Greatland Gold PLC (AIM:GGP, OTC:GRLGF) said its Juri joint venture will advance to Stage 2 and that partner Newcrest Mining Ltd could increase its total investment from A$3mln to A$20mln (GBP11mln), marking a significant expansion of the exploration programme following a successful initial 2021 drilling campaign.
The Juri JV comprises the Paterson Range East and Black Hills licences in the highly prospective Paterson region of Western Australia.
Under a farm-in agreement announced last November, Newcrest has met the Stage 1 spending requirement of A$3mln and holds a 51% interest in the JV. It has the right to earn up to a 75% interest by spending an additional A$17mln of the Stage 2 farm-in over three years.
Greatland, the manager of the JV, said that Newcrest has the right, but not the obligation, to be appointed manager with effect from January 1, 2022.
“Advancing to Stage 2 of the Juri JV marks an important step forward which further demonstrates the confidence and financial commitment of our partner Newcrest,” said Greatland chief executive Shaun Day.
“This progression follows a successful initial drill programme, where mineralisation was discovered, and additional rich geological information obtained in respect of existing and new targets.”
Greatland announced results from the first four drill holes last month.
READ: Greatland Gold says gold mineralisation intercepted at Juri joint venture with Newcrest Mining
“This additional investment enables Greatland to expand and accelerate the 2022 Juri exploration programme without the need to self-fund this activity,” added Day. “Furthermore, this commitment is evidence of the strength of our relationship with Newcrest and our mutual belief in our partnership to undercover further deposits in the highly prospective Paterson region.”
Greatland’s flagship asset, the world-class Havieron gold-copper deposit, is also in the Paterson region.
The AIM-quoted company announced yesterday that it won the 2021 Commodity Discovery Fund award for the Havieron discovery.