Newmont Annual Reserves & Resources Statement

Greatland Gold PLC

22 February 2024

 

Greatland Gold plc (AIM: GGP)

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NEWS RELEASE | 22 February 2024

Newmont Annual Reserves & Resources Statement

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK MARKET ABUSE REGULATIONS.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Greatland Gold plc (AIM:GGP) (Greatland or the Company) notes the annual releases made today by Newmont Corporation (NYSE:NEM) (Newmont), Greatland's joint venture partner in the Havieron gold-copper project.

Overview

As part of its 2023 Annual Reserves and Resources Release (available here), Newmont has released an updated Reserve and Resource for the Havieron project, its first since completing the acquisition of Newcrest Mining Limited (Newcrest) in November 2023.

It is important to note that Newmont reports Mineral Reserves and Mineral Resources in accordance with the U.S. Securities and Exchange Commission's SK 1300 guidelines (SK 1300), which is different to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 Edition (JORC). Greatland reports Mineral Resources and Ore Reserves for Havieron in accordance with JORC, which is an internationally recognised reporting standard commonly used by UK and Australian listed mining companies.

Notwithstanding the different reporting criteria applied, Newmont's updated Havieron Mineral Resource estimate is particularly pleasing in how closely it correlates to Greatland's estimate in the higher confidence Indicated Mineral Resource category, and the significant increase relative to the previous Newcrest Indicated Mineral Resource.

Variances in the Inferred Mineral Resource and Reserve¹ categories largely reflect differences between the reporting criteria, as explained below and consistent with other former Newcrest portfolio assets that have been reclassified in the Newmont 2023 Annual Reserves and Resources Release (relative to the previous Newcrest JORC Reserves and Resources.

Greatland remains highly confident of its December 2023 Mineral Resource Estimate (refer RNS of 21 December 2023 titled 'Havieron Mineral Resource Estimate Update') (Greatland December 2023 MRE), which defined a Mineral Resource for Havieron of 8.4Moz AuEq², reported in accordance with JORC and independently reviewed by SRK Consulting (Australasia) Pty Ltd.

In accordance with SK 1300, Newmont reports Havieron Mineral Reserves and Mineral Resources on an attributable (70%) basis, however for the purposes of this announcement and comparability to Greatland's reporting, Greatland has converted these to a 100% basis.

Indicated Mineral Resource

The Greatland December 2023 MRE defined an Indicated Mineral Resource (JORC) for Havieron of 50Mt at 2.60g/t and 0.33% Cu, for contained metal of 5.0Moz AuEq² (refer Table 2).

Newmont has classified an Indicated Mineral Resource (SK 1300) for Havieron of 47.4Mt at 2.65g/t Au and 0.34% Cu, for contained metal of 4.0Moz Au and 161kt Cu³.

On an equivalent basis to the Greatland December 2023 MRE, Newmont's Indicated Mineral Resource equates to contained gold equivalent metal of 4.9Moz AuEq^2,4, which:

§  Represents a 35% increase to the previous Indicated Mineral Resource published by Newcrest prior to its acquisition by Newmont of 3.6Moz AuEq² as at 30 June 2023.⁵

§  Is within 3% of Greatland's Indicated Mineral Resource of 5.0Moz AuEq² in the Greatland December 2023 MRE (refer Table 2).

The increase in Indicated Mineral Resources relative to the previous Newcrest Indicated Mineral Resource⁵ is highly encouraging.

Greatland considers the close alignment in total Indicated Mineral Resource size to the Greatland December 2023 MRE to be excellent validation of the thorough estimation process of Greatland's Competent Person and the independent review completed by SRK Consulting (Australasia) Pty Ltd.

The importance of the Indicated Mineral Resource category is that, under both JORC and SK 1300, Indicated Mineral Resources may be converted into Reserves¹, whereas the Inferred Mineral Resource category cannot due to its lower confidence.  As such the increased Newmont Indicated Mineral Resource can potentially be considered in the updated Reserve¹ estimate that will be part of the Havieron Feasibility Study which is ongoing.

Inferred Mineral Resource

Newmont's 2023 Annual Reserves and Resources Statement classifies an Inferred Mineral Resource reported in accordance with SK 1300 for Havieron of 16.3Mt at 1.71g/t Au and 0.16% Cu, for contained metal of 0.9Moz Au and 26kt Cu³ (refer Table 1).

Greatland calculates that Newmont's Inferred Mineral Resource (SK 1300) would equate to 1.0Moz AuEq^2,4, on an equivalent basis to the Greatland December 2023 MRE (JORC).

Relative to JORC, SK 1300 reporting standards require a more detailed economic assessment to support parameters that are used to define a Mineral Resource.  Greatland (and previously Newcrest) have applied a lower economic cut-off for the Havieron Breccia Mineral Resource than the South East Crescent.⁶ However, additional evaluation work would be required to be able to use the same approach and classification under SK 1300. Greatland considers this difference in approach as the principal factor in the variance between the Newmont Inferred Mineral Resource (SK 1300) and the Greatland Inferred Mineral Resource (JORC).

Greatland continues to classify an Inferred Mineral Resource (JORC) of 3.4Moz AuEq², as set out in the Greatland December 2023 MRE (refer Table 2), which was independently reviewed by SRK Consulting (Australasia) Pty Ltd.

Greatland notes that Newmont has made similar reclassifications and reductions in Inferred Mineral Resources for other assets within the former Newcrest portfolio.

Reserve¹ Estimate

Greatland notes that Newmont's 2023 Annual Reserves and Resources Statement does not classify a Mineral Reserve under SK 1300 for Havieron (refer Table 1).  This again reflects differences between SK 1300 and JORC reporting standards.

In particular, SK 1300 requires classified Mineral Reserves to be the subject of at least a preliminary feasibility study completed to ±25% accuracy level and maximum contingency of 15% with respect to capital and operating costs.  The Havieron October 2021 Preliminary Feasibility Study (summarised in Greatland's RNS of 12 October 2021 titled 'Havieron South-East Crescent Pre-Feasibility Study') was completed to an accuracy level of ±25% for both capital and operating costs, however it applied a contingency of 20% to capital costs, which is greater than the SK 1300 limit of 15% and accordingly does not meet the criteria under SK 1300 to allow classification of a Mineral Reserve for Havieron.

Greatland continues to classify a Probable Ore Reserve (JORC) of 2.9Moz AuEq², as set out in Greatland's March 2022 Ore Reserve (refer Greatland's RNS of 3 March 2022 titled 'Havieron Resource and Reserve Update) which was independently reviewed by SRK Consulting (Australasia) Pty Ltd.  Greatland's March 2022 Ore Reserve was based on the previous March 2022 Mineral Resource and has not been updated for the significantly higher December 2023 Indicated Mineral Resource. An updated Reserve¹ will be reported as part of the outcomes of the Feasibility Study.

Greatland notes that Newmont has made similar reclassifications and reductions in Mineral Reserves for other assets within the former Newcrest portfolio.

Newmont Mineral Reserves & Mineral Resources (SK 1300)

Table 1: Newmont Mineral Reserves & Mineral Resources for Havieron (SK 1300) as at 31 December 2023 (refer to Newmont's 2023 Annual Reserves Statement (available here).  In accordance with SK 1300, Newmont reports on an attributable (70%) basis, however for the purposes of comparability to Greatland's reporting, Greatland has converted these to a 100% basis in the below table.

SK 1300 Classification	Tonnage	Grade		Contained Metal
	Mt	Au (g/t)	Cu (%)	Au3 (Moz)	Cu3 (kt)	AuEq2,4 (Moz)
Measured	-	-	-	-	-	-
Indicated	47.4	2.65	0.34%	4.0	161	4.9
Inferred	16.3	1.71	0.16%	0.9	26	1.0
Total Mineral Resource	63.7	2.41	0.29%	4.9	187	5.9
Proved	-	-	-	-	-	-
Probable	-	-	-	-	-	-
Total Mineral Reserves	-	-	-	-	-	-

Greatland Mineral Resource & Ore Reserve Estimates (JORC)

Table 2: Greatland Mineral Resource Estimate (inclusive of Ore Reserves), reported in accordance with JORC as per the Greatland December 2023 MRE.

JORC Classification	Tonnage	Grade		Contained Metal
	Mt	Au (g/t)	Cu (%)	Au (Moz)	Cu (kt)	AuEq2 (Moz)
Indicated	50	2.6	0.33	4.1	168	5.0
Inferred	81	1.1	0.13	2.9	107	3.4
Total Mineral Resource7	131	1.7	0.21	7.0	275	8.4

Table 3: Greatland Ore Reserve Estimate, reported in accordance with JORC as per the Greatland March 2022 Ore Reserve.

JORC Classification	Tonnage	Grade		Contained Metal
	Mt	Au (g/t)	Cu (%)	Au (Moz)	Cu (kt)	AuEq2 (Moz)
Proved	-	-	-			-
Probable	25	3.0	0.44	2.4	109	2.9
Total Reserves	25	3.0	0.44	2.4	109	2.9

Footnotes:

¹ Where the term 'Reserve' is used, this refers to Mineral Reserves under SK 1300 and/or Ore Reserves under JORC.

² The gold equivalent (AuEq) is calculated by Greatland based on assumed prices of US$1,700/oz Au and US$3.75/lb Cu for Mineral Resource and metallurgical recoveries based on block metal grade, reporting approximately at 87% for Au and 87% for Cu which in both cases equates to a formula of approximately AuEq = Au (g/t) + 1.6* Cu (%). It is Greatland's opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.

³ Newmont's Mineral Reserve & Mineral Resource (SK 1300) for Havieron as at 31 December 2023 report contained gold metal in ounces (rounded to nearest 100k) and copper metal in Mlbs (rounded to nearest 100Mlb). For consistency with Greatland's December 2023 MRE, Greatland has calculated contained gold metal in million ounces (Moz) based on the tonnage and gold grade of Newmont's Mineral Resource and contained copper metal in thousand tonnes (kt) based on the tonnage and copper grade of Newmont's Mineral Resource.

⁴ Calculated by Greatland based on the Newmont Mineral Resource (SK 1300) for Havieron on an equivalent basis to the Greatland December 2023 MRE.

⁵ Newcrest's previous Mineral Resource (JORC) for Havieron was based on a drilling cut-off date of November 2022 and metal price assumptions of US$1,400/oz Au and US$3.40/lb Cu.  Newmont's updated Mineral Resource (SK 1300) for Havieron is based on a drilling cut-off date of 6 June 2023 (when growth and resource conversion drilling at Havieron completed) and metal price assumptions of US$1,600/oz Au and US$4.00/lb Cu.

⁶  The evaluation work completed to date supports Greatland's (and previously Newcrest's) approach of applying a lower cut-off for the Havieron Breccia Mineral Resource than the South East Crescent, assuming a less selective mining methodology in the Breccia.  The Greatland December 2023 MRE assumes selective mining of the South East Crescent and Link Zone and bulk extraction in the Breccias and are reported inside A$80 or A$50 Net Smelter Return per tonne (NSR/t) shells respectively, calculated using metal prices of US$1,700/oz Au and US$3.75/lb Cu, metallurgical recoveries based on block metal grade reporting approximately at 87% for Au and 87% for Cu, an USD:AUD exchange rate of 0.72, as well as treatment and refining costs, payables and royalties.

⁷ Inclusive of Ore Reserves.

Greatland Managing Director, Shaun Day, commented:

"We welcome Newmont's update to the Havieron Mineral Resource today, which increases Newcrest's previous estimate for the Indicated Mineral Resource category by approximately 35% in terms of gold equivalent content, bringing it into line with Greatland's latest estimate. The increased Indicated Mineral Resource can now support an Ore Reserve estimate update as part of the Feasibility Study which is ongoing."

"We consider the close correlation to Greatland's December 2023 Indicated Mineral Resource, with a differential of less than 3% in gold equivalent content, to be excellent confirmation of this world-class asset and a credit to the quality of our technical team and processes."

Contact

For further information, please contact:

Greatland Gold plc

Shaun Day, Managing Director  |  [e-mail]

Nominated Advisor

SPARK Advisory Partners

Andrew Emmott / James Keeshan / Neil Baldwin  |  [phone]

Corporate Brokers

Berenberg  |  Matthew Armitt / Jennifer Lee  |  [phone]

Canaccord Genuity  |  James Asensio / George Grainger  |  [phone]

SI Capital Limited  |  Nick Emerson / Sam Lomanto  |  [phone]

Media Relations

UK - Gracechurch Group  | Harry Chathli / Alexis Gore / Henry Gamble  |  [phone]

Australia - Fivemark Partners  |  Michael Vaughan  |  [phone]

About Greatland

Greatland is a mining development and exploration company focused primarily on precious and base metals.

The Company's flagship asset is the world-class Havieron gold-copper project in the Paterson Province of Western Australia, discovered by Greatland and presently under development in joint venture with world gold major, Newmont Corporation.

Havieron is located approximately 45km east of Newcrest's existing Telfer gold mine. The box cut and decline to the Havieron orebody commenced in February 2021. Total development now exceeds 3,060m including over 2,110m of advance in the main access decline (as at 31 December 2023).  Subject to a positive feasibility study and Decision to Mine, Havieron is intended to leverage the existing Telfer infrastructure and processing plant.  Access to Telfer would de-risk the development and reduces capital expenditure.

Greatland has a proven track record of discovery and exploration success and is pursuing the next generation of tier-one mineral deposits by applying advanced exploration techniques in under-explored regions. Greatland has a number of exploration projects across Western Australia and in parallel to the development of Havieron is focused on becoming a multi-commodity miner of significant scale.

 

END