Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
Australia-focused explorer Greatland Gold (LON: GGP) has unveiled plans to list on the Australian Stock Exchange as the miner moves forward with its flagship Havieron gold-copper project in the Paterson region of Western Australia.
Speaking at the Diggers and Dealers mining forum, chief executive Shaun Day said the London-listed company was reviewing the opportunity to “get the best of both worlds.”
“We have an Australian asset, we’ve got an Australian management team, and a peer group here on the ASX,” he said.
The company, which is developing the Havieron deposit with gold giant Newcrest Mining (ASX: NCM) as joint venture partner, unveiled earlier this year that the asset was richer than anticipated.
Greatland increased Havieron’s total endowment (including ore reserves) to 5.5 million ounces of gold and 218,000 tonnes of copper. This equates to 6.5 million ounces of gold equivalent (AuEq), which is 2.1 million ounces, or 47% higher than the previous estimate. The gold content rose by 53%, encompassing a 63% boost in indicated gold ounces.
The mineral resources included 33 million tonnes grading 3.28 g/t Au and 0.48% Cu (containing 3.5moz gold and 158,000t copper, or 4.2moz AuEq) in the South East Crescent zone.
Probable ore reserves at Havieron now stand at 2.4 million ounces gold and 109,000 tonnes of copper, or 2.9 million ounces of gold equivalent. This was 70% higher compared to the 1.7 million ounces shown in the initial ore reserve estimation.
Havieron is located 45 km from Newcrest’s Telfer mine, which has the largest processing facility in the Paterson province.
Newcrest, Australia’s largest gold producer, has the right to earn up to a 70% interest through total expenditures of $65 million and the completion of a series of exploration and development milestones across a four-stage farm-in.
The Melbourne-based miner has so far met the Stage 3 expenditure requirements of $45 million.
The partners are currently conducting a feasibility study, which is expected to be completed in the last quarter of the year.
Greatland and Newcrest aim to achieve first production at Havieron in fiscal year 2024. Shares in Greatland closed 1.03% higher on Wednesday at 11.72 pence each, giving the company a market capitalization of almost £480 million (about $580 million).
