Following a farm-in agreement with Newcrest Mining Limited (ASX:NCM) in March, the miner announced three sets of “excellent” results post year-end, with Newcrest increasing the number of drill rigs from two to six and meeting the US$5mln minimum expenditure commitment ahead of the expected timetable.
If the feasibility study results in positive outcome, ore from Havieron, in Western Australia, will be toll processed at Newcrest's Telfer Gold Mine, 45 kilometres west of the project, allowing lower upfront capital costs, reduced time to production and first cash flows, and the potential for a significantly higher net present value for the project.
The AIM-listed firm said it will apply the insights gained at Havieron to accelerate exploration at its other Paterson licences where it hopes to find tier-one gold-copper deposits.
“Greatland is the only AIM-listed company with exposure to the new ‘gold/copper rush’ in the Paterson region of Western Australia,” said chairman Alex Borrelli in a statement.
The miner’s Paterson project comprises the Havieron, Paterson Range East and Black Hills licences that collectively cover more than 385sq km of ground.
Cash at the end of the year to 30 June was £2.2mln, while losses rose to £3.2mln.