Newcrest Mining has formed a joint venture with Greatland Gold at the Havieron gold-copper project, 45 kilometres east of its Telfer gold mine in Western Australia’s Paterson Province.
The company is now entitled to earn an additional 20 per cent interest in the JV, making its total JV interest holding 60 per cent, having met the expenditure requirement of $US45 million ($60 million).
Under the newly formed JV agreement, Newcrest will provide Greatland Gold with a $US50 million loan to fund early works and drilling at Havieron.
Newcrest will be able to earn up to 70 per cent interest in Havieron should it meet the spending requirement of $US65 million and deliver a pre-feasibility study.
The company has furthered its presence in the prospective Paterson province, creating a farm-in and JV agreement, named the Juri JV, for Greatland Gold’s Black Hills and Paterson Range East exploration licenses.
This agreement sees Newcrest granted an initial 25 per cent JV interest with the potential to increase this to up to 75 per cent by funding $20 million worth of exploration over a five year period.
Managing director and chief executive officer Sandeep Biswas said the company is excited to both expand its relationship with Greatland Gold and its activities within the Paterson Province.
“The Havieron JV and loan agreements support the continued progress at Havieron with the potential to deliver commercial production within two to three years from the commencement of the decline,” he said.
“The Juri JV complements our strong pipeline of exploration prospects and the associated tenements are favourably located in close proximity to our established Telfer operation.”
During the 2020 financial year, Newcrest produced 393,000 ounces of gold, 16,000 tonnes of copper and 164,000 ounces of silver at the Telfer operation.