What I learnt:
The evaluation of the ore bodies below the pit were scheduled to happen once the pit was down to its final depth.
The reason the Ug mining below the pit and adjacent to the pit won't happen if the PHES goes ahead is to do with the insurers of the turbines not being prepared to cop blasting in the adjacent areas.
The PHES also throws a cloud over the plan to start mining the Nugent lode in the middle of next year. Its on the opposite side of the pit to the turbine shaft and whilst its not yet certain, mining there may also be prohibited, if the PHES proceeds.
I understand that the process to select parties, to make formal offers by the end of the year, for the PHES scheme, has been completed.
If the PHES goes ahead and Nugent is a no go area then there will be a period of plant down time when the stockpiles are exhausted in mid 2020.
Kavannah is not yet permitted and whilst agreement is in place with the farmer to buy the land if the drilling is successful it will be a long process to get mining in that area up and running. Its also an UG opportunity.
Whilst the resource under the pit, extends well beyond the pit exclusion zone, drilling there is not scheduled to start until January. That area is permitted so mining could proceed more quickly than Kavanah. Getting all the preliminary drilling, design and feasibilities done would likely take more than a year and then there would be a six month construction time to get to the ore.
A tough choice ,
* get a cash dump and a royalty stream
or
* dig up a load of copper and gold.
The PHES outcome would have to be a clear winner to get the tick because PHES opportunity isn't lost if the board opts to get the copper and gold out first. Its simply put on the back burner for a couple of years.
A very interesting and I think financially rewarding 3 months ahead
