Greatland Gold PLC (AIM:GGP, OTC:GRLGF) has unveiled its first-ever mineral resource estimate for the Telfer gold and copper mine, and it's a big one.
The company has confirmed 3.2 million ounces of gold and 117,000 tonnes of copper at Telfer, marking a major step forward since acquiring the asset.
Managing director Shaun Day called the result "outstanding", saying it validates the company's belief that Telfer has significant potential.
"This exceptional outcome is a testament to the significant opportunities we saw at Telfer during our acquisition due diligence and the excellent work of our team to progress and validate those opportunities in short order," he said.
With the latest figures, Greatland’s total resource base, including the Havieron project, now stands at over 10.2 million ounces of gold and 387,000 tonnes of copper. That's a more than 40% increase on the last estimate and cements the Western Australia-focused group's position as a major player in Australian gold and copper mining.
Breaking down the numbers, most of the Telfer resource comes from the West Dome Open Pit, which contains 2.1 million ounces of gold and 61,000 tonnes of copper.
The Main Dome Underground adds another 700,000 ounces of gold and 40,000 tonnes of copper, while stockpiles contribute 400,000 ounces of gold and 16,000 tonnes of copper.
Greatland is wasting no time capitalising on these numbers. The next step is an official ore reserve estimate, expected in the June quarter, which will confirm how much of the resource is economically viable for mining.
To support this, the company has increased drilling activity, with four rigs already in action and two more on the way. The focus is on upgrading existing resources and exploring extensions that could add even more gold and copper to the total.
A key area of interest is the West Dome Underground Project, where recent drill results have revealed high-grade zones, including 14.3 metres at 9.6 grams per tonne of gold and 8.57% copper. Further drilling could move the needle for Telfer’s future if it confirms its potential.
For context, gold and copper grades are crucial in mining. Higher grades mean more valuable material is being extracted from each tonne of rock.
While Telfer’s open pit grades are relatively low, the underground sections contain much richer ore, particularly at 2.62 grams per tonne of gold and 0.51% copper in the Main Dome Underground.
The big question for investors is mine life. When Greatland bought Telfer, it laid out a 15-month mine plan to produce 374,000 ounces of gold and 13,000 tonnes of copper. With this new estimate, the company is confident it can extend production well beyond that timeline.
Day emphasised this, saying: "This Telfer MRE confirms the very significant extension opportunities we see at Telfer and gives us confidence in the opportunity to extend Telfer's mine life. This result is an important step towards a long-life integrated Havieron and Telfer mining operation."
Looking ahead, the next few months will be packed with milestones. In June, Greatland will deliver its first full quarter of operational results, provide production and cost guidance for the year, and officially list on the ASX.