Update on Western Australian Gold Projects

RNS Number : 1436R

Greatland Gold PLC

23 October 2013

 



23 October 2013

Greatland Gold plc

("Greatland" or "the Company")

Greatland Gold continues good progress on Western Australian Gold Projects

Greatland Gold plc, the mineral exploration and development company based in Australia, today announces progress at its gold projects located in Western Australia.

Highlights

·     Exceptional geochemical results from Ernest Giles; new target identified

·     Significant gold and nickel targets identified at Bromus

·     £675,000 raised during Q3; majority to be used to fund field work at priority licences

Callum Baxter, CEO, commented: "We are very happy with the progress we are making at our Western Australian gold projects, particularly the exciting results of sampling work at the Ernest Giles project which has identified a completely new target in the east of the project. These results, together with our successful fund raising in the quarter, take us a step forward in our plan to establish resources across our portfolio of assets."

Detail

Ernest Giles

The Ernest Giles project is located in central Western Australia and covers an area of 945 square kilometres. The project includes over 100km of strike of gold prospective rocks that are covered by recent desert sands and sediments. As a result, the project area is almost completely unexplored. In the region are several successful exploration discoveries such as Tropicana (AngloGold) of over 7 million ounces and Yamarna (Gold Road Resources) with over 1 million ounces.

The Company has recently completed trial Mobile Metal Ion (MMI) surface sampling and encouraging results have been received. MMI results have replicated the location of gold mineralisation where drilling by the Company in 2012 intersected gold mineralisation, and has also indicated extensions to that mineralisation some 800m south. MMI results here were up to 68ppb gold.

MMI sampling in the east of the project area has identified a completely new target with quite high results up to 338ppb gold over a strike length of 2km. The tenor of results is quite exceptional for the MMI technique and the Company will carry out verification sampling to confirm the significance of these results.

A full review of geophysical data sets was completed during Q3 2013 and the Company will engage an airborne geophysical contractor to acquire aeromagnetic and radiometric data over the northern and eastern parts of the project area. Flying of these areas is scheduled for the current quarter. Structural interpretation and integration of geochemical data will result in the definition of drill targets.

Bromus and Lackman Rock Projects

The Bromus and Lackman Rock gold projects are located in southern Western Australia approximately 25km and 75km south-west and of the gold mining town of Norseman. The Norseman gold operations have produced in excess of 5 million ounces.

At Bromus the Company has identified several geochemical targets over 10km of strike within which gold mineralisation has been confirmed. Mapping and drill program planning will be carried out during Q1 2014.

Recently released detailed government aeromagnetics outlines a 4.5km long nickel prospective ultramafic unit in the central parts of the Bromus project area. Historical records confirm consistently high nickel levels at surface. Although nickel is not the Company's target commodity this is a promising find that will be followed up during the current quarter.

Work by the Company at Lackman Rock has confirmed the presence of gold prospective rocks below a thin cover of surficial material approximately 2m thick. Several surface gold anomalies have been identified and are scheduled for further work during Q2 2014.

Capital Raising

A placing of shares to raise gross proceeds of £450,000 was announced on 9 September this year and the Company is pleased to confirm the placing has been completed. Combined with a placing announced on 8 August 2013, total funds raised during Q3 were £675,000. A large portion of the funds raised will be allocated to field work at our priority licences, primarily drilling. A further update on the Company's upcoming drilling activities at the Warrentinna project will be provided during the current quarter.

Enquiries:

Greatland Gold PLC

Callum Baxter

Tel [phone]

Email:  [e-mail]

www.greatlandgold.com

Grant Thornton UK LLP

Colin Aaronson / David Hignell

Tel [phone]

SI Capital Limited

Nick Emerson / Andy Thacker

Tel  [phone]

RLM Finsbury

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

The 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. 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 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. 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.

All MMI samples collected by the Company were sieved (-2mm) to 250g and analysed for a broad suit of elements using MMI-M digest by SGS Laboratories in Perth, Western Australia.

 

END

 

 

MSCMTBFTMBITBMJ