PERTH (miningweekly.com) – Gold major Newcrest Mining has taken a 40% stake in the Havieron gold project, in Western Australia, after reaching the Stage 2 of its farm-in agreement with Greatland Gold.
Newcrest could earn up to a 70% interest in the Havieron joint venture by spending $65-million on the project and completing a series of exploration and development milestones over a four-stage earn-in, stretched over six years.
The company could then acquire an additional 5% interest at the end of the farm-in period at fair market value.
Newcrest spent an initial $10-million during Stage 1 of the farm-in, and a further $10-million during Stage 2, to reach its 40% stake.
Over the next 24 months, the company will spend a further $25-million to increase its stake to 60%.
Newcrest is planning to drill some 20 000 m to support the objective of delivering a maiden resource estimate at Havieron in the second half of this calendar year, while studies are also under way on starting an exploration decline by the end of 2020 or early 2021, stoping and bulk underground mining options, and achieving commercial production within two to three years from the start of the decline.
“We are excited to achieve this milestone at Havieron. Today’s announcement highlights the significant investment we are making into this project. The results to date have been very positive and I believe that Havieron provides a great opportunity to improve the economics and extend the operating life of Telfer,” said Newcrest MD and CEO Sandeep Biswas.
The Havieron project is located some 45 km east of Telfer.