(Alliance News) - Shares in Greatland Gold PLC fell on Tuesday following the publication of the pre-feasibility study for the South East Crescent area of the Havieron gold-copper deposit in Paterson, Australia.
Shares in the Australia-focused, London-based gold miner were 12% lower at 18.40 pence on Tuesday in London.
Data from the study has revealed an initial probable ore reserve estimate of 14 million tonnes, containing 1.6 million ounces of gold and 73,000 tonnes of copper, at a grade of 3.72 grams per tonne of gold and 0.54% of copper.
The project area has been given a life of mine of nine years, during which the average annual output would be 160,000 ounces and 6,900 tonnes of copper.
The study has revealed a net present value of USD508 million in real terms, and an internal rate of return of 27%. The project area has been given a total operating cost of USD81 million, alongside all-in sustaining cost of USD643 per ounce for the life of mine.
Greatland Gold stressed that the study considers only the indicated mineral resource, and reflects a small portion of the existing resource inventory. The company noted the potential to expand the project and increase the mining rate to at least 3 million tonnes per annum through the conversion of inferred resources to indicated through an infill drilling program. The mining rate is currently estimated at 2.1 million tonnes per annum.
Looking ahead, Greatland said ongoing growth drilling has continued to show potential for resource additions outside of the inferred resource boundaries. The Havieron feasibility study is expected to be completed in the second quarter of its current financial year.
"This maiden pre-feasibility study focuses on the South-East Crescent and should be viewed as the first stage. The study covers just a small fraction of the resource and the broader mineralised breccia system but is a tremendous first step towards creating a mine and unlocking our understanding and the value of Havieron," said Greatland Chief Executive Officer Shaun Day.
"Notwithstanding the tremendous outcome of this Stage 1 Study, the opportunity at Havieron remains ahead of us. A further 90,000 meters of growth drilling is planned to June 2022, to better understand the extent of the South East Crescent, the Northern Breccia and the recently identified Eastern Breccia. This growth drilling creates the opportunity to potentially apply bulk mining methods to the balance of the Havieron breccia system to complement the mining of the South East Crescent," Day added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Greatland Gold (GGP)