Ernest Giles - Large Zones of Gold Mineralisation

RNS Number : 9651T

Greatland Gold PLC

12 January 2017

 

12 January 2017

Greatland Gold plc

("Greatland" or "the Company")

Ernest Giles - Large Zones of Gold Mineralisation Identified

Greatland Gold plc (LON:GGP), the London Stock Exchange AIM listed precious and base metals exploration and development business, is pleased to announce that drilling has successfully identified two large zones of gold mineralisation at its Ernest Giles project in Western Australia. 

Highlights

·     An ambitious drilling campaign at Ernest Giles has successfully identified two large zones of mineralisation, a Western Zone of 6km in length and 1.5km in width, and an Eastern zone of 2km by 1.5km;

·     The majority of the RC holes drilled intersected mineralisation including several that intersected wide zones (up to 60 metres) of anomalous gold mineralisation;

·     The cover sequence was not as thick as expected with the shallowest intercept at 119m, suggesting that Ernest Giles represents a large, relatively near surface gold exploration target;

·     Greatland Gold's field operations team have taken 1 metre re-samples of several holes (results reported today are based on initial 4m composite samples) and the results of the 1 metre re-samples are expected within the next four weeks.

Callum Baxter, Executive Director, commented: 'We are very pleased to report the identification of two large zones of relatively near surface mineraliation as detected by the ambitious drilling campaign recently completed at our 100% owned Ernest Giles project.

Greatland's Ernest Giles project covers over 1,000 square kilometres of a large greenstone belt which remains virtually unexplored. These preliminary results, based on 4 metre compositie samples, confirm our view that this large greenstone belt is highly prospective for gold and may contain similar multiple million ounce gold deposits as have been discovered in other large greenstone belts in Western Australia.

We are particularly pleased with the extent of the mineralisation identified (up to 6 kilometres in length), the wide zones of mineralisation (gold anomalous zones over tens of metres), and the relative proximity to surface of the mineralisation.

Greatland is currently exploring several options to further advance this exciting project and will begin the process of planning further work at the project once the 1 metre re-sampling results are received.'

Summary of Results and Overview, Ernest Giles Project, Western Australia

The Ernest Giles project is located in central Western Australia, covering an area of 1,000 square kilometres that includes over 120km 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 7 million ounces, and Yamarna (Gold Road Resources ASX:GOR), with over 6 million ounces. The Company is targeting large +5m ounce deposits and clusters of several camp-type +1m 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 detailed airborne geophysics. This is considered a major achievement for such a large prospective area with virtually no historical work. To build on this the Company has completed a comprehensive broad spaced RC drilling programme which tested several large areas based on work completed by the Company and earlier work by Western Mining Corporation.

The RC drill programme comprised 23 holes for 5,581m.  Hole locations were based on a broad spaced grid pattern of 1,600m x 800m. Holes were designed to test basement lithologies for gold mineralisation and also test beneath surface geochemical anomalies.

It is pleasing to report that mineralisation was observed in 13 of the 23 holes. Initial 4m composite analysis of drill spoils shows gold anomalism between 5 and 95ppb in more than 10 holes peaking at 784ppb. Several holes exhibiting gold anomalous zones over tens of metres, for example ERC011 140-200m (60m) peaking at 0.78g/t gold with mineralisation at end of hole, and ERC014 224-278m (54m) peaking at 0.17g/t gold also with mineralisation at end of hole.

Results of drilling outline two, large, north-west trending zones of mineralisation. The Western Zone being 6km long and 1.5km wide and open to the north, and the Eastern Zone 2km long and 1.5km wide which remains open to the north and south.

The cover sequence was not as thick as expected with shallowest intercept of 119m, but generally around 180m depending on location. Varying basement lithologies were intersected including basalt, band iron formation and syenite. Silica and biotite alteration were prevalent with quartz veining and sulphide mineralisation.

Additional 1m re-sampling of several holes has been completed to confirm initial results and better define mineralisation. Results of the 1m samples are expected to be received within 4 weeks.

Additional information on the Ernest Giles 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]

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.

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

 

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