Newcrest pounces on Greatland’s Paterson Range gold find
15th March 2019
Newcrest Mining has pounced on one of the most exciting mineral discoveries in Australia in recent years, striking a deal that will see it pump $US65 million ($92m) into the Haveiron copper-gold project in Western Australia’s Paterson Range (reports The Australian).
Newcrest announced the deal with the UK-listed owner of Haveiron, Greatland Gold, late on Tuesday.
Under the deal, Newcrest will spend an initial $US5m on exploration at Haveiron over the next 12 months and can earn a 70 per cent stake by spending $US65m over six years.
Haveiron sits just 45 kilometres from Newcrest’s big but ageing Telfer mine, and the high grade mineralisation identified at the project could make an idea source of feed for Telfer.
Greatland last November unveiled a series of stunning intercepts from its drilling at Haveiron, including 275 metres of mineralisation grading 4.77 grams per tonne gold and 0.61 per cent copper.
But the mineralisation at Haveiron is deep, starting at more than 450m beneath the surface.
The Paterson Range, in the north of WA’s Pilbara region, has long been known for its prospectivity but progress has been hampered by its remoteness and the thick sand, or cover, in the area.
Newcrest chief development officer Michael Nossal said the company was excited to join Greatland at Haveiron.
“Further exploration at Haveiron is in line with our strategy in Australia of looking under cover and it is becoming more and more evident that the Paterson region is highly prospective for undercover discoveries,” Mr Nossal said.
Greatland chief executive Gervaise Heddle said partnering with Newcrest could significantly reduce capital costs at Haveiron by processing its ore through Telfer.
Telfer has struggled for profitability in recent years, prompting Newcrest to study plans for an overhaul of the mine and its processing practices in an effort to revive its fortunes.
The Paterson Range is also home to Rio Tinto’s recent Winu copper-gold discovery, which was formally unveiled by the mining giant last month after months of speculation.
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