Goldplat Share Discussion Threads

[sea7] 02/12/2018 09:21

DD

The TSF content is almost precisely in line with Goldplats own records of the dumping of material on that site over the years.

Ntolo tailings manage the TSF for goldplat - in august 2015 they drilled 108 auger holes and obtained results which gave a mean 2.29g/t. This data could not be used in a resource as no QA/QC was carried out.

Goldplats own records, of averaged, monthly dumping into the TSF, then annualised, show an overall mean gold grade of 2.41g/t. This is with total tonnage records of 1,132,420 deposited.

The jorc resource compiled by AGM ltd, shows 1.2m tonnes deposited, which compares favorably with goldplats own records of 1,132,420 tonnes and an estimated 1.78g/t

Goldplats own records indicated 87,907k ozs contained in the TSF. AGM's findings indicate that they estimate there are 81,959 ozs contained. This is a 7.25% difference and is therefore roughly in line with what Goldplat expected it to be.

AGM stated that there is the likelihood that gold migration into the footwalls will be higher than the report shows and that there is upside potential in this area.

Goldplat, have recorded gold content at each deposition, with samples taken on a daily basis, since 2003 onwards, although no QA/QC undertaken.

Goldplat estimated 2.41g/t, Ntolo thought 2.29g/t and AGM think 1.78g/t.

Firstly, they did not carry out a full test of the TSF, only a section of it and the results give rise to an expectation of continuity throughout the rest of the deposit. Secondly, both AGM and NTOLO will opt for the lower end of the estimate, so as to not be seen to be "over egging" the overall picture. Thirdly, Goldplat have been recording, sampling and dumping on that site for over 15 years. It is known roughly what is contained in that dump and it was jorc'd to give it a fully supported and legitimate statement of what they knew was contained in it.

AGM also stated that as a number of boreholes did not reach the footwalls, there is potential to increase the resource as the tonnage may be different. This is due to a lack of elevation data surrounding slimes/footwall contact.

They inferred on a small portion on the NE side of the TSF, as it was inaccessible to them, so they didn't bother. The central part of the TSF was not drilled at all, apart from one drill hole, in the middle.

Why do this jorc if they have such detailed records...

1. to get an independent assessment, so that they can work on a plan to process it.
2. if Goldplat were ever sold, then this is a fully quantified resource that can have a figure put on it and included in the sale, rather than a buyer arguing the price down and calling it a worthless tailings liability.

In summary, there is potential to increase the resource and an expectation of a higher conversion to reserve status.

The entire TSF is an off balance sheet item and is therefore an unrealised, unaccounted for, jorc compliant asset sat in the yard, waiting to be processed, revenue generated and booked.
As soon as we get some numbers, then that can be quantified, in timelines expected and then reflected in the share price, as it will be.

[kimboy2] 02/12/2018 06:48

So you think that they should process 1,400,000t of material for a return and then do the whole thing a couple of years later when they develop methods for extracting more gold and a cheaper deposition site.

The straightforward fact is that they have 80-90kozs of material sat in their yard. They can process it profitably but how profitably will depend on the processing they do and how much handling of the material is necessary.

It is likely that the profit from this heap is greater than the market cap of the company. The market doesn't recognise this because it hasn't been put in black and white.

An announcement that the outstanding issue has been resolved could come at any time. It will then get factored into the SP, rather than the zero at present.

[1rodson] 02/12/2018 05:03

Loll lolololololololo lots going on on the rampers' BB, pity they never read the opinion of others as its was all well covered many, many years ago Lololololololo

I guess they d
Just don't pay attention, unless of course they said it Lololololololololololol

[sea7] 01/12/2018 22:19

DD,

A tailings deposit such as a TSF is not the same as a standard ore body, in so much as there is usually grade continuity in a TSF, whereas the standard ore body, such as kili is much more unpredictable.

This is why there is a greater degree of confidence in the jorc resource for a TSF, than there is for a natural ore body.

This is well documented in various sites, regarding resources, when comparing a TSF to a naturally occuring deposit.

[kimboy2] 01/12/2018 12:54

At least we agree that there is jam tomorrow.

[discodave4] 01/12/2018 11:04

What if the price of gold fell to $600.According to GKG the TSF would be simple and cost effective to process - that was nearly three years ago ffs........still waiting, still dreaming, jam tomorrow.

[flyingswan] 01/12/2018 10:56

What if the price of Gold went up to $10,000 an Oz, The TSF would then be profitable?

[kimboy2] 01/12/2018 09:35

The only thing we know for certain, or relative certainty, is the size of the resource. In fact it is likely to be slightly larger as not all the resource was estimated.

The cost of processing is the major unknown but is likely to be between $500 - $1000/oz. The recovery rate will be a minimum of 40% and perhaps up to 60% depending on how practical the university research is.

The point is of course at the most pessimistic recovery and processing cost the gross return will as much as the present market cap.

It has of course taken ages due to waiting on permissions, and complex liquidations of the mine. The problem is given the large resource relative to the size of the company relatively small reductions in processing cost can have a significant effect.

The fact that it is delayed doesn't mean it won't happen. The only cost to waiting is the opportunity cost that the cash could be used to generate profits elsewhere. At some point this cost and the benefit from waiting equate, and an alternative is taken,

[sea7] 01/12/2018 07:58

I am not talking about kili - that is a different asset in a different country, held in a stand alone entity, within the group.

The TSF is essentially a truck and shovel operation and if they felt like it, they could run it through the existing circuits, somewhat slowly, with an expected recovery rate of about 15% - they want to enhance this and have the deposition pit in place, although as that is dragging on, they are looking at other solutions.

There is no rush or need to rush into processing this resource - it isn't going anywhere and is being added to each day.

All I am seeing here, is the normal course of business taking place. There is a significant sized workforce at the benoni plant and they are getting on with the day to day business - continuity and sustainability is what underpins the ethos and then, we can think about enhancing things.

Look how long permitting processes can take in the UK for projects - years.

[sea7] 30/11/2018 22:13

Measured resource means that part of a resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.

Over 50k ozs in the TSF sit in the measured category. There is plenty of value there.

Had we not had the delays with West pit 3 - this resource would be generating revenue.

For now, we continue to wait.

I can be patient - I know that this resource is worth more than the mcap at this time and will generate excellent returns once it gets going.

[sea7] 30/11/2018 21:19

The TSF is about 8 times the size of a rugby pitch, including behind goal areas and varies in depth from 5m to 11.5m and that is just the main body of it. I would think that it would be quite difficult to miss or deny the existence of a structure of this size, especially when it appears in satellite footage of the site.

[kimboy2] 30/11/2018 20:53

Sorry forgot the 82kozs TSF doesn't exist.

[1rodson] 30/11/2018 16:46

They can always ask the birds!

[russman] 30/11/2018 08:54

If KIli goes on C&M; how is it going to pay back its loans.

[shareholder7] 30/11/2018 08:51

Decision time for KiliIs it TwistBuy a cardStick orGo Bust

[michaelfenton] 30/11/2018 05:26

Kimboy it seems to me that they are incapable of doing anything "in a reasonable period"? There is a distinct feeling of slow down in most areas? Very worrying and GKG is losing the plot?