LONDON - Greatland Gold plc (AIM:GGP) has announced the commencement of commercial gold production at the Telfer gold-copper mine, with the first gold bars poured on December 8, 2024, marking the initial production under Greatland's ownership. The company completed the acquisition of Telfer and the adjacent Havieron project from Newmont Corporation on December 4, 2024.
The Telfer mine, located in Western Australia, has resumed operations using both of its processing trains with a nominal capacity of 10 million tonnes per annum each. This follows a period when only one processing train was in use, conserving the ore and stockpiles for processing post-acquisition.
Greatland inherited an estimated 30.5 to 34.5 million tonnes of stockpiled ore at Telfer, including approximately 11.5 million tonnes of high-grade run-of-mine ore and an additional 19 to 23 million tonnes of low-grade stockpiles. Mining activities are ongoing in the West Dome open pit and Main Dome underground areas.
In addition to the production update, Greatland has completed a hedging program for 150,000 ounces of gold with an average strike price of A$3,905.17 per ounce. The gold put options were acquired from a banking syndicate consisting of ANZ, HSBC, and ING. This hedging strategy gives Greatland the right, but not the obligation, to sell gold at a predetermined price, providing a safeguard against price downturns while maintaining the potential for profit from any price increases for 100% of Telfer's production volumes.
Greatland's Managing Director, Shaun Day, expressed enthusiasm over the milestone, stating that the combination of a strong gold price and significant ore stockpiles presents an excellent opportunity for the company.
This announcement is based on a press release statement from Greatland Gold plc.
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