The Havieron Project is located 45km east of Telfer in the Paterson Province in Western Australia. The Project is operated by Newcrest under a joint venture agreement with Greatland Gold plc. As announced on 30 November 2020, Newcrest has now met the Stage 3 expenditure requirement (US$45 million) and is entitled to earn an additional 20% joint venture interest, resulting in an overall joint venture interest of 60% (Greatland Gold 40%).
Newcrest can earn up to a 70% joint venture interest through total expenditure of US$65 million and the completion of a series of exploration and development milestones (including the delivery of a Pre-Feasibility Study) in a four-stage farm-in over a six year period that commenced in May 2019. Newcrest is also entitled to acquire an additional 5% interest at the end of the farm‑in period at fair market value.
The joint venture agreement also includes tolling principles reflecting the intention of the parties that, subject to a successful exploration program, Feasibility Study and a positive decision to mine, the resulting joint venture mineralised material will be processed at Telfer.
Newcrest commenced its exploration drilling program in June 2019 and has progressively increased its drilling activities such that eight drill rigs are currently operational. Results from Newcrest’s infill drilling program continue to support the geological and grade continuity for its ongoing studies and continue to confirm Newcrest’s previously reported drilling results.
Exploration activities are also focused on an extensive growth drilling program across several key targets. In June 2021, Newcrest announced a number of new high grade extensions to the South East Crescent zone, located outside of the initial Inferred Mineral Resource estimate. These drilling results continue to support the potential for incremental resource extensions.
In December 2020, Newcrest announced its initial Inferred Mineral Resource estimate for Havieron of 52Mt @ 2.0g/t Au and 0.31 Cu for 3.4Moz Au and 160kt Cu1,2. Mineralisation remains open in multiple directions outside of the initial Inferred Mineral Resource, which indicates the possibility that the resource could continue to grow over time with additional planned drilling activity.
In the second half of the FY21 financial year, Newcrest announced that it had commenced its Early Works Program. Subsequent to the completion of the box cut and portal, Newcrest commenced construction of the exploration decline in May 2021 which is critical to achieving first production from the Project in the next two to three years3.
Works to progress the necessary approvals and permits that are required to commence the development of an operating underground mine and associated infrastructure at the Project are ongoing4.