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(Sharecast News) - Greatland Gold announced significant operational progress at its recently-acquired Telfer gold-copper mine in Western Australia on Monday.
The AIM-traded company said it poured the first gold bars under its ownership on 8 December, marking a major milestone just days after completing the acquisition of Telfer and the Havieron from Newmont Corporation on 4 December.
Following the acquisition, Greatland said it resumed dual-train processing operations, which had previously been limited to a single train to preserve ore stockpiles for post-completion processing.
The company inherited an estimated 30.5Mt to 34.5Mt of stockpiles, including 11.5Mt of high-grade ore and an additional 19.0Mt to 23.0Mt of low-grade stockpiles.
Mining was continuing at the West Dome open pit and Main Dome underground operations.
To safeguard its revenues, Greatland said it had completed a gold put options hedging program for 150,000 ounces of Telfer production.
The options, purchased from ANZ, HSBC and ING, provided a minimum downside price protection at an average strike price of AUD 3,905.17 per ounce while allowing full upside exposure to the gold price.
The hedging programme would cover gold production volumes through to December next year, with quarterly allocations ranging from approximately 30,792 ounces to 46,302 ounces.
"Greatland's first ever gold production at Telfer is a wonderful milestone and a credit to our team," said managing director Shaun Day.
"Equally importantly, we are delighted to have resumed dual train processing operations in line with our Telfer mine plan.
"The combination of a strong gold price and significant ore stockpiles at surface makes this a tremendous time to own the Telfer mine."
At 0844 GMT, shares in Greatland Gold were up 1.22% at 7.35p.
Reporting by Josh White for Sharecast.com.
