REG - Greatland Gold PLC - Havieron March Quarter Update

Greatland GoldAnnouncement

30/04/2024 07:00

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RNS Number : 5637M  Greatland Gold PLC  30 April 2024

Greatland Gold plc (AIM: GGP)

E: info@greatlandgold.com

W: https://greatlandgold.com

: twitter.com/greatlandgold

 

 

NEWS RELEASE | 30 April 2024

 

 

Havieron March Quarter 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 March 2024
quarter.

 

Highlights

 

§  Water management: Updated predictive hydrogeological model and water
balance was completed and provides an improved understanding of water
management requirements for the lower confined aquifer.

 

§  Development: Construction of important underground infrastructure was
completed during the quarter. Total underground development to date exceeds
3,060 metres, representing approximately 80% of vertical distance through to
the top of the Havieron ore body.

 

§  Ownership of Havieron: Newmont announced that it considers its 70%
interest in Havieron non-core. Greatland holds a last right of refusal in
respect of that interest and considers itself strongly positioned should there
be an opportunity to consolidate ownership of Havieron on accretive terms for
Greatland's shareholders.

 

Development update

 

Total development at Havieron 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, over 80% of vertical distance is
complete in terms of reaching the top of the Havieron ore body.

 

As previously announced, there is a pause in decline development prior to
development through the third and final lower confined aquifer (LCA) that the
decline passes through before reaching the Havieron orebody.  Refer below for
water management activities undertaken during the quarter.

 

During the quarter, a number of construction activities were completed
including the primary fan headwall assembly (Figure 1), rising main
installation, repositioning of secondary fans from the boxcut at surface to
underground, raise bore pre-sink pads and pre-excavation stabilisation, and
fabrication of life-of-mine pumps and ladderways.

 

 

Figure 1: Photo of completed assembly of primary fan headwall.

 

The Feasibility Study continued to progress through the quarter, with several
value enhancing options being assessed to maximise value and de-risk the
project. The Feasibility Study is examining an expanded throughput rate of 3
million tonnes per annum (Mtpa) compared to the 2Mtpa scenario modelled in the
Pre-Feasibility Study completed in October 2021.

 

Water management

 

Hydrogeological data collection and evaluation of the LCA was significantly
progressed through the quarter. An updated predictive hydrogeological model
was recently completed, based on measured real time flow rates and pressure
from depressurisation bore holes in the LCA. Good correlation has been
observed between the updated model and real time data collected, and
accordingly the model's reliability is considered high.

 

Pleasingly, the potentially greater volumes of water that were anticipated in
October 2023 have not eventuated, meaning that the project will continue with
the surface water infrastructure design as submitted in the WA Environmental
Protection Authority (EPA) referral, which is for a further three evaporation
ponds that are constructed and utilised in a staged manner. Opportunities to
bring forward approvals for the final three evaporation ponds are being
progressed, and lining materials for two evaporation ponds have already been
procured.

 

Additional work has also allowed the identification of the optimal location
for the underground decline to pass through the aquifer where the Permian
layer is shallower, and the decline design is being modified accordingly. This
reduces the remaining development metres required through the Permian layer.

 

Ownership of Havieron

 

In the December 2023 quarter, Newmont completed its acquisition of Newcrest
Mining Limited and in doing so assumed ownership of a 70% joint venture
interest in Havieron and 100% of the Telfer mining operations, located 45km
west from Havieron.  Ore from Havieron is presently contemplated to be
processed at Telfer, subject to a positive Feasibility Study, decision to mine
and entry into a toll processing agreement.  Following completion of that
transaction, Newmont announced in February 2024 that it considered its
interest in Havieron and ownership of Telfer as non-core assets which it
intends to divest.

 

Greatland discovered the Havieron deposit and maintains its commitment to
delivering Havieron's full potential for all stakeholders.  Greatland has
unrivalled knowledge and experience of Havieron and an organisational
capability that is exceptionally well placed to develop and operate Havieron.
Under the Havieron joint venture agreement, Greatland holds a right of last
refusal in respect of a sale by Newmont of its joint venture interest in
Havieron to a third party.

 

Accordingly, Greatland considers itself strongly positioned should there be an
opportunity to consolidate ownership of Havieron on accretive terms for
Greatland's shareholders.

 

Greatland Managing Director, Shaun Day, commented:

 

"Significant progress has been made during the quarter, particularly in terms
of improving our understanding and confidence in managing the lower confined
aquifer. Measured flow rates are at the low end of the range previously
anticipated and water management infrastructure requirements have been
confirmed. This significantly de-risks development through the aquifer. A
better location has also been identified for the underground decline to
develop through the remaining Permian layer where it is shallower, reducing
the remaining development metres required through the Permian.

 

Overall, we are confident there is currently significant option value in
Greatland with Newmont's 70% interest in Havieron considered non-core and our
existing last right of refusal on any sale.  If an opportunity to consolidate
ownership of Havieron were to arise we would be highly focused on delivering
an accretive outcome for our existing shareholders with a view to delivering a
world-class Australian gold copper asset."

 

 

Contact

 

For further information, please contact:

 

Greatland Gold plc

Shaun Day, Managing Director  |  info@greatlandgold.com

 

Nominated Advisor

SPARK Advisory Partners

Andrew Emmott / James Keeshan / Neil Baldwin  |  +44 203 368 3550

 

Corporate Brokers

Berenberg  |  Matthew Armitt / Jennifer Lee  |  +44 203 368 3550

Canaccord Genuity  |  James Asensio / George Grainger  |  +44 207 523 8000

SI Capital Limited  |  Nick Emerson / Sam Lomanto  |  +44 148 341 3500

 

Media Relations

UK - Gracechurch Group  | Harry Chathli / Alexis Gore / Henry Gamble  |
+44 204 582 3500

Australia - Fivemark Partners  |  Michael Vaughan  |  +61 422 602 720

 

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 March 2024).  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.

 

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