Completion of the Havieron Project Acquisition

RNS Number : 9955L

Greatland Gold PLC

25 July 2017

 

25 July 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")

Greatland to Complete the Acquisition of Havieron Project

Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, is pleased to announce that Pacific Trends Resources Pty Ltd has been granted the exploration licence 45/4701, ("Havieron Project"), and, as a result, Greatland expects to complete the acquisition of the Havieron Project within the next few weeks.

Highlights:

·     Exploration licence 45/4701, the "Havieron Project", has been officially granted to Pacific Trends Resources Pty Ltd following the recent withdrawal of all native title objections;

·     Greatland expects to complete the acquisition of the Havieron Project by mid-August  with payment of AUD$25,000 in cash and the issuance of 65,490,000 ordinary shares of 0.1 pence each in the Company to Pacific Trends Resources Pty Ltd;

·     Greatland expects to commence a tightly spaced gravity survey over the Havieron target during Q4 2017 that will be used to finalise drill targets; and

·     Greatland's technical team is currently undertaking a review of new regional exploration data that covers both the Havieron and Paterson Range East Projects, and significant findings from this review are expected to be announced shortly.

On 26 September 2016, Greatland announced that it had entered into an agreement to acquire 100% of the Havieron Project from Pacific Trends Resources Pty Ltd. The Havieron project is located in the Paterson Region of Western Australia, and sits approximately 40 kilometres east of Newcrest's Telfer gold mine (over 27 million ounces of gold produced to date). Historical geophysical data at Havieron has outlined a large target covering approximately 1,000 metres by 1,000 metres. Limited historical drilling (six drill holes) by Newcrest during the 1990s demonstrated high grade gold and copper mineralisation at the Havieron target with peak values of 15g/t Au and 2.5% Cu.

Gervaise Heddle, Chief Executive Officer, commented:  "We are very pleased to be able to proceed with the acquisition of this exciting gold/copper project in a region that is seeing increased interest from major mining companies. We expect to move forward quickly with on the ground exploration activities as we seek to confirm our belief in the potential for a large gold/copper resource at Havieron.

"Initial inspections of the historic Newcrest drill core by Greatland's technical team are very encouraging, and we hope that modern exploration methods will be able to quickly shed light on the vast potential of this target."

In addition to the Havieron target itself, Greatland believes that there are many exciting targets within both the Havieron and Paterson Range East licence areas. More details on these targets will be provided following the completion of a review of new regional exploration data.

A map showing the Havieron and Paterson Range East licences with regional targets and adjacent landholdings can be found at http://greatlandgold.com/project/2016/havieron/

Acquisition of Havieron Project

Under the purchase agreement executed on 26 September 2016 between Pacific Trends Resources Pty Ltd (the "Vendor"), Greatland Pty Ltd (the "Purchaser") and Greatland Gold PLC, the Purchaser agreed to acquire all of the Vendor's rights, title and interest in the exploration licence 45/4701 (the "Havieron Project") once granted and subject to the satisfaction of certain conditions.

Subsequently, exploration licence 45/4701 has been granted to the Vendor and Greatland expects to complete the acquisition within the next few weeks.

The consideration to be paid to the Vendor by the Purchaser consists of AUD$25,000 in cash and 65,490,000 fully paid ordinary shares in Greatland Gold PLC to be issued by Greatland Gold PLC.

In the event the Licence Area is the subject of a completed bankable feasibility study and the Purchaser makes a decision to mine, Greatland Gold PLC must issue, within thirty days after the date that decision to mine is made by the Purchaser, an additional 145,530,000 fully paid ordinary shares in Greatland Gold PLC to the Vendor.

Issuance of Shares

As a result of the completion of the Havieron project acquisition, 65,490,000 new ordinary shares are expected to be admitted to trading on or around 15 August 2017 ("Admission").

Following Admission the total issued share capital of the Company will consist of 2,054,435,081  ordinary shares.  As such the total number of voting rights in the Company will be 2,054,435,081 ordinary shares.  This number may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

Overview of Havieron and Paterson Range East Project

The Havieron and Paterson Range East licences are located in the Paterson region of northern Western Australia. The Paterson region hosts several large gold and copper deposits such as Telfer (27M oz) and Nifty (2MT copper). The region has been subject to more recent exploration which has outlined several other deposits including Magnum (Au), Calibre (Au), O'Callaghans (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 Paterson Province is the northern portion of the Proterozoic Paterson Orogen. More recent exploration throughout several Proterozoic Orogens within the western parts of the Australian continent has resulted in the discovery of the large Tropicana gold deposit (7.9M oz) and large Nova nickel-copper deposit (10MT). Globally these Proterozoic Orogens are highly prospective for large deposits, and are often under-explored.

Alteration and mineralisation of those targets which have been drill tested at Havieron and Paterson Range East display similarities to IOCG-type deposits. Examples of these are the large Olympic Dam and Ernest Henry deposits in central and eastern Australia.

Geophysical data has outlined the Havieron target as covering approximately 1,000m x 1,000m. Depth to top of target is around 400m with these depths easily achieved with modern drilling equipment. Only six drill holes have been completed to date with all intersecting significant alteration and gold plus copper anomalism.

Thick lower grade zones of gold and copper have been intersected and within these gold grades peak at 15.4g/t and copper to 2.5%. Current drill hole spacing is broad and so the core of Havieron represents an immediate resource definition drilling target.

Within the Paterson Range East licence several IOCG targets have been identified. Historically, several of these targets have been subject to initial first-pass work and show promise at hosting mineralisation as seen at Havieron. Basement rocks do not outcrop and Greatland intends to employ modern geophysical methods to define targets prior to drill testing.

Prospectivity of the Paterson Province is widely recognised with several large industry participants present. These include Rio Tinto, Newcrest and Antipa. Greatland's licences lie adjacent to Rio Tinto and Antipa. Results announced recently by Antipa highlight the exploration and development potential of the Paterson Region which include 42.0m at 7.8g/t gold from 262m down hole, including 13.0m at 22.1g/t gold and 1.0m at 222.0g/t gold. Plus 28.0m @ 3.6g/t gold from 13m downhole, including 12.0m at 7.2g/t gold. High grade mineralisation is from near surface and highlights open pit potential and mineralisation remains open along strike to the north and south and at depth.

Greatland's Havieron licence covers 137 square kilometres and Paterson Range East covers 224 square kilometres, totaling over 360 square kilometres in the Paterson region

Additional information on the Havieron and Paterson Range East licences 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 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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