Greatland reports 'substantial increase' in Havieron resource

The AIM-traded firm reported a 53% increase in total gold content for Havieron’s mineral resource, to 5.5 million ounces of gold, or 6.5 million ounces gold equivalent.

It announced a 63% increase in indicated mineral resource gold ounces to 3.1 million ounces of gold, with an initial inferred mineral resource estimated at the Eastern Breccia.

Mineral resources included 33 million tonnes at 3.28 grams of gold per tonne and 0.48% copper, containing 3.5 million ounces of gold and 158,000 tonnes of copper, or 4.2 million gold equivalent ounces, in the South East Crescent Zone.

The update had been subject to a detailed analysis and review, independently assessed by SRK Consulting, and reported in compliance with JORC 2012 guidelines, Greatland said.

Looking at its ore reserve, Greatland reported a 50% increase in contained gold ounces at Havieron to 2.4 million ounces of gold, or 2.9 million gold equivalent ounces, including an 86% conversion of indicated mineral resources to probable ore reserves.

The company said the conversion rate of the South East Crescent Zone reiterated the “robust nature” of the zone within the Havieron deposit, while providing confidence in the ongoing conversion of further South East Crescent material as drilling continued.

“This mineral resource and ore reserve update represents a considerable increase on that which was defined in the stage one pre-feasibility study,” said chief executive officer Shaun Day.

“The update has unearthed further aspects of the Havieron system and validates that Havieron is a world class deposit with significant growth potential.

“Through an independently-verified analysis, the total mineral resource at Havieron has increased to 6.5 million ounces of gold equivalent - an increase of almost 50% in 10 months of drilling.”

Day said that, with an “ongoing and substantial” expansion drilling campaign continuing, there was “every opportunity” to deliver more growth to the mineral resource and ore reserve as the company continued to better understand the extent of mineralisation across the broader Havieron zonation.

“The investment proposition for Greatland remains compelling, with this further understanding of the quality and scale of Havieron supported by this new mineral resource update.

“With Havieron in a tier one mining jurisdiction, under development with a major partner in Newcrest, located near existing infrastructure and a study indicating modest capex and low operating cost, this confluence of factors position Havieron as a tremendous and globally unique asset.”

At 1410 GMT, shares in Greatland Gold were up 7.19% at 14.32p.