Bromus Project Drilling Update

RNS Number : 9554F

Greatland Gold PLC

23 May 2017

 

23 May 2017

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

Greatland Gold plc

("Greatland" or "the Company")

Bromus Project Drilling Identifies Elements Consistent with VMS Style Mineralisation

Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, provides an update of its drilling campaign at its 100% owned Bromus project. The drilling campaign, which consisted of two drill holes testing downhole Electromagnetic ("EM") targets, has intersected silver, zinc and other elements consistent with Volcanogenic Massive Sulphide ("VMS") style systems, thereby extending the strike to 1.5 kilometres.  Additionally, the results of the drilling campaign returned low levels of nickel sulphide.

Summary of Drilling Campaign

·     Results from two drill holes testing downhole EM targets returned elevated levels of zinc, silver, cadmium and sulphur consistent with VMS style mineralisation; and low levels of nickel sulphide;

·     These results extend the VMS style mineralisation over approximately 1.5km of strike which is likely to extend further based on a preliminary review of data;

·     Bromus to now focus on:

o  further delineation of this VMS style systems and;

o  a review of further targets including gold mineralisation that was recorded in historic drilling approximately 1.2 kilometres to the north of the latest drilling campaign.

·     One additional target identified by the downhole EM survey conducted last year remains to be tested.

Gervaise Heddle, Chief Executive Officer, commented:  "There has been  renewed interest in VMS style deposits in Western Australia after the demonstration of their potential at the DeGrussa deposit and historically at the Golden Grove deposit, a gold copper producer in Western Australia.  VMS style deposits can have significant value with their multiple commodities, particularly if they have associated precious metals.  Consequently, we intend the Bromus Project to focus solely on VMS style deposits and look forward to making progress and updating the market in due course.

Overview of Bromus Project

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 gold and nickel 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 ultramafic unit  displaying elevated surface geochemistry to 2,690ppm nickel within the Bromus project area. Field work confirmed the presence of flow textured ultramafic lithologies and little previous exploration had been carried out. A fixed loop ground electromagnetic (EM) survey was completed in 2015 which confirmed several significant bedrock conductors in the survey area.

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.

Drilling by Greatland during 2016 and 2017, and subsequent downhole EM, better defined these buried conductors which were of significant size (+100m long and +50m wide). Drilling intersected ultramafic, mafic and granitic lithologies along with massive and stringer sulphide mineralisation explaining the EM response. Unfortunately no significant nickel was associated with the sulphide mineralisation. Highest nickel response in BRD005 and BRD006 was 1m at 1,812ppm nickel (0.18% Ni). Geology in both holes was predominantly deformed and altered basalt and ultramafic rocks adjacent to a significant, structurally altered, hanging wall granite contact. Results for Greatland holes BRD001-BRD004 were previously reported 20 September 2016.

However, in several Greatland drill holes, polymetallic Volcanogenic Massive Sulphide (VMS) style mineralisation was recognised. In BRD005 a 4m VMS intercept from 122m downhole of up to 1m at 2.2g/t silver, 1m at 0.87% zinc,  1m at 17.3ppm cadmium and 1m at 13.6% sulphur. In BRD006 a 3m VMS intercept from 136m downhole of up to 1m at 1.7g/t silver, 1m at 0.67% zinc, and 1m at 16.3ppm cadmium and 10.4% sulphur. Four of the six holes drilled at Bromus by Greatland intersected VMS style mineralisation BRD002, BRD004, BRD005 and BRD006.

The silver and zinc mineralisation with associated cadmium and sulphur is indicative of a VMS style system which represents a relatively new target style for the district. VMS style deposits can have significant value with their multiple commodity credits, particularly if they have associated precious metals. Good examples of these types of deposits in Western Australia are Golden Grove and DeGrussa. Greatland work to date has identified the mineralisation over approximately 1.5km of strike which is likely to extend further based on a preliminary review of data. Greatland is also reviewing regional data sets to assess the broader potential of the region for these valuable deposits.

Additional information on the Bromus project can be found on the Company 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

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]

Luther Pendragon (Media and Investor Relations)

Harry Chathli/Ana Ribeiro/Alexis Gore

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 five main projects; three 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.

 

END

 

 

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