Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Explorer Greatland Gold (LON: GGP) aims to further increase its footprint in Western Australia’s Paterson region, where is already developing the Havieron gold-copper project with its joint venture partner Newcrest Mining (ASX: NCM).
The company said on Thursday it had lodged an application for a new exploration license in the area, comprising an area of 114 square kms located about 175 kms southeast of Havieron.
Ahead of the expected grant of the license, Greatland will compile and review historical exploration data, including regional aeromagnetic data and detailed gravity data, and remodel the magnetic and gravity data.
“We are pleased to apply for the new Canning licence which will expand our footprint in the Paterson region and build on our exploration momentum in this region,” chief executive officer, Shaun Day, said in the media statement.
Day noted the move fits the company’s strategy of seeking tier 1 gold-copper deposits.
Newcrest, Australia’s largest gold producer and the world’s no. 3 gold miner by market value, has been aggressively searching for juniors with appealing assets to jointly develop.
In 2019, 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.
Rio Tinto (ASX, LON:RIO) is also very invested in the area. In 2018, the world’s second-largest miner applied for nearly 30 exploration licenses, sparking a stampede into adjacent lots by other explorers.
Juniors see Rio’s aggressive activity as an indicator of a highly promising find.
