Argonaut Research November 2023 - Special Mentions - Greatland Gold

[CanisLycaon]

Resource-Reserve Conversion Rate:
Greatland's Havieron March 2022 Ore Reserve demonstrated an 86% resource-reserve conversion rate indicative of the quality of the deposit. Project economics are driven by the +3g/t Au and 0.5% Cu mining inventory which sits within a steeply dipping cresent shape. Greatland's preferred mining method of sublevel open stoping enables large 25mx30mx50m stopes with planned annual production rates approaching 3Mtpa.

Enviable OVM Profile:
The viability of the Haverion Project is perhaps best demonstrated by the high ounces per vertical metre profile (OVPM) which Greatland states are averaging >8,000 for the top 400m of the resource. Further increases to the overall OVM profile are anticipated with a considerable amount of drilling completed since the last MRE update.

Development and Drilling Update:
Decline development down to Havieron carries on with 1,840m of the planned 2,600 metres now completed. On the drilling front, Greatland has stated it intends to release an updated Havieron MRE during the December 2023 quarter which will incorporate over 80,000m of additional drill metres since the last March 2022 MRE.

Havieron future linked to Telfer:
Prior to its takeover by Newmont, Newcrest stated the continuity of Telfer Operations extends into early FY25 with its West Dome Stage 8 cutback approved in November 2022. In the short term, we don't expect Newmont's plan for Havieron will differ from the proposed Newcrest development timeline. Newmont will hold a stronger hand in any potential divestment discussions of its Telfer and Havieron assets with Havieron in production and de-risked. Initial production from Havieron will be processed through the Telfer Mill, located 50km to the west. In the long-term, we expect challenges in Telfer maintaining its production profile to meet the size of the Telfer Mill. A new standalone mill at Havieron, correctly sized, may be the best option to capture the most value from Havieron.

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