Newcrest Mining and Greatland Gold have agreed to a $US65 million ($91.82 million) farm-in to advance the latter’s Havieron copper-gold project in Western Australia.
Greatland’s Havieron tenement in Western Australia’s Paterson region is expected to deliver high-grade copper-gold ore feed to Newcrest’s Telfer mine around 45 kilometres away.
Newcrest chief development officer Michael Nossal said that exploring Havieron was in line with the company’s strategy of looking for “under-cover” discoveries.
Newcrest will have the right to acquire a 70 per cent joint venture (JV) interest in Havieron by spending $US65 million and completing several exploration and development milestones over a six-year period.
Once these milestones have been completed, Newcrest will have the option to earn an additional five per cent.
Newcrest will act as manager at the project, accelerating Havieron through the feasibility study stage and towards production.
“Greatland will receive tremendous benefit from Newcrest’s experience as a developer and producer at Telfer and Newcrest’s broader understanding of the geology of the Paterson region,” Greatland Gold chief executive Gervaise Heddle said.
“We believe that this deal represents a win-win for both parties due to the potential for significantly reduced capital costs and increased efficiency resulting from ore being toll processed at Newcrest’s nearby Telfer mine.”
Greatland embarked on a drilling campaign at the Havieron prospect last year, returning highly prospective results including gold and copper peaks of 211.3 grams of gold per tonne and 8.45 per cent, respectively.