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Greatland Gold announces Havieron South-East Crescent PFS

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Global Mining Review,

Greatland Gold plc, a leading mining development and exploration company with a focus on precious and base metals, has provided the 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.
  • Economics of maiden PFS supports the total CAPEX while generating strong early cash flow, IRR and payback.
    • Low upfront capital, Greatland share US$73 million.
    • Outstanding low-cost operations, AISC US$643/oz with further opportunity to reduce.
    • Internal rate of Return 27% (real IRR, after tax).
    • Payback three years.
    • High Grade 4.58 g/t gold equivalent (Au Eq).
  • 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 approximate 3 million tpy or greater operation.

Havieron growth

  • 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.
  • 14 million t of probable ore reserves mined over an initial nine-year life, from a throughput of 2 million tpy.
  • The PFS does not consider 37 million t 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 3 million tpy.
  • Targeting 90 000 m of growth drilling over the next 12 months.

Shaun Day, CEO of Greatland Gold plc, commented: “This maiden PFS 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 m 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."

Havieron feasibility study

The Havieron feasibility study is estimated to be completed in the December 2022 quarter and the study scope is expected to include:

  • Completion of a further infill drilling programme by end CY21 to increase the indicated mineral resource base for potential ore reserve expansion.
  • Completion of the growth drill programme immediately below the Crescent Zone for potential mineral resource expansion.
  • Further investigation and optimisation of the sub-level open stoping (SLOS) design and sequence, including using any new indicated mineral resources converted from existing inferred mineral resources through current and ongoing drilling that can support production rates of 3 million tpy or higher.
  • Initial assessment of future development options with further resource growth in the Northern and Eastern Breccia including evaluation of lower cost bulk mining methods.

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Australian mining news Copper mining news Gold mining news