Ann: Pumped Hydro Energy Storage Conference Presentation, page-11

The big question is how much copper will be produced in 2019 and 2020 from the giant pit and will further feed be available to keep the processing plant running as a going concern.


The slide showing Kanmantoo South, Nugent and Stella and their proximity to the plant is interesting. When you see that slide in conjunction with the following statements from a broker we might have a decent SP after the cash and franking credits are stripped out.

With the circa $140m of tax losses, tax won't be a drain on the cash generated.

A recent magneto-telluric (MT) survey indicated a deep seated conductivity zone south of the Giant Pit. This zone is coincident with a magnetic high and a significant induced polarisation (IP) anomaly. The zone is open to the south. HGO plans to drill this target after further geophysical work.Previous holes south of the open pit, drilled in 2010, are being re-evaluated. Each hole was drilled on separate lode systems that were mapped for over 1km in strike length. Intercepts included 5m at 2.5% Cu and 0.8g/t Au from 13m downhole and 18m at 1.3% Cu and 0.1g/t Au from 20m downhole. Following re-evaluation, additional drill targets are expected to be established.HGO is planning a drill program for these targets in early 2019. Any near-mine exploration success is likely to be rapidly evaluated as a potential source of additional mill feed to extend mine life.

and this

HGO is also assessing the potential to operate the plant below the 3.5Mtpa capacity which introduces a number of options to advance nearby deposits which may not warrant development at the full 3.5Mtpa rate. In addition to campaign milling, HGO will also determine if the Kanmantoo plant can be wound-back to a nominal nameplate capacity between 1-2Mtpa for minimal capex.

I was intrigued to find out more about campaign milling and found this,

The first mining campaign at Anova’s Second Fortune gold mine commenced in November 2017 and was completed in July 2018. The campaign included development of a new portal and decline to intersect the old workings on level 1 and level 2, then mining, sorting and toll milling of remnant ore from level 1 and production from a full strike of new development and stoping on level 2.
Mining was conducted as a campaign to evaluate the geology and resource models, mining method, ore sorting process and toll treating arrangements prior to committing to a full development plan.