Greatland
Gold plc (AIM: GGP)
E: info@greatlandgold.com
W: https://greatlandgold.com
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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
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Armitt / Jennifer Lee | +44 203 368 3550
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8000
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3500
Media Relations
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3500
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| 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.