Bromus - Project Update

RNS Number : 2159X

Greatland Gold PLC

20 February 2017

 

20 February 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 Update

Greatland Gold plc (LON:GGP), the London Stock Exchange AIM quoted precious and base metals exploration and development business, is pleased to announce that it is preparing to drill two of the nickel sulphide targets identified by downhole electromagnetics ("DHEM") at its Bromus project in Western Australia.

Highlights

·     Greatland is pleased to announce that it has lodged a Programme of Work application with the Western Australian Department of Mines and Petroleum to drill two off-hole EM conductors at the Bromus project;

·     Recent downhole EM surveys at Bromus were successful in identifying several highly conductive targets that were not intersected by last year's drilling campaign and which are considered to be high priority nickel sulphide targets (as outlined in our RNS announcement dated 14 November 2016);

·     Two of these targets are relatively shallow, well constrained by modelling and are located close to drill holes BRD001 and BRD003;

·     The Programme of Work application seeks permission for two drill holes, both of which will utilise existing drill pads, thereby significantly reducing overall programme costs.

Gervaise Heddle, Chief Executive Officer, commented: "Late last year, an independent report by Southern Geoscience Consultants Pty Ltd highlighted several highly conductive targets that were identified by DHEM modelling at Greatland's Bromus project in Western Australia. Two of the targets identified by the modelling are considered particularly appealing because they are well defined, relatively shallow (approximately 100 metres below the surface) and can be drilled using existing drill pads.

By utilising existing drill pads, we expect to complete this drilling programme for a relatively low cost, in line with our corporate philosophy of maximising risk-adjusted return on shareholders' capital.

Approvals are expected within the next four weeks and we expect drilling to commence in late March 2017. We will make further announcements as appropriate."

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 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.

Recent drilling of the conductive bodies by Greatland intersected ultramafic, mafic and granitic lithologies along with massive and stringer sulphide mineralisation explaining the EM response of several targets. However, the primary EM target (BRD001) remained unexplained.

Downhole EM (DHEM) surveys were recently completed to determine the size and orientation of conductors intersected in each hole and to locate the conductor not intersected in BRD001.

DHEM was successful in identifying several highly conductive targets not intersected by previous drilling by Greatland. These targets have conductances which are consistent with massive sulphide mineralisation and, as such, are considered high priority targets. The conductive targets are located close to BRD001 and BRD003. No conductive sediments were intersected in either of hole BRD001 and BRD003 discounting these as the source of the downhole EM response. The targets are well constrained by the modelling and relatively shallow at approximately 100m below surface.

Modelling of DHEM data shows the conductive targets adjacent to holes BRD001 and BRD003 are of good size being 130m x 100m and 150m x 70m respectively. Two additional drill holes have been planned to intersect the targets utilising existing drill pads.

Drawings of modelled EM targets for BRD001 and BRD003 with previous drill hole traces along with new proposed holes can be found at the following link  http://greatlandgold.com/project/2014/bromus.

A Programme of Work (POW) application for additional drill holes has been lodged with the Department of Mines and Petroleum (DMP) in Western Australia. Utilising existing drill pads will expedite the approvals process and reduce overall costs. Approvals are expected within four weeks and drilling is expected to commence in late March 2017. Further updates will be provided to the market in due course.

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

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 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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