After an extensive drilling campaign conducted this year, the company also noted that the asset’s mineralization remains open within four other target regions: South East Crescent and Breccia Zone, North West Crescent, Northern Breccia, and the Eastern Breccia.
That means, according to Greatland, that the resource has room for growth, adding that there is an additional possibility of conventional bulk underground mining.
Newcrest is acting as manager of the venture developing Havieron, which is located 45km east of its Telfer gold-copper mine
Since acquiring Havieron in 2016 as an early stage exploration project, Greatland has completed more than 100,000 meters of drilling.
Earlier this month, the company signed a joint venture deal with Australia’s biggest gold miner, Newcrest Mining (ASX:NCM), to continue advancing the Patterson region-based project.
The agreement builds on the $65-million farm-in alliance both companies set up last year, which has given Newcrest a 40% interest in the UK-based miner’s project so far and the potential to increase the stake to 70% over the coming years.
Newcrest is acting as manager of the venture developing Havieron, which is located 45km east of the company’s Telfer gold-copper mine, and 500km east of rail and port infrastructure at Port Hedland.
Activity at the project is likely to pause over the hot Australian summer, but a work camp that is being built there to accommodate 230 staff will be ready to resume by the end of March.
Newcrest plans to start developing one decline at the project in early 2021, with commercial gold production likely to start within two to three years.
The next step will be to determine what type of underground mining works best for the deposit, a decision that will be taken after further drilling, the company has said.
Seeking juniors
Newcrest, which is also the world’s No. 3 gold producer by market value, has been aggressively searching for juniors with appealing assets to jointly develop.
Early last year, it acquired a 70% stake in Canada’s Red Chris copper and gold mine from Imperial Metals (TSX: III).
The Paterson region hosts several large gold and/or copper deposits such as Nifty, Winu and Newcrest’s own Telfer.
The world’s second-largest mining company, Rio Tinto (ASX, LON:RIO), is very invested in the area and its recent application for nearly 30 exploration licenses has sparked a stampede into adjacent lots by other explorers, who see the miner’s aggressive activity as an indicator of a highly promising find.
