Newcrest Mining has suffered delays in the exploration and development of the Havieron gold-copper project in Western Australia, but the extent remains unclear.
Havieron is a joint venture between Newcrest and Greatland Gold and first production is targeted for the 2024 financial year (FY24).
With an initial probably ore reserve of 14 million tonnes containing 1.6 million ounces of gold, the deposit forms an important part of Newcrest’s strategic development.
But in the company’s FY22 half year results webcast, Newcrest managing director and chief executive officer Sandeep Biswas revealed it wasn’t all smooth sailing.
“We have experienced some difficulty with poor ground conditions at Havieron during the period, which has impacted the progress of the exploration decline,” Biswas said.
“Our team is still working to understand the potential impacts to the project schedule and how we can recover some of the lost time.
“We still expect first ore production from Havieron in FY24 and we will provide updates as more information comes to hand.”
In more positive news for the company, the exploration results before the delays had been largely positive.
Biswas said the Havieron region is likely to contain additional high-grade zones, indicating significant potential for further resource growth.
“Havieron has a compelling future based on the pre-feasibility study outcomes which were based on only a small proportion of the initial mineral resource estimate,” he said.
“We’ve had excellent growth drilling results at Havieron during the first half, including the highest-grade mineralisation drill result outside of the southeast crescent zone.”
The Havieron development has a total capital expenditure of $529 million.
Under the JV agreement with Greatland Gold, Newcrest can earn up to a 60 per cent interest in the project by spending $65 million on Havieron’s development.