), government approvals, feasibility studies and the all prevailing issue of funding. I'd wondered if developing any of the resources internally was a bit of a pipe dream before this chat and came away very impressed.
3) Interestingly he was far more excited by the 142 field then Rover1 (which is saying something because he loves Rover1). He can't wait to get into it with more drills.
4) Speacking of which - They are running 3 rigs 24hours a day (cost about $1m /month total) and they're looking at the down plunge on the Juptier Zone and going to start poking holes in 142+ they're getting $150k worth of helicopter magnetic surveys run to support this.
In short - interesting times. Lots of good stuff coming up!
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