Greatland Gold PLC Havieron Project - Drilling Update (3035J)

TIDMGGP

RNS Number : 3035J

Greatland Gold PLC

04 December 2018

4 December 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")

Havieron Project - Drilling Update

Greatland intersects significant visible mineralisation in every hole of current drilling campaign at Havieron

Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, is pleased to announce that initial observations reveal the intersection of significant visible mineralisation in every hole of the Company's current drilling campaign at its 100% owned Havieron licence.

Laboratory results for the first hole of the current drilling campaign (HAD005), reported on 19 November 2018, returned a combined intercept of 275m at 4.77g/t gold and 0.61% copper, including an upper zone of 118m at 3.08g/t gold and 0.84% copper from 459m and a lower zone of 157m at 6.04g/t gold and 0.44% copper from 660m.

Highlights of observations for drill holes HAD006-HAD009:

-- Four additional holes in current drill campaign, HAD006-HAD009, completed with all holes intersecting significant visible mineralisation and holes HAD006 and HAD009 both ending in mineralisation at 838m and 932m respectively;

-- HAD006 intersected mineralised brecciated calcareous sandstones from 475m to end of hole at 838m. Mineralisation throughout the interval varied in intensity and the hole ended in mineralisation;

-- HAD007 intersected variably silica altered calcareous sandstones from 467m to 550m; concentration of visible mineralisation increasing with depth. A barren mafic intrusive was present from 550m to 601m. From 601m to end of hole at 755m silica altered calcareous sandstones were intersected with visible laminated mineralisation interspersed;

-- HAD008 intersected mineralised brecciated calcareous sandstones from 426m to 516m; concentration of mineralisation increasing with depth. From 516m to end of hole at 772m a barren mafic intrusive was intersected;

-- HAD009 intersected strongly fractured to brecciated carbonate and silica altered sandstones from 667m to 750m with mineralisation increasing with depth. From 750m to 806m brecciated mineralised calcareous sandstones were present. From 806m to 844m a barren mafic intrusive was intersected. From 844m to end of hole at 932m strongly fractured and brecciated mineralised silica altered calcareous sandstones were present.

While laboratory assay results for HAD006 through HAD009 are not available at this point, and there can be no guarantee that laboratory assay results will be similar to those of HAD001 or HAD005, the observation of mineralisation in the four additional holes (HAD006 through HAD009) is considered material because it demonstrates the presence of a significant mineralised system at Havieron.

Downhole wireline work is continuing on site with drill rig assistance. It is expected the field crew and drilling equipment will be demobilised prior to mid-December ahead of a new drilling campaign scheduled to commence in Q1 2019.

Laboratory analysis for HAD006-HAD009 and results of downhole geophysical wireline work will be available in the coming weeks.

Gervaise Heddle, Chief Executive Officer, commented: "We are very pleased to see significant visible mineralisation in all holes of the current drilling campaign. We believe that these observations, when combined with recently reported assay results and the results from new geophysical modelling, provide further evidence to support our view that Havieron has the potential to represent a very large mineralised system.

"We are also encouraged to have seen the greatly increased level of activity in the Paterson by major industry participants which has served to highlight the value of Greatland's strategic position in the region."

The Paterson project covers more than 385 square kilometres in the Paterson region of Western Australia and includes the Havieron licence, the Paterson Range East licence, and the recently acquired Black Hills licence.

Limited historical drilling was conducted by Newcrest Mining Limited ("Newcrest") at Havieron during the 1990s and early 2000s where six holes were drilled, all of which intersected significant alteration and gold plus copper anomalism. Thick lower grade zones of gold and copper were intersected by Newcrest and gold grades within these peaked at 15.4g/t and copper to 2.5%.

Greatland's drilling campaigns at Havieron have yielded excellent results to date, including:

   --     121m at 2.93g/t gold and 0.23% copper from 497m (HAD001). 
   --     21m at 3.79g/t gold 0.44% copper from 418m (HAD003). 

-- Combined intercept of 275m at 4.77g/t gold and 0.61% copper, including an upper zone of 118m at 3.08g/t gold and 0.84% copper from 459m and a lower zone of 157m at 6.04g/t gold and 0.44% copper from 660m (HAD005).

All holes completed to date in the current campaign (HAD005-HAD009) have intersected significant visible mineralisation.

A regional map showing the Havieron licence area with regional targets and adjacent landholdings can be found at: http://greatlandgold.com/paterson/

Overview of Paterson Project, Havieron licence and HAD005-HAD009 Observations

The Company's Paterson project, comprising the Havieron, Black Hills and Paterson Range East licences, is located in the Paterson region of northern Western Australia. The three licences collectively cover more than 385 square kilometres prospective for iron-oxide-copper-gold ("IOCG") type deposits and Telfer style gold deposits.

The Paterson region hosts several large gold and copper deposits such as Telfer and Nifty. The region has been subject to more recent exploration which has outlined several other deposits including Magnum (Au), Calibre (Au), O'Callaghans (W, Cu) and Maroochydore (Cu).

The region is remote, however infrastructure is good with several operating mines, roads, formed tracks and rail networks nearby which branch out from the regional industrial hub of Port Hedland 500km to the west.

The Paterson Province is the northern portion of the Proterozoic Paterson Orogen. More recent exploration throughout several Proterozoic Orogens within the western parts of the Australian continent has resulted in the discovery of the large Tropicana gold deposit and the large Nova nickel-copper deposit. Globally these Proterozoic Orogens are highly prospective for large deposits and are often under-explored.

Alteration and mineralisation of those targets which have been drill tested at Havieron and Paterson Range East display affinities with IOCG-type deposits. Examples of these are the large Olympic Dam and Ernest Henry deposits in central and eastern Australia.

Initial airborne data outlined the Havieron target as covering approximately 1,000m x 1,000m. Depth to top of target is around 400m with these depths easily achieved with modern drilling equipment. Historically only six drill holes were completed by Newcrest between 1991 and 2003, all of which intersected significant hematite alteration and gold, plus copper anomalism. Thick lower grade zones of gold and copper were intersected and gold grades within these peaked at 15.4g/t and copper to 2.5%. The drill hole spacing was broad and the core of Havieron therefore represented an immediate resource definition drilling target.

Following a review of regional geophysical and geochemical data over the Paterson project approximately 50 IOCG-like targets were identified in the broader region, with around half in ground held by Greatland. The setting of these licences is on the western margin of a Proterozoic basin which ranges in depth from less than 100m below surface to more than 400m below surface. Basement rocks of the basin are predominantly calcareous rich sandstones intruded by several late stage granitic bodies exploiting basin margin faults which have also provided a focus for ore fluids. Historically, several of these targets were subject to initial first-pass work and show promise at hosting mineralisation as seen at Havieron. The geophysical signature of these targets is very similar to that at Havieron. Basement rocks do not outcrop and Greatland deployed modern geophysical and geochemical methods to define targets prior to drill testing.

MMI sampling and ground gravity over the Havieron target was completed in late 2017 at an initial sample and station spacing of 200m x 200m. Gravity results confirmed a north west structural trend of basement carbonate sediments which is mirrored by the surface MMI response. Clusters of elevated gold, silver, arsenic, copper and iron in MMI results are proximal the peak co-incident gravity and magnetic response. An elevated MMI response in pathfinder elements (cerium, lanthanum, uranium and lead) to the immediate SE of Havieron suggests primary basement mineralisation may be present along strike in a structural contact for up to 1.5 kilometres. Peak MMI responses over Havieron were 4ppb silver, 70ppb arsenic, 25ppb gold, 834ppb cerium, 710ppb copper, 53ppm iron, 284ppb lanthanum, 860ppb lead and 112 ppb uranium. Elevated pathfinder elements detected by the MMI survey support the view that Havieron is an IOCG-like system.

Initial forward modelling of detailed aeromagnetic data (50m line spacing and 40m mean terrain clearance) and detailed ground gravity data (100m x 100m and 100m x 200m station spacing) over the Havieron target was completed in February 2018. Results of forward modelling defined a primary body approximately 600m x 600m across with a depth extent from 400m to 900m below surface. Modelled bodies were constrained to known physical rock properties available at the time.

New 3D geophysical models of the Havieron target were recently produced and reported to market on 27 November 2018. Combined, the new gravity and magnetic bodies cover approximately 600m x 600m north-south when the outer shells of the bodies are considered. Results of modelling of gravity data outline a large irregular shaped body, some 300m across, from approximately 400m below surface (top of basement) to 1,200m below surface with an overall subvertical attitude. Result of modelling of magnetic data define a discrete elliptical shaped body approximately 450m across that is steeply dipping (subvertical) toward the south east with a depth extent from around 800m below surface to approximately 1,400m below surface (but the body may continue beyond 1,400m as this is the current limit of data resolution). When 3D gravity and magnetic models are compared there is a +500m vertical and +200m lateral offset between the centres of the causative bodies.

In April and May of 2018, Greatland carried out its maiden drill campaign at the Havieron target completing four vertical core holes (HAD001-004) for a total of approximately 2,400m of drilling. Greatland's drill locations were designed to intersect the mineralised system at Havieron near to historical drill holes HAC9101 and HAC9201. Newcrest's historic drill holes HAC9101 and HAC9201 were vertical and drilled to depths of 533m and 528m respectively. Significant results were returned including 121m at 2.93g/t gold and 0.23% copper from 497m, including 11.5m at 21.23g/t gold and 0.67% copper from 568.5m (HAD001) and 21m @ 3.78g/t gold and 0.44% copper from 418m, including 1m at 29.12g/t gold and 0.4% copper from 428.5m (HAD003).

The company re-commenced drilling at Havieron in September 2018 to complete up to 6,000m of drilling. The first hole of the current drilling campaign, HAD005, was sited 200m west of HAD001 and angled at 70 degrees toward grid east. HAD005 penetrated the Permian cover sequence to 459m before immediately entering the mineralised Proterozoic target sequence. HAD005 returned an overall intercept of 275m at 4.77g/t gold and 0.61% copper (approximately 1,580 metre grams gold equivalent) from an upper zone of 118m at 3.08g/t gold and 0.84% copper from 459m, and a lower zone of 157m at 6.04g/t gold and 0.44% copper from 660m (as reported to market 19 November 2018), separated by an apparently unmineralised mafic intrusion. Other metals are present in the system including silver to 211g/t, lead to 12% and zinc to 5.9%.

HAD006 was collared 50m south of HAD001 and drilled vertical to track mineralisation as seen in HAD001 and HAD005. HAD006 intersected desert sands and calcrete to 3m then Permian sediments to 424m before entering the Proterozoic target sequence. From 424m to 475m a barren mafic intrusive was intersected. From 475m the hole intersected mineralised brecciated calcareous sandstones to end of hole at 838m. Mineralisation throughout varied in intensity and the hole ended in mineralisation. Analytical results are awaited.

HAD007 was sited 250m east of HAD001, angled at 70 degrees toward grid west, and designed to collect structural information on the host rock sequence. HAD007 intersected desert sands and calcrete to 4m then Permian sediments to 467m before entering the Proterozoic target sequence. From 467m to 550m variably silica altered calcareous sandstones were apparent; concentration of visible mineralisation increasing with depth. A barren mafic intrusive was present from 550m to 601m and then from 601m to 755m (eoh) silica altered calcareous sandstones were intersected with visible laminated mineralisation interspersed. Analytical results are awaited.

HAD008 was collared 50m east and 50m south of HAD001 and was designed to track mineralisation as seen in HAD001 and HAD005, and to test the attitude of the barren mafic intrusive. The hole was drilled vertical but deviated slightly to the north. HAD008 intersected desert sand and calcrete to 5m then Permian sediments to 426m before entering the Proterozoic target sequence. From 426m to 516m mineralised brecciated calcareous sandstones were apparent; concentration of mineralisation increasing with depth. Then from 516 to 772m (eoh) a barren mafic intrusive was intersected. Analytical results are awaited.

HAD009 was collared 350m east and 100m south of HAD001 and was designed to intersect mineralisation at depth as seen in HAD005 and to test depth extensions of mineralisation. HAD009 was angled at 70 degrees and drilled toward grid west. The hole intersected desert sand and calcrete to 4m then Permian sediments to 460m before entering the Proterozoic target sequence. From 460m to 667m laminated calcareous sandstones were intersected. From 667m to 750m strongly fractured to brecciated carbonate and silica altered sandstones were present with mineralisation increasing with depth. From 750m to 806m brecciated mineralised calcareous sandstones were present. From 806m to 844m a barren mafic intrusive was intersected. Then from 844m to 932m (eoh) strongly fractured and brecciated mineralised silica altered calcareous sandstones were present. Mineralisation was to end of hole. Analytical results are awaited.

HAD009 will be the last hole for the 2018 field season. HAD009 is complete but downhole wireline work is continuing on site with rig assistance. It is expected the field crew and drilling equipment will be demobilised prior to mid-December. The Company has booked drill rigs for the next campaign at Havieron which is expected to commence in Q1 2019. Laboratory analysis and results of wireline work will be available in the coming weeks.

Existing drill holes have tested to approximately 850m vertically below surface. Elevated gold and copper persisted to end of several holes (based on analytical results to date) suggesting the mineralisation continues at depth below the current limit of drilling. Visible mineralisation at end of hole in HAD009 (at 932m downhole) further supports this belief. The laboratory results from recent drilling demonstrate the presence of very high grades of gold and copper at Havieron, and when considered in conjunction with geophysical models, the potential large scale of the mineralised system is apparent.

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

Gervaise Heddle/Callum Baxter

Tel: [phone]

Email: [e-mail]

www.greatlandgold.com

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady/Andrew Emmott/James Keeshan

Tel: [phone]

SI Capital Limited (Broker)

Nick Emerson/Alan Gunn

Tel: [phone]

Luther Pendragon (Media and Investor Relations)

Harry Chathli/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.

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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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December 04, 2018 02:01 ET (07:01 GMT)