Greatland Gold has announced a farm-in agreement with Newcrest Mining to advance its Havieron licence – part of the company’s Paterson Project in Western Asutralia.
Newcrest will take a majority interest in the joint venture and manage the mining program during the farm-in period, with an option to grow a 70% stake by investing $65m over a six-year period following an initial investment of $5m.
Gervaise Heddle, Chief Executive Officer of Greatland Gold, commented: "We are delighted to welcome Newcrest as our chosen partner for accelerating the exploration and development of Havieron. Greatland will receive tremendous benefit from Newcrest's experience as a developer and producer at Telfer and Newcrest's broader understanding of the geology of the Paterson region.
“We believe that this deal represents a win-win for both parties due to the potential for significantly reduced capital costs and increased efficiency resulting from ore being toll processed at Newcrest's nearby Telfer mine. Moreover, Newcrest's expertise should help fast track Havieron through to a completed feasibility study and, subject to positive outcomes, into production and positive cash flow.
"The terms of the farm-in agreement recognise both the exciting potential of the Havieron project and the significant value that has been added to the project through a series of systematic exploration campaigns by Greatland since it was acquired in September 2016. Additionally, we believe that Newcrest's first right of refusal over the remainder of Greatland's Paterson project (the Black Hills and Paterson Range East licences and the areas of the Havieron licence not included in the Tenement Blocks) represents a strong endorsement of the attractiveness and prospectivity of our licences in the region.”
Fraser MacCorquodale, Newcrest General Manager Exploration, commented: "We are excited to partner with Greatland Gold on this opportunity. The Paterson province is a great place for gold-copper ore bodies. Leveraging our existing operations at Telfer represents an opportunity to create value for both companies and their shareholders."
Newcrest’s Chief Development Officer, Michael Nossal, added: “We are excited to enter into this partnership with Greatland Gold on their Havieron licence. Greatland Gold’s exploration to date has intersected significant mineralisation only 45km from Telfer’s extensive infrastructure and processing capacity. Further exploration at Havieron is in line with our strategy in Australia of looking under-cover and it is becoming more and more evident that the Paterson region is highly prospective for under-cover discoveries. Having existing infrastructure centred in this highly prospective region shows the latent option value embedded at Telfer.”
Greatland’s Paterson project, comprising the Havieron, Black Hills and Paterson Range East licences, is located in the Paterson region of northern Western Australia. The three licences collectively cover more than 385 square km prospective for IOCG type deposits and Telfer-style gold deposits.