Greatland Resources has delivered a definitive feasibility study for its Havieron project, confirming its status as a world-class, low-cost gold-copper mine in Western Australia.
The study outlines a steady state annual production target of 266,000 ounces of gold and 9,600 tonnes of copper, both at an all-in-sustaining cost (AISC) of AU$1,610 per ounce. Initial mine life is set at 17 years of total life of mine, including an initial nine-year steady state.
Havieron would be capable of generating more than AU$739 million in pre-tax free cash flow at steady state operations.
The feasibility study also reports an updated ore reserve of 38.5 million tonnes grading at 2.63 grams per tonne (g/t) gold and 0.33 per cent copper, for 3.3 million ounces (Moz) and 128,000 tonnes of copper.
This ore reserve makes Havieron the largest Australian underground gold reserve outside of a global major gold producer.
Greatland Managing Director Shaun Day said: “We are delighted to deliver our feasibility study which confirms Havieron’s world-class quality and sets the pathway for its development into a long-life, low-cost, leading Australian gold-copper mine that will integrate efficiently with the existing infrastructure at Telfer.
“The results of the study are robust, generating an internal return rate (IRR) of 22.5 per cent at a long-term $4,500/oz gold price. At a long-term price equal to the current spot gold price, this rises to 31.5 per cent IRR.
“The delivery of Havieron positions Greatland for long-term success, complementing the ongoing, strong operational performance of Telfer. Looking ahead, we look forward to obtaining the final permits required to take a final investment decision and resume full development at Havieron, and to outlining our integrated Telfer-Havieron production plan.”
The study estimates pre-production capital expenditure at AU$1.065 billion, with the development fully-financed through Greatland’s AU$750 million cash balance, ongoing cash flow contributions from Telfer and AU$500 million debt commitment from a lending syndicate.
The company is targeting first gold production 2.5 years from the final investment decision, which is expected following requisite environmental approvals targeted in 2026.
Havieron ore will be processed through the existing Telfer processing plant, with AU$200 million capital expenditure for plant upgrades that could also enhance the recovery of Telfer ore once installed.