Greatland Gold plc (AIM:GGP), a leading mining development and exploration company with a focus on precious and base metals is pleased to announce the release of a Corporate Presentation titled Greatland Gold – Growth Update including results of the Havieron South-East Crescent Pre-Feasibility Study.
The presentation is available for download from its Company website and can be found by clicking https://greatlandgold.com/wp-content/uploads/2021/10/GGP-Growth-Update-Final.pdf
- Havieron South-East Crescent – Pre-Feasibility Study released
- Outstanding economics delivered from just the first 14Mt of Havieron’s South-East Crescent Zone
- Greatland forecasted to become the 2nd lowest cost gold company globally1
- Starter Mine carries the full project capex and provides a launchpad for early cashflow and
- long-term growth
Stage 1 Pre-Feasibility Study (“PFS” or “Stage 1 Study”) results at the Havieron gold-copper deposit in the Paterson region of Western Australia.
Havieron Maiden South-East Crescent PFS Highlights
- This Stage 1 Study of the South-East Crescent reflects the ‘staged approach’ to the evaluation and development of Havieron and does not consider bulk mining methods
- Economics2 of maiden PFS supports the total capex while generating strong early cash flow, IRR and payback.
- Low upfront capital, Greatland share US$73m3
- Outstanding low-cost operations, AISC US$643/oz2,4 with further opportunity to reduce
- Internal Rate of Return 27% (real IRR, after tax)2,5
- Payback 3.0 yrs2,6
- High Grade 4.58g/t Au Eq2,7
- Capital efficient, low environmental impact with underground mining and use of existing Telfer processing facility for majority of plant infrastructure
- 17% of revenues estimated to be generated from copper production
- The Stage 1 Study demonstrates that including additional existing Inferred Mineral Resource allows for an ~3Mtpa or greater operation
- The Stage 1 Study is at a ‘point in time’, with a February 2021 cut-off for drilling information; with significant additional information now available which is expected to be incorporated into future studies
- 14Mt of Probable Ore Reserves2 mined over an initial 9-year life, from a throughput of 2Mtpa
- The PFS does not consider 37Mt of the current Inferred Mineral Resource or any potential new resources that may be defined in Northern Breccia and Eastern Breccia
- Continue to assess the broader Havieron breccia system which may be suitable for a bulk mining method
- Concurrent studies underway to assess production rates greater than 3Mtpa
- Targeting 90,000m of growth drilling over the next 12 months
Shaun Day, Chief Executive Officer of Greatland Gold plc, commented: “This maiden Pre-Feasibility Study focuses on the South-East Crescent and should be viewed as the first stage. The study covers just a small fraction of the resource and the broader mineralised breccia system but is a tremendous first step towards creating a mine and unlocking our understanding and the value of Havieron.
The investment proposition of Greatland is compelling, with Havieron confirmed as a world class ore body, being developed with a Tier 1 partner in Newcrest and all within a Tier 1 mining jurisdiction of Western Australia.
The Stage 1 Study indicates a very modest capex hurdle for Greatland and thereafter the generation of cash flow. This provides the opportunity for Greatland to reinvest this cash flow into Havieron such that the Company can self-fund the full potential of Havieron. This capital profile is ideal for Greatland as a mid-cap miner.
The quality of Havieron is observable in the AISC of just US$643/oz Au. This outcome will propel Greatland to the second lowest cost producer globally, with this low cost structure driving a high-margin, high IRR and fast pay-back development.
Notwithstanding the tremendous outcome of this Stage 1 Study, the opportunity at Havieron remains ahead of us. A further 90,000 meters of growth drilling is planned to June 2022, to better understand the extent of the South East Crescent, the Northern Breccia and the recently identified Eastern Breccia. This growth drilling creates the opportunity to potentially apply bulk mining methods to the balance of the Havieron breccia system to complement the mining of the South East Crescent.”
Greatland Gold PLC
+44 (0)20 3709 4900
Notes for Editors:
Greatland Gold plc (AIM:GGP) is a leading 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.
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 cost pathway to development. An extensive growth drilling program is presently underway. Construction of the box cut and decline to develop the Havieron deposit commenced in February 2021.
Greatland has a proven track record of discovery and exploration success. It is pursuing the next generation of Tier 1 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.
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