Update on Firetower Gold Project

RNS Number : 0803I

Greatland Gold PLC

27 May 2014

 



27 May 2014

Greatland Gold plc

("Greatland" or "the Company")

Commencement of Diamond Drilling at Firetower Gold Project

Greatland Gold plc, the mineral exploration and development company based in Australia, is pleased to announce the commencement of diamond drilling activities at the Firetower gold project ("Firetower") in Tasmania.

Highlights

·     Commencement of diamond drilling at Firetower West

·     Further work for Firetower gold prospect plus Quamby and Beulah areas

·     Greatland and Unity agree extension of time to achieve 51% milestone under the Farm-In/JV agreement

Callum Baxter, CEO, commented: "The results of ground geophysical surveys recently carried out by our partner at the Firetower gold project, Unity Mining Ltd, have been positive and drill targeting is complete. This is another step forward for Firetower which remains a key project for Greatland Gold. We are also delighted to have extended our relationship with Unity and look forward to working with them to realise the potential of this exciting project."

Firetower Project (gold), Tasmania

The Firetower project comprises four contiguous licences covering an area of 265 square kilometres in central-north Tasmania. The project is subject to a Farm-In agreement dated 7 Oct 2011, whereby Australian Stock Exchange ("ASX") listed Unity Mining Limited ("Unity") may earn 75% via expenditure of A$7m.

During late 2013 and early 2014 a 3D IP ground geophysical survey was completed at the Firetower West prospect. The survey targeted copper/gold mineralisation in and around the edges of the Firetower West magnetic high. This work followed from holes drilled during 2007 and 2012 on the periphery of the anomaly which returned results including 1m at 2.65g/t gold from 97m and 1m at 0.58% copper from 114m in hole FTD32, and 5m at 0.76% copper from 57m including 1m at 1.44% copper in hole FTD33.

Data from the 3D IP survey was modelled. This outlined a strong, relatively shallow and consistent zone of chargeability approximately 800m long and up to 400m wide. The core of this zone will be tested with a single 300m deep  diamond hole. Unity have undertaken all necessary planning and drilling has commenced.

Results from the current diamond drilling will be announced as they come to hand.

Corporate

The Firetower project is subject to a Farm-In agreement dated 7 Oct 2011 between Greatland and Unity. Under the agreement two milestones are required for Unity to earn an intitial 51% of the project. The first milestone was to spend a minimum of A$0.2m within 12 months and this was duly completed. The second milestone was to spend A$2m within 30 months to earn 51%.

Unity advised that it would not achieve the second milestone within the 30 month period (to 6 April 2014); the shortfall was approximately A$0.6m. This has been due to a combination of impediments being primarily weather conditions and the time taken to interpret new geophysical data.

Depite this, Unity have expressed that it is keen to progress its exploration efforts at Firetower and has demonstrated a clear and consistent commitment to the Firetower project over the past two and a half years, maintaining the tenements in good standing and progressing exploration. All work to date by Unity has been done to a high standard led by an experienced and highly regarded techincal team.

A 12 month extension of time for the second milestone was agreed to by both parties and executed as a 'Deed of Variation'. Under this arrangement the extension, which allows Unity to earn 51% through completing expenditure of A$2m before 7 April 2015, is conditional on Unity completing, to the satisfaction of Greatland, a defined exploration programme including diamond drilling at Firetower West, diamond drilling at the main Firetower gold prospect, and  percussion drilling within the Quamby and Beulah licences before 31 December 2014. To date, Greatland retains 100% of the project.

Enquiries:

Greatland Gold PLC

Callum Baxter

Tel [phone]

Email:  [e-mail]

www.greatlandgold.com

Grant Thornton UK LLP (Nomad)

Colin Aaronson / David Hignell

Tel [phone]

SI Capital Limited (Broker)

Nick Emerson / Andy Thacker

Tel  [phone]

RLM Finsbury (Media Relations)

Gordon Simpson / Chris Ryall

Tel [phone]

Notes to Editors

Greatland Gold is a mineral exploration and development company based in Australia. The principal activity of Greatland Gold plc is to explore for and develop natural resources, with a focus on gold. The Company currently has six mineral projects located in Australia, including the Ernest Giles, Firetower, Warrentinna, Lisle, Bromus and Lackman Rock projects. The pipeline of projects targets highly prospective areas for multi-million ounce orebodies. The Company was established in London in 2005 and admitted to AIM in July 2006.

The board seeks to increase shareholder value by the systematic evaluation of its existing resource assets, as well as the acquisition of suitable exploration and development projects and producing assets.

Greatland has a UK and Australian based board of directors with a head office in London and an exploration office in Australia.

Competent Persons

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). 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.

 

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