Ernest Giles Project Update

RNS Number : 8400B

Greatland Gold PLC

15 January 2018

 

15 January 2018

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

Greatland Gold plc

("Greatland" or "the Company")

Ernest Giles Project Update

Further to the announcement of 13 December 2017, Greatland Gold plc (AIM: GGP), the precious and base metals exploration and development company, provides an update on the Ernest Giles project and results of work conducted by Newmont Exploration Pty Ltd ("Newmont"), a subsidiary of Newmont Mining Corporation (NYSE: NEM).

Newmont has informed the Company that its current corporate priorities are largely focused in other districts. Consequently, it has informed Greatland that it will not be proceeding with the project at this time. Newmont's six month right of first refusal over the Ernest Giles Project has already lapsed in accordance with the agreement announced 16 May 2017.

Newmont's DSG survey has been successful in defining a new large gold anomaly, covering an area of approximately 5km by 1.5km and untested by previous drilling.

Greatland Gold continues to hold 100 per cent of the project and is well financed to proceed with its alternative plans to progress with an exploration programme using the results of the Deep Sensing Geochemistry ("DSG") survey conducted by Newmont.

Key highlights of the DSG results included:

·     Large 5km long by 1.5km wide gold anomaly identified, oriented in an east-west direction, that sits approximately 1km to the north of Greatland's previous drilling;

·     The large anomaly identified has not been drill tested and sits perpendicular to the regional geological strike suggesting a strong structural control on mineralisation;

·     Several additional robust gold anomalies successfully identified, many of which have not been drill-tested; and

·     DSG survey was also successful in identifying overall basement lithological trends and recognised a belt parallel alteration signature commonly associated with large scale mineralised systems.

Greatland anticipates that it will be lodging a Programme of Work with the Western Australian Department of Mines and Petroleum in the next two weeks and, subject to approval, anticipates that it will be commencing a targeted exploration campaign at the Ernest Giles project in Q1 2018.

Gervaise Heddle, Chief Executive Officer, commented: "The collaboration between Newmont and Greatland has successfully defined several additional gold anomalies, and we would like to thank Newmont for their efforts. The results of their survey have enhanced our understanding of the project and identified multiple new targets for further exploration work, reinforcing our view that the Ernest Giles project has the potential to host several multi-million-ounce gold deposits. We are well financed to actively progress exploration at Ernest Giles and look forward to reporting progress through the year." 

Background and Results of DSG survey

In May 2017, Greatland entered into an agreement with Newmont Exploration Pty Ltd ("Newmont"), a subsidiary of Newmont Mining Corporation (NYSE: NEM), over the Ernest Giles project. Under this agreement, Newmont was allowed access to Greatland's Ernest Giles project to conduct Deep Sensing Geochemistry ("DSG") surveys. DSG is a proprietary geochemical method developed by Newmont and applied in areas with covered terrain.

During 2017, Newmont conducted a DSG survey consisting of 446 DGS samples at the Meadows prospect. Samples were collected over the target area on 475m x 200m spacing, and strike extensions on 1000m x 200m spacing.

The DSG results successfully defined several gold anomalies at the Meadows prospect, the most significant of which is a large anomaly approximately 5km long and 1.5km wide in the vicinity of previous Greatland drilling which had intersected gold mineralisation in Archean basement rocks under 100-200m of cover. The anomaly is apparently perpendicular to the regional geological strike suggesting a strong structural control on mineralisation. The anomaly has not been drilled with previous Greatland holes and as such remains untested.

DSG results were also successful in identifying overall basement lithological trends and recognised a belt parallel alteration signature commonly associated with large scale mineralised systems.

The survey results indicate that DSG is an effective tool for exploring through cover at the Meadows prospect. The DSG gold data highlights a large mineralised trend with multiple targets.

Greatland and Newmont's recent successful efforts have further demonstrated the potential of the Ernest Giles project to host several, very large, mineralised systems. These results are expected to significantly assist with future exploration efforts.

Overview of Ernest Giles Project

The Ernest Giles project is located in central Western Australia, covering an area of more than 2,000 square kilometres that includes over 230km of strike of gold and nickel prospective rocks. The area is covered by desert sands and sediments, making it virtually unexplored. The region is home to several successful exploration discoveries such as Tropicana, AngloGold (ASX: AGG), which contains over seven million ounces, and Yamarna/Gruyere, Gold Road Resources (ASX: GOR) and Gold Fields Ltd (NYSE: GFI), with over 6 million ounces. The Company is targeting large +5 million ounce deposits and clusters of several camp-type +1 million ounce gold discoveries at Ernest Giles.

Earlier drill programmes by the Company at Ernest Giles intersected gold mineralisation and large alteration systems in wildcat drilling of blind structural targets defined by airborne geophysics. This was considered a major achievement for such a large prospective area with virtually no historical work.

In late 2016, the Company completed a comprehensive broad spaced Reverse Circulation ("RC") drilling programme at Meadows in the south-east of the project area which tested several large areas based on work completed by the Company and earlier work by Western Mining Corporation. This RC drill programme comprised 23 holes for 5,581m. Holes were drilled on a broad spaced grid pattern of 1,600m x 800m.

Mineralisation was observed in 13 of the 23 holes and several holes exhibited gold anomalous zones over tens of metres, peaking at 0.78g/t gold with mineralisation at end of hole. Two large zones of mineralisation were identified; Western 6km x 1.5km and Eastern 2km x 1.5km. Additional 1m sampling of several intercepts was undertaken to confirm preliminary results and better define mineralisation with many significant gold results returned up to 2g/t. Results confirmed mineralisation is present over a large area at Meadows and suggest that Greatland has discovered a new gold province in this largely unexplored region.

In late 2014, the Company completed a restricted programme of Mobile Metal Ion ("MMI") surface geochemistry over several target areas which were outlined from interpretation of detailed aeromagnetics. Sample spacing was at a nominal 800m x 200m. Results from this sampling were positive over the Meadows area (peaking at 68ppb gold), and at the Empress area. At Empress many samples returned +5ppb gold, which is quite high for MMI results, plus several above 40ppb gold peaking at 338ppb gold at the eastern extremity of three consecutive sample lines potentially outlining a significant anomaly 3km long by 1km wide which remains open to the east.

In May 2017, a detailed airborne survey was acquired over the northern sequences and the newly secured Ernest Giles East block which includes an 800 square kilometre area covering a 90km long north-south trending sequence of rocks that represents a continuation of the gold prospective greenstone sequence.

In June 2017, a comprehensive ground gravity survey was completed over parts of the Western licences at a station spacing of 1,600m x 200m. Data was collected over the Empress, Wishbone and greater Meadows area. The ground gravity data integrated with airborne magnetics highlighted several additional targets conducive to gold mineralisation at each of the areas surveyed.

During September 2017, Greatland completed its initial work over the Eastern block. The Eastern block, covering 800 square kilometres, represents an extension of the gold prospective Ernest Giles greenstone sequences. Work included broad spaced ground gravity and first pass MMI sampling. Gravity work was completed on a station spacing of 1,600m x 200m while MMI samples were collected on 3,200m x 400m centres.

MMI results outlined multiple gold anomalies over approximately 60km of strike. Many anomalies present as clusters of elevated responses over several adjoining east-west sample traverses with peak responses up to 1.3ppb gold (against a background of 0.0-0.1ppb). Several anomalies exhibit a strike length in excess of 9km and up to 3km wide. Ground gravity and detailed airborne magnetics confirms the MMI anomalies lie subparallel to the regional geological strike or within cross cutting structures displaying demagnetisation of bedrock geology.

Additional information on the Ernest Giles project can be found on the Company web site at www.greatlandgold.com/projects.

Enquiries:

Greatland Gold PLC

Callum Baxter/Gervaise Heddle

Tel: [phone]

Email:  [e-mail]

www.greatlandgold.com

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady/James Keeshan/Andrew Emmott

Tel: [phone]

SI Capital Limited (Broker)

Nick Emerson

Tel:  [phone]

Luther Pendragon (Media and Investor Relations)

Harry Chathli/Ana Ribeiro/Alexis Gore

Tel: [phone]

Notes for Editors:

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

The Company has six main projects; four situated in Western Australia and two in Tasmania.  All projects are 100% owned by Greatland or Greatland has the right to take 100% ownership.

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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