Greatland Resources Ltd (AIM:GGP, OTC:GRLGF, ASX:GGP) shares climbed around 6% in Monday morning trade, after it released the results of its feasibility study for the Havieron gold-copper project in Western Australia.
The company said the study outlines a 17-year mine plan and confirms a pathway to develop Havieron as a long-life, lowest quartile cost operation using existing infrastructure at the nearby Telfer site.
The study’s production target includes average steady state output of 266,000 oz of gold and 9,600 tonnes of copper each year at an all-in sustaining cost of US$1,610 per ounce of gold. Pre-production capital expenditure is estimated at US$1,065 million, with funding expected to come from Greatland’s cash reserves, ongoing Telfer cash flows and US$500 million of committed debt facilities.
"Today, we are delighted to deliver our Feasibility Study which confirms Havieron's world-class quality and sets the pathway for its development into a long-life, low-cost, leading Australian gold-copper mine," said managing director Shaun Day.
He added: "The assessed steady state average production... would generate significant after-tax free cash flow of US$550 million per annum at our base case pricing."
In London, Greatland shares were up 22.78p or 6.04% changing hands at 399.78p.