By Samuel Indyk
Investing.com – Greatland Gold (LON:GGPL) has provided the Stage 1 Pre-Feasibility Study (PFS) results at its Havieron project in the Paterson region of Western Australia. The AIM-listed company could now become the second-lowest gold cost company, according to the results from the study.
The results of the PFS shows low-cost operations with all-in sustaining costs (AISC) of $643/oz, with further opportunity to reduce. According to a report published in 2020, that would put Greatland Gold second on the list of low-cost gold mining companies, behind Russian gold miner Polyus.
There would be low upfront capital with Greatland’s share of just $73 million and the payback expected in 3.0 years.
The potential mine would be capital efficient with low environmental impact with underground mining and use of Newcrest Mining’s (ASX:NCM) existing Telfer processing facility for the majority of the plant’s infrastructure.
It is estimated that 17% of the revenues would be generated from the production of copper.
“This maiden Pre-Feasibility Study focuses on the South-East Crescent and should be viewed as the first stage,” said Greatland Gold Chief Executive Officer Shaun Day.
“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.
“The investment proposition of Greatland is compelling, with Havieron confirmed as a world class ore body, being developed with a Tier 1 partner in Newcrest and all within a Tier 1 mining jurisdiction of Western Australia.”
Looking ahead, Day commented that further growth drilling is planned well into next year to evaluate further opportunities at the project.
“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,” Day added.
“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.”
Shares in Greatland Gold are trading lower by 9.6% on Tuesday morning after a strong run in recent days when the company announced they would be publishing the PFS results.
Greatland Gold releases pre-feasibility study results from its Havieron project
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