Newcrest farmed in on only 12 blocks (The Tenement Block - only a small part of GGP's ground) for the deal, plus rights of first refusal elsewhere.
I haven't checked how big an area 12 blocks are - perhaps not even the entire tenement that hosts Havieron.
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NCM has a lot of experience in bulk underground mining at considerable depths - Cadia East, Ridgeway and Telfer actual and proposed at Wafi/Golpu and Red Chris. So the depth will likely be of only minor inconvenience IF the grade and geometry of the mineralisation turn out to be economic.
There is a risk that Havieron will be marginal to sub-economic but NCM will have done due diligence with access to core and all downhole geophysical data which, IMO, would give a reasonable level of confidence that the deposit is of significant size beyond what has been drilled. Surface mag and gravity hint at significant depth (up to 1400m below surface - limit of detection).
NCM will put at least $10M into Havieron in the first year and have a good handle on whether it is the real deal. Greatlands has freed up funds of their own to look at surrounding areas and other projects. At $300/m for diamond drilling and all costs !0Kms per $3M give or take, so expect 20-30Kms in the first year with holes averaging probably close to 1Km in length! Some directional drilling/wedges, RC pre-collars would change the spend. ------
Grades at Telfer are quite low these days ,and it is no secret that NCM has considered selling. AZY talks of trucking their higher grade material to Telfer which may be possible. IF NCM are really hungry for feed they may go very hard at Havieron and try to combine it with Telfer to maximise mine life at the latter. Just tossing out speculations.
I have posted on the similarities of Havieron to Newcrest's Ridgeway before using this table.
The initial grades at Ridgeway were a lot higher than current reserves so the beginning economics of the operation were more favourable. Now they are down there and major capex taken care of going deeper seems to be feasible. ---------- Something OZL are talking about at Carrapateena in their recent presentation: Going to Block cave and taking more at lower grade -587Mt 0.8 Cu Eq (~~1+ g/t Au Eq??) with a lot from >900m below surface!
To date AZY's 'discoveries' are IMO teasers with some potential to be satellite deposits either to Telfer or a central mill AZY (+- some partner) set up if Capex/economics warrants. The company says the latter is possible so there must be some justification for this level of confidence.
A good greenfield or brownfield discovery would be the icing on the cake.
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The location of an AZY mill??
Minyari? Tims (can they use Telfer road?etc). Get the location wrong and it could cost a lot of money. Some of the greenfield targets are a long way from anywhere at present.
Telfer?? Toll treating?
Winu may be the site for a mill for the north end/JV (Cal/Mag) deposits.
One of the synergies mentioned in today's farm-in deal was the direct access to Telfer's infrastructure will have down any mine development path.
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This deal (plus $UsS806M for Red Chris, and Encounter deal) may remove NCM from the list of possible suitors for AZY's 'shallow' cover advantage. Time will tell. GLTAH
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