Notes from Proactive Results Interview - 31 Jan 2022

[DipSard]

Notes from Proactive Results Interview - 31 Jan 2022

Interview: https://www.youtube.com/watch?v=3BxdtGT8imY

RNS link: - https://polaris.brighterir.com/public/g ... ry/w6dq2gx

*Exploration Update on Havieron reporting some of the most significant results of the project outside of the SE Crescent Zone?
- Think best result in there is intercept 104 which is a plus 6g intercept over 60m, location is most interesting as it’s 200m south of existing Eastern Breccia (EB), so that’s a huge potential expansion of that EB structure but also the grades more reminiscent of what we’re seeing in the SE Crescent and it sits kind of to the north of the SE Crescent.
- Opens up large avenues for new zonation’s that could be a continuation of that High Grade (HG) SE crescent which would be tremendous but equally a HG structure into that EB and coming a lot further to the south
- Really spoilt for choice there but a really interesting intercept, it’s part of 33 intercepts, 22 of them in significant HG mineralisation
- Havieron just keeps delivering, the more you drill - the more value you create and the more mineralisation you identify.

*You’re now drilling 250m below the Resource estimate, are you?
- Yes, so back into the SE Crescent proper, that’s the focus of the PFS, where we’re doing the Starter Mine and trying to mine out plus 5g material, which will generate strong free cash flow for us immediately as we move into production
- What’s nice about these intercepts is we’ve done some infill drilling which continues to firm up that area for initial mining and as we step down, we’re now 250m below that Resource continuing to get these 5-6g plus intercepts which really gives you a flavour that we’ll be able to continue to walk and move up the Resource and Reserve around that area over time with more drilling and more study
- So, that’s a tremendous intercept and that’s the backbone of this mine.

*What about some of these targets outside the Havieron system, Hav North and Zipa?
- Increasing our activity across the mining lease, so of course Havieron proper continues to be focus for drilling campaign but also identifying some of the other targets we have, both High Gravity and High Magnetic targets on that mining lease itself, no place better to look for Gold and Copper than where it’s already been found
- Also got this dolerite structure, we’re walking up there and seeing some really interesting mineralisation and ore structures along there, not initial focus but some of the initial hits we’ve had there suggest there’s this structural moving quite far out from Havieron, which again talks to the opportunity for additional discoveries or just a much bigger Havieron system, really pleased with how that initial drillings going.

* And what about construction activities, how’s all that going?
- Constructions going well, multi-faceted in terms of getting the infrastructure at surface and in parallel with that, doing the Feasibility Study (FS) but there’s a lot of focus always on the decline
- Got about 277m as of the date of this report in change into the length of that decline
- Very positive, starting to see that accelerate, probably got about another 40-50m in this top area (softest ground and slowest part of the progress).
- As we get deeper there, the ground conditions get ‘harder’ (referring to the texture not the ability to dig into it) which actually accelerates progress because cuts can be bigger and less ground support required which allows you to accelerate, so done a lot of the hard work there
- Pleasing the way it is progressing, albeit a little bit slow through that earlier area, continued to do a lot of geo-tech drilling and think we have the pathway or route that will accelerate this from here.

*Shaun, this option for Newcrest to buy an additional 5% of Havieron from Greatland, what’s the timetable around that?
- Newcrest started that process towards the very end of December 2021, potentially that can be resolved as early as February if we have commercial agreement between the two parties
- That is Greatland’s preference and think it’s always good with a JV partner to be able to come to agreement on these terms, so we’ll will continue to talk to them around that
- Alternatively, if that can’t be achieved within the timeframe, it goes into this more independent arbitration process, that’s a much longer process, so optimistic that we might be able to come to agreement with Newcrest in the short term
- As far as Greatland is concerned, have got to prepare for both scenarios equally, equally a more drawn out process which brings in a number of independent valuations.

* With 8 rigs operational at Havieron currently, what’s the vision, the focus for Greatland for the project this year?
- It’s a big year for us, the focus continues to be that exploration you spoke about, particularly that 50,000m growth drilling program together with a lot of infill drilling and you’ve seen some infill drilling again in this exploration update
- That all positions us really well for a bigger and better FS in the back half of this year
- I do like the quote from Newcrest CEO Sandeep “……the numbers only get better from here.”
- So, I think that’s really positive and in parallel with that Greatland is speaking to a number of banks, have got some really positive interest from the Banking market, so would like to be in a position where we’re effectively full funded
- We have the FS and then we’re going into 2023, which should see first production
- So the countdown clock is ticking a little bit to first production and that’s a really exciting and potentially value creating process for our shareholders, so lots to do - but pleasingly so.