Greatland Gold’s Telfer forecast eases output

Greatland Gold (LSE: GGP) is envisioning annual gold production of 280,000-320,000 oz. over the next two fiscal years from the Western Australia Telfer mine, which it bought from Newmont (TSX: NGT) last fall.

In the quarter to March 31, Telfer produced 90,000 oz. of gold, a pace that might suggest 360,000 oz. this year. The new production target, Greatland says, is based on inventory from the currently active West Dome open pit and Main Dome underground as well as run-of-mine and low-grade stockpiles.

Importantly, the company says it bridges the previously perceived “gap” before the Havieron mine, which it consolidated from Newmont in the same transaction, enters production in fiscal 2028.

“When we acquired Telfer, we set out an initial mine plan of 15 months together with a number of opportunities we had identified during acquisition due diligence to extend that plan,” Greatland Managing Director Shaun Day said in a press release. “After only five months since the acquisition, this initial updated Telfer outlook already provides for a substantial 18-month extension of dual train processing at Telfer through fiscal 2027.”

Shares in Greatland gold closed 6.9% higher in London on Wednesday at 14.28 pence apiece for a market value of £1.87 billion. They’ve traded in a 52-week range of 4.95 pence to 14.7 pence. 

Conversion drilling

Greatland intends to further refine the two-year plan for Telfer by evaluating opportunities and ongoing drilling to convert tonnage into measured and indicated categories. About 20% of the inventory is inferred resources and unclassified mineralization from exploration targets over the mine’s 40-odd year history. It anticipates further growth beyond fiscal 2027 by extending the open pit and underground deposits. 

Beginning in fiscal 2028, the Havieron project is expected to begin production and be integrated with Telfer, which Greatland management says may result in a step change cost reduction and sustained higher volume production.

The Havieron deposit currently has estimated reserves of 25 million tonnes at 3 grams gold per tonne to support 221,000 oz. of annual production over its first 15 years. This is based on a steady state mining throughput rate of 2.8 million tonnes per year, which the company is looking to expand to 4 million to 4.5 million tonnes.

A feasibility study underway to assess the Havieron expansion is anticipated to be completed after June this year.