Shaun Day, managing director of Greatland Gold PLC (AIM:GGP, OTC:GRLGF), has described as the "best possible" outcome the retention of a 30% stake in its Havieron joint venture with gold giant Newcrest.
Its partner has elected not to exercise an option to pay US$60mln to acquire a further 5% in the Western Australia mine development, which, sitting on 6.5mln ounces of gold equivalent, is one of the most exciting projects of its kind in the world.
In fact, Greatland previously made a counter-offer which would have bolstered its holding by 5% at a cost of US$85mln.
Commenting on Newcrest’s decision, Day said: “This outcome also concludes the JV process for Newcrest's 5% option and aligns both joint venture parties to focus on developing Havieron and work towards first production without the distraction of the process.
“We respect the Newcrest decision, which as a global major with over 35 years of experience in the Paterson, is an excellent joint venture partner and provides Havieron the benefit of leveraging the existing infrastructure just down the road at Telfer.”
Newcrest released an updated mineral resource for Havieron, which is in WA’s Paterson Province, and it chimed very closely with Greatland’s analysis.
The deposit is estimated to be host to 85mln tonnes at 2% gold and 0.26% copper for a total 5.5mln ounces of gold and 223,000 tonnes of copper.
In the update, investors were told that seven rigs were turning to identify and expand high-grade extensions in the Eastern Breccia, South East Crescent Zone and Northern Breccia areas of the project.
Additionally, the development of the exploration decline has improved, investors were told.
"With excellent progress at Havieron continuing and the publication of the feasibility study on track for the December 2022 quarter, we are confident that Havieron represents a world-class, low-cost development expected to be fast-tracked to commercial production," said Day.