Greatland Resources Ltd (ASX: GGP) recently announced a major resource upgrade at its flagship Telfer gold mine, and it’s garnered the interest of the analyst team at Canaccord Genuity, which believes the stock is undervalued at the current price.
So what exactly did Greatland announce?
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Huge gold boost
In an update released this week, the company said it had increased the gold resource at Telfer to eight million ounces, which was a 150% increase.
The company said it had done significant new “growth and infill drilling” since the previous resource update, which was on 31 December, 2024.
Greatland said about 134,000m of new drilling underpinned the new resource, and another 100,000m of drilling was planned in the second half of the company’s FY26 drilling program.
The new mineral resource estimate also included a maiden resource for the West Dome Underground Project, where 600,000 ounces of gold had been delineated.
Taking the Telfer and Havieron deposits together, the mineral resource estimate stood at 14.9 million ounces of gold.
Greatland Managing Director Shaun Day said regarding the new mineral resource estimate:
Telfer and Havieron’s combined resource of 550Mt @ 0.84g/t Au & 0.12% Cu for 14.9Moz Au & 645Kt Cu has the potential to underpin a multi-decade, world class mining hub. Our investment in significantly increased drilling has delivered substantial organic growth, with the overall Telfer resource growing by 150% to 8.0Moz, and the higher confidence Measured and Indicated component by 163% to 3.8Moz. “The growth includes a high-grade maiden resource at the West Dome Underground project, which shows significant potential for a new mining front at Telfer and remains the focus of ongoing drilling.
Lots to like in the new data
The Canaccord analyst team were also impressed by the West Dome Underground results, saying, “we continue to view West Dome Underground as a potentially rapid, low-capex pathway to a second high-grade underground mine at Telfer, with the opportunity to leverage existing infrastructure that historically has supported mining rates greater than 5Mtpa”.
Canaccord added:
We note we do not currently model any production from West Dome Underground, but highlight the rapidly evolving prospectivity of the area. With a second development drive underway, existing latent infrastructure to leverage, as well as GGP’s commitment to a prefeasibility study, we see West Dome Underground as an exciting growth opportunity for GGP, which could in the medium term bolster the production profile at Telfer.
After running the ruler over the mineral resource upgrade, Canaccord increased its price target for Greatland shares from $14 to $15.45, compared with $10.86 currently.
Greatland is currently valued at $7.29 billion.
