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FINALIST: EXPLORER

Great

expectations for

Havieron

by Michael Washbourne More than 210,000m of drilling had
been completed by the Havieron JV
to the end of October

reatland Gold Plc chief executive Shaun Day appears to be option to acquire a further 5% thereafter.
Gmaking a habit of entering the fray at just the right time. On a 100% project basis, Havieron is set to produce 1.43 moz
Day previously joined Northern Star Resources Ltd during the gold and 62,000t copper over a nine-year mine life for an AISC of
company’s ascent to becoming a gold industry heavyweight. He just $990/oz ($US643/oz), generating a NPV of $304 million and
now finds himself in the hot seat at Greatland with the London- IRR of 16%. Greatland’s contribution to the estimated capex of
listed explorer recently taking the first steps towards development $529 million is just $102 million ($US73 million).
of its remarkable Havieron discovery in Western Australia’s “The study was exceptional in three ways,” Day said. “Firstly, it
Paterson province. outlines a starter mine at Havieron which carries all the capex of
Timing has been just as important for Havieron, some 45km west development, including a 1,100m decline, and delivers a 27% IRR
of the Telfer gold-copper mine. Only two years ago, many felt [to Greatland] which really talks to the quality of the orebody that
Newcrest Mining Ltd would be forced to shutter its longstanding this fraction of Havieron can carry.
hallmark operation in the Paterson due to a rapidly depleting main “Secondly, the capex hurdle to get into production of just another
orebody and an obvious lack of replacement ore. $US73 million is extraordinarily low, which highlights the low
“To some extent, had we found this asset five or 10 years earlier, risk, low capex pathway to production, leveraging existing
we would have been presumably sequenced behind the Telfer infrastructure in the Paterson. All if this is tailormade for a mid-cap
ore feed, which is 100% owned by Newcrest,” Day explained to balance sheet.
GMJ. “Similarly, if we’d found this in five years’ time, Telfer would “The third element, and perhaps the most important, is the
have been shut already and there wouldn’t be that same drive to margin generation on production. With an AISC of just $US643/
get Havieron into production in the short term. oz, Greatland will become the second lowest cost producer
“We haven’t found it too early; we haven’t found it too late. on the planet. That’s an extraordinary outcome and absolutely
We found it at just the right time. We’re in this Goldilocks zone underscores the quality of Havieron.”
which has given tremendous alignment between ourselves and Greatland and Newcrest are planning to complete the full
Newcrest at wanting to develop this just like a mid-cap miner feasibility study later this year. Based on current scheduling, first
would.” ore is on track for Q3 2023 with the maiden gold-copper parcel to
Day joined Greatland early last year while the ink was still be delivered the following quarter.
drying on a lucrative JV agreement with Newcrest to fast-track Day expects the company to carry the momentum of the past two
development of Havieron. Since that landmark moment, the box years into 2022, with updated resource and reserve statements,
cut has been completed and work is continuing on the decline a maiden sustainability report and the strong likelihood of a bank
down to the new orebody. financing facility all being rolled out over the next 12 months.
A PFS based on development of the South East Crescent While development of Havieron is at the forefront of the
was only released in October, indicating Greatland is poised to company’s plans for the year ahead, Greatland wants to
become the world’s second lowest-cost producer based on the continue advancing its growing pipeline of regional exploration
current structure of the Havieron JV. Newcrest is earning up to opportunities in the Paterson, including Juri where up to $20
70% of the project via a series of exploration and development million has been earmarked for the next phases of drilling under
milestones, culminating in first production. The gold major has an another exploration JV with Newcrest.

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