Ernest Giles - New Gold Targets Identified

RNS Number : 7751F

Greatland Gold PLC

22 May 2017

 

22 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")

Ernest Giles Project

Detailed Airborne Survey Identifies New Gold Targets

Greatland Gold plc (LON:GGP), the precious and base metals exploration and development company, is pleased to announce that it has acquired a large, detailed airborne survey ("the survey") over its 100% owned Ernest Giles gold project. Data from the survey has highlighted several new structural targets suitable for gold mineralisation.

Highlights from Detailed Airborne Survey

·     The survey covers a large portion of the 1,800 square kilometre Ernest Giles gold project, including the recently acquired Ernest Giles East tenements, as announced on the 9^th May 2017.

·     Results identified and highlighted several new structural targets for gold mineralisation; allowing Greatland to refine and accelerate exploration.

·     A full review of the many gold targets at the Ernest Giles project is being conducted and results will be published once the gravity and seismic surveys that are currently underway are complete.

The acquisition of the survey follows two other recent developments at Greatland's 100% owned Ernest Giles project including the acquisition of a further 800 square kilometres of nearby tenements, and a new agreement with Newmont Exploration Pty Ltd, a subsidiary of Newmont Mining (NYSE:NEM), one of the world's largest gold producers.

Gervaise Heddle, Chief Executive Officer, commented:  "The results of the detailed airborne survey, which was conducted at 100 metre line spacing and includes approximately 38,000 line kilometres of data, will allow Greatland to further refine and accelerate its exploration efforts at Ernest Giles as well as providing us with greater confidence on the potential of this quality project.

"Our technical team are currently conducting a full review of targets throughout the Ernest Giles project and more information will be provided to shareholders once all the data from recent fieldwork has been received and analysed."

Overview of Ernest Giles Project

The Ernest Giles project is located in central Western Australia, covering an area of more than 1,800 square kilometres that includes over 200km 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/Gruyere (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 was considered a major achievement for such a large prospective area with virtually no historical work.

In late 2016, the Company completed a comprehensive broad spaced Reverse Circulation "RC" drilling programme at Meadows in the south-east of the project area which tested several large areas based on work completed by the Company and earlier work by Western Mining Corporation. This RC drill programme comprised 23 holes for 5,581m. Hole locations were based on a broad spaced grid pattern of 1,600m x 800m.

Mineralisation was observed in 13 of the 23 holes and several holes exhibited gold anomalous zones over tens of metres, peaking at 0.78g/t gold with mineralisation at end of hole. Two large zones of mineralisation were identified; Western 6km x 1.5km and Eastern 2km x 1.5km. Additional 1m sampling of several intercepts was undertaken to confirm preliminary results and better define mineralisation with many significant gold results returned up to 2g/t. Results confirmed mineralisation is present over a large area at Meadows and suggest that Greatland has discovered a new gold province in this largely unexplored region.

In late 2014, the Company completed a restricted programme of Mobile Metal Ion ("MMI") surface geochemistry over several target areas which were outlined from interpretation of detailed aeromagnetics. Sample spacing was at a nominal 800m x 200m. Results from this sampling were positive over the Meadows area (peaking at 68ppb gold), and also at the Empress area. At Empress many samples returned +5ppb gold, which is quite high for MMI results, plus several above 40ppb gold peaking at 338ppb gold at the eastern extremity of three consecutive sample lines potentially outlining a significant anomaly 3km long by 1km wide which remains open to the east.

It should be noted that the Ernest Giles project area covers over 1,800 square kilometres and is host to a number of other high priority targets such as Wishbone (a high priority structural target), and Maple (a coincident MMI and structural target in the west of the project area).

The recent acquisition of additional ground (as announced on 9th May 2017) sees Greatland dominating the landholding in the region. Over 800 square kilometres of additional acreage was acquired to cover extensions of known prospective sequences which are an integral addition to the project. Success from previous work over recent months has demonstrated the potential of the region to host very large mineralised systems and securing further ground is an important step for the overall development of the project.

A detailed airborne survey has been acquired over the new areas, particularly over the northern sequences and the newly acquired Ernest Giles East which includes a 600 square kilometres area covering an 80km long north-south trending sequence of rocks that represents a continuation of the gold prospective greenstone sequence. The new airborne survey data was conducted at 100m line spacing and totals over 38,000 line kilometres. New airborne data is currently being merged with existing airborne data sets;  interpretation and targeting is to be completed in the coming weeks.

A comprehensive ground based gravity survey is currently underway over several targets to better define structural and lithological features. Ground gravity station spacing has been initially set at 1,600m x 200m. Also, a relatively new passive seismic technique ("Tromino") is being trialed in an effort to provide reliable basement profiles in areas of interest.

On 16 May 2017, an agreement was entered into by Newmont Exploration Pty Ltd, a subsidiary of Newmont Mining Corporation (NYSE:NEM), and Greatland Pty Ltd, an Australian-based subsidiary of Greatland Gold plc (LON:GGP) whereby, for a period of six months:

a) Greatland Pty Ltd grants Newmont access to the Ernest Giles project tenements and exploration database; and

b) Greatland Pty Ltd grants Newmont a right of first refusal should Greatland wish to sell all or part of the Ernest Giles project.

Greatland's successful efforts to date have highlighted the potential of the Ernest Giles project to host several, very large, mineralised systems.

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]

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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