TIDMGGP
RNS Number : 2336F
Greatland Gold PLC
16 May 2017
16 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")
Agreement Reached on Ernest Giles Project
Greatland Gold plc (LON:GGP), the London Stock Exchange AIM
listed precious and base metals exploration and development
company, is pleased to announce that it has entered into an
agreement with Newmont Exploration Pty Ltd ("Newmont"), a
subsidiary of Newmont Mining Corporation (NYSE:NEM), one of the
world's largest gold producers, with respect to Greatland's 100%
owned Ernest Giles gold project.
Highlights
-- Newmont is granted access to Greatland's Ernest Giles project
tenements and exploration database for a period of six months;
-- Additionally, Newmont is granted a right of first refusal
should Greatland wish to sell or joint venture the Ernest Giles
project during that six month period;
-- The Ernest Giles project covers over 1,800 square kilometres
of a virtually unexplored greenstone belt that hosts multiple gold
exploration targets and, under this agreement, Newmont has the
right to apply certain proprietary exploration methods across this
portfolio of targets;
-- As stated in the announcements of 12 and 19 January 2017,
Greatland's successful drilling programme at the Meadows target
established Ernest Giles as a new gold province in Western
Australia:
o 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
o The majority of the RC holes drilled intersected
mineralisation including several that intersected wide zones (up to
60 metres) of anomalous gold mineralisation. Results returned, up
to 2g/t Au, including 2m at 1.51g/t and 1m at 1.54g/t
o Shallowest intercept was at 119 metres, suggesting that Ernest
Giles represents a large, relatively near surface gold exploration
target
Gervaise Heddle, Chief Executive Officer, commented: "We are
delighted to have entered into this agreement with Newmont which we
hope will significantly accelerate the realisation of the potential
value of this exciting gold project. This agreement represents a
major step forward for the Company and reinforces our view that the
Ernest Giles project has the potential to host several
multi-million ounce gold camps.
"We look forward to working with Newmont's Australian-based team
who will be able to bring their extensive collective skills and
experience in gold exploration, as well as their industry leading
proprietary exploration techniques, and apply them to the vast and
virtually unexplored Ernest Giles greenstone belt that is 100%
controlled by Greatland.
"On behalf of the Board of Greatland, I would like to thank
Callum Baxter and the Greatland technical team for all their work
in demonstrating the potential of Ernest Giles and for making
today's announcement possible."
Callum Baxter, Chief Technical Officer, commented: "This
agreement with Newmont represents a major milestone for the Ernest
Giles project and the Company. Our view is that the future of major
gold discoveries in Australia will be dominated by exploration
campaigns that seek to identify large mineralised systems under
cover. Newmont is perfectly positioned in this regard with both the
international experience and proprietary technologies that can
assist with the discovery and definition of large mineralised
systems under cover.
"The results from Newmont's work should significantly enhance
our understanding of the Ernest Giles greenstone belt, particularly
when added to the knowledge gained from our recent drilling efforts
(see announcements dated 12 January 2017 and 19 January 2017) and
the gravity and passive seismic surveys that are currently underway
(see announcement dated 20 April 2017).
"The discovery of two large zones of gold mineralisation at the
Meadows target in the southern portion of the Ernest Giles project
last year highlights the potential for the Ernest Giles project to
host several major gold camps."
Agreement with Newmont
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.
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
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).
A comprehensive ground based gravity survey is currently
underway over several targets to better define structural and
lithological features. Ground gravity station spacing will be
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.
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 +44 (0)20 7747 9980
Email: info@greatlandgold.com
www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated Adviser)
Mark Brady/Sean Wyndham-Quin/James Keeshan
Tel +44 (0)20 3368 3550
SI Capital Limited (Broker)
Nick Emerson / Andy Thacker
Tel +44 (0)14 8341 3500
Luther Pendragon (Media and Investor Relations)
Harry Chathli/Ana Ribeiro/Alexis Gore
Tel +44 (0)20 7618 9100
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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