According to analysis by Berenberg, the results so far suggest the existence of extensions to the northern breccia zone already outlined by Greatland and its partner Newcrest Mining Ltd.
Among the highlights were intercepts of 84.5 metres grading two grams per tonne gold and 0.05% copper and 36.2 metres at 2.7 grams gold and 0.09% copper.
Both of these holes are in the northern breccia and are outside of the December 2020 resource shells.
The wider programme is targeting the north west crescent and northern breccia to expand the inferred resource, the eastern breccia to identify geological controls on mineralisation and the south east crescent and breccia to define extensions beyond and adjacent to the resource shells.
“In our view the drill results suggest that it is likely that the current resource of 52mln tonnes hosting 4.2mln ounces on a gold-equivalent basis will be materially expanded,” Berenberg said in morning commentary.
Meanwhile, development work is also progressing.
The box cut was completed in May, and 69 metres of decline development has now been completed.
Work on the prefeasibility study continues.
“This, and the next resource update, should be the main near-term catalysts for the shares,” reckons Berenberg.
“Permitting is ongoing to develop an operational underground mine with associated infrastructure. We view it as a positive that Newcrest, which is earning a 70% interest in the project, has moved development of the decline to 24-hour operation. Havieron should provide a source of high-grade ore to the plant at the company’s mature Telfer mine, extending its life and driving down costs.”
Berenberg sets a price target of 29p for Greatland, assuming that Greatland eventually retains a 30% interest in Havieron and that 12mln ounces is ultimately delineated.