Newcrest Mining (ASX: NCM), which owns 70% of the Havieron gold-copper project in Australia, flagged on Thursday some delays and said first ore delivery has been held up from the first half of the 2024 financial year to late calendar 2024.
The delay, Australia’s largest gold producer said while delivering half year results on Thursday, is due to poor ground conditions, which are impacting decline development and may continue to do so.
Partner Greatland Gold (LON: GGP), which holds a 30% interest in the project, sought to “clarify” the update by pointing out that Newcrest’s announcement quoted figures previously released.
The company noted the data used corresponded to the Stage 1 South East Crescent prefeasibility study (PFS), which doesn’t include the most recent drilling results, which came in after the PFS cut-off of February 2021.
“In the approximately 11 months since this drilling cut-off date, the Havieron JV and the company has consistently announced excellent drill results,” Greatland said. The miner added the latest drilling results were “outstanding” and would allow a “significant portion” of the inferred resource to be upgraded to indicated.
Shares in Greatland Gold fell on the news and were last trading almost 2.7% lower at 13.43 pence each in London.
The PFS for Havieron returned capital costs of A$529 million ($381m) for a 2 million tonne per annum operation to produce 160,000 gold ounces and 6,900 tonnes of copper at an average all-in sustaining cost of $643 per ounce, valuing the project at $228 million.
“Over the last year our belief has strengthened that the PFS only revealed the tip of the iceberg for Havieron’s potential,” chief executive Shaun Day said in the statement
A full feasibility study for the project, located in the Paterson region of Western Australia, is scheduled to be completed in late 2022.
