Ernest Giles: Mobile Metal Ion Sampling Results

RNS Number : 4886N

Greatland Gold PLC

09 May 2018

 

9 May 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")

Ernest Giles: Mobile Metal Ion Sampling Results

Results highlight new gold targets and confirm existing gold targets at Greatland's 100% owned Ernest Giles project

Greatland Gold plc (AIM: GGP), the precious and base metals exploration and development company, is pleased to announce results of recent Mobile Metal Ion ("MMI") sampling at its Ernest Giles project.

Highlights of MMI sampling results at Meadows, Empress and Wishbone:

·    Results from over 980 MMI samples collected at Meadows, Empress and Wishbone areas have confirmed existing gold targets and generated new targets in each of the respective area;

·     At Meadows

o  MMI gold response broadly outlines and reflects results of Deep Sensing Geochemistry ('DSG') conducted by Newmont that identified a large 5km by 1.5km anomaly that sits approximately 1km to the north of previous drilling;

o  Results at Meadows also indicate a potential new large gold target, covering an area of approximately 4km by 1km, approximately 5km north west of previous drilling and the large anomaly previously identified by Newmont;

·     At Empress 

o  Results outline several clusters of elevated gold responses over a strike of approximately 9km with the overall trend of the elevated gold response matching that of the bedrock geology;

·     At Wishbone

o  Elevated MMI gold responses are apparent across the target, particularly in the north-west and central eastern parts.

As previously announced on 5 February and 20 February 2018, Greatland intends to conduct a Reverse Circulation ('RC') drilling programme at Ernest Giles. Drilling will be completed at the Meadows, Empress and Wishbone areas. The anticipated drill programme at Meadows will consist of approximately twenty-four holes to test the 5km x 1.5km anomaly defined by DSG work which remains untested by previous Greatland drilling. In addition, up to six RC holes will be completed at Wishbone and Empress to test basement geology and physical rock properties.

Gervaise Heddle, Chief Executive Officer, commented: "Results of our recent MMI campaign were better than expected as we identified new targets and confirmed existing known targets across all areas. The next stage is to commence a drilling programme at Ernest Giles, which includes plans for up to thirty drill holes and is scheduled to start before the end of this quarter."

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 ("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. 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 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 1.5 km 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. Results have now been received and reviewed.

At Meadows an area of approximately 10km x 8km was sampled. The MMI gold response is subtle but broadly outlines and reflects results of Deep Sensing Geochemistry ('DSG') by Newmont. It is noted that elevated MMI responses (peaking at 0.6ppb gold) were also returned from outside of the area covered by DSG, particularly along strike to the north west over an area of approximately 4km x 1km potentially outlining a new western target subparrallel to those defined by previous RC drilling. This new western target lies some 5km north-west of previous drilling and the large DSG anomaly previously identified by Newmont.

At Empress MMI sampling covered approximately 12km x 4km. Results outlined several clusters of elevated gold responses over a strike of approximately 9km (peaking at 0.5ppb gold). The overall trend of the elevated gold response matches that of bedrock geology as defined by detailed aeromagnetic data. 2018 MMI results broadly reflect the peak of historical MMI sampling at Empress.

At Wishbone MMI sampling was completed over an area of approximately 4km x 3km and extended coverage over the target to about 30 square kilometres. Elevated MMI gold response (to 0.4ppb gold) is apparent across the target, particularly in the north-west and central eastern parts.

As previously announced on 5 February and 20 February 2018 the Company intends to conduct a Reverse Circulation drilling programme at Ernest Giles. Drilling will be completed at the Meadows, Empress and Wishbone areas. The anticipated drill programme at Meadows will consist of approximately twenty-four holes to test the 5km x 1.5km anomaly defined by DSG work which remains untested by previous Greatland drilling. RC holes will be drilled on an initial 800m x 800m grid to depths of around 300m to 350m each. In addition, up to six RC holes will be completed at Wishbone and Empress to test basement geology and physical rock properties.

All relevant government approvals for drilling have been received and site preparations are complete. Drilling is scheduled to commence before the end of the second quarter of calendar 2018.

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/James Keeshan/Andrew Emmott

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 (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 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.

 

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