The Greatland Gold share price breached its previous all-time high on Tuesday 1 December to close at 28p. 

That gives the AIM-quoted star a record market cap of more than £1.08bn. 

The London explorer has had a stunning 12 months, bringing fresh levels of interest from investors all over the world. 

And that excitement has reached fever pitch in recent days with CEO Gervaise Heddle delivering on the early promise of high-grade gold at the Havieron prospect in Western Australia.

 $22bn market cap farm-in partner Newcrest (ASX:NCM) is now betting big on its partnership with Greatland by signing not one but two joint venture deals with the British firm on 30 November 2020.  

What this means

Newcrest will take the lead as the Joint Venture manager and can earn an extra 20% in Havieron. It has also agreed a $50 million loan to Greatland Gold to pay for early work and drilling at Havieron. 

Newcrest also cemented its tie-up with Greatland by signing a second farm-in and JV deal on the UK firm’s Black Hills and Paterson Range East licenses. This will be called the ‘Juri Joint Venture’. Greatland will start as the JV manager with Newcrest taking a 25% working interest. 

The Australian miner has the opportunity to earn up to 75% if it invests £15 million over the next five years. 

The Greatland Gold story has gone beyond hype at this point. This is Australia’s largest gold producer officially in bed with the AIM-lister.  

Where it started

In mid-September, GGP soared to 27p on the back of fresh drilling results from $22bn market cap farm-in partner Newcrest (ASX:NCM) that expanded the new Northern Breccia zone, highlighting what Heddle said was “the potential for a bulk tonnage mining operation at Havieron”.

Newcrest’s best results showed intercepts from infill drilling of 120.7m at 9.3g/t gold and 0.18% copper. 

Excellent results from step-out drilling “indicate the presence of higher-grade, massive sulphide mineralisation within the Breccia bodies”, Heddle noted. 

Broker Hannam & Partners added a note in recent days to say the GGP valuation was “under review” pending the publication of the expected maiden JORC resource in December, sparking hopes of a material re-rate. 

Greatland Gold took the rights to Haveiron in a 2016 cash and shares deal worth AUD$750,000 and has attracted an army of devoted retail followers.  

15-bagger and more

The Greatland Gold share price has 15-bagged since January 2020, so this is no real surprise. 

GGP started to perk up in March 2019 when Greatland signed a $65 million farm-in with the Australian major, with Newcrest taking a 40% interest in the project. Newcrest has completed 111,000m of drilling so far.

But the market is awaiting even greater things from Greatland Gold, with recent highs just one step on the road to immortality. Drilling also began in August 2020 at Scallywag, a 100% owned property 6km down the road from Haveiron. Investors are keenly awaiting potential bombshell results from here too. 

Greatland is now looking to deliver an initial Inferred Mineral Resource estimate for the South East Crescent section of Haveiron before the end of Q4 2020. 

This would give investors an idea of exactly how much gold could be in the company’s grasp underneath the Australian desert. 

There is one other thing to note: in final results for the year ending 30 June 2020, Greatland’s cash deposits stood at over £6m. So Greatland is fully cashed up and well capitalised to accelerate its plans in the Paterson region. It is either the luckiest AIM company I have ever seen or one of the best. But to re-iterate: a £1bn market cap is just the start of this story, not the end. 

Author: Mark Sheridan

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