TIDMGGP
RNS Number : 7735O
Greatland Gold PLC
12 October 2021
--
12 October 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
Greatland Gold plc
( " Greatland " or "the Company " )
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 2(nd) lowest cost gold
company globally(1)
Starter Mine carries the full project capex and provides a
launchpad for early cashflow and
long-term growth
Greatland Gold plc (AIM:GGP), a leading mining development and
exploration company with a focus on precious and base metals, is
pleased to provide 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(2) of maiden PFS supports the total capex while
generating strong early cash flow, IRR and payback.
-- Low upfront capital, Greatland share US$73m(3)
-- Outstanding low-cost operations, AISC US$643/oz(2,4) with
further opportunity to reduce
-- Internal Rate of Return 27% (real IRR, after tax)(2,5)
-- Payback 3.0 yrs(2,6)
-- High Grade 4.58g/t Au Eq(2,7)
-- 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
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
-- 14Mt of Probable Ore Reserves(2) 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."
Summary of South East Crescent Pre-Feasibility Study (in 100%
terms) (2)
-- Initial Probable Ore Reserve estimate(8) :
-- 14Mt @ 3.72 g/t Au and 0.54% Cu (4.58 g/t Au Eq) for 1.6Moz
Au and 73kt Cu
-- Low-cost production in a Tier 1 jurisdiction, with further growth upside
-- LOM average All-In Sustaining Cost (AISC) of A$893/oz
(US$643/oz)(3)
-- Life of Mine (LOM) average annual gold production of 160koz
and copper production of 6.9kt
-- Stage 1 Study represents only 28% of the Havieron Mineral
Resource
-- Attractive investment opportunity
-- Total development capital expenditure of A$529 million
(US$381 million)
-- Internal Rate of Return (IRR) of 27% (real, after tax)
-- Payback of 3 years(5)
-- South-East Crescent Net Present Value (NPV) of A$706 million
(US$508 million)(4)
-- Uses Newcrest's existing Telfer milling and support
infrastructure to process and treat Havieron ore
-- Growth opportunity
-- Potential to expand the Project and increase the mining rate
to 3Mtpa or more through the conversion of Inferred to Indicated
Mineral Resources through an infill drilling program
-- Potential to lower mining costs by considering alternative,
higher production rate, mining methods
-- Ongoing growth drilling continues to show potential for
resource additions outside of the existing Inferred Mineral
Resource boundaries
Key milestones
Milestone Activity
Feasibility Study Dec Qtr 2022
-------------
First Ore 1H FY2024
-------------
First Production of 2H FY2024
Gold/Copper
-------------
Note: Subject to market and operating conditions and no
unforeseen delays due to COVID-19
Potential Exploration Upside
The Stage 1 Study considers only the Indicated Mineral Resource,
reflecting only a small portion of the existing resource inventory.
The Havieron Project has significant additional growth potential,
including:
-- Mineralisation open at depth and along strike
-- Extension of the South East Crescent Zone below the current
Mineral Resource, where increasing grade and thickness of
mineralisation has been observed in recent drilling
-- Expansion of multiple higher-grade targets within the main
Havieron north west corridor
-- Northern Breccia and North West Crescent
-- Potential for additional north west trending corridors
including the Eastern Breccia; and
-- Potential to discover additional mineralisation centres (at
Havieron North, Zipa and Meco)
In addition to the active testing of the above higher-grade
targets, drilling continues in the northern and eastern breccia
corridors to assess the bulk mining potential.
Table of Key Stage 1 Study Findings (100% terms)(2,4,5,6)
Area Measure Unit Newcrest Greatland
economic economic
assumptions assumptions
Ore milled / milling rate
Production (max) Mtpa 2.1 2.1
LOM years 9 9
Ore mined (LOM) Mt 14 14
Average gold grade (LOM) g/t 3.72 3.72
Average copper grade (LOM) % 0.54 0.54
Gold produced (LOM) koz 1,432 1,432
Copper produced (LOM) kt 62 62
Average annual gold production
(LOM) koz 160 160
Average annual copper
production (LOM) kt 6.9 6.9
Capital Project capital A$m (real) 529 529
US$m (real) 397 381
Operating Total operating cost (LOM) A$/t (real) 112 112
US$/t
(real) 84 81
A$/oz
AISC (LOM) sold 990 893
US$/oz
sold 7 43 6 43
============================================================== ============= =============
Economic
assumptions Gold price US$/oz 1,500 1,750
Copper price US$/lb 3.30 4.08
Exchange rate USD:AUD 0.75 0.72
Discount Factor % (real) 4.5 4.5
================================ ============================= ============= =============
Financials NPV A$m (real) 304 706
US$m (real) 228 508
IRR % (real) 16 27
Payback period Years 4 3
Free cash flow generation
(LOM) (post tax) A$m (real) 53 1 1,06 1
US$m (real) 398 764
-------------------------------------------------------------- ------------- -------------
The Production results in the table are based on the Ore Reserve
Revenue Factor assumptions as discussed in Appendix 1 (JORC Table 1
- Schedule 4). The financial and valuation results shown above are
based on different economic assumptions in metal prices and
exchange rates. Greatland metal price assumptions were US$1,750/oz
Au and US$4.08/Ib Cu, and an USD:AUD exchange rate of 0.72.
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 program by end CY21
to increase the Indicated Mineral Resource base for potential Ore
Reserve expansion
-- Completion of the growth drill program 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 3Mtpa 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.
(1) Based on Kitco 2020 Report - "Lowest cost gold companies in
2020".
https://www.kitco.com/news/2021-03-25/Lowest-cost-gold-mining-companies-in-2020-report.html
(2) PFS economics are on 100% project basis unless otherwise
specified. All assumptions are consistent with Newcrest PFS figures
except for macro price assumptions of US$1,750 Gold, US$4.08Ib
Copper, and USD:AUD 72c, applied by Greatland. The project
economics do not include any estimate the tolling arrangement
whereby capital expenditure such as upgrades to the processing
plant at Telfer will be paid for by Newcrest 100% and Greatland
will pay a capital contribution and tolling margin to Newcrest as
part of the proposed tolling arrangement.
(3) Net of Greatland's US$ 50m existing debt facility
(4) Total operating costs includes mining costs, processing
costs, infrastructure costs and general and administrative
costs
(5) Using a discount factor of 4.5% (real)
(6) Payback is the earliest date that net accumulated free cash
flow is equal to zero. This is calculated from first commercial
production which is defined as the expected commencement date of
saleable gold production
(7) The gold equivalent (AuEq) is based on assumed prices of
US$1,300/oz Au and US$3.00/lb Cu for Ore Reserve and assumed prices
of US$1,400/oz Au and US$3.40/lb Cu for Mineral Resource, which
equates to a formula of approximately AuEq = Au (g/t) + 1.6 * Cu
(%)
(8) Represents 100% of ore reserves at Havieron
Forward Looking Statements
This document includes forward looking statements and forward
looking information within the meaning of securities laws of
applicable jurisdictions. Forward looking statements can generally
be identified by the use of words such as "may", "will", "expect",
"intend", "plan", "estimate", "anticipate", "believe", "continue",
"objectives", "targets", "outlook" and "guidance", or other similar
words and may include, without limitation, statements regarding
estimated reserves and resources, certain plans, strategies,
aspirations and objectives of management, anticipated production,
study or construction dates, expected costs, cash flow or
production outputs and anticipated productive lives of projects and
mines.
These forward looking statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results, performance and achievements or industry results to differ
materially from any future results, performance or achievements, or
industry results, expressed or implied by these forward-looking
statements. Relevant factors may include, but are not limited to,
changes in commodity prices, foreign exchange fluctuations and
general economic conditions, increased costs and demand for
production inputs, the speculative nature of exploration and
project development, including the risks of obtaining necessary
licences and permits and diminishing quantities or grades of
reserves, political and social risks, changes to the regulatory
framework within which Greatland operates or may in the future
operate, environmental conditions including extreme weather
conditions, recruitment and retention of personnel, industrial
relations issues and litigation.
Forward looking statements are based on assumptions as to the
financial, market, regulatory and other relevant environments that
will exist and affect Greatland's business and operations in the
future. Greatland does not give any assurance that the assumptions
will prove to be correct. There may be other factors that could
cause actual results or events not to be as anticipated, and many
events are beyond the reasonable control of Greatland. Readers are
cautioned not to place undue reliance on forward looking
statements, particularly in the current economic climate with the
significant volatility, uncertainty and disruption caused by the
COVID-19 pandemic. Forward looking statements in this document
speak only at the date of issue. Greatland does not undertake any
obligation to update or revise any of the forward looking
statements or to advise of any change in assumptions on which any
such statement is based.
Project Details
The Havieron Project is centred on a deep magnetic anomaly 45km
east of Telfer in the Paterson Province on the traditional lands of
the Martu people. The target is overlain by approximately 420m of
post mineralisation Permian cover. The joint venture commenced
drilling during mid-2019 and has progressively increased its
drilling activities with up to eight drill rigs now in
operation.
The Martu people and the Western Desert Land Aboriginal
Corporation (WDLAC) are key project stakeholders. The Martu hold
exclusive possession native title rights and interests over more
than 130,000 km(2) of land, including to all points around the
Telfer mine and Havieron Project. The Indigenous Land Use Agreement
(ILUA) with WDLAC, centred on the Telfer mine, extends to the
Havieron project.
The Project has received the necessary regulatory approvals for
the construction of a box cut, exploration decline and associated
surface infrastructure, with these works formally commencing in
January 2021. The Stage 1 Study has assessed the next stage of the
Project which comprises the underground and surface development to
establish the initial mining area at Havieron and ore processing
modifications at Telfer.
Gold and copper mineralisation in the current resources are
located within the South East Crescent and the Breccia Zones. High
grade gold mineralisation is associated with a massive sulphide
zone termed the South East Crescent Zone which occurs on the margin
of the Breccia zones. The South East Crescent Zone is characterised
by a series of massive to semi-massive sulphide replacement units
that have a subvertical dip and are best developed on the
south-east of the system forming an arcuate, crescent like
geometry. The Breccias are still being defined through exploration
drilling and early-stage evaluations will be completed to test the
potential to develop additional mining fronts and utilise bulk
mining methods.
The South East Crescent Zone is 5-40m wide, extending 550m in
length in unfolded section from the basement contact and defined
over 900m vertically, tapering to 300m in length and open at that
depth. The South East Crescent Zone has been the focus of drilling
and has been infilled to a nominal drill spacing of 50-100m
laterally (with at least part being infilled to a 50m x 50m spacing
to satisfy the requirements for an Indicated Mineral Resource), and
100m vertically.
The Stage 1 Study assessed mining production methods including
SLOS with mining rates of 2Mtpa to 3Mtpa and caving options up to
6Mtpa . Surface infrastructure studies were focused on the
transportation of ore back to the Telfer processing plant with a
range of options considered in early-stage evaluations including
conveyor, rail, pipeline and truck haulage, with the latter adopted
for the Ore Reserve case. Processing studies evaluated a modified
Telfer process plant to accommodate the Havieron ore.
The initial Ore Reserve case is based on a 2Mtpa production rate
from SLOS mining method limited to the Indicated Mineral Resources
within the South East Crescent Zone. The Stage 1 Study demonstrates
the potential to expand the Project and increase the mining rate to
3Mtpa or more based on the upgrading of the current Inferred
Mineral Resources and additional potential Mineral Resource growth
from immediately below the South East Crescent Zone as seen in
recent drill results (refer to Section titled Potential Exploration
Growth for a summary of drill results).
Indicative Production Profile (100% terms)
The Ore Reserve Case for the Stage 1 Study is based on the
currently defined Indicated Mineral Resource estimate which
incorporates a 2Mtpa underground SLOS operation with an expected
mine life of 9 years. Ore will be transported in trucks along a new
55km long haul road to the modified processing plant at the Telfer
mine and tailings deposited at Telfer's existing tailings storage
facility (TSF).
Multiple stope priority runs were conducted to determine the
optimal sequence which maximised the number of years at peak
production while reducing and compressing the production tail as
much as practical. The production rate of 2Mtpa for the Havieron
SLOS was determined by maximising the steady state production of
the sequence.
Indicative Havieron Mine Production Profile
Year Total Material Plant Feed Average Gold Average Copper
Movement (Mt) Grade Grade
(Mt) (g/t) (%)
FY24 0.5 0.5 3.5 0.48
FY25 1.6 1.6 4.1 0.52
FY26 2.0 2.0 3.9 0.55
FY27 2.0 2.0 3.8 0.56
FY28 2.0 2.0 3.9 0.52
FY29 2.0 2.0 3.7 0.54
FY30 2.1 2.1 3.3 0.58
FY31 1.1 1.1 3.7 0.51
FY32 0.3 0.3 2.8 0.49
Estimated Development Capital Profile (100% terms)
The capital profile for the Project contemplates a 2Mtpa SLOS
operation. Pursuant to the terms of the Joint Venture post-delivery
of a Pre-Feasibility Study, Greatland is obliged to fund 30% of all
project expenditure going forward and Newcrest is obliged to fund
70%.
FY22 FY23 FY24 Total
--------------------- ------ ------- ------- -----------
Capital Expenditure
(A$m) 124 296 109 529
Capital Expenditure
(US$m) 89 213 79 381
Metal Price and Exchange Rate Sensitivity Analysis
The actual IRR of the Project will vary according to the gold
and copper prices realised. Base Case assumptions include a gold
price of US$1,750/oz, copper price of US$4.08/lb, and an USD:AUD
exchange rate of 0.72 based on current market observed rates.
The table below outlines how the estimated Base Case Project IRR
of 27% remains robust using different price assumptions:
Scenario Assumption IRR
----------------------- -------------- -----
Gold price (US$ per
ounce) 1,500 20%
Gold price (US$ per
ounce) 2,000 33%
Copper price (US$ per
pound) 3.50 26%
Copper price (US$ per
pound) 4.70 28%
Mine Development and Sequence
SLOS is a large-scale open stoping method that is conducted over
multiple levels at once. Once the stope has been mined out it is
backfilled with paste to maintain the overall stability of the
opening and enable mining of adjacent stopes. This method is
typically applied to strong orebodies that require minimal support
and are surrounded by strong country rock, such as the Havieron
deposit. Stopes are mined in a checkerboard fashion with all
primary stopes first, followed by the intermediate secondary
stopes. The mining sequence is top down overall, divided into a
number of different lifts separated by horizontal sill levels which
are recovered after the upper and lower level have been mined and
filled.
A sub-level spacing of 50m with sill drill levels located 20m
below a mining front were selected. Some sub-level spacings are
increased to 60m to accommodate the inclusion of ore minimising
additional level development. The design consists of nine
semi-independent mining sequences, based on both horizontal and
vertical mining fronts. The horizontal fronts are determined by the
orebody orientations as outlined in Figure 4.
Infrastructure
The Stage 1 Study contemplates the transport of ore from the
mine to Telfer via road trains on an all-weather unsealed road. The
road has been designed to withstand a 1-in-a-100-year flood event
and maintain access to Havieron.
Power will be supplied to Havieron from Telfer's existing gas
power station via a 66 kilovolt (kV) overhead line running parallel
to the nominated haul road corridor. Further opportunities to
replace these with non-fossil fuel power generation will be
evaluated as part of the Feasibility Study.
Telfer currently operates two processing trains with a total
capacity of 22Mtpa. The Havieron ore is expected to be processed
through a modified Telfer Processing Plant which will operate a
single train at 6Mtpa rate on a campaign basis. The Plant
modifications are expected to include magnetic separation within
the flotation circuit to reduce the amount of pyrrhotite in the
final Cu Concentrate and a Carbon in Pulp (CIP) circuit on the
flotation tail and cyanide detoxification circuit. The expected
cost of the plant modifications is included in the US$381 million
project capital estimate. A single train operation provides
optionality if higher mining rates are achieved from Havieron or
through the extension of Telfer's current mine life (i.e. Telfer
ore can be run through the other train with the existing
flowsheet). Tailings from ore processed will be deposited at the
existing Telfer TSF.
Mineral Resource Estimate
The updated Mineral Resource is estimated to contain an
Indicated Mineral Resource of 1.9 million ounces of gold and 99
thousand tonnes of copper and an Inferred Mineral Resource of 1.7
million ounces of gold and 67 thousand tonnes of copper. This
Mineral Resource estimate is based on drilling completed by
February 2021.
Since the initial Mineral Resource estimate an additional 45
drill holes were completed between November 2020 and February 2021,
primarily as infill drilling to increase the resource confidence of
the Crescent Zone, that transferred 1.9 million ounces of gold and
67 thousand tonnes of copper from Inferred Mineral Resources to
Indicated Mineral Resources. Results from drilling undertaken in
the area of these Mineral Resources since the cut-off date for
resource estimation (Feb-21) support the Mineral Resources and Ore
Reserves in this PFS.
Mineral Resource estimate tabulation for the Havieron Deposit
(100%)*:
Domain Classification Tonnage Grade Metal Content
Mt Au (g/t) Cu (%) Au (Moz) Cu (kt)
---------------- -------- --------- ------- --------- --------
Crescent Indicated 15 3.9 0.64 1.9 99
---------------- -------- --------- ------- --------- --------
Inferred 3.6 4.0 0.45 0.5 16
--------------------------- -------- --------- ------- --------- --------
Breccia Indicated - - - - -
---------------- -------- --------- ------- --------- --------
Inferred 34 1.1 0.15 1.2 51
--------------------------- -------- --------- ------- --------- --------
Total Indicated 15 3.9 0.64 1.9 99
---------------- -------- --------- ------- --------- --------
Inferred 37 1.4 0.18 1.7 67
--------------------------- -------- --------- ------- --------- --------
Grand Indicated
Total + Inferred 53 2.1 0.31 3.6 166
---------------- -------- --------- ------- --------- --------
*Data is reported to two significant figures to reflect
appropriate precision in the estimate, and this may cause some
apparent discrepancies in totals. Data represents 100% of the
Mineral Resource for Havieron. Mineral Resources in the Crescent
are calculated on a A$100 NSR cut-off while Mineral Resources in
the Breccias are calculated on a A$50 NSR cut-off.
The Havieron Mineral Resource estimate is reported as an
Indicated Mineral Resource and Inferred Mineral Resource in
accordance with the 2012 edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the JORC Code). The reported Havieron Mineral Resources
are inclusive of Ore Reserves. Refer to details in Appendix 1 for
information rel ating to data collection and resource
estimation.
Drilling has outlined an ovoid shaped zone of variable
brecciation, alteration and sulphide mineralisation with dimensions
of approximately 650m x 350m x 1000m trending in a north-west
orientation below 420m of Permian cover.
Gold and copper mineralisation at Havieron consists of breccia,
vein and massive sulphide replacement gold and copper
mineralisation typical of intrusion-related styles of
mineralisation. Mineralisation is hosted by metasedimentary rocks
(meta-sandstones, meta-siltstones and meta-carbonate) and intrusive
rocks of an undetermined age. The main mineral assemblage contains
well developed pyrrhotite-chalcopyrite and pyrite sulphide mineral
assemblages as breccia and vein infill, and massive sulphide
lenses.
The Indicated Mineral Resource estimate is restricted to the
South East Crescent Zone only, with the Inferred Mineral Resource
estimate comprised of some part of the South East Crescent Zone,
the adjacent Breccia zones, and a portion of the Northern Breccia
to an RL of 4060m (750m below the unconformity) where drill data
provides sufficient support to define an appropriate level of
geological control and statistical confidence .
Ordinary Kriging of 5m composites of gold and copper was
undertaken into 10m x 10m x 10m blocks for the South East Crescent
Zone and 20m x 20m x 20m blocks for Breccia and re-blocked into 5m
x 5m x 5m blocks. The resource model was domained utilising the
geological units defining the South East Crescent Zone, the Calcite
Cemented Breccia, Actinolite Cemented Breccia and Crackle Breccia.
Hard boundaries were used between the South East Crescent Zone and
the Breccia zones with semi soft boundaries used between the
Breccia zones. Kriging Neighbourhood Analysis was used to define
the search neighbourhood for gold and copper. Gold and copper were
estimated independently of each other. Composite copper and gold
grades were capped prior to estimation. The resource estimation is
based entirely on interpolation. The resource model was validated
via visual, statistical, and geostatistical methods.
Reasonable prospects for eventual economic extraction have been
assessed through ongoing mining and processing studies which
suggest that selective underground mining would be appropriate for
exploitation of the South East Crescent Zone. The Indicated and
Inferred Mineral Resource estimate has been constrained using
appropriate drill hole data spacing parameters and geological
control. The Indicated Mineral Resource estimate is reported based
on the A$100/t Net Smelter Return (NSR) value cut-off and the
average weighted distance of 45 metres within the South-East
Crescent Zone which assumes selective underground mining. The
Inferred Mineral Resource estimate is reported within an A$50/t NSR
value shell with no internal selectivity, which assumes bulk mining
and therefore includes internal waste. The NSR uses metals prices
of US$1,400/oz Au and US$3.40/lb Cu, domain-specific metallurgical
recoveries of 84-94% for Au and 82-92% for Cu, an USD:AUD exchange
rate of 0.75, as well as treatment and refining costs, payables and
royalties, similar to those at Telfer.
Ore Reserve Estimate
The Havieron Ore Reserve estimate is outlined below and reported
as a Probable Ore Reserve in accordance with the 2012 edition of
the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (the JORC Code).
Ore Reserve estimate tabulation for the Havieron Deposit (100%)
(9) :
Tonnage Gold Copper
Mt g/t Moz % kt
-------- ---- ---- ----- ---
Proved Ore Reserve - - - - -
-------- ---- ---- ----- ---
Probable Ore
Reserve 14 3.7 1.6 0.54 73
-------- ---- ---- ----- ---
Total Ore Reserve 14 3.7 1.6 0.54 73
-------- ---- ---- ----- ---
A summary of the material assumptions is outlined below. Refer
to details in Appendix 1 (JORC Table 1 - Section 4) for more
information relating to the Ore Reserve estimation.
The Havieron Pre-Feasibility Study (on which this Ore Reserve
statement is based) defined a SLOS mining method with paste fill
and truck ore haulage at a 2Mtpa mining rate . Metallurgical
test-work has been executed on samples taken from the Havieron
deposit during the Pre-Feasibility Study and in preceding studies.
The test-work undertaken is of an adequate level to ensure an
appropriate representation of metallurgical characterisation and
the derivation of corresponding metallurgical recovery factors.
The Havieron site does not currently have infrastructure to
support mining operations. Major infrastructure requirements are
included in the Pre-Feasibility Study capital cost estimates, which
are based on multiple market prices across all technical
disciplines. Provision has been made for capital expenditure
requirements for new equipment, infrastructure and replacement of
infrastructure and equipment during the life of the mine is based
on the Study. A contingency has also been factored into the capital
cost estimate consistent with the level of accuracy of the
Study.
The operating cost estimate has been built up from a combination
of existing Telfer site costs scaled for the Havieron material
throughput rate, first principles cost modelling and quotations
where practicable.
The Probable Ore Reserve is based on Indicated Mineral Resources
and diluting material. No Measured Mineral Resources are stated for
this deposit. This classification is based on geological confidence
as a function of continuity and complexity of geological features,
data quality, data spacing and distribution and estimation quality
parameters including distance to informing samples for block grade
estimation .
Underground mining at Havieron is planned to be undertaken using
a SLOS mining method at a 2Mtpa mining rate . The Stage 1
Pre-Feasibility Study has been prepared on the basis of:
-- decline, accesses to the levels, ore passes, ventilation
raises and other underground excavations
-- SLOS stopes with paste fill
-- paste fill plant and underground distribution system
-- ventilation shafts, fans, regulators and refrigeration
equipment
-- dewatering, electrical and other service equipment
-- truck haulage of ore to surface via the access decline
(9) Data is reported to two significant figures to reflect
appropriate precision in the estimate and this may cause some
apparent discrepancies in totals. Data represents 100% of the Ore
Reserve for Havieron.
The following Modifying Factors have been applied to all mining
shapes to accurately represent the expected mined tonnes and grades
:
-- Dilution factors for unplanned overbreak in primary,
secondary and tertiary stopes (average 9%) consisting of waste
(average 6%) and stope paste (average 3%);
-- Dilution included at zero grade; and
-- Mining recovery factor of 97.5%
The total Ore Reserve includes approximately 0.6Mt of Inferred
Mineral Resource as dilution. This material contains 2% of the gold
metal and 1.6% of the copper metal in the Ore Reserve and does not
have a material impact upon the estimate. As this is dilution
material associated with the SLOS mining method, it has been
incorporated into the Ore Reserve estimate.
Havieron ore will be processed on a campaign basis through the
Telfer Train 2 Treatment Plant circuit at a throughput of
approximately 2Mtpa. Metal recovery will be through conventional
flotation to produce a copper/gold concentrate and doré through a
newly installed flotation tails leach circuit. The technology
associated with the ore processing is conventional and the
flowsheet is similar to that utilised by other operations.
Metallurgical recovery assumptions are based on detailed
analysis and laboratory flotation and leach test work completed on
38 variability samples during the Havieron Concept (2020) and
Pre-Feasibility (2021) studies with good spatial coverage of the
South-East Crescent Zone. Of the 38 samples, 8 samples are located
in the Breccia zones and 30 samples are located in the South-East
Crescent Zone, of which 21 samples are located within the
South-East Crescent Zone Indicated Mineral Resources. Based on
these samples metallurgical recoveries for gold are anticipated to
average approximately 88% and recoveries of copper are expected to
average approximately 84% throughout the life of the project.
Bismuth is the key deleterious element for the gold/copper
concentrate product with smelter penalties incurred on the basis of
bismuth content. The impact of bismuth in concentrate will be
managed by mine sequencing and concentrate blending.
The Havieron Ore Reserve employs a value based cut-off
determined from the Net Smelter Return (NSR) value equal to the
site operating cost included within the Pre-Feasibility Study. The
NSR calculation takes into account revenue factors, metallurgical
recovery assumptions, transport costs, refining charges, and
royalty charges.
The site operating costs include mining cost, processing cost,
relevant site general and administration costs and relevant
sustaining capital costs. These costs equate to a break even cut
off value of approximately A$130/t milled, and a marginal cut off
value of approximately A$115/t milled.
Estimation of the Havieron Ore Reserve involved standard steps
of mine optimisation, mine design, production scheduling and
financial modelling. Factors and assumptions have been based on
benchmarked performance from similar SLOS operations. The Ore
Reserve has been evaluated through a financial model. All operating
and capital costs as well as Ore Reserve revenue factors stated in
this document were included in the financial model. A discount
factor of 4.5% real was applied. This process demonstrated that the
Havieron Ore Reserve has a positive NPV. Sensitivities were
conducted on the key input parameters including commodity prices,
capital and operating costs, ore grade, mined tonnes and mining
rate, exchange rate and metallurgical recoveries confirming the
estimate to be robust.
A staged approach for approvals is being undertaken with Phase 1
currently approved which has allowed the development of the box
cut, decline and service corridor. These approvals also allow for a
waste rock dump, evaporation ponds and supporting infrastructure
such as offices and workshops.
Phase 2 approvals will consist of a SLOS underground mine,
permanent infrastructure corridor, associated infrastructure and
changes to Telfer approvals to accept Havieron tailings in existing
tailings storage facilities. The approval strategy for Phase 2
consists of both Commonwealth and State level approvals with
engagement well advanced with all regulatory bodies. The timelines
outlined in the Pre-Feasibility Study are considered
achievable.
A Mining Lease has been granted over the orebody, and
miscellaneous leases granted along the existing service corridor.
For Phase 2 approvals an application will be made for an additional
miscellaneous lease to secure access for an infrastructure corridor
to connect Telfer and Havieron (haul road, powerlines, water
pipes). This is not considered a risk to the timelines or
project.
Potential Exploration Growth
The Havieron mineral system as outlined by drill testing to
date, is an 650m by 350m ovate shaped north west trending
alteration zone in which mineralisation is hosted by variable
brecciation, and sulphide accumulations centred on a complex of
nested diorite intrusions. Higher grade zones are associated with
increases in sulphide accumulations including pyrrhotite,
chalcopyrite and pyrite with quartz. The South-East Crescent Zone
is a geological domain characterised by massive sulphide
accumulations. Mineralisation has been observed to over 1,000m in
vertical extent below the 420m of post mineralisation cover
sequence.
The Stage 1 Study only considers the current Indicated Mineral
Resource which is a relatively small proportion of the existing
resource inventory. The Havieron project has significant additional
growth potential including:
-- Conversion of existing Inferred Mineral Resources
-- Mineralisation open at depth and long strike
-- Extension of the South-East Crescent Zone below the current
Mineral Resource, where increasing grade and thickness of
mineralisation has been observed in recent drilling
-- Expansion of multiple higher-grade targets within the main
Havieron north-west corridor including the Northern Breccia and
North West Crescent
-- Potential for additional north west trending corridors
including the Eastern Breccia; and
-- Potential to discover addition mineralisation centres (at
Havieron North, Zipa and Meco).
In addition to the active testing of the above higher-grade
targets, drilling continues in the northern and eastern breccia
corridors to assess the bulk extraction potential.
At the South-East Crescent, drilling has extended the high-grade
mineralisation 250m below the base of the current Mineral Resource
with two recent drillholes (HAD133 and HAD133W1) returning
intervals >900 gram metres (Au ppm x length). These new
intercepts show an increase in both grade and thickness with
increasing depth. Drilling continues to assess the depth extents of
South-East Crescent which now has a vertical extent of over
900m.
Results external to the Mineral Resource include(10) :
-- HAD133
o 85m @ 11g/t Au & 0.29% Cu from 1,345m
o including 13m @ 32g/t Au & 0.46% Cu from 1,363m
o including 14.5m @ 32g/t Au & 0.33% Cu from 1,396.5m
-- HAD133W1
o 133m @ 7.0g/t Au & 0.05% Cu from 1,446m
o including 55.9m @ 9.7g/t Au & 0.04% Cu from 1,449.5m
o including 20m @ 11g/t Au & 0.04% Cu from 1,519m
-- HAD086W1
o 99.7 m @ 2.5g/t Au & 0.85% Cu from 1,308m
o 50.4 m @ 4.3g/t Au & 1.6% Cu from 1,313.6m
(10) The Havieron drill results included in this document have
been extracted from Greatland's release titled "Havieron
Development and Exploration Update" dated 9 September 2021 and
other prior exploration releases. These releases include the
exploration results for all material drill holes (including those
referred to in this document).
At the Northern Breccia, drilling has extended the mineralised
breccia footprint around the Mineral Resource extents. Drilling has
confirmed and increased the confidence in the continuity of
internal higher grade Crescent-like mineralisation in a north-west
mineralised corridor which now extends up to 300m in length, and
100m wide, between 4,300 - 4,100mRL, and remains open at depth.
Results of greater than 150 gram metres (Au ppm x length) outside
of the current Mineral Resource include:
-- HAD047
-- 309m @ 0.99g/t Au & 0.07% Cu from 915m
-- including 44m @ 3.3g/t Au & 0.15% Cu from 1,157m
-- HAD101
-- 147.2m @ 1.1g/t Au & 0.18% Cu from 1,083.8m
-- including 51.8m @ 1.6g/t Au & 0.25% Cu from 1,129.2m
-- 92.5m @ 1.9g/t Au & 0.06% Cu from 1,296m
-- including 15.6m @ 4.8g/t Au & 0.02% Cu from 1,350m
-- including 14m @ 6.2g/t Au & 0.10% Cu from 1,373m
-- HAD103
-- 90.6m @ 2.3g/t Au & 0.18% Cu from 776.4m
-- including 2.4m @ 67g/t Au & 0.33% Cu from 822.7m
-- HAD083W4
-- 156.6m @ 1.1g/t Au & 0.22% Cu from 805.8m
-- HAD140
-- 29.1m @ 9.7g/t Au & 0.29% Cu from 813.2m
-- HAD083
-- 183.7m @ 1.8g/t Au & 0.18% Cu from 1,098m
-- including 17.2m @ 8.8g/t Au & 0.47% Cu from 1,165.2m
Higher grade mineralisation external to the Mineral Resource has
also been identified on the north west margin of the breccia,
previously referred to as the North West Crescent, with additional
intercepts showing a vertically extensive high grade pod (NW Pod
Target) which remains open at depth and to the north west. Drilling
is ongoing to confirm the extents and continuity of this zone.
Results from this zone outside the current Mineral Resource
include:
-- HAD085
o 74.2m @ 2g/t Au & 0.09% Cu from 568.8m
o including 19.1m @ 7g/t Au & 0.23% Cu from 594m
-- HAD089
o 116m @ 2.9g/t Au & 0.07% Cu from 1,136m
o including 13m @ 13g/t Au & 0.17% Cu from 1,136m
-- HAD138
o 84.5m @ 2g/t Au & 0.05% Cu from 683m
o including 12.7m @ 6.0g/t Au & 0.01% Cu from 685.3m
-- HAD141
o 87m @ 1.8g/t Au & 0.05% Cu from 1,328m
o including 17.8m @ 5.7g/t Au & 0.14% Cu from 1,378.5m
At the Eastern Breccia drilling has targeted extensions of
previously reported drill holes HAD083 and HAD084, identifying a
separate north west trending corridor with an alteration footprint
of over 600m. Crescent like higher grade zones are observed
internal to this Eastern Breccia. Results outside of the current
Mineral Resource include:
-- HAD083
o 134m @ 1.4g/t Au & 0.04% Cu from 1,529m
o 98.2m @ 1.9g/t Au & 0.14% Cu from 1,677m
o including 41.1m @ 3.7g/t Au & 0.1% Cu from 1,723.9m
-- HAD084
o 342.2m @ 2g/t Au & 0.11% Cu from 1,536.8m
o including 14m @ 19g/t Au & 0.20% Cu from 1,572m
o including 11.1m @ 6.6g/t Au & 0.11% Cu from 1,629.9m
o including 19.5m @ 4.2g/t Au & 0.04% Cu from 1,726.3m
In addition to this release, a PDF version of this report with
supplementary information can be found at the
Company's website: www.greatlandgold.com/media/jorc/
Enquiries:
Greatland Gold PLC +44 (0)20 3709
Shaun Day 4900
info@greatlandgold.com
www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated
Adviser) +44 (0)20 3368
Andrew Emmott/James Keeshan 3550
Berenberg (Joint Corporate Broker and Financial
Adviser)
Matthew Armitt/ Varun Talwar/Alamgir Ahmed +44 (0)20 3207
/Detlir Elezi 7800
Canaccord Genuity (Joint Corporate Broker
and Financial Adviser) +44 (0)20 7523
James Asensio/Patrick Dolaghan 8000
Hannam & Partners (Joint Corporate Broker
and Financial Adviser) +44 (0)20 7907
Andrew Chubb/Matt Hasson/Jay Ashfield 8500
SI Capital Limited (Joint Broker) +44 (0)14 8341
Nick Emerson/Alan Gunn 3500
Luther Pendragon (Media and Investor Relations) +44 (0)20 7618
Harry Chathli/Alexis Gore/Joe Quinlan 9100
Competent Person:
Information in this announcement that relates to exploration
results has been extracted from the following announcements:
"Havieron PFS Stage 1 delivers solid returns and base for future
growth" dated 12 October 2021 (Newcrest)
"Havieron Development and Exploration Update" dated 9 September
2021 (Greatland)
"Exploration Update", dated 9 September 2021 (Newcrest)
"Havieron Development and Exploration Update" dated 22 July 2021
(Greatland)
"Quarterly Exploration Report", dated 22 July 2021
(Newcrest)
"Further Excellent Growth Drilling Results at Havieron", dated
10 June 2021 (Greatland)
"Exploration Update", dated 10 June 2021 (Newcrest)
"Excellent Growth Drilling Results at Havieron", dated 29 April
2021 (Greatland)
"Quarterly Exploration Report", dated 29 April 2021
(Newcrest)
"Further Outstanding Infill Drilling Results at Havieron", dated
11 March 2021 (Greatland)
"Exploration Update", dated 11 March 2021 (Newcrest)
"Newcrest Reports Further Drilling Results at Havieron", dated
28 January 2021 (Greatland)
"Quarterly Exploration Report", dated 28 January 2021
(Newcrest)
"Newcrest Reports Further Drilling Results at Havieron", dated
10 December 2020 (Greatland)
"Exploration Update", dated 10 December 2020 (Newcrest)
"Initial Inferred Mineral Resource Estimate for Havieron", dated
10 December 2020 (Greatland)
"Initial Inferred Mineral Resource Estimate for Havieron", dated
10 December 2020 (Newcrest)
"Drilling Results at Havieron Highlight Potential New Eastern
Breccia Target", dated 29 October 2020 (Greatland)
"Quarterly Exploration Report", dated 29 October 2020
(Newcrest)
"Latest Drilling Results at Havieron Highlight Potential Bulk
Tonnage Target", dated 10 September 2020 (Greatland)
"Exploration Update", dated 10 September 2020 (Newcrest)
"Newcrest Identifies New Zone of Breccia Mineralisation at
Havieron", dated 23 July 2020 (Greatland)
"Quarterly Exploration Report", dated 23 July 2020
(Newcrest)
"Further Outstanding Drill Results from Havieron", dated 11 June
2020 (Greatland)
"Exploration Update", dated 11 June 2020 (Newcrest)
"Newcrest Reports Further Outstanding Drill Results at
Havieron", dated 30 April 2020 (Greatland)
"Quarterly Exploration Report", dated 30 April 2020
(Newcrest)
"Newcrest Reports Further Outstanding Drill Results at
Havieron", dated 11 March 2020 (Greatland)
"Exploration and Guidance Update", dated 11 March 2020
(Newcrest)
"Further Outstanding Drill Results at Havieron", dated 30
January 2020 (Greatland)
"Quarterly Exploration Report", dated 30 January 2020
(Newcrest)
"New Outstanding Drill Results at Havieron Extend the Strike
Length of High-Grade Mineralisation", dated 2 December 2019
(Greatland)
"Exploration Update - Havieron", dated 2 December 2019
(Newcrest)
"Further High-Grade Drilling Results from Newcrest's Campaign at
Havieron", dated 24 October 2019 (Greatland)
"Quarterly Exploration Report - September 2019", dated 24
October 2019 (Newcrest)
"Update on Newcrest Drilling Results at Havieron", dated 10
September 2019 (Greatland)
"Exploration Update - Havieron", dated 10 September 2019
(Newcrest)
"First Results from Newcrest's Drilling Campaign at Havieron",
dated 25 July 2019 (Greatland)
"Newcrest Quarterly Exploration Report - June 2019", dated 25
July 2019 (Newcrest)
Information in this announcement pertaining to Reporting of
Exploration Results, including Sampling Techniques and Data, which
has been taken from Newcrest Mining Limited's announcement
"Havieron PFS Stage 1 delivers solid returns and base for future
growth" dated 12 October 2021, has been reviewed and approved by Mr
John McIntyre, a Member of the Australian Institute of
Geoscientists (MAIG), who has more than 30 years relevant industry
experience. Mr McIntyre is an employee of the Company and has no
financial interest in Greatland Gold plc or its related entities.
Mr McIntyre has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration, and to the
activity which he is undertaking to qualify as a Competent Person
as defined by the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the JORC Code) and under the AIM Rules - Note for Mining
and Oil & Gas Companies, which outline standards of disclosure
for mineral projects. Mr McIntyre consents to the inclusion in this
announcement of the matters based on this information in the form
and context in which it appears. Mr McIntyre confirms that the
Company is not aware of any new information or data that materially
affects the information included in the relevant market
announcements, and that the form and context in which the
information has been presented has not been materially
modified.
Information in this announcement pertaining to Estimation and
Reporting of Mineral Resources, which has been taken from Newcrest
Mining Limited's announcement "Havieron PFS Stage 1 delivers solid
returns and base for future growth" dated 12 October 2021, has been
reviewed and approved by Mr Stuart Masters, a Member of the
Australian Institute of Geoscientists (MAIG) and a Fellow of The
Australasian Institute of Mining and Metallurgy (FAusIMM), who has
more than 35 years relevant industry experience. Mr Masters is the
Principal Consultant and Director of CS-2 Pty Ltd, and has no
financial interest in Greatland Gold plc or its related entities.
Mr Masters has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration, and to the
activity which he is undertaking to qualify as a Competent Person
as defined by the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the JORC Code) and under the AIM Rules - Note for Mining
and Oil & Gas Companies, which outline standards of disclosure
for mineral projects. Mr Masters consents to the inclusion in this
announcement of the matters based on this information in the form
and context in which it appears. Mr Masters confirms that the
Company is not aware of any new information or data that materially
affects the information included in the relevant market
announcements, and that the form and context in which the
information has been presented has not been materially
modified.
Information in this announcement pertaining to Estimation and
Reporting of Ore Reserves, which has been taken from Newcrest
Mining Limited's announcement "Havieron PFS Stage 1 delivers solid
returns and base for future growth" dated 12 October 2021, has been
reviewed and approved by Mr Otto Richter, a Member of The
Australasian Institute of Mining and Metallurgy (MAusIMM), who has
more than 20 years relevant industry experience. Mr Richter is an
employee of the Company and has no financial interest in Greatland
Gold plc or its related entities. Mr Richter has sufficient
experience relevant to the style of mineralisation and type of
deposit under consideration, and to the activity which he is
undertaking to qualify as a Competent Person as defined by the 2012
Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code) and
under the AIM Rules - Note for Mining and Oil & Gas Companies,
which outline standards of disclosure for mineral projects. Mr
Richter consents to the inclusion in this announcement of the
matters based on this information in the form and context in which
it appears. Mr Richter confirms that the Company is not aware of
any new information or data that materially affects the information
included in the relevant market announcements, and that the form
and context in which the information has been presented has not
been materially modified.
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.
Appendix 1
JORC Code, 2012 Edition - Table 1
Section 1: Sampling Techniques and Data
Criteria Commentary
Sampling techniques Core samples are obtained from core drilling in Proterozoic
basement lithologies. PQ-HQ and NQ diameter core was
drilled on a 6m run. Core was cut using an automated
core-cutter and half core sampled at 1m intervals with
breaks for major geological changes. Sampling intervals
range from 0.2 - 1.0m. Cover sequences were not sampled.
-------------------- --------------------------------------------------------------------
Drilling techniques Permian Paterson Formation cover sequence was drilled
using mud rotary drilling. Depths of cover typically
observed to approximately 420m vertically below surface.
Steel casing was emplaced to secure the pre-collar.
Core drilling was advanced from the base of the cover
sequence with PQ3, HQ3 and NQ2 diameter coring configuration.
Core from inclined drill holes are oriented on 3m and
6m runs using an electronic core orientation tool (Reflex
ACTIII). At the end of each run, the bottom of hole
position is marked by the driller, which is later transferred
to the whole drill core run length with a bottom of
hole reference line.
-------------------- --------------------------------------------------------------------
Drill sample Core recovery is systematically recorded from the commencement
recovery of coring to end of hole, by reconciling recovered core
measurements against driller's depth blocks in each
core tray, as recorded in the database. Drillers depth
blocks provided the depth, interval of core recovered,
and interval of core drilled.
Core recoveries were typically 100%, with isolated zones
of lower recovery.
There is no discernible relationship between sample
recovery and grade.
Cover sequence drilling by the mud-rotary drilling did
not yield recoverable samples.
-------------------- --------------------------------------------------------------------
Logging Geological logging recorded qualitative descriptions
of lithology, alteration, mineralisation, veining, and
structure (for all core drilled - 100,799m from 170
drillholes, all intersecting mineralisation), including
orientation of key geological features.
Geotechnical measurements were recorded including Rock
Quality Designation (RQD) fracture frequency, solid
core recovery and qualitative rock strength measurements.
Magnetic susceptibility measurements were recorded every
metre. The bulk density of selected drill core intervals
was determined at site on whole core samples.
All geological and geotechnical logging was conducted
at Havieron site.
Digital data logging was captured on diamond drill core
intervals only, and all data validated and stored in
an acQuire database.
All drill cores were photographed, prior to cutting
and/or sampling the core.
The logging was of sufficient quality to support the
Mineral Resource estimate, mining studies and metallurgical
studies.
-------------------- --------------------------------------------------------------------
Sub-sampling Core was cut and sampled at the Telfer or Havieron core
techniques processing facility. Half core samples were collected
and sample in pre-numbered calico bags and grouped into bulk bags
preparation for dispatch to the laboratory. Sample weights typically
varied from 0.5 to 4kg. Sample sizes are considered
appropriate for the style of mineralisation. Drill core
samples were freighted by air and road to the laboratory.
Sample preparation was conducted at the independent
ISO17025 accredited Intertek Laboratory, Perth (Intertek).
Samples were dried at 105(o) C, and crushed to 95% passing
4.75mm, and the split to obtain up to 3kg sub-sample,
which was pulverised (using LM5) to produce a pulped
product with the minimum standard of 95% passing 106<MU>m.
Routine grind size analysis is conducted.
No sample size and grain size tests have been done for
the Havieron mineralisation, however given the very
fine nature of the gold the sample sizes are considered
to be appropriate for the gold mineralisation and this
is supported by the results from duplicate sample assays.
The copper mineralisation is also very fine and analysis
of duplicate sample data suggests the sample sizes are
appropriate for the copper mineralisation.
Duplicate samples were collected from crush and pulp
samples at a rate of 1:20. Duplicate results show an
acceptable level of variability for the material sampled
and style of mineralisation.
Periodic size checks (1:20) for crush and pulp samples
and sample weights are provided by the laboratory and
recorded in the acQuire database.
--------------------------------------------------------------------
Quality of Assaying of drill core samples was conducted at Intertek.
assay data All samples were assayed for 48 elements using a 4-acid
and laboratory digestion followed by ICP-AES/ICP-MS determination (method
tests 4A/MS907), which is considered to provide a total assay
for copper. Gold analyses were determined by 50g fire
assay with AAS finish (method FA50N/AA), which is considered
to provide a total assay for gold.
Sampling and assaying quality control procedures consisted
of inclusion of certified reference material (CRMs),
coarse residue and pulp duplicates with each batch (at
least 1:20).
Assays of quality control samples were compared with
reference samples in acQuire database and verified as
acceptable prior to use of data from analysed batches.
Laboratory quality control data, including laboratory
standards, blanks, duplicates, repeats and grind size
results are captured in the acQuire database and assessed
for accuracy and precision for recent data.
Extended quality control programs including pulp samples
submitted to an umpire laboratory and combined with
more extensive re-submission programs have been completed.
Analysis of the available quality control sample assay
results indicates that an acceptable level of accuracy
and precision has been achieved and the database contains
no analytical data that has been numerically manipulated.
The assaying techniques and quality control protocols
used are considered appropriate for the data to be used
for estimation of Mineral Resources.
--------------------------------------------------------------------
Verification Sampling intervals defined by the geologist are electronically
of sampling assigned sample identification numbers prior to core
and assaying cutting. Corresponding sample numbers matching pre-labelled
calico bags are assigned to each interval.
All sampling and assay information were stored in a
secure acQuire database with restricted access.
Electronically generated sample submission forms providing
the sample identification number accompany each submission
to the laboratory. Assay results from the laboratory
with corresponding sample identification are loaded
directly into the acQuire database.
Assessment of reported significant assay intervals was
verified by re-logging of diamond drill core intervals
and assessment of high-resolution core photography.
The verification of significant intersections has been
completed by Newcrest personnel and Newcrest's Competent
Person/Qualified Person.
No adjustments are made to assay data, and no twinned
holes have been completed.
There are no currently known drilling, sampling, recovery,
or other factors that could materially affect the accuracy
or reliability of the data.
--------------------------------------------------------------------
Location of Drill collar locations were surveyed using a differential
data points GPS with GNSS with a stated accuracy of +/- 0.5m for
all drill holes used.
Drill rig alignment was attained using an electronic
azimuth aligner. Downhole survey was collected at 6-12m
intervals in the cover sequence, and every 6 to 30m
in diamond drill core segments of the drill hole using
single shot (Axis Mining Champ Gyro). The single shot
surveys have been validated using continuous survey
to surface (Axis Mining Champ) along with a selection
of drill holes re-surveyed by an external survey contactor
using a DeviGyro tool - confirming sufficient accuracy
for downhole spatial recording.
A LIDAR survey was completed over the project area in
November 2019 which was used to prepare a DEM / topographic
model for the project with a spatial accuracy of +/-
0.1m vertical and +/- 0.3m horizontal. The topography
is generally low relief to flat, elevation within the
dune corridors in ranges between 250-265m Australian
Height Datum (AHD) steepening to the southeast. All
collar coordinates are provided in the Geocentric Datum
of Australian (GDA20 Zone 51). All relative depth information
is reported in AHD +5000m.
-------------------- --------------------------------------------------------------------
Data spacing The drill hole spacing ranges from 40-100m within the
and distribution SE Crescent Zone to 50-200m in lateral extent within
the breccia zones over an area of 2km(2) . The data
spacing is sufficient to establish the degree of geological
and grade continuity for an Indicated Mineral Resource
and Inferred Mineral Resource within SE Crescent Zone
and Inferred Mineral Resource within the Breccia zones.
No sample compositing is applied to samples.
-------------------- --------------------------------------------------------------------
Orientation Drill holes exploring the extents of the Havieron mineral
of data in system intersect moderately dipping carbonate and siliclastic
relation to sedimentary facies, mineralised breccia and sub-vertical
geological intrusive lithologies. Geological modelling has been
structure interpreted from historic and Newcrest drill holes.
Variable brecciation, alteration and sulphide mineralisation
are observed with a footprint with dimensions of 650m
x 350m trending in a north west orientation and 1000m
in vertical extent below cover.
The subvertical southeast high grade arcuate crescent
sulphide zone has an average thickness of 20m and has
been defined over a strike length of up to 550m, and
over 700m in vertical extent below cover.
Drilling intersects mineralisation at various angles.
Drilling direction is oriented to intersect the steeply
dipping high-grade sulphide mineralisation zones at
an intersection angle of greater than 40 degrees. The
drilled length of reported intersections is typically
greater than true width of mineralisation.
-------------------- --------------------------------------------------------------------
Sample security The security of samples is controlled by tracking samples
from drill rig to database.
Drill core was delivered from the drill rig to the Havieron
core yard every shift. On completion of geological and
geotechnical logging, core processing was completed
by Newcrest personnel at the Havieron facility.
High resolution core photography and cutting of drill
core was undertaken at the Havieron or Telfer core processing
facilities.
Samples were freighted in sealed bags by air and road
to the Laboratory, and in the custody of Newcrest representatives.
Sample numbers are generated directly from the database.
All samples are collected in pre-numbered calico bags.
Verification of sample numbers and identification is
conducted by the laboratory on receipt of samples, and
sample receipt advice issued to Newcrest.
Details of all sample movement are recorded in a database
table. Dates, Hole ID sample ranges, and the analytical
suite requested are recorded with the dispatch of samples
to analytical services. Any discrepancies logged at
the receipt of samples into the analytical services
are validated.
-------------------- --------------------------------------------------------------------
Audits or Internal reviews of core handling, sample preparation
reviews and assays laboratories were conducted on a regular
basis by both project personnel and owner representatives.
In the Competent Person's opinion, the sample preparation,
security and analytical procedures are consistent with
current industry standards and are entirely appropriate
and acceptable for the styles of mineralisation identified
and will be appropriate for use in Mineral Resource
estimates. There are no identified drilling, sampling
or recovery factors that materially impact the adequacy
and reliability of the results of the drilling program
in place at the Havieron Project.
-------------------- --------------------------------------------------------------------
Section 2: Reporting of Exploration Results
Criteria Commentary
Mineral tenement The Havieron Project is entirely contained within mining
and land tenure tenement M45/1287, which is jointly owned by Greatland
status Pty Ltd and Newcrest Operations Limited . Newcrest has
entered into a Joint Venture Agreement (effective 30
November 2020) and Farm-In Agreement (effective 12 March
2019) with Greatland Pty Ltd and Greatland Gold plc.
completion of the Pre-Feasibility Study triggers Newcrest's
entitlement to an additional 10% interest in the Joint
Venture for a cumulative 70% Joint Venture Interest.
Newcrest has an option to acquire a further 5% Joint
Venture Interest at fair market value, exercisable during
the 12 months from 12 December 2021.
Newcrest and the WDLAC are parties to an ILUA which
relates to the use of native title land for Newcrest's
current operations at Telfer and its activities within
a 60-km radius around Telfer and includes its exploration
activities at Havieron. The parties have agreed that
the ILUA will apply to any future development activities
by the Joint Venture Participants (Newcrest and Greatland
Gold) at Havieron.
The mining tenement M45/1287 wholly replaces the 12
sub-blocks of exploration tenement E45/4701 (former
exploration tenement on which the Havieron Project is
based) and was granted on 10 September 2020. All obligations
with respect to legislative requirements including minimum
expenditure are maintained in good standing for prior
exploration tenement E45/4701.
-------------------------------------------------------------------
Exploration Newcrest completed six core holes in the vicinity of
done by other the Havieron Project from 1991 to 2003. Greatland Gold
parties completed drill targeting and drilling of nine Reverse
Circulation (RC) drill holes with core tails for a total
of approximately 6,800m in 2018. Results of drilling
programs conducted by Greatland Gold have previously
been reported on the Greatland Gold website.
Drilling has defined an intrusion-related mineral system
with evidence of breccia and massive sulphide-hosted
higher-grade gold-copper mineralisation.
-------------------------------------------------------------------
Geology The Havieron Project is located within the north-western
exposure of the Palaeo-Proterozoic to Neoproterozoic
Paterson Orogen (formerly Paterson Province), 45 km
east of Telfer. The Yeneena Supergroup hosts the Havieron
prospect and consists of a 9km thick sequence of marine
sedimentary rocks and is entirely overlain by approximately
420m of Phanerozoic sediments of the Paterson Formation
and Quaternary aeolian sediments.
Gold and copper mineralisation at Havieron consist of
breccia, vein and massive sulphide replacement gold
and copper mineralisation typical of intrusion-related
and skarn styles of mineralisation. Mineralisation is
hosted by metasedimentary rocks (meta-sandstones, meta-siltstones
and meta-carbonate) and intrusive rocks of an undetermined
age. The main mineral assemblage contains well developed
pyrrhotite-chalcopyrite and pyrite sulphide mineral
assemblages as breccia and vein infill, and massive
sulphide lenses. The main mineralisation event is associated
with amphibole-carbonate-biotite-sericite-chlorite wall
rock alteration. Drilling has partially defined the
extents of mineralisation which are observed over 650m
by 350m within an arcuate shaped mineralised zone, and
to depths of up to 1400m below surface.
-------------------------------------------------------------------
Drill hole Refer to previous exploration releases for drillhole
Information information of the previously reported intercepts highlighted
in this report and used in the Mineral Resource Estimate.
-------------------------------------------------------------------
Data aggregation Significant assay intercepts are reported as (A) length-weighted
methods averages exceeding 1.0g/t Au greater than or equal to
10m, with a maximum of 5m consecutive internal dilution;
and (B) length-weighted averages exceeding 0.2g/t Au
for greater than or equal to 20m, with a maximum of
10m consecutive internal dilution. No top cuts have
been applied to reported Exploration Results.
-------------------------------------------------------------------
Relationship Significant assay intervals reported represent apparent
between mineralisation widths. Drilling is not always perpendicular to the
widths and dip of mineralisation and true widths are less than
intercept downhole widths. Estimates of true widths will only
lengths be possible when all results are received, and final
geological interpretations have been completed.
-------------------------------------------------------------------
Diagrams As provided above.
-------------------------------------------------------------------
Balanced reporting This report includes highlights of drilling from previously
released drillhole intercepts. There have been eighteen
Exploration Results releases for this project made by
Newcrest. Previous release dates are 25 July 2019, 10
September 2019, 24 October 2019, 2 December 2019, 30
January 2020, 11 March 2020, 30 April 2020, 11 June
2020, 23 July 2020, 10 September 2020, 29 October 2020,
10 December 2020, 28 January 2021, 11 March 2021, 29
April 2021, 10 June 2021, 22 July 2021 and 9 September
2021.
Earlier reporting of exploration programs conducted
by Newcrest and Greatland Gold have previously been
reported. Exploration drilling programs are ongoing
and further material results will be reported in subsequent
releases.
-------------------------------------------------------------------
Other substantive Nil.
exploration
data
-------------------------------------------------------------------
Further work Infill drilling is underway on the Inferred Mineral
Resource portion of the SE Crescent Zone, looking to
upgrade a significant portion of the Inferred Mineral
Resource to Indicated Mineral Resource.
Growth drilling is underway to extend the limits of
the mineralised system down depth and looking to establish
additional resources outside those stated in this announcement.
-------------------------------------------------------------------
Section 3: Estimation and Reporting of Mineral Resources
Criteria Commentary
Database integrity Data are stored in a SQL acQuire database. Assay and
geological data are electronically loaded into acQuire
and the database is replicated in Newcrest's centralised
database system in Melbourne. In-built validation tools
are used in the acQuire(TM) database and data loggers
are used to minimise keystroke errors, flag potential
errors and validate against internal library codes.
Regular reviews of data quality are conducted by site
and corporate teams prior to resource estimation. Final
surveyed collars are checked against the original collar
GPS pickup and the Lidar topographic surface. Downhole
surveys are checked visually and statistically for outliers.
Assay data is checked for negative, extreme, missing
and overlapping samples. Below detection assay values
are set to half the lower detection limit for estimation.
Geological domains are reviewed against core photography,
geochemistry and Corescan data and checked for overlaps
and missing intervals. Data that is found to be in error
is investigated and corrected where possible. If the
data cannot be corrected it is removed from the data
set used for resource modelling and estimation.
------------------- ------------------------------------------------------------------
Site visits Greatland's Competent Person for Exploration Results
has visited site in 2021.
Greatland's Competent Person for the Mineral Resource
has not visited site due to time and COVID-19 related
site-access constraints. However, he has visited the
Telfer mine on several occasions and has undertaken
sufficient investigations of the resource modelling
and estimation inputs, processes, methods and outputs
to satisfy himself that the Havieron resources have
been appropriately modelled and estimated, and reported
in compliance with the 2012 edition of the JORC Code.
------------------- ------------------------------------------------------------------
Geological The geology model is based on grouped primary logging
interpretation domain codes interpreted from drill cores. 3D solids
were modelled in Leapfrog Geo 6.1 using vein, intrusive
and erosional implicant models.
The geology model for the Havieron deposit comprises
a cover sequence and a basement sequence of variably
mineralised and altered metasediments. The cover sequence
consists of 7 sub horizontal units ascribed to the Permian
whilst the basement sequence consists of the Crescent
Zone that typically comprises of the massive sulphides
including locally banded pyrrhotite or chalcopyrite.,
Calcite Cemented Breccia, Actinolite Cemented Breccia,
Crackle Breccia and the post mineralisation Dolerite
dyke.
Mineralisation in Havieron is hosted in the Crescent
and to a lesser extent within the cemented breccia's
(Calcite Cemented and Actinolite Cemented Breccia).
These units are therefore used as estimation domains.
The overall architecture of the Crescent Zone is very
well defined and no plausible alternative interpretations
have been made. The controls on, and geometry of, the
breccias are less well understood and this is reflected
in the subsequent classification of resources.
------------------- ------------------------------------------------------------------
Dimension Variable brecciation, alteration and sulphide mineralisation
are observed with a footprint with dimensions of 650m
x 350m trending in a north west orientation and 1000m
in vertical extent below 420m of cover. The SE Crescent
Zone Mineral Resource extents are 550m in unfolded
plan section, between 5-40m true width and 750m in
vertical extent, mineralisation remains open at depth.
The Breccia Mineral Resource extents occurs as a 50-100m
sleeve around the SE Crescent Mineral Resource and also
a 250x50x300 NW trending zone in the north western
half on the breccia complex, the "Northern Breccia"
which remains open at depth and to the northwest.
------------------- ------------------------------------------------------------------
Estimation Geostatistical testing of the gold and copper grade
and modelling distributions showed that the Breccia Zones are moderately
techniques diffusive in nature, and the Crescent Zone is relatively
weakly diffusive in nature. Even though the Crescent
Zone is weakly diffusive in nature, the estimation method
of OK is considered appropriate due to the consideration
of the geological setting, geological observation from
the logging data and the geometry of the domain.
All drillhole samples were composited to 5 metre intervals
downhole and honouring the domain boundary. OK estimation
of gold, copper, sulphur, iron, cobalt, bismuth, arsenic,
lead, zinc and nickel, was undertaken into 10 m x 10
m x 10 m blocks for the Crescent Zone and 20 m x 20
m x 20 m blocks for the Breccia with discretisation
of 4 x 4 x 4. A single pass run was conducted for gold,
copper, sulphur, iron and cobalt estimate and two passes
were conducted for bismuth, arsenic, lead, zinc and
nickel estimates. The minimum and maximum number of
informing composites were 10 and between 20 to 24 respectively,
depending on the domain and variable being estimated.
Due to the highly skewed nature of the grade distribution,
a grade capping strategy has been applied for variables
including Au, Cu, Co, Bi, As, Pb, Zn and Ni. Caps are
typically around the value at a 99(th) percentile of
distributions. The model grades were estimated in Isatis
software. Gold and copper were the only revenue generating
elements, no recovery of by-products has been assumed.
Variables were estimated independently. The block size
was chosen on the basis of estimation quality and likely
scale of mining.
The block model used for interpolators was populated
with local rotations for the Crescent Zone and the Breccia
Zones based on the orientation of the mineralisation
including the high grade (structurally controlled) zone
with a hard boundary applied to the Crescent Zone and
soft boundaries applied to the Breccia domains. The
entire resource is based on interpolation of grades.
The model has been validated via visual, statistical
and geostatistical method, including statistical comparison,
metal at risk analysis, swath plots, Global Change of
Support (Discrete Gaussian Modelling) comparison and
visual comparison of the drillholes and the blocks by
sections and plan views. The model assumes the likelihood
of a selective mining method for the Crescent Zone and
a bulk mining method for the Cemented Breccias.
------------------- ------------------------------------------------------------------
Moisture All tonnages are calculated and reported on a dry tonnes
basis.
------------------- ------------------------------------------------------------------
Cut-off parameters A value algorithm is used to calculate the NSR for each
block using revenue, metallurgical and cost assumptions
as of July 2020.
The NSR calculation takes account revenue factors, metallurgical
recovery assumptions, transport costs and refining charges
and royalty charges with the gold price of US$1,400
per ounce, copper price of US$3.40 per pound and an
USD:AUD exchange rate of 0.75.
The Indicated Mineral Resource was defined based on
a threshold of A$100/t within the SE Crescent Zone.
A smoothed shell was generated based on a threshold
of A$50/t and includes internal below value cut-off
blocks and excludes isolated above cut-off blocks applied
for the definition of the Inferred Mineral Resources.
Both Indicated Mineral Resources and Inferred Mineral
Resources are representing the limit of reasonable prospects
of eventual economic extraction. The A$100/t cut-off
for Indicated Mineral Resources and A$50/t cut-off for
Inferred Mineral Resources are based on Newcrest's experience
at its nearby Telfer operation, its current understanding
of the Havieron deposit and other benchmarked operations.
------------------- ------------------------------------------------------------------
Mining factors The Indicated Mineral Resource estimate is reported
or assumptions based on the A$100/t NSR value cut-off within the SE
Crescent Zone, based on an assumption of selective mining
by Sub Level Open Stoping (SLOS).
The Inferred Mineral Resource estimate is reported within
a notional constraining shell based on an A$50/t NSR
value cut-off, based on bulk mining and therefore all
internal materials are reported within the constraining
shell.
------------------- ------------------------------------------------------------------
Metallurgical Havieron ore will be processed on a campaign basis through
factors or the Telfer Train 2 Treatment Plant circuit at a throughput
assumptions of approximately 2Mtpa. Metal recovery will be through
conventional flotation to produce a copper/gold concentrate
and doré through a newly installed flotation tails
leach circuit. The technology associated with the ore
processing is conventional and the flowsheet is similar
to that utilised by other operations.
Metallurgical recovery assumptions for the Mineral Resource
were derived from preliminary testwork on 10 composite
samples based around the current operating Telfer Plant
process. Initial results suggested gold recoveries of
94% (Crescent Zone) and 84% (Breccia Zones), and copper
recoveries of 92% (Crescent Zone) and 82% (Breccia Zones).
------------------- ------------------------------------------------------------------
Environmental As Havieron is a brownfields project the potential environmental
factors or impact assessments are not well advanced; however, the
assumptions assumption is that there will be no significant impediments
to conventional waste management of rock and tailings
as utilised at Newcrest's Telfer Operations based on
the similarities between the Havieron and Telfer deposits.
------------------- ------------------------------------------------------------------
Bulk Density All bulk density measurements have been carried out
in accordance with site standard procedure and used
a standard water immersion method .
Intervals for bulk density determination are selected
according to lithology/ alteration/mineralisation type
to best represent certain intervals as defined by the
geologist.
The measurements are performed on site by geologists
or geological assistants as part of the logging process.
Measurements are based on 10 cm to 20 cm lengths generally
taken at 10 metre to 50 metre intervals down hole.
Bulk density from several thousand measurements was
estimated into the block model by an inverse distance
weightingmethod on a domain-wise basis.
------------------- ------------------------------------------------------------------
Classification A review of all drilling data available as of the 3(rd)
of February 2021 identified a total of 19 drillholes
that have been excluded for the purpose of resource
estimation. These holes were excluded on the following
basis: historical drillholes with limited QAQC data,
drilling in close proximity to adjacent drillholes,
and drillholes interpreted to have drilled parallel
to mineralisation (vertical holes). The remaining drill
data is considered of an adequate quality to support
this resource estimation.
As unreliable data have been excluded from the estimate,
the resource classification was based on drillhole spacing
relative to geological and grade continuity, including
the assessment of average weighted distance of informing
samples.
The Indicated Mineral Resource estimate is classified
within the SE Crescent Zone only with a nominal drill
spacing less than 45m x 45m, the Inferred Mineral Resource
estimate is classified within a nominal drill spacing
less than 100m x 100m and the contiguous footprint of
the reasonable prospects of eventual economic extraction
shell. The Indicated Mineral Resource and Inferred Mineral
Resource classifications appropriately reflects the
view of the Competent Person.
------------------- ------------------------------------------------------------------
Audits or Derisk Geomining Consultants conducted an independent
reviews review of the previous Havieron Underground Mineral
Resource estimate (November 2020) and concluded that
the estimate had been prepared using accepted industry
practice, had been completed in accordance with the
JORC Code (2012) guidelines, and was suitable for preparing
a public report documenting the Mineral Resource estimate.
Some responses and actions were noted from this review
and have been included in this updated estimate.
------------------- ------------------------------------------------------------------
Discussion The uncertainty of the geological domain at the upper
of relative part of SE Crescent is considered between moderate to
accuracy/ low. The grade uncertainty of the Indicated classification
confidence of the SE Crescent Zone is supported by the +/-15% variability
at 90% confidence interval of the mining rate of 2-3Mtpa
derived from conditional simulation studies. The breccia
is considered as an Inferred Mineral Resources and reflects
the wide spaced drilling where the geological evidence
is sufficient to imply but not verify geological and
grade continuity, thus it is deemed not necessary to
assess the relative uncertainty in tonnage, grade and
metal over a production volume for Inferred Mineral
Resources. There is no production data for Havieron.
------------------- ------------------------------------------------------------------
Section 4: Estimation and Reporting of Ore Reserves
Criteria Commentary
Mineral Resource Havieron is a gold and copper deposit located within
Estimate for the boundaries of the East Pilbara Shire in the Paterson
conversion Province, Western Australia (WA), and is located approximately
to Ore Reserves 45 kilometres (km) east of Newcrest's fly-in fly-out
Telfer Mine. The Havieron deposit lies unconformably
below approximately () 420 metres (m) of post-mineral,
flat-lying Permian fluvio-glacial sediments of the
basal sequence rocks in the Palaeozoic Canning Basin.
Mineralisation of gold and copper in the current resource
estimate are within the South East (SE) Crescent and
the Breccia zones. High grade gold mineralisation
is associated with a massive sulphide zone termed
the Crescent Zone which occurs on the margin of the
Breccia. The Crescent Zone is characterised by a series
of massive to semi-massive sulphide replacement units
that have a subvertical dip and is best developed
on the SE of the system forming as arcuate, crescent
like geometry.
The SE Crescent Zone is 5-40 m wide, extending 550
m in length in unfolded section from the basement
contact and defined up to 900 m vertically, tapering
to 300 m in length and open at that depth. The SE
Crescent Zone has been the focus of drilling and has
been infilled to a nominal drill spacing of 50 - 100
m laterally, and 100 m vertically.
OK estimation has been used for gold, copper, sulphur,
iron, cobalt, bismuth, arsenic, lead, zinc and nickel.
A panel size of 10 mE x 10 mN x 10 mRL for the SE
Crescent and 20 mE x 20 mN x 20 mRL for the Breccias
are used for estimation with a parent block size of
5 mE x 5 mN x 5 mRL designated for the final model.
The Mineral Resource estimate for the SE Crescent
has been classified as Indicated Mineral Resource
and Inferred Mineral Resource based on data quality
and quantity factors as well as geological domaining,
estimation confidence and reasonable prospect of the
eventual economic extraction (RPEEE).
The reported Havieron Mineral Resources are inclusive
of Ore Reserves.
----------------------------------------------------------------
Site Visits Greatland's Competent Person for the Ore Reserve estimate
has not visited site recently due to time constraints.
However, he worked at Telfer Mine site as a Newcrest
Mining Limited employee in 2017 to 2019 and is familiar
with the area. He has undertaken sufficient investigations
of the mine plan and material Modifying Factors applied
to create the mine plan to satisfy himself that the
Ore Reserves have been appropriately estimated and
reported in compliance with the 2012 edition of the
JORC Code.
----------------------------------------------------------------
Study Status A Pre-Feasibility Study was completed in 2021 to generate
the supporting basis for the Havieron Ore Reserve
Estimate. The Pre-Feasibility Study shows that the
mine plan is technically achievable and economically
viable taking into consideration all material Modifying
Factors.
----------------------------------------------------------------
Cut-off Parameters The Havieron Ore Reserve employs a value based cut-off
determined from the Net Smelter Return (NSR) value
equal to the site operating cost included within the
Pre-Feasibility Study.
The NSR calculation takes into account revenue factors,
metallurgical recovery assumptions, transport costs,
refining charges, and royalty charges.
The site operating costs include mining cost, processing
cost, relevant site general and administration costs
and relevant sustaining capital costs. This cost equates
to a break even cut off value of approximately AUD130/t
milled, and a marginal cut off value of approximately
AUD115/t milled.
----------------------------------------------------------------
Mining factors Estimation of the Havieron Ore Reserve involved standard
or assumptions steps of mine optimisation, mine design, production
scheduling and financial modelling. The basis of the
analysis is considered at Pre-Feasibility Study level.
The Pre-Feasibility Study supports the appropriateness
of the selected mining method (Sub-Level Open Stoping)
at a 2Mtpa mining rate as the basis of the Ore Reserve
estimate. Mine Design Parameter Value
Back Fill Type Paste Fill
-----------------
Materials Handling System Decline Trucking
-----------------
Stope Dimensions Width 5 to 30 m
------------- -----------------
Length 15 to 20 m
-------------------------------- -----------------
Height 15 to 70 m
-------------------------------- -----------------
Sublevel
Height 20 to 60m
-------------------------------- -----------------
Sill Height 70 m
-------------------------------- -----------------
The following Modifying Factors have been applied to
all mining shapes to accurately represent the expected
mined tonnes and grades :
* Dilution factors for overbreak in primary, secondary
and tertiary stopes (average 9%), consisting of waste
(average 6%) and stope paste (average 3%);
* Dilution included at zero grade; and
* Mining recovery factor of 97.5%
The resource model is comprised of Indicated Mineral
Resources and Inferred Mineral Resources. Mine plans
are based on the definition of mining shapes solely
delineated on the basis of the Indicated Mineral Resources.
Ore Reserves estimates and statements are required to
include estimates of dilution. The dilution included
in the total Ore Reserve is approximately 2.7Mt which
is comprised of Inferred Mineral Resources, unclassified
material and paste fill dilution. Only metal from the
Inferred Mineral Resource material is considered in
the dilution estimate. This is a relatively small proportion
(2% of the gold metal and 1.6% of the copper metal)
of the tabled Ore Reserve and does not have a material
impact upon the estimate. Even without consideration
of the metal contained in the dilution incorporated
in the Ore Reserve, the economic analysis indicates
an economic Probable Ore Reserve.
The Havieron Project is a greenfield mining project
and will require the following mining infrastructure
to support the mine:
* decline, accesses to the levels, ore passes,
ventilation raises and other underground excavations;
* paste fill plant and underground distribution system;
* ventilation fans, regulators and refrigeration
equipment; and
* dewatering, electrical and other service equipment
Metallurgical Havieron underground ore will be processed on a campaign
factors or basis through the Telfer Train 2 Treatment Plant circuit
assumptions at a throughput of approximately 2Mtpa. Metal recovery
will be through conventional flotation to produce a
copper/gold concentrate and doré through a newly
installed flotation tails leach circuit. The technology
associated with the ore processing is conventional and
the flowsheet is similar to that utilised by other operations.
Metallurgical recovery assumptions are based on detailed
analysis and laboratory flotation and leach test work
completed on 38 variability samples during the Havieron
Concept (2020) and Pre-Feasibility (2021) studies with
good spatial coverage of the SE Crescent Zone. Of the
38 samples, 8 samples are located in the breccia zones
and 30 samples are located in the SE Crescent Zone,
of which 21 samples are located within the SE Crescent
Zone Indicated Mineral Resources. Based on these samples,
metallurgical recoveries for gold are anticipated to
average approximately 88% and recoveries of copper are
expected to average approximately 84% throughout the
life of the project.
Bismuth is the key deleterious element for the gold/copper
concentrate product with smelter penalties incurred
on the basis of bismuth content. The impact of bismuth
in concentrate will be managed by mine sequencing and
concentrate blending.
Bulk sample or pilot scale test work has not been undertaken.
--------------------------------------------------------------------
Environmental Detailed environmental studies have been undertaken
in the project area and include flora and vegetation,
fauna, subterranean fauna, waste rock characterisation,
soil and landform study, surface hydrology assessment,
a basic hydrogeological assessment and a greenhouse
gas emissions study.
The Project has been designed to recognise biodiversity
values and, through consultation with Martu and their
native title corporation (WDLAC), minimise the impacts
to sites and landscapes of cultural significance. The
footprint for the Project has been minimised through
the use of existing tracks and areas of disturbance,
as well as utilising the existing Telfer Gold Mine infrastructure
to process the ore and dispose of the tailings material.
Waste rock characterisation has been undertaken and
shows that it contains material which has potentially
acid forming (PAF) and metalliferous drainage, in addition
to dispersive or saline material. The portion of PAF
material is less than 1% of total waste volumes. Waste
dumps have been designed for the life of mine that have
incorporated cells to safely encapsulate the PAF material.
The waste dump is to be located near the boxcut to minimise
haulage distance and considering the local surface terrain
and environmental and cultural aspects.
A staged approach for approvals is being undertaken,
with Stage 1 currently approved, which has allowed the
development of the boxcut, decline and service corridor.
These approvals also allow for a waste rock dump, evaporation
ponds and supporting infrastructure such as offices
and workshops.
Stage 2 approvals will consist of a SLOS underground
mine, permanent infrastructure corridor, associated
infrastructure and changes to Telfer approvals to accept
Havieron tailings in existing tailings storage facilities.
--------------------------------------------------------------------
Infrastructure The Havieron Sub-Level Open Stoping mine is a greenfield
project and will require the following infrastructure
to support mining operations:
* Ventilation fans and refrigeration equipment;
* Paste plant;
* Surface Mining Infrastructure Area (MIA) including
camp, offices, workshops, evaporation ponds,
electrical substations, explosive magazines, batch
plant, waste dumps, ore stockpile, and other
facilities;
* Haulage road to transport the ore from Havieron to
the Telfer Processing Plant; and
* Modifications to the existing Telfer Processing plant
to treat the ore coming from Havieron.
The capital and operating costs for the above have been
estimated in the Pre-Feasibility Study.
--------------------------------------------------------------------
Costs Capital and operating costs have been determined as
part of the Pre-Feasibility Study.
Capital cost estimates are based on multiple market
prices across all technical disciplines and include
processing upgrade and mine development costs along
with associated surface and underground infrastructure,
project establishment and sustaining capital costs.
These provisions have been allowed for during the life
of the mine based on most recent Pre-Feasibility plan
estimates. Contingency has also been factored into the
project capital cost estimate consistent with the level
of accuracy of the study.
The operating cost estimate includes the mining cost,
surface transport cost, processing cost and relevant
site general and administration costs. Ore Reserve cost
estimates have been reviewed as part of the study execution
and are considered to be to a Pre-Feasibility Study
level.
Long term metal prices and exchange rate assumptions
adopted for estimating the Ore Reserve in the Pre-Feasibility
Study 2021 are US$1,300/oz for gold, US$3.00/lb for
copper, at a USD:AUD exchange rate of 0.75. These assumptions
are consistent with Newcrest metal price guidelines
for 2021 Ore Reserve reporting.
Transport and refining charges have been developed from
first principles consistent with the application of
the current Telfer operation. These included charges
for deleterious elements, e.g. bismuth where applicable.
Costs include a revenue based payment from mining the
Havieron Project area under the ILUA with WDLAC.
State royalties are 2.5% for gold, 5% for copper after
allowable deductions.
--------------------------------------------------------------------
Revenue factors Long term metal prices and exchange rate assumptions
adopted for estimating the Ore Reserve in the Pre-Feasibility
Study 2021 are US$1,300/oz for gold, US$3.00/lb for
copper, at an USD:AUD exchange rate of 0.75. These assumptions
are consistent with Newcrest metal price guidelines
for the 2021 Ore Reserve reporting.
An NSR value calculation was adopted, taking into account
Ore Reserve revenue factors, metallurgical recovery
assumptions, transport costs and refining charges and
royalty charges.
--------------------------------------------------------------------
Market assessment Greatland is a price taker and gold is sold on the open
market and subject to price fluctuations. Supply and
demand for gold from Telfer and Havieron is not a constraint
in the estimation of the Ore Reserve.
Telfer has sold copper concentrate for its operational
life into the world concentrate markets and this is
assumed to continue under conditions similar to Newcrest's
current market agreements over the life of the operational
plan.
Concentrate volume forecasts were derived from the Pre-Feasibility
Study production schedule.
--------------------------------------------------------------------
Economic The Ore Reserve has been evaluated through a financial
model. All operating and capital costs as well as revenue
factors stated in this document were included in the
financial model. A discount factor of 4.5% real was
applied. This process demonstrated the Havieron Ore
Reserve to have a positive NPV.
Sensitivities were conducted on the key input parameters
including commodity prices, capital and operating costs,
ore grade, mined tonnes, mining rate, exchange rate
and metallurgical recoveries confirming the estimate
to be robust.
--------------------------------------------------------------------
Social The landowners, the Martu people and the WDLAC are key
project stakeholders. The Martu hold exclusive possession
native title rights and interests over more than 130,000km(2)
of land, including to all points around the Telfer mine
and Havieron Project. The ILUA with WDLAC, centred on
the Telfer mine, extends to the Havieron Project.
--------------------------------------------------------------------
Other The only identified material naturally occurring risk
at Havieron is flooding from large rain events typically
associated with the cyclone season. The existing boxcut
has been located and all other surface connections to
the surface have been designed above a modelled 1 in
1,000 year Average Recurrence Interval (ARI) event where
possible, or will be elevated such that large volumes
of water cannot enter the mine workings.
A number of State and Commonwealth statutory requirements
are relevant to the Havieron Project and all aspects
of the Project will comply with the relevant Government
Acts and Regulations applicable in the jurisdiction
of Western Australia.
A staged approach for approvals is being undertaken
with Stage 1 currently approved which has allowed the
development of the boxcut, decline and service corridor.
These approvals also allow for a waste rock dump, evaporation
ponds and supporting infrastructure such as offices
and workshops. Minor additional approvals are in the
process of being obtained and include a Groundwater
Licence amendment and Part V approval to allow the operation
of the evaporation ponds, waste water treatment plant
and to allow construction of a landfill for non-mineralised
waste.
The Part V licence and registrations have approved Works
Approvals and detailed consultation regarding the Groundwater
Licence and associated Water Management Plan has occurred.
Stage 2 approvals will consist of a SLOS underground
mine, permanent infrastructure corridor, associated
infrastructure and changes to Telfer approvals (processing
of Havieron ore, Tailings Storage Facility 8 [TSF8]
raise to accept Havieron tailings), groundwater use
at Havieron.
The approval strategy for Stage 2 consists of both Commonwealth
and State level approvals with engagement well advanced
with all regulatory bodies. The timelines outlined in
the Pre-Feasibility Study are considered achievable.
A Mining Lease has been granted over the orebody, and
miscellaneous leases granted along the existing service
corridor. For Stage 2 approvals, an additional miscellaneous
lease will be applied for to secure access for an infrastructure
corridor to connect Telfer and Havieron (haul road,
powerlines, water pipes). This is not considered a risk
to the timelines or project.
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Classification The Ore Reserve classification is based on Indicated
Mineral Resources only. No Measured Mineral Resources
are stated for this deposit. This classification is
based on geological confidence as a function of continuity
and complexity of geological features; data spacing
and distribution and estimation quality parameters including
distance to informing samples for block grade estimation.
Inferred Mineral Resource material has been included
within the Probable Ore Reserve as mined dilution due
to the nature of stoping mining. This is a relatively
small proportion (0.03 Moz gold or 2% and 1.2 kt copper
or 1.6%) of the tabled Ore Reserve. Even without consideration
of Inferred Mineral Resource material in the mining
inventory, the proportion of Indicated Mineral Resource
material would still conclusively deliver a Probable
Ore Reserve.
It is the Competent Person's view that the classifications
used for the Ore Reserves are appropriate.
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Audits or Golder Associates Pty Ltd (Golder) was commissioned
reviews to conduct an independent review of the Ore Reserve
estimation processes and results.
Golder concluded that the Ore Reserve had been prepared
using accepted industry practice and is considered suitable
and reported in accordance with the JORC Code, 2012
Edition.
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Discussion The accuracy of the estimates within this Ore Reserve
of relative is mostly determined by the order of accuracy associated
accuracy/ with the Mineral Resource estimate, the geotechnical
confidence input and the cost factors used.
The Competent Person views the Havieron Ore Reserve
a reasonable assessment of the global estimate. Some
risk and opportunity is associated with the Ore Reserve
process due to the greenfield nature of the project.
Remaining areas of uncertainty at this stage are associated
with:
* Cost base assumptions rely on current technology and
macroeconomic factors. Changes to these assumptions
will have an impact on the Ore Reserve estimate.
* The Modifying Factors (key inputs) for Ore Reserve
estimation rely upon the geology and geotechnical
data inherent to the orebody. This data, such as
geological structures and rock mass properties, is to
the appropriate definition and has been applied
within the Pre-Feasibility Study, however further
orebody data is required to confirm the geological
and geotechnical information and is planned as part
of the Forward Works Program.
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END
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