Page 20 - gmj144-July-Sept-mag-web

COVER

The company has 12 rigs currently turning at Hemi but will
increase volume again should another intrusion be found

For Jardine, the maiden resource is crucial in providing the until we get the scoping study out but the scale of the deposit,
raw numbers for economic evaluations to be published but it’s shallow nature, its geometry, they are all adding up.
also opening the stock to potential new shareholders. “If you compare it to the closest recent discovery, Gruyere,
The first part will be realised in coming months when the we expect Hemi to be bigger.”
company releases first scoping study numbers based on the Gold Road Resources Ltd’s development of the 6 moz
initial resource. Jardine is already confident the outcomes Gruyere project has become a model for junior companies
will be robust. advancing major projects. While many juniors fail to keep
“Project studies, including metallurgy, geotechnical, capex and company value in tandem, Gold Road took
mining, environmental, infrastructure and hydrogeology are Gruyere to the edge of construction, steadily building its
continuing in parallel with the exploration drilling,” Jardine market value in line with project finance requirements.
told the market at the time of the resource announcement. Eventually Gold Road sold a 50% stake in the project to
“These studies aim to provide information to define the Gold Fields Ltd for $350 million but it was widely accepted
development and production opportunities this scale of as having kept value in the stock while minimising project
resource brings.” execution risk.
Given the constant exploration success, the scoping study De Grey will be hoping for a similar trajectory but key to
will act as a marker only, according to Jardine. execution will be building the investor base.
“The scoping study is not detailed but it is the first opportunity Jardine sees the maiden resource as a vital step.
to show the production potential,” he says. “The resource
“We want to attract more investors but previously we only
included different numbers based on different cut-off grades
had exploration results so many funds in Australia and North
which allows people to form their own views on economics
America couldn’t get involved,” he explains. “The release of

Page 20