A feasibility study at Havieron will be the key development in 2022 for Greatland Gold PLC (AIM:GGP, OTC:GRLGF), according to broker Berenberg.
An enlarged operation of 3mln/t per year, against the 2mln/t in the recent PFS is under consideration said the broker.
Over the longer term a far larger, potentially separate, 6Mt/year bulk mine exploiting the lower-grade Breccia zones is also likely to be considered, Berenberg added.
“The initial mine should have all-in sustaining costs of USD643/oz, which would place it at the lower end of the global cost curve with production of more than 300koz/year on a gold equivalent basis.”
Havieron also now appears to form a key element in Newcrest’s life extension strategy at the company’s Telfer operation 45km away.
Greatland’s recent fundraise, meanwhile, gives it scope to ramp up exploration at other Paterson sites outside of Havieron as well as paying for its share of early works, said the broker.
The junior holds a total of 1,500 sq km of exploration holdings in the Paterson province including 38sq km at Havieron and 249sq km at Juri, another joint venture with Newcrest.
Over the next year, a further 90,000m of drilling is planned for Havieron, while across the exploration holdings are multiple geophysical anomalies with more than 50 potential targets identified.
Berenberg kept its 'buy' rating and 24p price target, which it said reflects the recent PFS, retention of a 30% stake in Havieron and a further 10mln oz being delineated outside of the PFS reserve.
Shares dipped 5% to 15.05p.