Last week the gold and copper mining group Greatland Gold (LSE:GGP) announced that its Juri joint venture with Newcrest Mining has advanced into stage two of development. This is not the firm’s flagship project. But the site contains similar geophysical characteristics to its Havieron project. The firm recently completed a pre-feasibility study for Havieron and found it to be both economically viable and hold a gold concentration of 4.58 g/t.
Greatland Gold delivers promising early results
The first stage of mine development was to investigate the prospective site to detect whether any metals or minerals can be found in meaningful quantities. This stage was funded by Newcrest Mining back in November 2020. This was in exchange for a 51% royalty interest in the project.
Some drilling assays are still awaiting laboratory testing from stage one exploration. And these results are expected to be delivered by early November. However, the initial samples that have already been tested showed a concentration of 1.88 g/t and 1.49 g/t at two different drilling locations. This places these early samples in the medium grade category. And consequently, Greatland Gold and Newcrest Mining have agreed to proceed into stage two of development.
What is stage two?
With metal presence confirmed, stage two will begin to explore in greater detail. Greatland Gold will complete drilling activities at the remaining untested assay targets. And a ground electromagnetic survey is already under way. Like stage one, Newcrest will continue to provide the necessary funds with an additional contribution of up to A$17m. In exchange, the firm will receive a further 24% royalty claim on the site, bringing the total to 75%.
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Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.