LONDON (ShareCast) - (Sharecast News) - Greatland Gold updated the market on its Havieron gold-copper project in Western Australia's Paterson province on Tuesday, reporting that as of 8 October, the decline development had reached a depth exceeding 2,030 metres, with 770 metres remaining before reaching the base of the Permian cover and the top of the Havieron orebody.
The AIM-traded firm said the decline was approaching the lower confined aquifer (LCA), with about 280 metres of development remaining before it intersected the LCA.

Previously, the decline successfully passed through two shallower aquifers at depths of 50 and 250 metres, with water from the aquifers pumped to surface evaporation facilities.

Ground conditions outside the aquifers had allowed for significant progress, with the board adding that advancing through the LCA would be a crucial milestone and de-risking event in the decline development process.

Depressurisation drilling had started to prepare for the LCA intersection, and groundwater was being pumped to the surface.

Greatland said the water management process had revealed the potential for managing more significant volumes of water at the surface than initially projected.

Further hydrological drilling, data collection and evaluation would be carried out to enhance confidence in water management from the LCA.

In the short term, it said development would continue before a temporary pause in decline development before entering the LCA, starting later in the current quarter.

That approach, the board explained, was intended to facilitate a more efficient entry into and development through the LCA while reducing future water management costs.

Depressurisation efforts would continue and expand, based on successful experience from the upper two aquifers.

At the same time, the development of the ventilation system would proceed alongside LCA water management.

Feasibility study activities would also persist, incorporating additional hydrological drilling, data collection, and improved understanding of LCA and water management requirements.

Those efforts aligned with Greatland's expectation of completing the feasibility study by the September 2024 quarter, as its joint venture partner, Newcrest, continued to prefer integrating insights from LCA development into the study.

"Havieron is an outstanding orebody which has been developed on an expedited basis in parallel with finalisation of the feasibility study," said managing director Shaun Day.

"Through this approach production can be brought forward to enhance the value of the asset."

Day added that, at the same time, it was essential that the firm continued to set the project up for long-term success by optimising and de-risking the current development phase while maintaining an accelerated pathway to production.

"We view Newmont's imminent involvement as our Havieron joint venture partner as a tremendous positive and look forward to working together to deliver the full potential of Havieron for all stakeholders."

At 1003 BST, shares in Greatland Gold were down 12.6% at 6.55p.

Reporting by Josh White for Sharecast.com.

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