Black Hills - Positive IP Results and Drill Update

RNS Number : 5997A

Greatland Gold PLC

30 May 2019

 

30 May 2019

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

Greatland Gold plc

("Greatland" or "the Company")

Positive IP Results at Black Hills and Drilling Update

Greatland's recent IP survey at Black Hills successfully extends chargeability anomaly a further 400m, strike length of anomaly now exceeds 1,400m

New drill targets selected and first drilling campaign at Black Hills expected to commence by early July

Greatland Gold plc (AIM: GGP), the precious and base metals exploration and development company, is pleased to announce that results of a high powered, deep sensing Induced Polarisation ("IP") survey at its 100% owned Black Hills licence have successfully extended by a further 400m the strike length of a chargeability anomaly spatially coincident with gold mineralisation identified at surface. The total length of the chargeability anomaly now exceeds 1,400m.

Systematic evaluation of new IP data and recent field geological reconnaissance has enabled new drill targets to be selected for Greatland's upcoming maiden drill campaign at Black Hills. Due to the high level of exploration activity across the Paterson region and associated tightness in drill rig availability, drilling at Black Hills is now expected to commence by early July.

Key Developments

• Results of the recent IP survey confirm the location of the chargeability anomaly identified in 2018 and extend the anomaly a further 400m to the south-east.
• Total strike length of the chargeability anomaly has increased from approximately 1,000m of strike to approximately 1,400m.
• Systematic evaluation of historic IP datasets, combined with new IP data and field geological reconnaissance, has enabled new drill targets to be selected.
• New drilling plan has been designed to test the central parts of the Black Hills Dome where the IP chargeability anomaly and surface gold mineralisation are located, and the southern portion of the prospect where the IP anomaly has been extended by results of the recent IP survey.
• Maiden drilling programme of approximately 6,000m, comprising more than twenty Reverse Circulation ("RC") drill holes of depths up to 300m, is expected to commence by early July.

Gervaise Heddle, Chief Executive Officer, commented: "We are very pleased by these results which further extend the length of the large chargeability anomaly to over 1,400m. The 1,000m of strike previously identified, which is spatially coincident with gold mineralisation identified at surface, has been successfully proven to continue for a further 400m to the south-east, whilst still remaining open to the south. As a result of this positive outcome and recent field reconnaissance, we have been able to further refine target drill locations for Greatland's first drilling campaign at Black Hills, which is expected to commence in the next four or five weeks."

Further information on the Black Hills licence can be found under 'Paterson' on the Company's website. In addition, this announcement will be made available in PDF format, with figures/diagrams, on the Company's website at www.greatlandgold.com/media/jorc/

In June 2018, Greatland commenced it first exploration campaign at Black Hills. Multiple gold nuggets were found in thin sand cover within the first few days of the campaign, establishing the presence of high grade gold mineralisation at surface at the Saddle Reefs prospect (see announcements dated 21 June 2018 and 2 July 2018). Results from additional rock chip sampling over the prospect returned many values over 10g/t gold, peaking at 81.7g/t gold, and these results approximately quadrupled the strike length of surface gold mineralisation from 200m to 800m (see announcement dated 4 September 2018).

In July-August 2018, a comprehensive IP survey was conducted covering a strike length of 1,600m over the zone of surface gold mineralisation at the Saddle Reefs prospect and immediate strike extensions (see announcement dated 17 July 2018). Modern 3D inversion models of resultant IP data were generated which outlined a large, coherent chargeability anomaly over 1,000m of strike, which is open to the south-east, and spatially coincident with gold mineralisation identified at surface (see announcement dated 29 October 2018).

Overview of Paterson Project and Black Hills licence

The Company's Paterson project comprises the Havieron, Paterson Range East, and Black Hills licences, located in the Paterson region of northern Western Australia. The three licences collectively cover more than 385 square kilometres and are prospective for Telfer style gold-copper deposits.

The Paterson region is currently one of the most active exploration areas in Australia.  Recent exploration success achieved by Greatland Gold and Rio Tinto (https://www.riotinto.com/media/media-releases-237_27052.aspx) demonstrates the region has been underexplored, particularly the extensive areas under cover. As well as hosting several large gold and copper deposits such as Telfer and Nifty, more recent exploration has outlined several other deposits including Magnum (Au), Calibre (Au), O'Callaghans (W, Cu) and Maroochydore (Cu). The region is remote, however infrastructure is good, with several operating mines, roads, formed tracks and rail networks nearby which branch out from the regional industrial hub of Port Hedland 500km to the west.

The Black Hills licence, E45/4512, lies 30 km east of the large Telfer gold mine. Black Hills is a granted exploration licence that covers 25 square kilometres and sits adjacent to the Company's Havieron exploration licence. The Black Hills licence is regarded as having high potential to host gold mineralisation, similar in style to that seen at Telfer.  There has been a reasonable amount of historical exploration work at Black Hills with several discrete zones of mineralisation identified over 5km of strike. Historical rock chip samples have returned up to 90g/t gold, and commonly 20g/t gold, with free (visible) gold in places. Historic drill intercepts include 3m at 9.14g/t gold from 26m downhole (incl. 1m at 21.2g/t from 27m (CBR073)), 1m at 10.0g/t gold from 16m (CBH138), 1m at 4.93g/t from 12m (CBH071) and 1m at 3.12g/t from 37m (NBH004). Historical RC drill spacing appears quite broad with holes at least 400m apart, and some up to 600m apart.

Gold prospects identified to date extend from Black Hills into the north western parts of the Havieron licence. Proterozoic sandstone and carbonate rocks of the Yeneena Group formations are present, including the Telfer Formation, in a domal structure which is the equivalent geology to that of the large Telfer gold deposit located 30km to the west.

A large amount of historical surface exploration data for the Black Hills area has been compiled and incorporated into the Company's database. Gold mineralisation has been outlined at several prospects throughout the licence including Saddle Reefs, Eastern, Rogers and Northern Granites (within an area of 6.5km x 2km).

Strong surface gold mineralisation is present at the Saddle Reefs prospect with historical rock chips including 55.6g/t, 20.0g/t, 19.65g/t, 18.45g/t and 17.0g/t over an area of approximately 1,400m x 800m. The zone has a north-westly trend and sporadic drilling with results including 3m at 9.14g/t gold from 26m downhole, including 1m at 21.2g/t from 27m, in hole CBR073. This zone is in the core of an anticlinal feature and, overall, is gold prospective over a strike length of approximately 3km.

At the Eastern prospect, a linear zone of gold mineralised stratigraphy is apparent over a strike of approximately 4km. Historical surface rock chip results include 1.9g/t gold, 1.2g/t gold and 1.0g/t gold. Broad spaced drilling along the zone has returned results including 1m at 10.0g/t gold from 16m (CBH138), 1m a 4.93g/t from 12m (CBH071) and 1m at 3.12g/t from 37m (NBH004). The mineralisation appears to track along a structural contact and the focus will be on identifying the higher grade mineralisation along this trend.

The other prospects of Rogers and Northern Granites show prospective gold mineralisation at surface with historical rock chip results including 50.2g/t and 10.45g/t at Rogers and 6.9g/t at Northern Granites. Drill testing is limited but results have included 1m at 1.48g/t from 38m (NBH008) at Rogers and 1m at 2.35g/t gold from 5m (CBH253) at Northern Granites.

The Company commenced field activities at Black Hills in mid-2018. Work focused on the Saddle Reefs and Rogers areas, collecting rock chip samples and locating historical access. The host sequence of Proterozoic sandstones and limestones outcrop through relatively thin sand cover. Numerous indications of mineralisation in bedrock are apparent. Gossanous samples were collected from outcrop, visible gold recovered from rock chip samples, and gold nuggets were found in thin sand cover at Saddle Reefs (as announced 21 June and 2 July 2018).

At Saddle Reefs, the mineralised sequence outcrops through a thin veneer of sand and gravel. Rock chip samples were collected over a strike length of approximately 800m with results over 10g/t including 81.7g/t, 45.7g/t, 37.6g/t, 33.9g/t, 28.2g/t and 23.5g/t. Many also showed high silver above 10g/t up to a maximum of 106.1g/t. Gold (and silver) mineralisation in bedrock has been identified over a strike length of approximately 800m at Saddle Reefs.

A comprehensive IP program over Saddle Reefs was undertaken during Q3 2018 (as announced 17 July 2018). Total strike length covered was 1,600m. Transmitter and receiver lines were 100m apart and station spacing along lines was 20-40m. Modern 3D inversion models of resultant IP data were generated. These models outlined a large, chargeability anomaly over 1,000m of strike spatially co-incident with gold mineralisation identified at surface. The body lies subparallel to the strike of gold mineralisation identified at surface and has dimensions of approximately 1,000m long, 200m wide and 150m thick. The body plunges gently south-east mirroring the overall structural plunge of the outcropping geology and is open to the south-east. Depth to top of the body ranges from 150m to 200m below surface. The majority of historical drill holes at the Saddle Reefs prospect did not achieve these depths.

Greatland's 2019 field programme in the Paterson commenced with a high powered, deep sensing IP survey at Black Hills. The survey continued south-east from the IP chargeability anomaly identified from the 2018 IP survey which remained open along strike. The recent IP programme consisted of two 3.4km lines, 400m apart; the northernmost line covered the southern extremity of the 2018 IP and the second line was sited 400m to the south.

Results of the 2019 IP confirm the location of the chargeability anomaly identified in 2018 and extend the anomaly a further 400m to the south-east. Total strike length of the chargeability anomaly has increased from approximately 1,000m of strike to approximately 1,400m. The body now has approximate dimensions of 1,400m long, 200m wide and 150m thick. Depth to the top of the body continues to range from 150m to 200m below surface and it remains open to the south.

Systematic evaluation of historic IP datasets, combined with new IP data and field geological reconnaissance, has enabled drill targets to be selected. Drilling has been designed to test stratigraphy over the Saddle Reefs prospect, including the central parts of the Black Hills Dome where the IP chargeability anomaly is located plus surface gold mineralisation, and the southern portion of the prospect (where the IP anomaly is also apparent). A drilling programme of approximately 6,000m comprising more than twenty Reverse Circulation ("RC") drill holes of depths up to 300m is proposed.

The Company has received all required approvals from the Western Australian Department of Mines, Industry Regulation and Safety ("DMIRS") for a drilling programme at Black Hills (as announced 4 September 2018). Drilling is currently scheduled to commence by early July.

Competent Person:

Information in this announcement that relates to exploration results is based on information compiled by Mr Mick Sawyer, Exploration Manager for Greatland Pty Ltd, who is a member of the Australian Institute of Geoscientists and is a Registered Professional Geoscientist (R.P.Geo #10194). Mr Sawyer has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr Sawyer consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.

Information in this announcement that relates to Black Hills project exploration results has been extracted from the following announcements:

"Greatland Discovers Gold Nuggets at Black Hills", dated 21 June 2018

"Black Hills: Further Gold Found in Surface Samples", dated 2 July 2018

"Black Hills Update", dated 17 July 2018

"High Grade Gold Detected in Samples at Black Hills", dated 4 September 2018

"Large New Geophysical Target at Saddle Reefs", dated 29 October 2018

"Greatland Commences 2019 Field Exploration Campaign at Black Hills", dated 7 May 2019

Further information on the Black Hills licence can be found under 'Paterson' on the Company's website. In addition, this announcement will be made available in PDF format, with figures/diagrams, on the Company's website at www.greatlandgold.com/media/jorc/

Enquiries:

Greatland Gold PLC

Gervaise Heddle/Callum Baxter

Tel: [phone]

Email:  [e-mail]

www.greatlandgold.com

SPARK Advisory Partners Limited (Nominated Adviser)

Andrew Emmott/James Keeshan

Tel: [phone]

SI Capital Limited (Broker)

Nick Emerson/Alan Gunn

Tel:  [phone]

Luther Pendragon (Media and Investor Relations)

Harry Chathli/Alexis Gore/Joe Quinlan

Tel: [phone]

Notes for Editors:

Greatland Gold plc is London listed (LON:GGP) natural resource exploration and development company with a current focus on gold, copper and nickel exploration projects.

The Company has six main projects; four situated in Western Australia and two in Tasmania.  All projects are 100% owned by Greatland.

In March 2019, Greatland signed a Farm-in Agreement with Newcrest Operations Limited, a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland's Havieron gold-copper project in the Paterson region of Western Australia. Newcrest has the right to acquire up to a 70% interest in a 12 block area within E45/4701 that covers the Havieron target by spending up to US$65m.

Greatland is seeking to identify large mineral deposits in areas that have not been subject to extensive exploration previously.  It is widely recognised that the next generation of large deposits will come from such under-explored areas and Greatland is applying advanced exploration techniques to investigate a number of carefully selected targets within its focused licence portfolio.

The Company is also actively investigating a range of new opportunities in precious and strategic metals and will update the market on new opportunities as and when appropriate.

 

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