Greatland
Gold plc (AIM: GGP)
E: info@greatlandgold.com
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NEWS RELEASE
| 25 January
2024
Havieron Quarterly Update
THIS ANNOUNCEMENT CONTAINS
INSIDE INFORMATION AS STIPULATED UNDER THE UK MARKET ABUSE
REGULATIONS. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
Greatland Gold plc (AIM:GGP) (Greatland or the Company) is pleased to provide an
update on activities and developments at Havieron, the world class
gold-copper project located in the Paterson Province, for the
December 2023 quarter.
Highlights
§ Development: Total development to date
now exceeds 3,060 metres, representing approximately 80% of
vertical distance through to the top of the Havieron ore body.
§ Dewatering: Depressurisation and
dewatering of the lower confined aquifer is ongoing.
§ Mineral Resource Estimate: Greatland's
updated Mineral Resource Estimate (MRE) released in December 2023
increased estimated Mineral Resources (including Ore Reserves) to
8.4Moz total gold equivalent metal (AuEq1).
§ Newmont: Newmont Corporation (NYSE:NEM)
welcomed as Greatland's Havieron joint venture partner following
completion of its acquisition of Newcrest Mining Limited.
Development update
Total development at Havieron now exceeds 3,060 metres
including over 2,110 metres of advance in the main access decline
(as at 31 December 2023). There is approximately
80 vertical metres of development remaining before the decline
reaches the base of the Permian cover and top of the Havieron
orebody at around 420 vertical metres. Accordingly,
approximately 80% of vertical distance is complete in terms of
reaching the top of the Havieron ore body.
As previously announced in October 2023, the decline
is approaching the lower confined aquifer (LCA), the third and final aquifer
through which the decline passes, and a pause in development is
currently underway to allow depressurisation of the LCA.
Depressurisation activities are progressing, with six
depressurisation holes now drilled into the LCA and pumping water
to evaporation facilities at the surface. Data collection and
evaluation is continuing in parallel to increase confidence in
water management from the LCA and determine the timing of any
additional water management infrastructure that would be required
at surface for resumption of the decline development.
The Feasibility Study continued to progress through
the quarter, with several value enhancing options being assessed to
maximise value and de-risk the project.
Updated Mineral Resource Estimate
Greatland was delighted to release an updated MRE for
Havieron during the quarter (refer to RNS announcement titled
'Havieron Mineral Resource Estimate Update' dated 21 December
2023). Key highlights included:
§ 29% increase in estimated
gold equivalent Mineral Resources (including Ore Reserves) to
8.4Moz AuEq1 (7.0Moz Au plus 275kt Cu) from Greatland's
March 2022 MRE.
§ 32% increase in contained
gold equivalent metal, delivering 5.0Moz at 3.1g/t
AuEq1, in the higher confidence Indicated MRE category,
which can now be considered in the updated Ore Reserve Estimate
that will be part of the Feasibility Study.
§ Continuous mineralisation
confirmed between the Eastern Breccia and main Havieron Breccia
domains with the definition of a new high grade "Link Zone".
§ Significantly increased
ounce per vertical metre (OPVM) profile in the lower levels of
the Havieron deposit, in line with the upper levels. The updated
MRE now averages 7,900 OPVM (gold equivalent1) over the
top 1,000 metres of the deposit vertically.
Table 1: Updated Mineral
Resource Statement for the Havieron deposit (100%) #
*
Classification
|
Tonnage
|
Grade
|
Metal
|
AuEq Metal
|
Mt
|
Au (g/t)
|
Cu (%)
|
Au (Moz)
|
Cu (Kt)
|
AuEq (Moz)
|
Indicated
|
50
|
2.6
|
0.33
|
4.1
|
168
|
5.0
|
Inferred
|
81
|
1.1
|
0.13
|
2.9
|
107
|
3.4
|
Total
Mineral Resource
|
131
|
1.7
|
0.21
|
7.0
|
275
|
8.4
|
# Grades are reported to one (gold)
and two (copper) decimal places to reflect appropriate precision in
the estimate, and this may cause apparent discrepancies in totals.
Results represent 100% of the Mineral Resource for Havieron.
Mineral Resources in the South East Crescent and Link Zone are
reported within a A$80 Net Smelter Return2/t
("NSR2/t") shell while Mineral Resources in
the Breccias are reported within a A$50 NSR2/t shell.
Resources are inclusive of Reserves.
* The updated Mineral Resource
Estimate assumes selective mining of the South East Crescent and
Link Zone and bulk extraction in the Breccias and are reported
inside A$80 or A$50 NSR2/t shells
respectively.
Figure 1. Schematic 3D view
looking northwest, depicting the Greatland Havieron December 2023
MRE (left hand figure) with OPVM charted to the right. The OPVM for
the March 2022 MRE is also charted (light grey dashed line).
Drilling intensity (grey horizontal bars) are a visual
representation of the extent of drilling that has informed the MRE
by vertical level (not plotted to the OPVM scale). The X axis scale
(horizontal) is OPVM, while the Y axis (vertical) is plotted as
relative depth in metres RL (Reduced Level).
Newmont
Greatland welcomed world gold major, Newmont
Corporation (NYSE:NEM) (Newmont), as its Havieron joint venture
partner during the quarter, following the successful completion by
Newmont of its acquisition of Newcrest Mining Limited.
Newmont operates a global portfolio of world-class
projects and is led by a highly experienced management team with a
proven track record of project development and value
creation. Greatland and Newmont are engaging constructively
on various aspects of the Havieron joint venture, and Newmont's
involvement is considered highly additive to delivering the full
potential of Havieron for all stakeholders.
Greatland Managing Director, Shaun Day,
commented: "The December 2023 Quarter
was another busy and productive period for Greatland. The updated
Mineral Resource Estimate is a particular highlight, further
demonstrating the quality and scale of Havieron. In addition,
important work has been progressed to optimise and safeguard
development through the lower confined aquifer, which is a key
milestone and de-risking event in the underground decline
development."
Competent Person Statement
Information in this announcement
pertaining to the Reporting of the Havieron December 2023 Mineral
Resources estimate was first announced by Greatland on 21 December
2023 (refer to RNS announcement titled 'Havieron Mineral Resource
Estimate Update' dated 21 December 2023) and is based on
information compiled and approved by Mr Michael Thomson, a Member
of the Australian Institute of Geoscientists (AIG), who has more
than 20 years relevant industry experience. Mr Thomson
is a full-time employee of the Company and has a financial interest
in Greatland. Mr Thomson has sufficient experience
relevant to the style of mineralisation, type of deposit under
consideration, and to the activity which he is undertaking to
qualify as a Competent Person as defined by the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (the JORC Code) and under the AIM Rules
- Note for Mining and Oil & Gas Companies, which outline
standards of disclosure for mineral projects. Mr Thomson
consents to the inclusion in this announcement of the matters based
on this information in the form and context in which it
appears.
The Company is not aware of any new
information or data that materially affects the information
included in the original market announcement and confirms that all
material assumptions and technical parameters underpinning the
Havieron December 2023 Mineral Resource estimates continue to apply
and have not materially changed.
Footnotes:
1 The gold equivalent (AuEq) is based on assumed prices of
US$1,700/oz Au and US$3.75/lb Cu for Mineral Resource and
metallurgical recoveries based on block metal grade, reporting
approximately at 87% for Au and 87% for Cu which in both cases
equates to a formula of approximately AuEq = Au (g/t) + 1.6* Cu
(%). It is the company's opinion that all the elements included in
the metal equivalents calculation have a reasonable potential to be
recovered and sold.
2
The Net Smelter Return ("NSR") is calculated using
metal prices of US$1,700/oz Au and US$3.75/lb Cu, metallurgical
recoveries based on block metal grade reporting approximately at
87% for Au and 87% for Cu, an USD:AUD exchange rate of 0.72, as
well as treatment and refining costs, payables and
royalties.
Contact
For further information, please
contact:
Greatland Gold plc
Shaun Day, Managing Director
| info@greatlandgold.com
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About Greatland
Greatland is a mining development and
exploration company focused primarily on precious and base
metals.
The Company's flagship asset is the world-class
Havieron gold-copper project in the Paterson Province of Western
Australia, discovered by Greatland and presently under development
in joint venture with world gold major, Newmont
Corporation.
Havieron is located approximately 45km east of
Newcrest's existing Telfer gold mine. The box cut and decline to
the Havieron orebody commenced in February 2021. Total development
now exceeds 3,060m including over 2,110m of advance in the main
access decline (as at 31 December 2023). Subject to a
positive Feasibility Study and Decision to Mine, Havieron is
intended to leverage the existing Telfer infrastructure and
processing plant. Access to Telfer would de-risk the
development and reduces capital expenditure.
Greatland has a proven track record of discovery
and exploration success and is pursuing the next generation of
tier-one mineral deposits by applying advanced exploration
techniques in under-explored regions. Greatland has a number of
exploration projects across Western Australia and in parallel to
the development of Havieron is focused on becoming a
multi-commodity miner of significant scale.