VMS Style Mineralisation Detected at Bromus

RNS Number : 1730K

Greatland Gold PLC

20 September 2016

 

20 September 2016

Greatland Gold plc

("Greatland" or "the Company")

VMS Style Mineralisation Detected at Bromus

Greatland Gold plc (LON:GGP), the London Stock Exchange AIM listed precious and base metals exploration and development business, announces results from recent drilling at the Bromus project.

Highlights

·     Drilling at the 100% owned Bromus Project in Western Australia has detected anomalous levels of silver, zinc, cadmium and sulphur (including 3m at 1.3g/t Ag and 0.5% Zn in BRD004) that are indicative of a polymetallic VMS-type system;

·     In addition, several broad, low level, nickel intercepts were encountered in BRD002 including 48m at 0.14%, 22m at 0.14% and 27m at 0.14%;

·     A VMS-type system represents a relatively new discovery for the region and Greatland believes that the results merit further investigation;

·     Greatland will be conducting downhole EM over the next few weeks to determine the location, size and orientation of buried conductive bodies.

Callum Baxter, Executive Director, commented: "Initial results from the limited drilling campaign recently conducted at Bromus are indicative of a polymetallic VMS-style system. Most notably, the association of silver, zinc, cadmium and sulphur that was detected in both BRD002 and BRD004 is relatively unusual in the region, and Greatland intends to do further work over the next few weeks, including downhole EM, in order to better ascertain the nature and size of the mineralization.

Greatland will continue to update the market with developments at Bromus as our work to understand this new system continues."

Bromus Project, Western Australia

The Bromus project is located in southern Western Australia, approximately 25km south west of the town of Norseman, and covers approximately 93 square kilometres. Several significant clusters of gold and nickel sulphide deposits lie in the region, such as those at Central Norseman, Kambalda and Widgiemooltha. Greatland owns 100% of the project.

A review of detailed airborne geophysics defined a 4.5km long nickel sulphide prospective ultramafic, with coherent elevated surface geochemistry to 2,690ppm Ni, within the Bromus project area. Field work confirmed the presence of flow textured ultramafic lithologies and, despite the proximity to other deposits, no previous exploration for nickel sulphides is apparent. A fixed loop ground electromagnetic (EM) survey was completed over the entire 4.5km strike returning data of extremely high quality, with excellent ground penetration.

The ground EM survey data confirmed several significant bedrock conductors in the survey area. Modelling showed that the conductors are sizeable and well defined. Modelled depth to the top of the four targets is relatively shallow, between 130m and 175m below the surface.

Such large bodies of conductive material are typically signs of sulphide deposits. The tenor (or grade) of nickel in these deposits can only be determined by drilling and laboratory analysis.

Greatland has recently completed drilling of at each of the conductors with an initial four core holes. Final results have now been received and a summary is presented below.

·     BRD001 intersected predominantly basaltic, ultramafic and granitic lithologies. Total depth 182.5m. No significant analytical results. No significant massive or stringer sulphides intersected thus bedrock conductor remains unexplained.

·     BRD002 interested predominantly basaltic and sedimentary lithologies with minor ultramafic and granitic rocks. Total depth 230m. Low level nickel of 4m @ 0.17% from 112m and gold of 4m @ 0.15g/t from 60m and 4m @ 0.12g/t from 12m. Several broad, low level, nickel intercepts of 48m at 0.14% from 88 to 136m and 22m at 0.14% from 160 to 182m and 27m at 0.14% Ni from 203 to 230m (eoh). Coincident silver and zinc of 5m at 1.2g/t Ag and 0.93% Zn from 184m, including 1m at 1.4g/t Ag from 185m and 1m at 1.2% Zinc from 188m with associated +20ppm Cd and +10% S which is a typical VMS signature. Stringer and disseminated sulphides intersected 184-189m which coincides with high silver and zinc. Bedrock conductor explained.

·     BRD003 showed primarily ultramafic rocks with minor granitic lithologies. Total depth 226.7m. No significant analytical results. Sulphide stringers intersected 217.8-218.2m. Bedrock conductor explained.

·     BRD004 intersected primarily ultramafic and basaltic lithologies with minor sediments. Total depth 210m. Analytical results for nickel peaked at 0.18%. Broad low level gold intercept of 9m at 0.03g/t from 170m. Coincident silver and zinc of 3m at 1.3g/t Ag and 0.5% Zn from 185m. Including 1m at 1.7g/t Ag from 185m and 1m at 0.6% Zn from 187m with associated high Cd to 17.7ppm and 10% S which is a typical VMS signature. Massive sulphides intersected 185-188m which coincides with Ag and Zn from 185m. Bedrock conductor explained.

The silver and zinc mineralisation with associated cadmium and sulphur is indicative of a VMS-type system which represents a relatively new discovery in the region.

Our primary bedrock conductor (BRD001) remains untested and downhole EM will be carried out to determine the location, size and orientation of the buried conductive bodies. Further drilling will be planned based on results of the downhole EM.

Additional information on the Bromus project can be found on the Company's web site at www.greatlandgold.com/projects

Competent Person:

Information in this announcement that relates to exploration results is based on information compiled by Mr Callum Baxter, a director of Greatland Gold plc, who is a member of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Mr Baxter 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 Baxter consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.

Enquiries:

Greatland Gold PLC

Callum Baxter/Gervaise Heddle/Alex Borrelli

Tel [phone]

Email:  [e-mail]

www.greatlandgold.com

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady/ Sean Wyndham-Quin /James Keeshan

Tel [phone]

SI Capital Limited (Broker)

Nick Emerson / Andy Thacker

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 and nickel exploration projects.  

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

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.

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

 

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