Greatland Gold plans to take advantage of weakness in the junior resources sector by identifying and acquiring projects with Tier 1 potential beyond the Paterson region in Western Australia.
The strategy builds on the momentum Greatland has gained in the Paterson region following its $US65 million ($91.82 million) farm-in agreement with Newcrest Mining over the Havieron project in the Paterson region.
Beyond the region, Greatland is advancing its existing exploration targets with “multi-million ounce potential”.
It will also divest projects that do not meet the above criteria or offer significant medium-term upside to shareholders.
But Greatland will first prove that its post in the Paterson region is secure – the base metals explorer has identified multiple targets with a similar geophysical signature to Havieron within its licences.
The company is working on prioritising the targets for 2019 and finalising exploration programs at Black Hills and Scallywag near Newcrest’s Telfer mine.
“We are thrilled with Greatland’s progress over the last year which has taken the company to a new level in its development,” chief executive Gervaise Heddle said.
“The farm-in agreement with Newcrest represents a cornerstone for Greatland on which we plan to build a large and valuable business focused on potential tier-one gold-copper projects.
“Havieron now has the structure and capital in place to take it through feasibility study and decision to mine which releases resources, which would have been committed to Havieron and enables us to focus on advancing our other key exploration targets, particularly in the Paterson region.”
Greatland also has the infrastructure and team in place to support the company’s expanded strategy, which the company has been building over the past 12 months.
This includes an appointment of a new exploration manager, Michael Sawyer, who has had extensive involvement in OZ Minerals’ Carrapateena copper mine in South Australia.
Greatland also has around £4 million ($7.5 million) in cash as at 31 December 2018.
“We are determined to build Greatland into a large and successful business delivering significant returns to our shareholders, and we look forward to providing updates on both Newcrest’s progress at Havieron and Greatland’s exploration efforts in the Paterson and at our other exciting projects,” Heddle concluded.
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Author Vanessa Zhou
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