TIDMGGP
RNS Number : 5923W
Greatland Gold PLC
19 August 2022
19 August 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK MARKET ABUSE REGULATIONS. ON PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Greatland Gold plc
("Greatland" or "the Company")
Havieron Joint Venture Update
Greatland retains 30% ownership of the world-class Havieron
asset
Mineral Resource updated by Newcrest to 6.5Moz Au Eq
consistent with Greatland's Update from March 2022
Accelerated decline advance rate which is expected to further
improve
Greatland Gold plc (AIM:GGP), a mining development and
exploration company with a focus on precious and base metals notes
the release of an ASX announcement titled "Annual Results and
Annual Mineral Resources and Ore Reserves Statement " by Newcrest
Mining Ltd ("Newcrest") earlier today providing an update on the
Havieron Joint Venture ("JV").
Greatland retains 30% ownership of Havieron
Further to Greatland's announcement of 21 July 2022, Greatland
is pleased to advise that Newcrest has elected not to exercise the
option under the Havieron JV agreement to acquire an additional 5%
interest in the JV from Greatland at the price of US$60m determined
by the independent adjudicator, which was based on data up to 15
December 2021.
The Board is delighted that Greatland will retain 30% ownership
in the Company's flagship asset and believes this outcome delivers
substantial medium to long term value to Greatland. Greatland had
previously made a non-binding offer to Newcrest to acquire for
US$85m a 5% stake in Havieron which, in the opinion of the
directors, still presented a financially compelling outcome to
Greatland shareholders.
This outcome concludes the Joint Venture process for Newcrest's
5% option. Havieron still has significant growth potential as the
ongoing drill campaign consistently delivers excellent results that
enhance the JV partners' understanding of the size and scale of
Havieron. Newcrest, as a global major, and Australia's largest gold
mining company with over the 35-years of experience in the Paterson
and existing Telfer infrastructure, is an excellent partner to work
alongside to accelerate the development of Havieron and maximise
its future value.
Newcrest Updated Mineral Resource
Newcrest has released an updated Mineral Resource for Havieron
which is within 1% of the total gold metal content and within 3%
total copper metal content of Greatland's previously announced
updated Mineral Resource.
Newcrest's updated Mineral Resource for the Havieron Deposit
defines a total 85Mt @ 2.0g/t Au & 0.26% Cu for a total of
5.5Moz of Au and 223kt of Cu. This updated Newcrest Mineral
Resource was based on a 16 November 2021 drilling cut-off date
similar to the Greatland Updated Mineral Resource announced on 3
March 2022 based on a 2 December 2021 drilling cut-off date.
On 3 March 2022, Greatland published an updated Mineral
Resources (including Ore Reserves) based on the same data, which
demonstrated an increase to 92Mt @ 1.9g/t Au & 0.24% Cu for a
total of 5.5M oz Au and 218kt Cu or 6.5M oz AuEq(1.) T he close
alignment to the Newcrest updated Mineral Resource published today
is a testament to the high standard of work performed by
Greatland's technical team.
Newcrest Updated Mineral Resource estimate for the Havieron
Deposit (100%)(#)
Classification Tonnage Grade Metal Content
Mt Au (g/t) Cu (%) Au (M Cu (Mt)
oz)
-------- --------- ------- ------ --------
Indicated 28 3.2 0.51 2.9 0.14
-------- --------- ------- ------ --------
Inferred 57 1.4 0.14 2.6 0.082
-------- --------- ------- ------ --------
Total Mineral
Resource 85 2.0 0.26 5.5 0.22
-------- --------- ------- ------ --------
Greatland Updated Mineral Resource estimate for the Havieron
Deposit (100%)(^)
Classification Tonnage Grade Metal Content AuEq
(1) Metal
Mt Au (g/t) Cu (%) Au (M Cu (Mt) AuEq
oz) (M oz)
-------- --------- ------- ------ -------- -----------
Indicated 35 2.8 0.42 3.1 0.15 3.8
-------- --------- ------- ------ -------- -----------
Inferred 57 1.3 0.13 2.4 0.072 2.7
-------- --------- ------- ------ -------- -----------
Total Mineral
Resource 92 1.9 0.24 5.5 0.22 6.5
-------- --------- ------- ------ -------- -----------
Havieron Exploration and Development Update
It is pleasing to report that the drill programme at Havieron is
progressing at pace with up to seven drill rigs in operation. The
growth drilling programme continues to identify and expand high
grade extensions to the mineralisation in the Eastern Breccia,
South East Crescent Zone and Northern Breccia.
Additionally, the development of the exploration decline has
improved with advancement rates accelerating during the June 2022
quarter. Improvements are expected to continue.
Shaun Day, Managing Director of Greatland Gold plc, commented:
"We are simply delighted that Greatland will retain its 30%
interest in Havieron. This was the best possible outcome for the
Company and its shareholders which delivers substantial medium to
long term value.
"Greatland had previously offered Newcrest significantly higher
value to acquire a 5% stake from Newcrest which, in the opinion of
the directors, still presented a financially compelling outcome to
Greatland shareholders. Accordingly, today's outcome is tremendous,
particularly in the context of the ongoing potential of
Havieron.
"This outcome also concludes the JV process for Newcrest's 5%
option and aligns both Joint Venture parties to focus on developing
Havieron and work towards first production without the distraction
of the process. We respect the Newcrest decision, which as a global
major with over 35-years of experience in the Paterson, is an
excellent joint venture partner and provides Havieron the benefit
of leveraging the existing infrastructure just down the road at
Telfer.
"We welcome Newcrest's update to the Havieron JORC resource
today, which delivers around a 51% increase on their previous
update. This update, with a December 2021 drill cut-off, is within
around 1% for total gold metal content of Greatland's independent
update released on 3 March 2022. This validation is a great credit
to the quality of our technical team and their ability to deliver
within compressed timeframes.
"An additional almost nine months has passed since the cut-off
date, with drilling results over the course of 2022 being
outstanding. Accordingly, there remains exceptional potential for
ongoing growth.
"It is also pleasing to share today's update with respect to the
positive progress on the Havieron decline, whereby development
advance rates have accelerated towards the end of the June 2022
quarter and steady improvement is expected to continue.
"With excellent progress at Havieron continuing and the
publication of the Feasibility Study on track for the December 2022
quarter, we are confident that Havieron represents a world-class,
low-cost development expected to be fast-tracked to commercial
production."
(#) Results are reported to one (gold) and two (copper)
significant figures to reflect appropriate precision in the
estimate, and this may cause some apparent discrepancies in totals.
Results represent 100% of the Mineral Resource for Havieron.
Mineral Resources are reported within a variable A$50-$100 Net
Smelter Return "NSR/t". Resources are inclusive of Reserves.
(^) Results are reported to one (gold) and two (copper)
significant figures to reflect appropriate precision in the
estimate, and this may cause some apparent discrepancies in totals.
Results represent 100% of the Mineral Resource for Havieron.
Mineral Resources in the Crescent are reported within a A$80 NSR/t
shell while Mineral Resources in the Breccias are reported within a
A$50 NSR/t shell. Resources are inclusive of Reserves. The Updated
Mineral Resource Estimates assume selective mining of the South
East Crescent Zone and bulk extraction in the Breccias and are
reported inside A$80 or A$50 NSR/t shells respectively.
(1) The gold equivalent (AuEq) is based on assumed prices of
US$1,450/oz Au and US$3.23/lb Cu for Ore Reserve and assumed prices
of US$1,600/oz Au and US$3.50/lb Cu for Mineral Resource and
metallurgical recoveries based on block metal grade, reporting
approximately at 88% for Au and 84% for Cu which in both cases
equates to a formula of approximately AuEq = Au (g/t) + 1.5 * Cu
(%). It is the company's opinion that all the elements included in
the metal equivalents calculation have a reasonable potential to be
recovered and sold.
Competent Persons' Statements for JORC 2022 Mineral Resources
and Ore Reserves
The information in this document that relates to the Greatland
Mineral Resources and Ore Reserves for Havieron is extracted from
the RNS announcement titled "Updated Mineral Resource substantially
increases Havieron Resource and Reserve" released on 3 March 2022,
and available on Greatland's website. The Company confirms that it
is not aware of any new information or data that materially affects
the Mineral Resources and Ore Reserves for Havieron in the original
3 March 2022 announcement.
The information in this document that relates to the Newcrest
Mineral Resources for Havieron is extracted from the ASX
announcement titled "Group Mineral Resources and Ore Reserves
Statement" released on 19 August 2022, and available on Newcrest
website.
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.
Enquiries:
Greatland Gold PLC +44 (0)20 3709 4900
Shaun Day info@greatlandgold.com
www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated
Adviser)
Andrew Emmott/James Keeshan +44 (0)20 3368 3550
Berenberg (Joint Corporate Broker and Financial
Adviser)
Matthew Armitt/ Jennifer Lee/ Jack Botros +44 (0)20 3207 7800
Canaccord Genuity (Joint Corporate Broker
and Financial Adviser)
James Asensio/Patrick Dolaghan +44 (0)20 7523 8000
Hannam & Partners (Joint Corporate Broker
and Financial Adviser)
Andrew Chubb/Matt Hasson/Jay Ashfield +44 (0)20 7907 8500
SI Capital Limited (Joint Broker)
Nick Emerson/Sam Lomanto +44 (0)14 8341 3500
Gracechurch Group (Media and Investor Relations)
Harry Chathli/Alexis Gore +44 (0)20 3488 7510
Notes for Editors:
Greatland Gold plc (AIM:GGP) is a 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 . Newcrest holds a joint venture interest of
70% (30% Greatland).
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-risk and low-cost pathway to development.
Construction of the box cut and decline to develop the Havieron
deposit commenced in February 2021. An extensive growth drilling
programme is presently underway at Havieron with a view to further
expanding the understanding and scale of the ore body.
Greatland has a proven track record of discovery and exploration
success. It is pursuing the next generation of tier-one mineral
deposits by applying advanced exploration techniques in
under-explored regions. The Company is focused on safe, low-risk
jurisdictions and is strategically positioned in the highly
prospective Paterson region. Greatland has a total six projects
across Australia with a focus on becoming a multi-commodity mining
company of significant scale.
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END
JVEGPUGURUPPUQB
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