Newcrest Mining has reported additional high-grade results from the Havieron gold exploration project 45 kilometers (km) east of the company’s Telfer gold mine in Western Australia. The project is operated by Newcrest under a farm-in agreement with Greatland Gold. The project is centered on a deep magnetic anomaly overlain by more than 420 meters (m) of post-mineral cover. Newcrest can earn up to a 70% joint-venture interest in the project through total exploration expenditures of $65 million over a six-year period.
Recent drill intercepts from separate holes at Havieron have included 14.6 m grading 9.1 grams/metric ton gold and 0.48% copper from 705 m downhole, 13 m grading 13 g/mt gold and 1.1% copper from 770 m, 21 m grading 10 g/mt gold and 0.74% copper from 665 m, and 39 m grading 6.5 g/mt gold and 0.40% copper from 764 m, including 10.6 m grading 22 g/mt gold and 1.3% copper from 764.9 m.
Drilling is ongoing at Havieron, with six drill rigs currently turning at the project.
To date, drilling at the Havieron project has defined a series of higher-grade zones within a broad envelope of mineralization and has recently extended the footprint of the high-grade mineralization 100 m to the north. The Newcrest announcement cautions that although results to date are highly encouraging, the project is still at an early stage. Infill and extension drilling is ongoing to define geometric relationships and mineral continuity within the footprint of the magnetic anomaly. Interpretation of results suggests the system is open to the north and at depth.
Assuming Newcrest completes its 70% farm-in, the company may acquire an additional 5% interest in Havieron at the end of the farm-in period at fair market value. During the farm-in period, the company has a first right of refusal over the remainder of Greatland Gold’s Paterson project.
The farm-in agreement includes tolling principles reflecting the intention of the parties that, subject to a successful exploration program and feasibility study, the resulting joint-venture ore will be processed at Telfer.
The Telfer mine produced 452,000 oz of gold during Newcrest’s 2019 fiscal year.