Havieron ore reserve climbs to third largest in Australia

Greatland Resources’ (ASX: GGP) Havieron feasibility study confirms the project’s potential as a world-class gold-copper mine capable of generating an annual pre-tax free cashflow of $739m.

The study outlined a 17+ year mine life and a predicted pre-production capital expenditure of $1065m.

Greatland is targeting a steady state average annual production of 266koz of gold and 9.6kt of copper at an all-in-sustaining-cost (AISC) of $1610/oz.

First gold is expected about 2.5 years from final investment decision (FID) following receipt of environmental approvals.

Greatland managing director Shaun Day comments on the feasibility study.

“The results of the study are robust, generating an IRR3 of 22.5% at a long term $4,500/oz gold price,” he said.

“At a long-term price equal to the current spot gold price, this rises to 31.5% IRR.

“The assessed steady state average production target of 266koz gold and 9.6kt copper annually would generate significant after-tax free cash flow of $550mpa at our base case pricing, or $870mpa at spot gold pricing.”

Greatland has also updated the ore reserve to 38mt at 2.63g/t gold and .30% copper, for 3.3moz gold and 128kt copper.

Havieron ore will be processed through the existing Telfer processing plant with $200m of upgrades included in the capital expenditure with further cost savings possible under a joint-processing scenario and extension to Telfer mine life.

“The delivery of Havieron positions Greatland for long-term success, complementing the ongoing, strong operational performance of Telfer,” Mr Day said.

“Looking ahead, we look forward to obtaining the final permits required to take final investment decision and resume full development at Havieron, and to outlining our integrated Telfer-Havieron production plan.

“The potential is to deliver Havieron and in parallel extend the mine life of Telfer to achieve the full potential of the Greatland platform.”

Telfer is predicted to produce between 260,000-310,000oz of gold in FY26 at an AISC of $2400-$2800/oz.

Future milestones include a record 240,00m Telfer FY26 drill program to target life extensions in the West Dome open pit, Main Dome underground and growth in the new West Dome underground project.

A multi-year integrated Telfer-Havieron production outlook is targeted for FY27.