Australia’s largest gold producer, Newcrest Mining (ASX: NCM) confirmed Wednesday that it has now reached its Stage 2 farm-in milestone at the Havieron project.
Newcrest has earned a 40% interest in the project and gave notice to Greatland Gold that it is proceeding to Stage 3.
The Havieron Project is operated by Newcrest under a farm-in agreement with Greatland Gold. It is centred on a deep magnetic anomaly located 45km east of Telfer in the Paterson Province, Western Australia. The target is overlain by more than 420m of post-mineral cover.
Newcrest started drilling during the June 2019 quarter and has increased drilling activity such that eight drill rigs are now operational.
Drilling at the Havieron Project continues to expand and demonstrate the continuity of high-grade mineralisation which extends over 450m, to vertical depths of 600m and remains open at depth to the northwest.
Drilling has also identified mineralised breccias proximal to high-grade mineralisation, Newcrest said. A further 20,000m are planned to be drilled to support the objective of delivering a maiden resource estimate in the second half of 2020.
Studies are also underway to investigate the potential for starting an exploration decline by the end of calendar year or early 2021 and achieving commercial production within two to three years from the commencement of the decline.
Newcrest said it has implemented measures to reduce and mitigate the risks of the covid-19 pandemic to its project workforce and key stakeholders.
“Today’s announcement highlights the significant investment we are making into this project,” Newcrest CEO Sandeep Biswas said in a media release. “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.”