Greatland
Gold plc (AIM: GGP)
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NEWS RELEASE
| 22 February
2024
Newmont Annual Reserves & Resources
Statement
THIS ANNOUNCEMENT CONTAINS
INSIDE INFORMATION AS STIPULATED UNDER THE UK MARKET ABUSE
REGULATIONS. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
Greatland Gold plc (AIM:GGP) (Greatland or the Company) notes the annual releases made
today by Newmont Corporation (NYSE:NEM) (Newmont), Greatland's joint venture
partner in the Havieron gold-copper project.
Overview
As part of its 2023 Annual Reserves and Resources
Release (available
here), Newmont has released an updated Reserve and Resource for
the Havieron project, its first since completing the acquisition of
Newcrest Mining Limited (Newcrest) in November 2023.
It is important to note that Newmont reports Mineral
Reserves and Mineral Resources in accordance with the U.S.
Securities and Exchange Commission's SK 1300 guidelines
(SK 1300), which is
different to the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves, 2012 Edition
(JORC). Greatland reports
Mineral Resources and Ore Reserves for Havieron in accordance with
JORC, which is an internationally recognised reporting standard
commonly used by UK and Australian listed mining companies.
Notwithstanding the different reporting criteria
applied, Newmont's updated Havieron Mineral Resource estimate is
particularly pleasing in how closely it correlates to Greatland's
estimate in the higher confidence Indicated Mineral Resource
category, and the significant increase relative to the previous
Newcrest Indicated Mineral Resource.
Variances in the Inferred Mineral Resource and
Reserve1 categories largely reflect differences between
the reporting criteria, as explained below and consistent with
other former Newcrest portfolio assets that have been reclassified
in the Newmont 2023 Annual Reserves and Resources Release (relative
to the previous Newcrest JORC Reserves and Resources.
Greatland remains highly confident of its December
2023 Mineral Resource Estimate (refer RNS of 21 December 2023
titled 'Havieron Mineral Resource Estimate Update') (Greatland December 2023 MRE), which
defined a Mineral Resource for Havieron of
8.4Moz AuEq2, reported in accordance with JORC and
independently reviewed by SRK Consulting (Australasia) Pty Ltd.
In accordance with SK 1300, Newmont reports Havieron
Mineral Reserves and Mineral Resources on an attributable (70%)
basis, however for the purposes of this announcement and
comparability to Greatland's reporting, Greatland has converted
these to a 100% basis.
Indicated Mineral
Resource
The Greatland December 2023 MRE defined an Indicated
Mineral Resource (JORC) for Havieron of 50Mt at 2.60g/t and 0.33%
Cu, for contained metal of 5.0Moz AuEq2 (refer
Table 2).
Newmont has classified an Indicated Mineral Resource
(SK 1300) for Havieron of 47.4Mt at 2.65g/t Au and 0.34% Cu,
for contained metal of 4.0Moz Au and 161kt Cu3.
On an equivalent basis to the Greatland December 2023
MRE, Newmont's Indicated Mineral Resource equates to contained gold
equivalent metal of 4.9Moz
AuEq2,4, which:
§ Represents a
35% increase to the
previous Indicated Mineral Resource published by Newcrest prior to
its acquisition by Newmont of 3.6Moz AuEq2 as at
30 June 2023.5
§ Is within 3% of Greatland's Indicated
Mineral Resource of 5.0Moz AuEq2 in the Greatland
December 2023 MRE (refer Table 2).
The increase in Indicated Mineral Resources relative
to the previous Newcrest Indicated Mineral Resource5 is
highly encouraging.
Greatland considers the close alignment in total
Indicated Mineral Resource size to the Greatland December 2023 MRE
to be excellent validation of the thorough estimation process of
Greatland's Competent Person and the independent review completed
by SRK Consulting (Australasia) Pty Ltd.
The importance of the Indicated Mineral Resource
category is that, under both JORC and SK 1300, Indicated
Mineral Resources may be converted into Reserves1,
whereas the Inferred Mineral Resource category cannot due to its
lower confidence. As such the increased Newmont Indicated
Mineral Resource can potentially be considered in the updated
Reserve1 estimate that will be part of the Havieron
Feasibility Study which is ongoing.
Inferred Mineral
Resource
Newmont's 2023 Annual Reserves and Resources
Statement classifies an Inferred Mineral Resource reported in
accordance with SK 1300 for Havieron of 16.3Mt at 1.71g/t Au and
0.16% Cu, for contained metal of 0.9Moz Au and
26kt Cu3 (refer Table 1).
Greatland calculates that Newmont's Inferred Mineral
Resource (SK 1300) would equate to 1.0Moz AuEq2,4,
on an equivalent basis to the Greatland December 2023 MRE
(JORC).
Relative to JORC, SK 1300 reporting standards require
a more detailed economic assessment to support parameters that are
used to define a Mineral Resource. Greatland (and previously
Newcrest) have applied a lower economic cut-off for the Havieron
Breccia Mineral Resource than the South East Crescent.6
However, additional evaluation work would be required to be able to
use the same approach and classification under SK 1300.
Greatland considers this difference in approach as the principal
factor in the variance between the Newmont Inferred Mineral
Resource (SK 1300) and the Greatland Inferred Mineral Resource
(JORC).
Greatland continues to classify an Inferred Mineral
Resource (JORC) of 3.4Moz AuEq2, as set out in the
Greatland December 2023 MRE (refer Table 2), which was
independently reviewed by SRK Consulting (Australasia) Pty Ltd.
Greatland notes that Newmont has made similar
reclassifications and reductions in Inferred Mineral Resources for
other assets within the former Newcrest portfolio.
Reserve1
Estimate
Greatland notes that Newmont's 2023 Annual Reserves
and Resources Statement does not classify a Mineral Reserve under
SK 1300 for Havieron (refer Table 1). This again reflects
differences between SK 1300 and JORC reporting standards.
In particular, SK 1300 requires classified Mineral
Reserves to be the subject of at least a preliminary feasibility
study completed to ±25% accuracy level and maximum contingency of
15% with respect to capital and operating costs. The Havieron
October 2021 Preliminary Feasibility Study (summarised in
Greatland's RNS of 12 October 2021 titled 'Havieron South-East
Crescent Pre-Feasibility Study') was completed to an accuracy level
of ±25% for both capital and operating costs, however it applied a
contingency of 20% to capital costs, which is greater than the SK
1300 limit of 15% and accordingly does not meet the criteria under
SK 1300 to allow classification of a Mineral Reserve for
Havieron.
Greatland continues to classify a Probable Ore
Reserve (JORC) of 2.9Moz AuEq2, as set out in
Greatland's March 2022 Ore Reserve (refer Greatland's RNS of 3
March 2022 titled 'Havieron Resource and Reserve Update) which was
independently reviewed by SRK Consulting (Australasia) Pty
Ltd. Greatland's March 2022 Ore Reserve was based on the
previous March 2022 Mineral Resource and has not been updated
for the significantly higher December 2023 Indicated Mineral
Resource. An updated Reserve1 will be reported as part
of the outcomes of the Feasibility Study.
Greatland notes that Newmont has made similar
reclassifications and reductions in Mineral Reserves for other
assets within the former Newcrest portfolio.
Newmont Mineral
Reserves & Mineral Resources (SK 1300)
Table 1: Newmont Mineral
Reserves & Mineral Resources for Havieron (SK 1300) as at 31
December 2023 (refer to Newmont's 2023
Annual Reserves Statement (available
here). In accordance with SK
1300, Newmont reports on an attributable
(70%) basis, however for the purposes of comparability to
Greatland's reporting, Greatland has converted these to a 100%
basis in the below table.
SK 1300
Classification
|
Tonnage
|
Grade
|
Contained
Metal
|
Mt
|
Au (g/t)
|
Cu (%)
|
Au3
(Moz)
|
Cu3
(kt)
|
AuEq2,4
(Moz)
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
47.4
|
2.65
|
0.34%
|
4.0
|
161
|
4.9
|
Inferred
|
16.3
|
1.71
|
0.16%
|
0.9
|
26
|
1.0
|
Total Mineral
Resource
|
63.7
|
2.41
|
0.29%
|
4.9
|
187
|
5.9
|
Proved
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
-
|
-
|
-
|
-
|
-
|
-
|
Total Mineral
Reserves
|
-
|
-
|
-
|
-
|
-
|
-
|
Greatland Mineral
Resource & Ore Reserve Estimates (JORC)
Table 2: Greatland Mineral
Resource Estimate (inclusive of Ore Reserves), reported in
accordance with JORC as per the Greatland December 2023
MRE.
JORC
Classification
|
Tonnage
|
Grade
|
Contained
Metal
|
Mt
|
Au (g/t)
|
Cu (%)
|
Au
(Moz)
|
Cu
(kt)
|
AuEq2
(Moz)
|
Indicated
|
50
|
2.6
|
0.33
|
4.1
|
168
|
5.0
|
Inferred
|
81
|
1.1
|
0.13
|
2.9
|
107
|
3.4
|
Total Mineral
Resource7
|
131
|
1.7
|
0.21
|
7.0
|
275
|
8.4
|
Table 3: Greatland Ore Reserve
Estimate, reported in accordance with JORC as per the Greatland
March 2022 Ore Reserve.
JORC
Classification
|
Tonnage
|
Grade
|
Contained
Metal
|
Mt
|
Au (g/t)
|
Cu (%)
|
Au
(Moz)
|
Cu
(kt)
|
AuEq2
(Moz)
|
Proved
|
-
|
-
|
-
|
|
|
-
|
Probable
|
25
|
3.0
|
0.44
|
2.4
|
109
|
2.9
|
Total
Reserves
|
25
|
3.0
|
0.44
|
2.4
|
109
|
2.9
|
Footnotes:
1 Where the term 'Reserve' is used, this refers to Mineral
Reserves under SK 1300 and/or Ore Reserves under JORC.
2 The gold equivalent (AuEq) is calculated by Greatland based on
assumed prices of US$1,700/oz Au and US$3.75/lb Cu for Mineral
Resource and metallurgical recoveries based on block metal grade,
reporting approximately at 87% for Au and 87% for Cu which in both
cases equates to a formula of approximately AuEq = Au (g/t) + 1.6*
Cu (%). It is Greatland's opinion that all the elements included in
the metal equivalents calculation have a reasonable potential to be
recovered and sold.
3 Newmont's Mineral Reserve & Mineral Resource (SK 1300) for
Havieron as at 31 December 2023 report contained gold metal in
ounces (rounded to nearest 100k) and copper metal in Mlbs (rounded
to nearest 100Mlb). For consistency with Greatland's December 2023
MRE, Greatland has calculated contained gold metal in million
ounces (Moz) based on the tonnage and gold grade of Newmont's
Mineral Resource and contained copper metal in thousand tonnes (kt)
based on the tonnage and copper grade of Newmont's Mineral
Resource.
4 Calculated by Greatland based on the Newmont Mineral Resource
(SK 1300) for Havieron on an equivalent basis to the Greatland
December 2023 MRE.
5 Newcrest's previous Mineral Resource (JORC) for Havieron was
based on a drilling cut-off date of November 2022 and metal price
assumptions of US$1,400/oz Au and US$3.40/lb Cu. Newmont's
updated Mineral Resource (SK 1300) for Havieron is based on a
drilling cut-off date of 6 June 2023 (when growth and resource
conversion drilling at Havieron completed) and metal price
assumptions of US$1,600/oz Au and US$4.00/lb Cu.
6 The evaluation work completed to date supports
Greatland's (and previously Newcrest's) approach of applying a
lower cut-off for the Havieron Breccia Mineral Resource than the
South East Crescent, assuming a less selective mining methodology
in the Breccia. The Greatland December 2023 MRE assumes
selective mining of the South East Crescent and Link Zone and bulk
extraction in the Breccias and are reported inside A$80 or A$50 Net
Smelter Return per tonne (NSR/t) shells respectively, calculated
using metal prices of US$1,700/oz Au and US$3.75/lb Cu,
metallurgical recoveries based on block metal grade reporting
approximately at 87% for Au and 87% for Cu, an USD:AUD exchange
rate of 0.72, as well as treatment and refining costs, payables and
royalties.
7 Inclusive of Ore Reserves.
Greatland Managing Director, Shaun Day,
commented:
"We welcome
Newmont's update to the Havieron Mineral Resource today, which
increases Newcrest's previous estimate for the Indicated Mineral
Resource category by approximately 35% in terms of gold equivalent
content, bringing it into line with Greatland's latest estimate.
The increased Indicated Mineral Resource can now support an Ore
Reserve estimate update as part of the Feasibility Study which is
ongoing."
"We consider the
close correlation to Greatland's December 2023 Indicated Mineral
Resource, with a differential of less than 3% in gold equivalent
content, to be excellent confirmation of this world-class asset and
a credit to the quality of our technical team and
processes."
Contact
For further information, please contact:
Greatland Gold
plc
Shaun Day, Managing Director |
info@greatlandgold.com
Nominated
Advisor
SPARK Advisory Partners
Andrew Emmott / James Keeshan / Neil Baldwin
| +44 203 368 3550
Corporate
Brokers
Berenberg | Matthew Armitt / Jennifer
Lee | +44 203 368 3550
Canaccord Genuity | James Asensio /
George Grainger | +44 207 523 8000
SI Capital Limited | Nick Emerson /
Sam Lomanto | +44 148 341 3500
Media
Relations
UK - Gracechurch Group | Harry Chathli / Alexis
Gore / Henry Gamble | +44 204 582 3500
Australia - Fivemark Partners | Michael
Vaughan | +61 422 602 720
About Greatland
Greatland is a mining development and
exploration company focused primarily on precious and base
metals.
The Company's flagship asset is the world-class
Havieron gold-copper project in the Paterson Province of Western
Australia, discovered by Greatland and presently under development
in joint venture with world gold major, Newmont
Corporation.
Havieron is located approximately 45km east of
Newcrest's existing Telfer gold mine. The box cut and decline to
the Havieron orebody commenced in February 2021. Total development
now exceeds 3,060m including over 2,110m of advance in the main
access decline (as at 31 December 2023). Subject to a
positive feasibility study and Decision to Mine, Havieron is
intended to leverage the existing Telfer infrastructure and
processing plant. Access to Telfer would de-risk the
development and reduces capital expenditure.
Greatland has a proven track record of discovery
and exploration success and is pursuing the next generation of
tier-one mineral deposits by applying advanced exploration
techniques in under-explored regions. Greatland has a number of
exploration projects across Western Australia and in parallel to
the development of Havieron is focused on becoming a
multi-commodity miner of significant scale.