Name of the Project
Havieron gold/copper project.

Location
Western Australia, 45 km east of Newcrest Mining’s existing Telfer operation.

Project Owner/s
Newmont Mining announced the sale of its 70% interest in the project to Greatland Gold in September 2024. In terms of a joint venture agreement, Greatland had a right of last refusal in respect of any sale by Newmont.

Project Description
The high-grade, low capital intensity project has significant expansion potential.

Initial ore reserves are estimated at 14-million tonnes grading 3.7 g/t gold and 0.54% copper for 1.6-million ounces of gold and 73 000 t of copper. The prefeasibility study (PFS) does not consider the 37-million tonnes of inferred mineral resources.

The project received the necessary regulatory approvals for the construction of a boxcut, exploration decline and associated surface infrastructure, with these works having officially started in January 2021. The PFS assessed the next stage of the project, which comprises the underground and surface development to establish the initial mining area at Havieron and ore-processing modifications at Telfer.

The PFS envisages a capital-efficient, low-intensity development using existing Telfer processing infrastructure. Telfer is an operating gold/copper mine located in the Paterson province.

Telfer operates two processing trains with a total capacity of about 22-million tonnes a year. Ore from Telfer is mined from the West Dome openpit and Main Dome underground. Greatland is executing a Telfer mine plan defined until late 2025, and assessing a number of opportunities to extend the Telfer mine plan.

Havieron ore is expected to be processed through a modified Telfer processing plant, which will operate a single train at six-million tonnes a year on a campaign basis.

The plant modifications are expected to include magnetic separation within the flotation circuit to reduce the amount of pyrrhotite in the final copper concentrate, and a carbon-in-pulp circuit on the flotation tail and cyanide detoxification circuit. A single-train operation also provides optionality if higher mining rates are achieved from Havieron or through the extension of Telfer’s current mine life. Tailings from ore processed will be deposited at the existing Telfer tailings storage facility.

Life-of-mine (LoM) average gold production is estimated at 160 000 oz/y of gold and 6 900 t/y of copper over an initial nine-year mine life. The project is expected to produce 1.43-million ounces of gold and 62 000 t of copper over the LoM.

The growth drilling programme continues to identify and expand high-grade extensions to the mineralisation in the Eastern Breccia, South East Crescent Zone and Northern Breccia.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 4.5% (real) discount rate, of A$304-million and an internal rate of return of 16%, with a payback of four years from first production.

Capital Expenditure
The PFS estimates capital expenditure (capex) at A$529-million, which includes the expected cost of the Telfer plant modifications.

Planned Start/End Date
First production is anticipated in 2024.

Latest Developments
Greatland Gold has successfully poured its first gold bars at the Telfer processing plant, following its recent acquisition of the operation.

The company completed its purchase of Telfer and the Havieron project from Newmont on December 4.

Prior to the acquisition, only one of Telfer’s two ten-million-tonne-a-year processing trains was in operation to preserve ore and stockpiles for Greatland. Shortly after the acquisition, dual-train processing resumed, marking the start of commercial production under Greatland's ownership.

Greatland acquired an estimated 30.5-million to 34.5-million tonnes of stockpiles as part of the transaction. This includes about 11.5-million tonnes of high-grade run-of-mine ore and an additional 19-million to 23-million tonnes of low-grade stockpiles. 

Mining operations are ongoing at the West Dome openpit and Main Dome underground.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Newcrest Mining, tel +61 3 9522 5333 or email investor.relations@newcrest.com.au.