REG - Greatland Gold PLC - Newmont Annual Reserves & Resources Statement

Greatland GoldAnnouncement

22/02/2024 14:00

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RNS Number : 1535E  Greatland Gold PLC  22 February 2024

Greatland Gold plc (AIM: GGP)

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NEWS RELEASE | 22 February 2024

 

 

Newmont Annual Reserves & Resources Statement

 

 

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) notes the annual
releases made today by Newmont Corporation (NYSE:NEM) (Newmont), Greatland's
joint venture partner in the Havieron gold-copper project.

 

Overview

 

As part of its 2023 Annual Reserves and Resources Release (available here
(https://s24.q4cdn.com/382246808/files/doc_earnings/2023/q4/supplemental-info/Newmont-2023-Reserves-Release.pdf)
), Newmont has released an updated Reserve and Resource for the Havieron
project, its first since completing the acquisition of Newcrest Mining Limited
(Newcrest) in November 2023.

 

It is important to note that Newmont reports Mineral Reserves and Mineral
Resources in accordance with the U.S. Securities and Exchange Commission's SK
1300 guidelines (SK 1300), which is different to the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012
Edition (JORC). Greatland reports Mineral Resources and Ore Reserves for
Havieron in accordance with JORC, which is an internationally recognised
reporting standard commonly used by UK and Australian listed mining companies.

 

Notwithstanding the different reporting criteria applied, Newmont's updated
Havieron Mineral Resource estimate is particularly pleasing in how closely it
correlates to Greatland's estimate in the higher confidence Indicated Mineral
Resource category, and the significant increase relative to the previous
Newcrest Indicated Mineral Resource.

 

Variances in the Inferred Mineral Resource and Reserve(1) categories largely
reflect differences between the reporting criteria, as explained below and
consistent with other former Newcrest portfolio assets that have been
reclassified in the Newmont 2023 Annual Reserves and Resources Release
(relative to the previous Newcrest JORC Reserves and Resources.

 

Greatland remains highly confident of its December 2023 Mineral Resource
Estimate (refer RNS of 21 December 2023 titled 'Havieron Mineral Resource
Estimate Update') (Greatland December 2023 MRE), which defined a Mineral
Resource for Havieron of 8.4Moz AuEq(2), reported in accordance with JORC and
independently reviewed by SRK Consulting (Australasia) Pty Ltd.

 

In accordance with SK 1300, Newmont reports Havieron Mineral Reserves and
Mineral Resources on an attributable (70%) basis, however for the purposes of
this announcement and comparability to Greatland's reporting, Greatland has
converted these to a 100% basis.

 

Indicated Mineral Resource

 

The Greatland December 2023 MRE defined an Indicated Mineral Resource (JORC)
for Havieron of 50Mt at 2.60g/t and 0.33% Cu, for contained metal of 5.0Moz
AuEq(2) (refer Table 2).

 

Newmont has classified an Indicated Mineral Resource (SK 1300) for Havieron of
47.4Mt at 2.65g/t Au and 0.34% Cu, for contained metal of 4.0Moz Au and 161kt
Cu(3).

 

On an equivalent basis to the Greatland December 2023 MRE, Newmont's Indicated
Mineral Resource equates to contained gold equivalent metal of 4.9Moz
AuEq(2,4), which:

 

§  Represents a 35% increase to the previous Indicated Mineral Resource
published by Newcrest prior to its acquisition by Newmont of 3.6Moz AuEq(2)
as at 30 June 2023.(5)

 

§  Is within 3% of Greatland's Indicated Mineral Resource of 5.0Moz AuEq(2)
in the Greatland December 2023 MRE (refer Table 2).

 

The increase in Indicated Mineral Resources relative to the previous Newcrest
Indicated Mineral Resource(5) is highly encouraging.

 

Greatland considers the close alignment in total Indicated Mineral Resource
size to the Greatland December 2023 MRE to be excellent validation of the
thorough estimation process of Greatland's Competent Person and the
independent review completed by SRK Consulting (Australasia) Pty Ltd.

 

The importance of the Indicated Mineral Resource category is that, under both
JORC and SK 1300, Indicated Mineral Resources may be converted into
Reserves(1), whereas the Inferred Mineral Resource category cannot due to its
lower confidence.  As such the increased Newmont Indicated Mineral Resource
can potentially be considered in the updated Reserve(1) estimate that will be
part of the Havieron Feasibility Study which is ongoing.

 

Inferred Mineral Resource

 

Newmont's 2023 Annual Reserves and Resources Statement classifies an Inferred
Mineral Resource reported in accordance with SK 1300 for Havieron of 16.3Mt at
1.71g/t Au and 0.16% Cu, for contained metal of 0.9Moz Au and 26kt Cu(3)
(refer Table 1).

 

Greatland calculates that Newmont's Inferred Mineral Resource (SK 1300) would
equate to 1.0Moz AuEq(2,4), on an equivalent basis to the Greatland December
2023 MRE (JORC).

 

Relative to JORC, SK 1300 reporting standards require a more detailed economic
assessment to support parameters that are used to define a Mineral Resource.
Greatland (and previously Newcrest) have applied a lower economic cut-off for
the Havieron Breccia Mineral Resource than the South East Crescent.(6)
However, additional evaluation work would be required to be able to use the
same approach and classification under SK 1300. Greatland considers this
difference in approach as the principal factor in the variance between the
Newmont Inferred Mineral Resource (SK 1300) and the Greatland Inferred Mineral
Resource (JORC).

 

Greatland continues to classify an Inferred Mineral Resource (JORC) of 3.4Moz
AuEq(2), as set out in the Greatland December 2023 MRE (refer Table 2), which
was independently reviewed by SRK Consulting (Australasia) Pty Ltd.

 

Greatland notes that Newmont has made similar reclassifications and reductions
in Inferred Mineral Resources for other assets within the former Newcrest
portfolio.

 

Reserve(1) Estimate

 

Greatland notes that Newmont's 2023 Annual Reserves and Resources Statement
does not classify a Mineral Reserve under SK 1300 for Havieron (refer Table
1).  This again reflects differences between SK 1300 and JORC reporting
standards.

 

In particular, SK 1300 requires classified Mineral Reserves to be the subject
of at least a preliminary feasibility study completed to ±25% accuracy level
and maximum contingency of 15% with respect to capital and operating costs.
The Havieron October 2021 Preliminary Feasibility Study (summarised in
Greatland's RNS of 12 October 2021 titled 'Havieron South-East Crescent
Pre-Feasibility Study') was completed to an accuracy level of ±25% for both
capital and operating costs, however it applied a contingency of 20% to
capital costs, which is greater than the SK 1300 limit of 15% and accordingly
does not meet the criteria under SK 1300 to allow classification of a Mineral
Reserve for Havieron.

 

Greatland continues to classify a Probable Ore Reserve (JORC) of 2.9Moz
AuEq(2), as set out in Greatland's March 2022 Ore Reserve (refer Greatland's
RNS of 3 March 2022 titled 'Havieron Resource and Reserve Update) which was
independently reviewed by SRK Consulting (Australasia) Pty Ltd.  Greatland's
March 2022 Ore Reserve was based on the previous March 2022 Mineral Resource
and has not been updated for the significantly higher December 2023 Indicated
Mineral Resource. An updated Reserve(1) will be reported as part of the
outcomes of the Feasibility Study.

 

Greatland notes that Newmont has made similar reclassifications and reductions
in Mineral Reserves for other assets within the former Newcrest portfolio.

 

Newmont Mineral Reserves & Mineral Resources (SK 1300)

 

Table 1: Newmont Mineral Reserves & Mineral Resources for Havieron (SK
1300) as at 31 December 2023 (refer to Newmont's 2023 Annual Reserves
Statement (available here
(https://s24.q4cdn.com/382246808/files/doc_earnings/2023/q4/supplemental-info/Newmont-2023-Reserves-Release.pdf)
).  In accordance with SK 1300, Newmont reports on an attributable (70%)
basis, however for the purposes of comparability to Greatland's reporting,
Greatland has converted these to a 100% basis in the below table.

 

 SK 1300 Classification  Tonnage  Grade             Contained Metal
                         Mt       Au (g/t)  Cu (%)  Au(3) (Moz)  Cu(3)   AuEq(2,4)
                                                                 (kt)

                                                                         (Moz)
 Measured                -        -         -       -            -       -
 Indicated               47.4     2.65      0.34%   4.0          161     4.9
 Inferred                16.3     1.71      0.16%   0.9          26      1.0
 Total Mineral Resource  63.7     2.41      0.29%   4.9          187     5.9
 Proved                  -        -         -       -            -       -
 Probable                -        -         -       -            -       -
 Total Mineral Reserves  -        -         -       -            -       -

 

 

 

Greatland Mineral Resource & Ore Reserve Estimates (JORC)

 

Table 2: Greatland Mineral Resource Estimate (inclusive of Ore Reserves),
reported in accordance with JORC as per the Greatland December 2023 MRE.

 

 JORC Classification        Tonnage  Grade             Contained Metal
                            Mt       Au (g/t)  Cu (%)  Au      Cu      AuEq(2)

                                                       (Moz)   (kt)    (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(7)  131      1.7       0.21    7.0     275     8.4

 

Table 3: Greatland Ore Reserve Estimate, reported in accordance with JORC as
per the Greatland March 2022 Ore Reserve.

 

 JORC Classification  Tonnage  Grade             Contained Metal
                      Mt       Au (g/t)  Cu (%)  Au      Cu      AuEq(2)

                                                 (Moz)   (kt)    (Moz)
 Proved               -        -         -                       -
 Probable             25       3.0       0.44    2.4     109     2.9
 Total Reserves       25       3.0       0.44    2.4     109     2.9

 

Footnotes:

 

(1) Where the term 'Reserve' is used, this refers to Mineral Reserves under SK
1300 and/or Ore Reserves under JORC.

(2) The gold equivalent (AuEq) is calculated by Greatland 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 Greatland's opinion that
all the elements included in the metal equivalents calculation have a
reasonable potential to be recovered and sold.

(3) Newmont's Mineral Reserve & Mineral Resource (SK 1300) for Havieron as
at 31 December 2023 report contained gold metal in ounces (rounded to nearest
100k) and copper metal in Mlbs (rounded to nearest 100Mlb). For consistency
with Greatland's December 2023 MRE, Greatland has calculated contained gold
metal in million ounces (Moz) based on the tonnage and gold grade of Newmont's
Mineral Resource and contained copper metal in thousand tonnes (kt) based on
the tonnage and copper grade of Newmont's Mineral Resource.

(4) Calculated by Greatland based on the Newmont Mineral Resource (SK 1300)
for Havieron on an equivalent basis to the Greatland December 2023 MRE.

(5) Newcrest's previous Mineral Resource (JORC) for Havieron was based on a
drilling cut-off date of November 2022 and metal price assumptions of
US$1,400/oz Au and US$3.40/lb Cu.  Newmont's updated Mineral Resource (SK
1300) for Havieron is based on a drilling cut-off date of 6 June 2023 (when
growth and resource conversion drilling at Havieron completed) and metal price
assumptions of US$1,600/oz Au and US$4.00/lb Cu.

(6)  The evaluation work completed to date supports Greatland's (and
previously Newcrest's) approach of applying a lower cut-off for the Havieron
Breccia Mineral Resource than the South East Crescent, assuming a less
selective mining methodology in the Breccia.  The Greatland December 2023 MRE
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 Net Smelter
Return per tonne (NSR/t) shells respectively, 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.

(7) Inclusive of Ore Reserves.

 

Greatland Managing Director, Shaun Day, commented:

 

"We welcome Newmont's update to the Havieron Mineral Resource today, which
increases Newcrest's previous estimate for the Indicated Mineral Resource
category by approximately 35% in terms of gold equivalent content, bringing it
into line with Greatland's latest estimate. The increased Indicated Mineral
Resource can now support an Ore Reserve estimate update as part of the
Feasibility Study which is ongoing."

 

"We consider the close correlation to Greatland's December 2023 Indicated
Mineral Resource, with a differential of less than 3% in gold equivalent
content, to be excellent confirmation of this world-class asset and a credit
to the quality of our technical team and processes."

 

 

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 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.

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