Newcrest kicks off Havieron drilling

NEWCREST Mining has started the most extensive drilling program to date at Greatland Gold’s Havieron gold-copper project in the Paterson region of Western Australia.
Newcrest kicks off Havieron drilling Newcrest kicks off Havieron drilling Newcrest kicks off Havieron drilling Newcrest kicks off Havieron drilling Newcrest kicks off Havieron drilling

Havieron is part of Greatland Gold's Paterson project

Staff reporter

About 10,000m of drilling has started with the aim of defining the extent of  mineralisation along strike and at depths to 1,000m below surface.

The work is being fully funded by Newcrest, which agreed in March to spend US$5 million on Havieron in the next 12 months.

The $5 million is part of a farm-in deal signed by the two companies giving Newcrest the option to acquire 70% of Havieron by spending $65 million on exploration and development over five years.

Newcrest sees the project as potential feed for its nearby Telfer mine, which is running out of ore.

Greatland CEO Gervaise Heddle said the company expected Newcrest's technical expertise and understanding of the local geology to build on the successful 2018 program.

Greatland also announced plans to start a detailed, low-level aeromagnetic survey over the entire Paterson Range East licence, which lies 25km north of Havieron, in early June.

The survey will comprise about 5200-line km at 50m spacing and will increase the resolution of some 20 previously identified magnetic targets.

The results will be used with other geophysical and geochemical data sets to prioritise targets within the Paterson Range East licence.

"Greatland's 2019 exploration program in the Paterson is advancing on a number of fronts, with a detailed aeromagnetic survey planned at Paterson Range East, a 6000m drilling program expected to commence at Black Hills within the next few weeks, and Newcrest's first drilling program at Havieron underway," Heddle said.

Greatland's shares have dropped more than 7% so far this year on London's AIM to the current 1.65p, while Newcrests's shares have risen 23.1% to A$26.72.