Greatland Gold PLC Agreement Reached on Ernest Giles Project (2336F)

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 [phone]

Email: [e-mail]

www.greatlandgold.com

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady/Sean Wyndham-Quin/James Keeshan

Tel [phone]

SI Capital Limited (Broker)

Nick Emerson / Andy Thacker

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 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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May 16, 2017 02:36 ET (06:36 GMT)