REG - Greatland Gold PLC - Havieron Joint Venture Update

Greatland GoldAnnouncement

19/08/2022 07:16

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220819:nRSS5923Wa&default-theme=true

RNS Number : 5923W  Greatland Gold PLC  19 August 2022

19 August 2022
 

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
("Greatland" or "the Company")

 

Havieron Joint Venture Update

 

Greatland retains 30% ownership of the world-class Havieron asset

 

Mineral Resource updated by Newcrest to 6.5Moz Au Eq

consistent with Greatland's Update from March 2022

 

Accelerated decline advance rate which is expected to further improve

 

 

Greatland Gold plc (AIM:GGP), a mining development and exploration company
with a focus on precious and base metals notes the release of an ASX
announcement titled "Annual Results and Annual Mineral Resources and Ore
Reserves Statement" by Newcrest Mining Ltd ("Newcrest") earlier today
providing an update on the Havieron Joint Venture ("JV").

 

Greatland retains 30% ownership of Havieron

Further to Greatland's announcement of 21 July 2022, Greatland is pleased to
advise that Newcrest has elected not to exercise the option under the Havieron
JV agreement to acquire an additional 5% interest in the JV from Greatland at
the price of US$60m determined by the independent adjudicator, which was based
on data up to 15 December 2021.

 

The Board is delighted that Greatland will retain 30% ownership in the
Company's flagship asset and believes this outcome delivers substantial medium
to long term value to Greatland.  Greatland had previously made a non-binding
offer to Newcrest to acquire for US$85m a 5% stake in Havieron which, in the
opinion of the directors, still presented a financially compelling outcome to
Greatland shareholders.

 

This outcome concludes the Joint Venture process for Newcrest's 5% option.
Havieron still has significant growth potential as the ongoing drill campaign
consistently delivers excellent results that enhance the JV partners'
understanding of the size and scale of Havieron.  Newcrest, as a global
major, and Australia's largest gold mining company with over the 35-years of
experience in the Paterson and existing Telfer infrastructure, is an excellent
partner to work alongside to accelerate the development of Havieron and
maximise its future value.

 

Newcrest Updated Mineral Resource

 

Newcrest has released an updated Mineral Resource for Havieron which is within
1% of the total gold metal content and within 3% total copper metal content of
Greatland's previously announced updated Mineral Resource.

Newcrest's updated Mineral Resource for the Havieron Deposit defines a total
85Mt @ 2.0g/t Au & 0.26% Cu for a total of 5.5Moz of Au and 223kt of Cu.
This updated Newcrest Mineral Resource was based on a 16 November 2021
drilling cut-off date similar to the Greatland Updated Mineral Resource
announced on 3 March 2022 based on a 2 December 2021 drilling cut-off date.

On 3 March 2022, Greatland published an updated Mineral Resources (including
Ore Reserves) based on the same data, which demonstrated an increase to 92Mt @
1.9g/t Au & 0.24% Cu for a total of 5.5M oz Au and 218kt Cu or 6.5M oz
AuEq(1. ) The close alignment to the Newcrest updated Mineral Resource
published today is a testament to the high standard of work performed by
Greatland's technical team.

 

Newcrest Updated Mineral Resource estimate for the Havieron Deposit (100%)(#)

 Classification          Tonnage  Grade             Metal Content
                         Mt       Au (g/t)  Cu (%)  Au (M oz)  Cu (Mt)

 Indicated               28       3.2       0.51    2.9        0.14
 Inferred                57       1.4       0.14    2.6        0.082
 Total Mineral Resource  85       2.0       0.26    5.5        0.22

( )

Greatland Updated Mineral Resource estimate for the Havieron Deposit (100%)(^)

 

 Classification          Tonnage  Grade             Metal Content       AuEq (1) ( )Metal
                         Mt       Au (g/t)  Cu (%)  Au (M oz)  Cu (Mt)  AuEq

                                                                        (M oz)
 Indicated               35       2.8       0.42    3.1        0.15     3.8
 Inferred                57       1.3       0.13    2.4        0.072    2.7
 Total Mineral Resource  92       1.9       0.24    5.5        0.22     6.5

 

Havieron Exploration and Development Update

It is pleasing to report that the drill programme at Havieron is progressing
at pace with up to seven drill rigs in operation. The growth drilling
programme continues to identify and expand high grade extensions to the
mineralisation in the Eastern Breccia, South East Crescent Zone and Northern
Breccia.

Additionally, the development of the exploration decline has improved with
advancement rates accelerating during the June 2022 quarter. Improvements are
expected to continue.

 

 

Shaun Day, Managing Director of Greatland Gold plc, commented: "We are simply
delighted that Greatland will retain its 30% interest in Havieron. This was
the best possible outcome for the Company and its shareholders which delivers
substantial medium to long term value.

 

"Greatland had previously offered Newcrest significantly higher value to
acquire a 5% stake from Newcrest which, in the opinion of the directors, still
presented a financially compelling outcome to Greatland shareholders.
Accordingly, today's outcome is tremendous, particularly in the context of the
ongoing potential of Havieron.

 

"This outcome also concludes the JV process for Newcrest's 5% option and
aligns both Joint Venture parties to focus on developing Havieron and work
towards first production without the distraction of the process. We respect
the Newcrest decision, which as a global major with over 35-years of
experience in the Paterson, is an excellent joint venture partner and provides
Havieron the benefit of leveraging the existing infrastructure just down the
road at Telfer.

 

"We welcome Newcrest's update to the Havieron JORC resource today, which
delivers around a 51% increase on their previous update. This update, with a
December 2021 drill cut-off, is within around 1% for total gold metal content
of Greatland's independent update released on 3 March 2022. This validation is
a great credit to the quality of our technical team and their ability to
deliver within compressed timeframes.

 

"An additional almost nine months has passed since the cut-off date, with
drilling results over the course of 2022 being outstanding. Accordingly, there
remains exceptional potential for ongoing growth.

 

"It is also pleasing to share today's update with respect to the positive
progress on the Havieron decline, whereby development advance rates have
accelerated towards the end of the June 2022 quarter and steady improvement is
expected to continue.

 

"With excellent progress at Havieron continuing and the publication of the
Feasibility Study on track for the December 2022 quarter, we are confident
that Havieron represents a world-class, low-cost development expected to be
fast-tracked to commercial production."

 

 

(#) Results are reported to one (gold) and two (copper) significant figures to
reflect appropriate precision in the estimate, and this may cause some
apparent discrepancies in totals. Results represent 100% of the Mineral
Resource for Havieron. Mineral Resources are reported within a variable
A$50-$100 Net Smelter Return "NSR/t". Resources are inclusive of Reserves.

 

(^) Results are reported to one (gold) and two (copper) significant figures to
reflect appropriate precision in the estimate, and this may cause some
apparent discrepancies in totals. Results represent 100% of the Mineral
Resource for Havieron. Mineral Resources in the Crescent are reported within a
A$80 NSR/t shell while Mineral Resources in the Breccias are reported within a
A$50 NSR/t shell. Resources are inclusive of Reserves. The Updated Mineral
Resource Estimates assume selective mining of the South East Crescent Zone and
bulk extraction in the Breccias and are reported inside A$80 or A$50 NSR/t
shells respectively.

 

(1) The gold equivalent (AuEq) is based on assumed prices of US$1,450/oz Au
and US$3.23/lb Cu for Ore Reserve and assumed prices of US$1,600/oz Au and
US$3.50/lb Cu for Mineral Resource and metallurgical recoveries based on block
metal grade, reporting approximately at 88% for Au and 84% for Cu which in
both cases equates to a formula of approximately AuEq = Au (g/t) + 1.5 * 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.

 

 

 

Competent Persons' Statements for JORC 2022 Mineral Resources and Ore Reserves

The information in this document that relates to the Greatland Mineral
Resources and Ore Reserves for Havieron is extracted from the RNS announcement
titled "Updated Mineral Resource substantially increases Havieron Resource and
Reserve" released on 3 March 2022, and available on Greatland's website. The
Company confirms that it is not aware of any new information or data that
materially affects the Mineral Resources and Ore Reserves for Havieron in the
original 3 March 2022 announcement.

The information in this document that relates to the Newcrest Mineral
Resources for Havieron is extracted from the ASX announcement titled "Group
Mineral Resources and Ore Reserves Statement" released on 19 August 2022, and
available on Newcrest website.

 

Forward Looking Statements

This document includes forward looking statements and forward looking
information within the meaning of securities laws of applicable jurisdictions.
Forward looking statements can generally be identified by the use of words
such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate",
"believe", "continue", "objectives", "targets", "outlook" and "guidance", or
other similar words and may include, without limitation, statements regarding
estimated reserves and resources, certain plans, strategies, aspirations and
objectives of management, anticipated production, study or construction dates,
expected costs, cash flow or production outputs and anticipated productive
lives of projects and mines.

These forward looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance and
achievements or industry results to differ materially from any future results,
performance or achievements, or industry results, expressed or implied by
these forward-looking statements. Relevant factors may include, but are not
limited to, changes in commodity prices, foreign exchange fluctuations and
general economic conditions, increased costs and demand for production inputs,
the speculative nature of exploration and project development, including the
risks of obtaining necessary licences and permits and diminishing quantities
or grades of reserves, political and social risks, changes to the regulatory
framework within which Greatland operates or may in the future operate,
environmental conditions including extreme weather conditions, recruitment and
retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on assumptions as to the financial,
market, regulatory and other relevant environments that will exist and affect
Greatland's business and operations in the future. Greatland does not give any
assurance that the assumptions will prove to be correct. There may be other
factors that could cause actual results or events not to be as anticipated,
and many events are beyond the reasonable control of Greatland. Readers are
cautioned not to place undue reliance on forward looking statements,
particularly in the current economic climate with the significant volatility,
uncertainty and disruption caused by the COVID-19 pandemic. Forward looking
statements in this document speak only at the date of issue. Greatland does
not undertake any obligation to update or revise any of the forward looking
statements or to advise of any change in assumptions on which any such
statement is based.

 

 

 

Enquiries:

 

 Greatland Gold PLC                                                        +44 (0)20 3709 4900

 Shaun Day                                                                 info@greatlandgold.com (mailto:info@greatlandgold.com)

                                                                           www.greatlandgold.com (http://www.greatlandgold.com)

 SPARK Advisory Partners Limited (Nominated Adviser)                       +44 (0)20 3368 3550

 Andrew Emmott/James Keeshan

 Berenberg (Joint Corporate Broker and Financial Adviser)                  +44 (0)20 3207 7800

 Matthew Armitt/Jennifer Lee/Jack Botros

 Canaccord Genuity (Joint Corporate Broker and Financial Adviser)          +44 (0)20 7523 8000

 James Asensio/Patrick Dolaghan

 Hannam & Partners (Joint Corporate Broker and Financial Adviser)          +44 (0)20 7907 8500

 Andrew Chubb/Matt Hasson/Jay Ashfield

 SI Capital Limited (Joint Broker)                                         +44 (0)14 8341 3500

 Nick Emerson/Sam Lomanto

 Gracechurch Group (Media and Investor Relations)                          +44 (0)20 3488 7510

 Harry Chathli/Alexis Gore

 

 

 

Notes for Editors:

 

Greatland Gold plc (AIM:GGP) is a mining development and exploration company
with a focus on precious and base metals. The Company's flagship asset is the
world class Havieron gold-copper deposit in the Paterson region of Western
Australia, discovered by Greatland and presently under development in Joint
Venture with Newcrest Mining Ltd. Newcrest holds a joint venture interest of
70% (30% Greatland).

Havieron is located approximately 45km east of Newcrest's Telfer gold mine
and, subject to positive decision to mine, will leverage the existing
infrastructure and processing plant to significantly reduce the project's
capital expenditure and carbon impact for a low-risk and low-cost pathway to
development.

Construction of the box cut and decline to develop the Havieron deposit
commenced in February 2021. An extensive growth drilling programme is
presently underway at Havieron with a view to further expanding the
understanding and scale of the ore body.

Greatland has a proven track record of discovery and exploration success. It
is pursuing the next generation of tier-one mineral deposits by applying
advanced exploration techniques in under-explored regions. The Company is
focused on safe, low-risk jurisdictions and is strategically positioned in the
highly prospective Paterson region. Greatland has a total six projects across
Australia with a focus on becoming a multi-commodity mining company of
significant scale.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  JVEGPUGURUPPUQB