Page 16 - gmj145-Oct-Dec-mag-web_Neat

COVER

Havieron

destined for greatness

by Michael Washbourne

It was not so long ago one of the world’s largest gold producers had all but conceded
the end was nigh for its longstanding Telfer mine, until a relatively-unknown London-
listed explorer made a major discovery only 45km to the east, significantly raising hopes
operations could continue ticking over for another three decades yet.

hile Newcrest Mining Ltd never publicly stated it was region known to be prospective for both gold and copper but
Wconsidering parting ways with Telfer, it was widely which had delivered few success stories outside of Telfer.
speculated among industry insiders that the high-profile The breakthrough find came on the back of excellent results
Pilbara mine was up for grabs. The likes of Northern Star from Greatland’s first two drilling programmes, including hits
Resources Ltd and Evolution Mining Ltd, both of which had of 103m @ 3.5 g/t gold and 0.93% copper from 459m in the
already pounced on a series of assets unwanted by the upper zone and 128m @ 7.4 g/t gold and 0.54% copper from
majors, were touted as potential buyers. 660m in the lower zone.
Ultimately, no deals were struck for an operation which By March 2019, Newcrest recognised Havieron was more
was rapidly being depleted of economic ore sources and than just a potential lifeline for Telfer and quickly signed a
Newcrest found itself staring down the barrel of having to $US65 million farm-in agreement with Greatland. Some 20
shutter one of the hallmark operations in its stable. months later, the two parties entered a formal JV whereby
“If you go back two years ago, we were talking about how Newcrest has the right to earn up to 70% via a series of
we would eventually shut Telfer when its orebody runs out,” exploration and development milestones outlined across
Newcrest chief executive Sandeep Biswas revealed at the four key stages.
BMO conference earlier this year. Newcrest, which can acquire an additional 5% of the project
“Now with this Havieron discovery, every drill hole we put in at the end of the four-stage farm-in period, also extended a
there finds more gold.” $US50 million loan to Greatland for accelerated drilling and
Havieron was discovered by Greatland Gold plc in 2018. early works programmes, including the underground decline
Around the time, the spotlight was firming on the Paterson which began in May.
province due to Rio Tinto Ltd’s expanding presence in a With the ink still drying on the JV agreement, Greatland

Page 16