The Paterson Project comprises three granted licences, Havieron, Black Hills and Paterson Range East, and the Rudall licence application, covering over 450 square kilometres of under-explored ground in the Paterson Province in Western Australia.
The region is highly prospective for intrusion related gold-copper systems such as the Telfer deposit. Greatland has identified multiple targets across its licences and recent drilling has demonstrated the potential for one such target, Havieron, to represent a very large mineralised system.
The Paterson region hosts several large gold and/or copper deposits such as Nifty, Winu and Newcrest’s Telfer
Greatland’s Havieron prospect is strategically located 45km east of the major Telfer gold mine, and 500km east of rail and port infrastructure at Port Hedland
Several new exploration licence applications made across the region and high levels of exploration activity from key regional players
Following a review of regional geophysical and geochemical data over ther Paterson project approximately fifty targets were identified in the broader region, with around half in ground held by Greatland
Newcrest Farm-In Agreement
In March 2019 Greatland Gold signed a Farm-In Agreement with Newcrest Operations Limited (Newcrest), a wholly owned subsidiary of Newcrest Mining Limited (ASX:NCM), Australia’s leading gold producer and one of the world’s largest gold mining companies, to explore and develop Greatland’s Havieron gold-copper project in the Paterson region of Western Australia.
The farm-in agreement includes Joint Venture and Tolling Principles which reflect the intention of both parties that, subject to a positive Feasibility Study outcome, ore from the proposed Havieron Joint Venture will be toll processed at Newcrest’s Telfer Gold Mine
Additionally, during the farm-in period, Newcrest will have a first right of refusal over the remainder of Greatland’s Paterson project (Black Hills, Paterson Range East and remaining areas of Havieron licence) Highlights
Newcrest has the right to acquire up to a 70% interest in 12 blocks within E45/4701 that cover the Havieron target (the “Tenement Blocks” by spending up to US$65m (roughly £50m or AUD$90m) and completing a series of exploration and development milestones in a four-stage Farm-in over six years.
After meeting the milestones in the four-stage Farm-in (set out below), Newcrest has the option to acquire an additional 5% interest at fair market value taking Newcrest’s interest in the Farm-in to 75%.
Newcrest will have the right but not the obligation to acquire up to an initial 70% Farm-in Interest in the Tenement Blocks in accordance with the following four-stage farm-in procedure:
Stage 1: Newcrest incurs US$10 million in expenditure (inclusive of the Minimum Commitment of US$5 million) in relation to the Tenement Blocks (the “Stage 1 Commitment” within a period of 12 months;
Stage 2: If Newcrest incurs an additional US$10 million in expenditure in relation to the Tenement Blocks (the “Stage 2 Commitment” within a period of 12 months from the date following satisfaction of the Stage 1 Commitment, Newcrest will earn a 40% Farm-in interest;
Stage 3: If Newcrest incurs an additional US$25 million in expenditure in relation to the Tenement Blocks and delivers a Pre-Feasibility Study for a project on the Tenement Blocks (the “Stage 3 Commitment” within a period of 24 months from the date following satisfaction of the Stage 2 Commitment, Newcrest will earn an additional 20% Farm-in Interest (cumulative 60% Farm-in interest);
Stage 4: If Newcrest completes and delivers, or incurs no less than US$20 million in expenditure toward the carrying out of, a Feasibility Study for a project on the Tenement Blocks (the “Stage 4 Commitment” within a period of 24 months from the date following satisfaction of the Stage 3 Commitment, Newcrest will earn an additional 10% Farm-in Interest (cumulative 70% Farm-in interest).
Newcrest must incur US$5m in expenditure within 12 months of the Farm-in commencing (the “Minimum Commitment”.
Newcrest will act as Manager during the Farm-in period and it is expected that drilling at Havieron will recommence in April 2019, under Newcrest’s management and at Newcrest’s expense, and subject to Newcrest receiving all required regulatory and heritage approvals.
The current intention of both parties is, that subject to a positive Feasibility Study outcome, the ore from the proposed Havieron Joint Venture will be toll processed at Newcrest’s Telfer Gold Mine (“Telfer”, which sits approximately 45km to the west of Havieron, delivering material economic and operational benefits for both parties. These include:
lower upfront capital costs (no requirement to build a new processing plant);
ability to leverage all existing infrastructure at Telfer (roads, airport, power, water);
reduced time to production and first cash flows; and
potential for a significantly higher net present value for the project than if a new processing plant and supporting infrastructure was required.
by spending up to US$65m (roughly £50m or AUD$90m) and completing a series of exploration and development milestones in a four-stage Farm-in over six years.
Paterson Tenements
Paterson Landholdings
Regional Targets
Regional Geophysics
Regional Mines
Paterson Tenements
