Shares of mining development and exploration firm Greatland Gold (LON: GGP) have plunged on Tuesday following the release of Stage 1 pre-feasibility study results from the Havieron gold-copper deposit in the Paterson region of Western Australia.
In its statement, Greatland said it is forecasted to become the “2nd lowest cost gold company globally.”
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The study, which took place at the South East Crescent, is only the start of the economic modelling at Havieron, reflecting a staged approach to the evaluation and development.
According to Greatland, the economics of the pre-feasibility study supports the total capital expenditure while generating strong early cash flow. 17% of the revenues are estimated to be generated from copper production.
All-in sustaining cost is forecasted to be $643 per ounce with a further opportunity to reduce.
Greatland's share of the cost is estimated to be £73 million, with its joint venture partner, Newcrest Mining, taking on the majority of the expenses.
Shaun Day, CEO of Greatland Gold, commented: “This maiden Pre-Feasibility Study focuses on the South-East Crescent and should be viewed as the first stage. The study covers just a small fraction of the resource and the broader mineralised breccia system but is a tremendous first step towards creating a mine and unlocking our understanding and the value of Havieron.
“The investment proposition of Greatland is compelling, with Havieron confirmed as a world class ore body, being developed with a Tier 1 partner in Newcrest and all within a Tier 1 mining jurisdiction of Western Australia.”
Despite the positivity surrounding the results from Greatland, its share price movement on Tuesday morning has failed to reflect that.
Greatland Gold shares are currently down 9% at 18.92p after falling to a low of 16.1p after the open, giving up most of its recent gains. However, as the saying goes, “it's not how you start, it's how you finish,” and the downside momentum seems to have eased for now.
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