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(Kitco News) - Greatland Gold have released details about the Initial Inferred Mineral Resource Estimate for the Havieron Joint Venture between Newcrest and Greatland. Despite a decent result, the share price has fallen over 11%. It seems this is a profit-taking phase or investors were looking for a bigger return vs the mine valuation. 

The report shows an Initial Inferred Mineral Resource estimate of 52Mt @ 2.0g/t Au, 0.31% Cu or 2.5g/t AuEq for 3.4Moz Au, 160Kt Cu or 4.2Moz AuEq1,2. Mineralisation remains open outside of the resource shell with potential to grow the resource over time.

Assuming mining by a bulk extractable underground operation, reported inside an AUD$50/t Net Smelter Return shell3, including geological domains of: Crescent Zone containing 18Mt @ 3.8g/t Au and 0.61% Cu for 2.2Moz Au and 110Kt Cu. Breccia Zone containing 34Mt @ 1.1g/t Au and 0.15% Cu for 1.2Moz Au and 50Kt Cu.

Reasonable prospects for eventual economic extraction have been assessed through preliminary ongoing mining and processing studies which suggest conventional bulk underground mining and processing would be appropriate for exploitation of the Havieron Deposit.

Gervaise Heddle, Chief Executive Officer of Greatland Gold plc stated The publication of the Initial Inferred Mineral Resource estimate for Havieron represents the first of several important milestones that we expect to deliver as we work with Newcrest towards defining the full potential of the Havieron Project. To have achieved this within two years of signing the Farm-in is a testament to the expertise of Newcrest and their commitment to fast track the potential development of Havieron..

He then added The Initial Resource of 4.2Moz gold equivalent provides us with a strong platform for future growth through exploration while providing a clear focus point for ongoing studies and potential mine development. Importantly, the Initial Resource estimate is centred on just the South East Crescent and adjacent Breccia, and a portion of the Northern Breccia, suggesting that there is significant potential to increase the Inferred Resource over time as we work to establish a full picture of Havierons potential right across the four target areas, all of which still remain open. Additionally, the Initial Resource estimate indicates real potential for a bulk underground mining operation at Havieron..

Lastly, he stated A growth drilling programme is planned for 2021 alongside infill drilling, which will give us an even better understanding of the true scale of Havieron. With early works set to commence in late 2020 or early 2021, subject to receipt of required approvals, and our US$50m loan facility secured, everything is in place to move the project forward at pace next year. 

Looking at the share price there has been some support at the previous wave high near 27.00. There is still some support below the area if the bears manage to break the support at the red trendline. At the moment some of the move lower has been pared but if the bulls are to take charge again the high of 34.75 is the level to watch. 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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