Greatland Gold plc (AIM: GGP)

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NEWS RELEASE | 21 December 2023                                                

Havieron Mineral Resource Estimate Update

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK MARKET ABUSE REGULATIONS.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Greatland Gold plc (AIM:GGP) ("Greatland" or the "Company") is pleased to provide an updated Mineral Resource Estimate for Havieron, its flagship gold-copper project located in the Paterson Province of Western Australia.

Highlights

§ Estimated Mineral Resources (including Ore Reserves) increased to 8.4Moz AuEq¹ (7.0Moz Au plus 275kt Cu), an increase of 1.9M oz AuEq¹ from Greatland's 2022 Mineral Resource Estimate:

-  29% increase in total gold equivalent content to 8.4M oz AuEq¹.

-  28% increase in total gold content to 7.0M oz Au.

§ Continuous mineralisation confirmed between the Eastern Breccia and main Havieron Breccia domains with the definition of a new high grade "Link Zone".

§ Drilling since Greatland's previous Mineral Resource Estimate (MRE) update in March 2022 targeted the lower portion of the mineral system and has increased the ounce per vertical metre (OPVM) profile of these lower levels in line with the upper levels of the deposit. The updated MRE now averages 7,900 OPVM (gold equivalent) over the top 1,000 metres vertically.

§ The MRE update includes a 32% increase in contained gold equivalent metal in the higher confidence Indicated MRE category, which can now be considered in the updated Ore Reserve Estimate that will be part of the Feasibility Study.

The updated MRE incorporates approximately 93,000 metres additional drilling completed since the December 2021 drilling cut-off for Greatland's March 2022 MRE.

Updated Mineral Resource Statement for the Havieron Deposit (100%) ^{# *}

# Grades are reported to one (gold) and two (copper) decimal places to reflect appropriate precision in the estimate, and this may cause apparent discrepancies in totals. Results represent 100% of the Mineral Resource for Havieron. Mineral Resources in the South East Crescent and Link Zone are reported within a A$80 Net Smelter Return²/t ("NSR²/t^") shell while Mineral Resources in the Breccias are reported within a A$50 NSR²/t shell. Resources are inclusive of Reserves.

* The updated Mineral Resource Estimate assumes selective mining of the South East Crescent and Link Zone and bulk extraction in the Breccias and are reported inside A$80 or A$50 NSR²/t shells respectively.

Greatland Managing Director, Shaun Day, commented:

"We are delighted by the continued growth in the Havieron Mineral Resource Estimate. The growth journey in the resource has been very significant with the total gold equivalent Mineral Resource content having increased from 4.4M oz in the October 2021 MRE, to 6.5M oz in the March 2022 MRE, and now to 8.4M oz in 2023.

The updated MRE now averages over 7,900 ounces per vertical metre (gold equivalent) over 1,000 metres vertically, which is testament to the quality of the Havieron ore body.

The high grade South East Crescent Zone Mineral Resource is now defined over a 1,200 vertical metres (another 200 metres deeper than in the March 2022 MRE update) and remains open at depth. 

It was particularly pleasing to delineate additional ounces in the lower third of the current extents of the mineralised system, with around 70% of the MRE increase identified in the extensions to this part of the ore body.

Another promising aspect of this update is the definition of the Link Zone, between the Eastern Breccia and main Havieron Breccia; whilst previously interpreted as separate domains, we have now confirmed mineralisation is continuous and the breccias are now defined as a singular continuous Breccia domain.

This update further demonstrates the quality and scale of Havieron, and the compelling investment proposition for Greatland.  We are excited to see the impact of the significant growth in the Indicated category on the updated Ore Reserve Estimate that will underpin the Feasibility Study which is ongoing and expected to be completed in 2024."

Important notes

Mineral Resource estimates are expressions of judgement based on knowledge, experience and industry practice.  They are also based on a number of material assumptions (such as future commodity prices and foreign exchange, cut off grades) which may prove to be incorrect.  Estimates which were valid when originally made may alter significantly when new information or techniques becomes available.  In addition, by their very nature, Mineral Resource estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate.  Unless and until actually mined and processed, no assurance can be given that any estimated tonnage, grades and recovery levels will be realised.

This announcement and the updated Mineral Resource Estimate for the Havieron Project contained in it have been prepared solely by Greatland based on relevant available information and have not been reviewed or approved by Greatland's Havieron joint venture partner, Newmont Corporation (Newmont).   Newcrest Operations Limited, a subsidiary of Newmont, is the manager of the Havieron Joint Venture and holds the majority 70% joint venture interest. Whilst the information in this announcement pertaining to the estimation and reporting of the Mineral Resources has been reviewed and approved by a Competent Person³ and the updated Mineral Resource estimate has been independently reviewed by SRK Consulting (Australasia) Pty Ltd⁴, the Company considers that it is possible that, in preparing any future Mineral Resource estimate or Ore Reserve estimate for the Havieron project,  Newmont may adopt different interpretations, assumptions, parameters or plans, or make different judgements, to those used or made by Greatland in the updated Mineral Resource Estimate contained in this announcement.

Forward Looking Statements 

This document includes forward looking statements and forward looking information within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "believe", "continue", "objectives", "targets", "outlook" and "guidance", or other similar words and may include, without limitation, statements regarding estimated reserves and resources, certain plans, strategies, aspirations and objectives of management, anticipated production, study or construction dates, expected costs, cash flow or production outputs and anticipated productive lives of projects and mines. 

These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements or industry results to differ materially from any future results, performance or achievements, or industry results, expressed or implied by these forward-looking statements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which Greatland operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. 

Forward looking statements are based on assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Greatland's business and operations in the future. Greatland does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of Greatland. Forward looking statements in this document speak only at the date of issue. Greatland does not undertake any obligation to update or revise any of the forward looking statements or to advise of any change in assumptions on which any such statement is based.

Footnotes:

¹ The gold equivalent (AuEq) is based on assumed prices of US$1,700/oz Au and US$3.75/lb Cu for Mineral Resource and metallurgical recoveries based on block metal grade, reporting approximately at 87% for Au and 87% for Cu which in both cases equates to a formula of approximately AuEq = Au (g/t) + 1.6* Cu (%). It is the company's opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold. 

² The Net Smelter Return ("NSR") is calculated using metal prices of US$1,700/oz Au and US$3.75/lb Cu, metallurgical recoveries based on block metal grade reporting approximately at 87% for Au and 87% for Cu, an USD:AUD exchange rate of 0.72, as well as treatment and refining costs, payables and royalties.

³ See Competent Person's Statement below for details.

⁴ See Section titled "Independent Review of the Mineral Resource Update".

Contact

For further information, please contact:

Greatland Gold plc

Shaun Day, Managing Director  |  [email protected]

Nominated Advisor

SPARK Advisory Partners

Andrew Emmott / James Keeshan / Neil Baldwin |  +44 203 368 3550

Corporate Brokers

Berenberg  |  Matthew Armitt / Jennifer Lee  |  +44 203 368 3550

Canaccord Genuity  |  James Asensio / George Grainger  |  +44 207 523 8000

SI Capital Limited  |  Nick Emerson / Sam Lomanto  |  +44 148 341 3500

Media Relations

UK - Gracechurch Group  | Harry Chathli / Alexis Gore / Henry Gamble  |  +44 204 582 3500

Australia - Fivemark Partners  |  Michael Vaughan  |  +61 422 602 720

About Greatland

Greatland is a mining development and exploration company focused primarily on precious and base metals. 

The Company's flagship asset is the world-class Havieron gold-copper project in the Paterson Province of Western Australia, discovered by Greatland and presently under development in joint venture with world gold major, Newmont Corporation.

Havieron is located approximately 45km east of Newmont's existing Telfer mine. The box cut and decline to the Havieron orebody commenced in February 2021. Total development now exceeds 3,060m including over 2,110m of advance in the main access decline (as at 22 November 2023).  Subject to a positive feasibility study and Decision to Mine, Havieron is intended to leverage the existing Telfer infrastructure and processing plant. Access to Telfer will de-risk the development and reduce capital expenditure.

Greatland has a proven track record of discovery and exploration success and is pursuing the next generation of tier-one mineral deposits by applying advanced exploration techniques in under-explored regions. Greatland has a number of exploration projects across Western Australia and in parallel to the development of Havieron is focused on becoming a multi-commodity miner of significant scale.

Further Information on the Updated Mineral Resource at Havieron

Havieron Project

The project comprising the Havieron Au-Cu deposit is centred on a deep magnetic anomaly 45km east of Telfer (Figure 1) in the Paterson Province of Western Australia on the traditional lands of the Martu people. The Project is held in a joint venture between Greatland and Newcrest Operations Limited, a wholly owned subsidiary of Newmont Corporation (Newmont), where Newmont currently holds a 70% joint venture interest (Greatland 30%).

The Martu people and the Jamukurnu-Yapalikurnu Aboriginal Corporation (JYAC, formerly WDLAC) are key project stakeholders. The Martu hold exclusive possession native title rights and interests over more than 140,000km² of land, including to all points around the Telfer mine and Havieron Project. The Indigenous Land Use Agreement (ILUA) with JYAC, centred on the Telfer mine, extends to the Havieron project.

The Havieron project is located within granted Mining Lease M45/1287 and has received the necessary regulatory approvals for the construction of a box cut, exploration decline and certain associated surface infrastructure. Construction commenced in January 2021, and total development now exceeds 3,060m including over 2,110m of advance in the main access decline (as at 22 November 2023), with the decline now at a depth of approximately 340 vertical metres with 80 vertical metres remaining to the base of the Permian layer.

A pre-feasibility study for Havieron was completed in October 2021, and a feasibility study is ongoing with several value enhancing options being assessed to maximise value and de-risk the project.

Figure 1. Location of the Havieron Project, approximately 45km east of Telfer, Western Australia.

Drilling Overview

Drilling at Havieron commenced during mid-2019 with a total of 368 drill holes for 295,657m considered suitable to inform the MRE. This total excludes non-exploration drilling (e.g. geotechnical, hydrological, etc), and drilling considered not suitable (e.g. holes which failed to reach target).

An additional 92,648m of drilling has been incorporated into this updated MRE relative to the March 2022 MRE.  This additional drilling comprised a combination of growth and resource conversion drilling, both of which have been extremely successful in increasing the MRE. 

The growth drilling has resulted in a 29% increase in contained gold equivalent metal in this updated MRE, with additional ounces defined within the Northern Breccia, Eastern Breccia and South East Crescent.  A new high grade zone has also been defined, the "Link Zone" which confirms continuous mineralisation between the Northern Breccia, South East Crescent and the Eastern Breccia.

The Resource conversion drilling targeted the upgrade of previously defined Inferred South East Crescent MRE into the higher confidence Indicated category, and has increased South East Crescent Indicated MRE material from 26Mt to 36Mt, a greater than 30% increase to the previous March 2022 MRE. The importance of this conversion is that the Indicated MRE category can underpin Ore Reserve Estimates, whereas the Inferred MRE category cannot due to its lower confidence.

Updated Mineral Resource Estimate

The updated MRE for the Havieron Deposit prepared by Greatland (Table 1) ("Updated Mineral Resource") is based on drilling completed to 6 June 2023, comprising 368 holes for 295,657m, inclusive of 107 holes for 92,648m which are additional to the drilling data incorporated in Greatland's March 2022 MRE released on 3 March 2022.

Table 1: Updated Mineral Resource Estimate tabulation for the Havieron deposit (100%) ^{# *}

# Grades are reported to one (gold) and two (copper) decimal places to reflect appropriate precision in the estimate, and this may cause apparent discrepancies in totals. Results represent 100% of the Mineral Resource for Havieron. Mineral Resources in the South East Crescent are reported within a A$80 Net Smelter Return²/tonne ("NSR/t") shell while Mineral Resources in the Breccias are reported within a A$50 NSR/t shell. Resources are inclusive of Reserves.

* The Updated Mineral Resource Estimate assumes selective mining of the South East Crescent Zone and bulk extraction in the Breccias and are reported inside A$80 or A$50 NSR²/t shells respectively.

The updated MRE is reported as Indicated and Inferred Mineral Resources in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). The reported updated Mineral Resources are inclusive of Ore Reserves. Refer to details in Appendix 1 (JORC Table 1 - Sections 1 to 3) for information relating to data collection and resource estimation.

The updated MRE represents a significant increase on the MRE previously announced by Greatland in March 2022, including a:

§ 43% increase in total (Indicated plus Inferred) tonnes;

§ 28% increase in total gold ounces; and

§ 29% increase in total gold equivalent ounces.

Material differences between the Updated Mineral Resource and the previously announced March 2022 Mineral Resource are as follows:

§ A further 92,648 metres of infill drilling completed in the approximately 18 months since December 2021 to 6 June 2023 when surface drilling ceased.

§ Drilling has confirmed continuous mineralisation exists between the Northern Breccia, South East Crescent and the Eastern Breccia, in essence confirming that the Eastern Breccia forms part of the same continuous breccia body that hosts the main Havieron deposit. This has resulted in an increase in the breccia Resources and the definition of a new high grade domain.

§ Drilling has provided adequate geological confidence to define a new domain, the Link Zone, which is a moderately dipping approximately 30m wide by 200m long zone of mineralisation that extends northwards from the existing South East Crescent Zone at the 4,000mRL down to the 3750mRL. This zone is interpreted to encompass the high grade core of what has to date been referred to as the Eastern Breccia.

§ Incrementally higher commodity prices have been used to calculate the NSR values within the Mineral Resource estimate (US$1,700/oz Au and US$3.75/lb Cu and a USD:AUD exchange rate of 0.72 for the updated MRE, compared with US$1,600/oz Au and US$3.50/lb Cu and a USD:AUD exchange rate of 0.72 used in the March 2022 MRE) which have resulted in more Mineral Resources being reported above the NSR cut-offs, noting however that due to the high NSR value throughout most of the South East Crescent Zone this change is not considered to have resulted in a material change in the South East Crescent Zone Resources. 

The increase in the Breccia Mineral Resources within the Havieron Breccia is a combination  of additional drilling and the increased commodity prices.

The gold equivalent ounces per vertical metre (OPVM) of the updated MRE is presented in Figure 2.

Figure 2. Schematic 3D view looking northwest, depicting the Greatland Havieron December 2023 MRE (left hand figure) with OPVM charted to the right. The OPVM for the March 2022 MRE is also charted (light grey dashed line). Drilling intensity (grey horizontal bars) are a visual representation of the extent of drilling that has informed the MRE by vertical level (not plotted to the OPVM scale). The X axis scale (horizontal) is OPVM, while the Y axis (vertical) is plotted as relative depth in metres RL (Reduced Level).

Havieron Geology

The Havieron deposit comprises an ovoid shaped zone of variable brecciation, alteration and sulphide mineralisation (the Breccia Pipe). The mineralisation trends northwest to southeast with approximate dimensions of 650m in length by 350m in width and 1,400m in depth along a northwest orientation. Bedding of the surrounding country rocks outside of the Breccia Pipe strikes northwest to southeast and dips approximately 40° to the southwest whereas inside the breccia zone the dip steepens greater than 60° to sub-vertical.

The Breccia Pipe includes unmineralised to low-grade crackle breccia and a series of mineralised cemented breccias (Figure 3). The highest-grade breccia occurs on the margins of the Breccia Pipe and is termed the South East Crescent Zone. The Breccia Pipe also includes relatively small dioritic intrusions with brecciated contacts or wall rock clasts within the breccias. The diorite intrusions are discontinuous; however, there appears to be a strong spatial relationship between the presence and abundance of the diorite dykes and/or clasts and the presence of gold and copper mineralisation. The Breccia Pipe is intruded by a 20-30m wide, north-northeast trending, steeply dipping post mineralisation dolerite dyke.

Gold and copper mineralisation at Havieron consists of breccia, vein and massive sulphide replacement gold and copper mineralisation typical of intrusion-related styles of mineralisation. Mineralisation is hosted by metasedimentary rocks (meta-sandstones, meta-siltstones and meta-carbonate) and intrusive rocks of an undetermined age. The main mineral assemblage contains well developed pyrrhotite-chalcopyrite and lesser pyrite sulphide mineral assemblages as breccia and vein infill, and massive sulphide lenses.

Figure 3. Plan view of the Havieron deposit geological model at 4600mRL (650m below surface)

The Indicated Mineral Resource estimate includes material from the South East Crescent Zone, adjacent Breccias and a small portion (2Mt) of the Link Zone that abuts the South East Crescent. The Inferred Mineral Resource estimate is comprised of South East Crescent Zone, Link Zone and portions of the broader Breccia Zones that meet the criteria for classification.

Ordinary Kriging of 5m composites of gold and copper was undertaken into 20m x 20m x 20m blocks and re-blocked into a minimum of 4m x 4m x 4m blocks where required. The Mineral Resource model was domained utilising the geological units defining the South East Crescent Zone, Link Zone and the Cemented and Crackle Breccias. Hard boundaries were used between the South East Crescent Zone and Link Zones with the Breccia Zones and a transitional boundary of 10m was used between the Breccia Zones. Kriging Neighbourhood Analysis was used to define the search neighbourhood for gold. All grades were estimated independently of each other and composite data was capped prior to estimation. Within the Havieron Breccia complex over 99% of the resource estimation is based entirely on interpolation with less than 1% extrapolated blocks (which Greatland defines as the nearest informing composite being more than 30m away and estimated by data from fewer than 4 drillholes). The Mineral Resource model was validated via visual, statistical, and geostatistical methods.

The Indicated and Inferred Mineral Resource estimate has been constrained using appropriate drill hole data spacing parameters and geological control.  Resource classification is based on a combination of geological confidence, average weighted distance and slope of regression statistics for estimated gold grades, and economic constraints (NSR).  The Indicated Mineral Resource classification within the South East Crescent Zone and Link Zone is reported based on the evaluation of nominal thresholds of the average weighted distance (45m) and slope of regression (>0.6) and with blocks lying within an A$80 NSR/t shell. The Inferred Mineral Resource classification within the South East Crescent Zone and Link Zone is reported based on the evaluation of nominal thresholds of the average weighted distance (75m) and slope of regression (>0.3) and with blocks lying within an A$80 NSR/t shell.

The Indicated Mineral Resource classification within the Breccias is reported on the evaluation of nominal thresholds of the average weighted distance (30m) and slope of regression (>0.6) within an A$50 NSR/t value shell with no internal selectivity, which assumes bulk mining and therefore includes internal waste. The Inferred Mineral Resource classification within the Breccias is reported on the evaluation of nominal thresholds of the average weighted distance (75m) and slope of regression (>0.3) within an A$50 NSR/t value shell with no internal selectivity, which assumes bulk mining and therefore includes internal waste.

The NSR uses metal prices of US$1,700/oz Au and US$3.75/lb Cu, metallurgical recoveries based on block metal grade, reporting approximately 87% for Au and 87% for Cu, a USD:AUD exchange rate of 0.72, as well as treatment and refining costs, payables and royalties, similar to those applied for the March 2022 MRE.

Reasonable prospects for eventual economic extraction have been assessed through ongoing mining and processing studies which suggest that selective underground mining would be appropriate for exploitation of the South East Crescent Zone, while less selective underground mining would be appropriate for the exploitation of the mineralised Breccia Zones. There are no known environmental, social, governmental / regulatory or legal barriers to declaring this Mineral Resource.

Competent Person's Statement

Information in this announcement pertaining to the Reporting of Mineral Resources is based on information compiled and approved by Mr Michael Thomson, a Member of the Australian Institute of Geoscientists (AIG), who has more than 20 years relevant industry experience.  Mr Thomson is a full-time employee of the Company and has a financial interest in Greatland.  Mr Thomson has sufficient experience relevant to the style of mineralisation, type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and under the AIM Rules - Note for Mining and Oil & Gas Companies, which outline standards of disclosure for mineral projects.  Mr Thomson consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

Independent Review of the Mineral Resource Update

SRK Consulting (Australasia) Pty Ltd has completed an independent technical assessment of the Updated Mineral Resource Estimate completed by Greatland for the Havieron deposit. As part of that assessment SRK reviewed the Resource modelling methods and parameters and found them to be reasonable and to take into consideration all of the current exploration data and levels of technical knowledge of the Havieron deposit.

SRK considers that the Mineral Resources have been reported in accordance with guidelines and principles outlined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 edition).

Appendix - JORC Code, 2012 Edition - Table 1

Section 1 - Sampling Techniques and Data 

Section 2 Reporting of Exploration Results

Section 3 - Estimation and Reporting of Mineral Resources