5 May 2020 14:05
5 May 2020
Starvest Plc ("Starvest" or the "Company")
Update on Investee Company - Greatland Gold Plc
Starvest PLC (LON:SVE), the London Stock Exchange AIM listed specialist mining and resources investment business, is pleased to announce an update for investee company Greatland Gold Plc (LON:GGP) ("Greatland").
Highlights:
· Further exceptional drill results from Greatland's Havieron discovery demonstrate the continuity of high-grade gold and copper mineralisation
· Mineralisation at Havieron remains open to the north-west, and at depth
· Nine drilling rigs operational at Havieron with plans to complete a further 80,000m of drilling over 12 months from 1 July 2020
· Current drilling is working towards a maiden resource estimate during the second half of 2020
· Progressing technical studies investigating various mining alternatives and the potential for commencement of an exploration decline by late 2020/early 2021
On 30 April 2020 Greatland announced further exceptional drilling results from its Newcrest Mining Limited ('Newcrest') operated Havieron discovery drawing attention to outstanding gold and copper results. Drill results from Havieron further demonstrate the continuity of the higher grade mineralisation within a sulphide zone and expand the footprint of mineralisation within this zone. Mineralisation at Havieron remains open to the north-west, and at depth. Current drilling will support the delivery of a maiden resource estimate targeted for delivery during the second half of 2020. Nine drill rigs are currently operational at site with a further 80,000m of drilling scheduled over 12 months from 1 July 2020.
Newcrest are progressing various technical studies and a Concept Study, with completion targeted for H2 2020. The Concept Study will investigate the potential to develop the orebody under both underground selective mining and bulk mining alternatives. Technical studies are progressing to support an exploration decline commencing at Havieron by the end of 2020, or early 2021, and investigating the potential to achieve commercial production within two to three years from the commencement of the decline. As per Toll Treatment terms in the Farm-In agreement it is envisaged Havieron ore would be processed at Newcrest's existing plant located at their Telfer gold mine which is located 45km to the west of Havieron.
Activities at Havieron have accelerated consistently since commencement of the Farm-In in March 2019 to the point where Newcrest has now completed Stage 2 after cumulative expenditure of US$20m and is moving rapidly into Stage 3 (an additional US$25m expenditure and delivery of a Pre-Feasibility Study). The progress by Newcrest since early 2019 is ahead of the timetable initially proposed.
The recent announcement by Greatland Gold plc (with relevant Competent Person's Statement) can be found at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/GGP/14522590.html
The recent announcement by Newcrest Mining ltd (with relevant Competent Person's Statement) can be found at:
https://www.asx.com.au/asxpdf/20200430/pdf/44hd4090k0ybn0.pdf
Following further outstanding results Greatland's share price as at close of business on 4 May 2020 was 8.69p per share after staring 2020 with a share price of 1.83p on 2 January. This represents a significant increase in share price despite the challenging market conditions.
Starvest currently holds 82,000,000 shares in Greatland Gold plc representing 2.2% of the company.
Callum Baxter, Chairman/CEO of Starvest, commented, "Progress at Havieron has accelerated over the past year and the recent delivery of another batch of outstanding results confirms the exceptional potential of the deposit. Since Greatland's discovery of high grade gold and copper mineralisation at Havieron in 2018 the deposit has grown significantly, and we expect a maiden resource estimate during the second half of this year. Technical studies are underway to support decline commencement by late 2020 or early 2001 and fast tracking of early production. We are very pleased with our holding in Greatland which has seen a substantial rise in share price since the start of 2020 and we are committed to our holding in the company."
Starvest is a specialist mining and resource investment company and has the industry knowledge and market exposure to select compelling opportunities early in the investment cycle.
Callum N Baxter
Chairman & Chief Executive
5 May 2020
Enquiries:
Starvest PLC
Callum Baxter or Gemma Cryan
Tel: 02077 696 876
Email: info@starvest.co.uk
www.starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson or Harrison Clarke
Tel: 02073 835 100
SI Capital Ltd (Broker)
Nick Emerson or Alan Gunn
Tel: 01483 413 500
Greatland Gold plc Overview
Greatland is a United Kingdom-based company engaged in the exploration in Australia with six projects in Western Australia and Tasmania. The company's shares are traded on the Alternative Investment Market (AIM) of the London Stock Exchange (AIM:GGP).
The company has a Farm-In agreement with Newcrest Mining Limited whereby, through a series of staged investments, Newcrest may acquire up to 70% of the joint venture through expenditure of US$65m over a six-year period. To date Newcrest has completed Stage 1 and Stage 2 of the agreement and has acquired a 40% stake in the 12 sub-blocks that cover the Havieron deposit and immediate surrounds.
Greatland also carries out exploration on the retained area of the Havieron licence and other exploration licences in the Paterson, with recent geophysical and geochemical programmes highlighting high priority drill targets at Scallywag, Black Hills and Paterson Range East. While the Panorama licence in the Pilbara shows evidence of gold mineralisation over 6km along strike from known mineralisation and historic mines further north.
Recent drill programmes in Tasmania continued to advance the company's Firetower and Warrentinna licences with gold mineralisation confirmed at both locations. Firetower drilling has demonstrated IP anomalies semi-coincident with gold mineralisation and a further 3km of IP targets remain untested. A diamond drill programme at Warrentinna has demonstrated high grade gold mineralisation near surface.
Greatland is well funded with strong management and technical teams and the Board of Starvest look forward to continuing news flow from the company over the coming months.
For disclosure, Callum Baxter is founding director and an Executive Director of Greatland Gold plc.