Update on Ernest Giles Drilling Campaign

RNS Number : 5450Z

Greatland Gold PLC

03 September 2018

 

3 September 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")

Update on Ernest Giles Drilling Campaign

Greatland's first drill campaign at Wishbone detects gold, silver and copper mineralisation.

First drill hole to intersect basement at Carnegie returns consistent nickel response.

Greatland Gold plc (LON:GGP), the precious and base metals exploration and development Company, is pleased to announce drilling results from the Wishbone, Carnegie and Empress areas within the Company's 100% owned Ernest Giles project in Western Australia.

Following positive Mobile Metal Ion ("MMI") sampling results earlier this year, Greatland embarked on a Reverse Circulation ("RC") drilling campaign across the Ernest Giles project from June through August 2018 which focused on high priority gold targets at the Meadows, Wishbone and Empress areas, and a nickel sulphide target at the Carnegie area. Drilling commenced at Empress, then progressed to Carnegie, Wishbone and finally Meadows.

Highlights of Drilling Results from Wishbone, Carnegie and Empress

Wishbone

·     Two maiden drill holes were completed to test structural targets;

·   Mineralisation in the form of disseminated sulphides was seen throughout basement rocks (ERC036);

·    Anomalous gold, silver and copper detected (ERC036: up to 38ppb gold, 0.44ppm silver and 0.15% copper).

Carnegie

·   One drill hole was completed to test a nickel sulphide target resembling both the geophysical signature and size of Independence Group's Nova nickel deposit;

·     Basement was successfully intersected at Carnegie (ERC034) for the first time;

·    Encouragingly, a consistent nickel anomalous response was detected in basement (up to 0.02%) from 380m to 408m (end of hole).

Empress

·     Two RC drill holes completed to test a surface MMI anomaly;

·     One hole successfully reached basement (ERC032);

·    Anomalous gold (45ppb) was detected from surface to 4m depth, but the source of this gold response remains unexplained.

The drill holes completed at the Empress, Carnegie and Wishbone areas represent very early stage exploration work over an area of approximately 500 square kilometres. Drill results received to date will be further reviewed in a regional context along with airborne and surface data sets.

Greatland has also completed drilling at Meadows to assess the large, untested 5km x 1.5km anomaly defined by Newmont's Deep Sensing Geochemistry ("DSG") work and supported by Greatland's MMI sampling. The Company expects to receive these results in approximately four weeks.

Gervaise Heddle, Chief Executive Officer, commented: "We are very encouraged by the initial drill results from Wishbone and Carnegie, which reaffirm our exploration model for both areas and our view that, while very early stage, both targets are highly prospective.

"The Wishbone area includes a number of high priority structural targets and it is noteworthy that we have intersected disseminated sulphides throughout the basement rocks in just our first drilling campaign in the area.

"We are also encouraged by the consistent nickel response in basement at Carnegie, a large nickel sulphide target with a geophysical signature similar to Independence Group's Nova nickel deposit. Importantly, this is the first and only hole that has intersected the target rocks in basement.

"In regards to Empress, we intend to undertake further work to understand the source of the highly elevated gold response at surface in both RC drilling and MMI surface sampling."

Overview of Ernest Giles Project

The Ernest Giles project is located in central Western Australia, covering an area of more than 2,000 square kilometres that includes over 230km 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 seven million ounces, and Yamarna/Gruyere, Gold Road Resources (ASX: GOR) and Gold Fields Ltd (NYSE: GFI), with over 6 million ounces. The Company is targeting large +5 million ounce deposits and clusters of several camp-type +1 million 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 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 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. Holes were drilled 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 and results from this sampling were positive over the Meadows and Empress areas.

In May 2017, a detailed airborne survey was acquired over the northern sequences and the newly secured Ernest Giles East block which includes an 800 square kilometre area covering a 90km long north-south trending sequence of rocks that represents a continuation of the gold prospective greenstone sequence.

In June 2017, a comprehensive ground gravity survey was completed over parts of the Western licences at a station spacing of 1,600m x 200m. Data was collected over the Empress, Wishbone and greater Meadows area. The ground gravity data integrated with airborne magnetics highlighted several additional targets conducive to gold mineralisation at each of the areas surveyed.

During September 2017, Greatland completed its initial work over the Eastern block. The Eastern block, covering 800 square kilometres, represents an extension of the gold prospective Ernest Giles greenstone sequences. Work included broad spaced ground gravity and first pass MMI sampling. Gravity work was completed on a station spacing of 1,600m x 200m while MMI samples were collected on 3,200m x 400m centres.

MMI results outlined multiple gold anomalies over approximately 60km of strike. Many anomalies present as clusters of elevated responses over several adjoining east-west sample traverses with peak responses up to 1.3ppb gold (against a background of 0.0-0.1ppb). Several anomalies exhibit a strike length in excess of 9km and up to 3km wide. Ground gravity and detailed airborne magnetics confirms the MMI anomalies lie subparallel to the regional geological strike or within cross cutting structures displaying demagnetisation of bedrock geology.

Newmont Exploration Pty Ltd ("Newmont") carried out a Deep Sensing Geochemistry ("DSG") survey at the Ernest Giles project during 2017. DSG sampling was completed at the Meadows area and results successfully defined several gold anomalies, the most significant of which is large at approximately 5km long and 1.5km wide in the vicinity of previous Greatland drilling which had intersected gold mineralisation in Archean basement rocks under 100-200m of cover.

MMI sampling was completed at Ernest Giles during March and April 2018. Over 980 samples were collected at a spacing of 800m x 200m over the Meadows, Empress and Wishbone targets. At Meadows the MMI gold response was subtle but broadly outlines and reflect results of Deep Sensing Geochemistry by Newmont while at Empress results outlined several clusters of elevated gold responses over a strike of approximately 9km. Results from Wishbone showed an elevated gold MMI response across the target, particularly in the north-west and central eastern parts.

As announced on 22 June 2018, and continuing through July and August 2018, the Company embarked on a Reverse Circulation drilling programme across the Ernest Giles project. Drilling commenced at Empress, then progressed to Carnegie, Wishbone and finally Meadows. All drill holes were vertical. The drilling programme is now complete and all samples were periodically dispatched to the laboratory. Early results from drilling at the Empress, Carnegie and Wishbone targets have been received and are reported below. Results from the Meadows area are awaited and expected in the coming weeks.

At Empress two holes were completed to test a surface MMI anomaly (ERC032-033). Only one hole successfully reached basement intersecting syenite form 314m below surface. Highest result at Empress was 4m at 45ppb from surface in ERC032 which largely explains the elevated surface MMI gold response. However, the source of the elevated gold at surface remains unexplained.

At Carnegie one hole was completed to test a nickel target (ERC034). Basement was intersected at 373m and the hole total depth was 408m. ERC034 was the first drill hole by Greatland that has successfully intersected basement at Carnegie. A consistent nickel response was detected in basement (to 0.02%) from 380m to 408m (end of hole) in ERC034.

At Wishbone two maiden drill holes were completed to test structural targets. Holes were completed to depths of 498m (ERC035) and 408m (ERC036). The initial, deeper, hole failed to intersect basement despite being drilled to 498m (ERC035). The second hole (ECR036) intersected basement at 373m. Basement lithologies included syenite and ultramafic lithologies displaying structural deformation and magnetite alteration, and mineralisation in the form of disseminated sulphides is seen throughout. Results from basement rocks reported up to 38ppb gold, 0.44ppm silver and 0.15% copper. Structural alteration of bedrock with sulphide mineralisation and low level gold, silver and copper suggest the broader area is prospective.

The drill holes completed at the Empress, Carnegie and Wishbone areas represent very early stage exploration work over an area of approximately 500 square kilometres. Drill results received to date will be further reviewed in a regional context along with airborne and surface data sets.

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

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/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.  

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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