Havieron Project - Drilling Update

RNS Number : 4832C

Greatland Gold PLC

01 October 2018

 

1 October 2018

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

Greatland Gold plc

("Greatland" or "the Company")

Havieron Project - Drilling Update

Greatland intersects significant visible mineralisation over 239 metres in first hole of new drilling campaign at Havieron

Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, is pleased to announce initial observations from the first hole of the Company's second drilling campaign at its 100% owned Havieron licence.

Greatland's first drilling campaign at Havieron, carried out in April-May 2018, yielded excellent results, which included 121m at 2.93g/t gold and 0.23% copper from 497m, including 11.5m at 21.23g/t gold and 0.67% copper from 568.5m (HAD001), and 21m at 3.79g/t gold 0.44% copper from 418m (HAD003).

The current drilling campaign at Havieron, which commenced on 17 September 2018, consists of up to ten core holes for a total of approximately 6,000 metres. The first drill hole of this second campaign (HAD005) has been completed (end of hole 822m) and key observations are highlighted below.

Highlights:

·   Significant mineralisation, visibly similar to that previously intersected in HAD001, has been observed for approximately 239m in the first hole of Greatland's current drilling campaign at Havieron (HAD005);

·    Geological inspection has confirmed HAD005 has intersected mineralised brecciated calcareous limestone and sandstone with massive pyrite, chalcopyrite, pyrrhotite and quartz veining, from 458m to 577m (119m) and from 662m to 782m (120m);

·    Initial observations from HAD005, in conjunction with earlier results from HAD001, suggest that Havieron may represent a very large mineralised system;

·    Drilling of HAD006 has commenced and initial laboratory assay results for HAD005 are expected to be available in approximately six weeks.

While laboratory assay results for HAD005 are not available at this point, and there can be no guarantee that assay results will be similar to those of HAD001, the visible observation of 239m of mineralisation in HAD005 is considered material because it represents a visible mineralised intersection approximately twice the size of that detected in HAD001.

Gervaise Heddle, Chief Executive Officer, commented:  "We are very pleased to see significant visible mineralisation in the first hole of this new drill campaign, which further reinforces our view that Havieron has the potential to be a very large mineralised system. Our key priority now is to further test the extent and orientation of the mineralised zone and we look forward to providing further updates as drilling progresses."

The Paterson project covers more than 385 square kilometres in the Paterson region of Western Australia and includes the Havieron licence, the Paterson Range East licence, and the recently acquired Black Hills licence.

Limited historical drilling was conducted by Newcrest Mining Limited ("Newcrest") at Havieron during the 1990s and early 2000s where six holes were drilled, all of which intersected significant alteration and gold plus copper anomalism. Thick lower grade zones of gold and copper were intersected by Newcrest and gold grades within these peaked at 15.4g/t and copper to 2.5%.

In April and May of 2018, Greatland carried out its maiden drill campaign at the Havieron target with HAD001 returning 121m at 2.93g/t gold and 0.23% copper from 497m.

A regional map showing the Havieron licence area with regional targets and adjacent landholdings can be found at: http://greatlandgold.com/paterson/ 

Overview of Paterson Project and Havieron licence

The Company's Paterson project, comprising the Havieron and Paterson Range East licences, and the Black Hills licence, is located in the Paterson region of northern Western Australia. The three licences collectively cover more than 385 square kilometres prospective for iron-oxide-copper-gold ("IOCG") deposits and Telfer style gold deposits.

The Paterson region hosts several large gold and copper deposits such as Telfer and Nifty. 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 and the large Nova nickel-copper deposit. 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.

Initial airborne data 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. Six drill holes were completed by Newcrest Mining Ltd between 1991 and 2005, all of which intersected significant hematite alteration and gold, plus copper anomalism. Thick lower grade zones of gold and copper have been intersected and gold grades within these peak at 15.4g/t and copper to 2.5%.

Following Greatland's review of regional geophysical and geochemical data over the Paterson project approximately fifty IOCG-type targets were identified in the broader region, with around half in ground held by the Company. The setting of these licences is on the western margin of a Proterozoic basin which ranges in depth from less than 100m below surface to more than 400m below surface. Basement rocks of the basin are predominantly calcareous rich sandstones intruded by several late stage granitic bodies exploiting basin margin faults which have also provided a focus for ore fluids. Historically, several of these targets have been subject to initial first-pass work and show promise at hosting mineralisation as seen at Havieron. The geophysical signature of these targets is very similar to that at Havieron. Basement rocks do not outcrop and Greatland has employed modern geophysical and geochemical methods to define targets prior to drill testing. The Scallywag target was identified from this regional review and hosts several magnetic anomalies over an area of approximately 6km x 4km with potential to host gold and/or copper mineralisation.

MMI sampling and ground gravity over the Havieron target was completed in late 2017 at an initial sample and station spacing of 200m x 200m. Additionally ground gravity was completed over the Scallywag target at a station spacing of 400m x 200m. Results of ground gravity and MMI work at Havieron outlined several targets with the peak gravity response not tested by existing drilling. Gravity data confirms a north-west structural trend of basement carbonate sediments which is mirrored by the surface MMI response. Clusters of elevated gold, silver, arsenic, copper and iron in MMI results are proximal the peak co-incident gravity and magnetic response. An elevated MMI response in pathfinder elements (cerium, lanthanum, uranium and lead) to the immediate SE of Havieron suggests primary basement mineralisation may be present along strike in a structural contact for up to 1.5 kilometres. Peak MMI responses over Havieron were 4ppb silver, 70ppb arsenic, 25ppb gold, 834ppb cerium, 710ppb copper, 53ppm iron, 284ppb lanthanum, 860ppb lead and 112 ppb uranium. Elevated pathfinder elements detected by the MMI survey support the view that Havieron may be an Iron Oxide Copper Gold type system. Gravity results from Scallywag show gravity highs co-incident with the magnetic targets over approximately 2km of strike.

Forward modelling of detailed aeromagnetic data (50m line spacing and 40m mean terrain clearance) and detailed ground gravity data (100m x 100m and 100m x 200m station spacing) over the Havieron target was completed by independent geophysical consultants in February 2018. Results of forward modelling defined a primary body approximately 600m x 600m across with a depth extent from 400m to 900m below surface resulting in a potential volume of more than 240,000,000 cubic metres. Results of forward modelling are indicative only as geophysical models are ambiguous, however modelled bodies were constrained to known physical rock properties and therefore potentially represent the core of the mineralised system at Havieron. Forward modelling suggests that of the six historic drill holes completed at Havieron only two intersected the target. Those two holes intersected only the very top of the mineralised system but returned over 100m of mineralisation (HAC9101) and over 50m of mineralisation (HAC9201) peaking at 15.4g/t gold and 2.5% copper within broad, lower grade intercepts.

In April and May of 2018, Greatland carried out its maiden drill campaign at the Havieron target completing four vertical core holes for a total of approximately 2,438m of drilling. Greatland's drill locations were designed to intersect the mineralised system at Havieron near to historical drill holes HAC9101 and HAC9201. Newcrest's historic drill holes HAC9101 and HAC9201 were vertical and drilled to depths of 533m and 528m respectively.

A plan showing the Havieron geophysical target and drill holes can be found at: http://greatlandgold.com/paterson/ 

Each of the four vertical core holes (HAD001-HAD004) penetrated recent desert sands and clays from surface to approximately 10-14m then Permian sandstones to 403-430m where the Proterozic target sequence was encountered. From top of Proterozoic, altered biotite rich rocks and calcareous sediments were intersected. Hydrothermal breccias and silica flooded mineralised zones persisted throughout. Laboratory analytical results returned peak gold of 137.69g/t and copper to 4.11% (HAD001). Broad mineralised intercepts of 121m at 2.93g/t gold and 0.23% copper from 497m, including 11.5m at 21.23g/t gold and 0.67% copper from 568.5m were noted (HAD001), and 21m at 3.79g/t gold 0.44% copper from 418m (HAD003).  Holes HAD002 and HAD004 appeared to be in the periphery of the system; grades increasing with depth. These results demonstrate the large scale of the mineralised system at Havieron and the potential for high grades of gold and copper.

A new drill campaign at Havieron commenced on schedule in mid September 2018 (as announced 17 September 2018) and includes up to ten core holes for a total of approximately 6,000 metres to further determine the extent of mineralisation at Havieron. The new drill programme is expected to take ten weeks to complete. Downhole geophysical surveys will also be commissioned and executed during this time.

The first hole of the new drilling campaign at Havieron (HAD005) is now complete. The hole was designed to provide structural and stratigraphic information along with indications of depth extent of the mineralised system at Havieron. HAD005 was collared 200m west of HAD001, angled at 70 degrees toward grid east, and projected to intersect mineralisation as seen at depth in HAD001. Geological inspection of HAD005 has confirmed the hole has intersected approximately 239m of significant mineralisation, visibly similar to that previously intersected in HAD001, to a depth of 781m.

HAD005 intersected 439m of recent desert sands and Permian siltstones and sandstones from surface to 458m before immediately entering the mineralised Proterozoic target sequence. From 458m to 577m (119m) minerallised brecciated calcareous limestone and sandstone with massive pyrite, chalcopyrite, pyrrhotite and quartz veining is present. From 577m to 662m (85m) an unmineralized mafic intrusion is observed. From 662m to 782m (120m) mineralised brecciated calcareous limestone and sandstone with sulphides (as per 458m to 577m above) continues, and from 782m to 822m (40m) unmineralised calcareous sandstone is present. HAD005 end of hole was 822m.

The HAD005 mineralised intercept is very encouraging and supports the Company's view that Havieron may represent a very large mineralised system. Drill core will be transported to the laboratory and initial analytical results are expected to be available in approximately six weeks, subject to laboratory availability. Drilling of HAD006 has commenced and further updates on progress of the drilling programme will be announced to market over the coming weeks.

Additional information on the Havieron, Paterson Range East and Black Hills 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

Gervaise Heddle/Callum Baxter

Tel: [phone]

Email:  [e-mail]

www.greatlandgold.com

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady/Andrew Emmott/James Keeshan

Tel: [phone]

SI Capital Limited (Broker)

Nick Emerson/Alan Gunn

Tel:  [phone]

Luther Pendragon (Media and Investor Relations)

Harry Chathli/ Alexis Gore

Tel: [phone]

Notes for Editors:

Greatland Gold plc (AIM: GGP) is a London listed natural resource exploration and development company with a current focus on gold, nickel and cobalt exploration projects.  

The Company has six main projects; four situated in Western Australia and two in Tasmania.  All projects are 100% owned by Greatland.

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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