TIDMGGP
RNS Number : 7810K
Greatland Gold PLC
26 September 2016
26 September 2016
Greatland Gold plc
("Greatland" or "the Company")
Acquisition of Havieron Gold Project
Greatland Gold plc (LON:GGP), the London Stock Exchange AIM
listed precious and base metals exploration and development
business, is pleased to announce that it has entered into an
agreement to acquire 100% of the Havieron Gold Project in Western
Australia.
Highlights
-- Greatland agrees to acquire 100% of the Havieron Project in
Western Australia for an initial payment of A$25,000 in cash and
the issuance of 65,490,000 ordinary shares of 0.1 pence each in the
Company ("Ordinary Shares") (approximate value A$225,000), and a
second payment, triggered upon a decision to mine, of 145,530,000
Ordinary Shares (approximate value A$500,000);
-- Havieron Project covers 135 square kilometres in the Paterson
Region of north western Australia and is located approximately 40
kilometres east of Newcrest's Telfer gold mine (27 million ounces
of gold produced to date);
-- Limited historical exploration by Newcrest in the late 1990s
demonstrated high grade gold and copper mineralisation at Havieron
with peak values of 15.45g/t Au and 2.5% Cu;
-- The Havieron Project provides Greatland with a walk up
resource definition drill target and other exciting exploration
targets in a region that is attracting increasing interest from
major mining and exploration companies.
Callum Baxter, Executive Director, commented: "We are delighted
to have entered into a binding agreement with Pacific Trends
Resources Pty Ltd to purchase 100% of the rights to the Havieron
Project ("Havieron") in Western Australia. The Havieron Project has
demonstrated high grade gold and copper mineralisation and provides
Greatland with a walk up resource definition drill target in
addition to several regional exploration targets.
The Havieron Project covers 135 square kilometres of
under-explored ground in the Paterson Province in Western
Australia. The Paterson Province is an area that is gaining
interest from numerous entities including Rio Tinto (ASX:RIO) which
recently acquired ground immediately adjacent to Havieron.
The Havieron Project is located approximately 40 kilometres east
of the prolific Telfer gold mine (owned by Newcrest) that has
produced 27 million ounces of gold since it began operations in
1977. Other discoveries in the region include Magnum (Au) and
Calibre (Au), both owned by Antipa Minerals (ASX:AZY), O'Callaghans
(Cu), Maroochydore (Cu) and the recent Paterson North gold
discovery by SIPA Minerals (ASX:SRI).
The Havieron target as outlined by geophysics is large, covering
approximately 1,000m x 1,000m. During the period 1991-2003,
Newcrest completed six diamond drill holes at Havieron. All holes
intersected significant alteration and three holes intersected
significant Au-Cu skarn style mineralisation. Hole HAC9101
intersected 103m@0.44g/t Au, including 30.6m@1.0g/t Au and 0.28% Cu
with a peak gold value of 14.7g/t Au. Hole HAC9201 intersected
82.3m@0.4g/t Au, including 28m@1.0g/t Au and 0.22% Cu with a peak
gold value of 15.4g/t Au. Mineralisation starts at 400 metres below
surface. Mineralisation is open in all directions and at depth.
We believe that the initial consideration of A$25,000 in cash
and the issuance of 65,490,000 Ordinary Shares in (approximate
value A$225,000), represents a very modest initial payment given
the potential at Havieron. We would also note that the second
payment, the issuance of an additional 145,530,000 Ordinary Shares,
will only occur if a bankable feasibility study is successfully
completed and a decision to mine occurs at Havieron."
Havieron Purchase Agreement
Under the purchase agreement executed on 26 September 2016
between Pacific Trends Resources Pty Ltd (the "Vendor"), Greatland
Pty Ltd (the "Purchaser") and Greatland Gold PLC, the Purchaser
agreed to acquire all of the Vendor's rights, title and interest in
the mining tenement EL45/4701 (the "Havieron Project") once granted
and subject to the satisfaction of certain conditions.
The consideration to be paid to the Vendor by the Purchaser
consists of AUD$25,000 in cash and 65,490,000 fully paid ordinary
shares in Greatland Gold PLC to be issued by Greatland Gold PLC.
This consideration by the Purchaser is payable to the Vendor upon
receipt of:
(a) an unstamped but registrable transfer form for the Mining
Tenement in favour of the Purchaser and duly executed by the Vendor
and all documents of title evidencing the Vendor's interest in the
Mining Tenement;
(b) a copy of the Native Title Heritage Agreement in respect of
the Mining Tenement which has been previously approved by the
Purchaser and signed by all parties to that agreement; and
(c) confirmation from the Department of the grant of the Mining Tenement to the Vendor.
In the event the Licence Area is the subject of a completed
bankable feasibility study and the Purchaser makes a decision to
mine, Greatland Gold PLC must issue, within thirty days after the
date that decision to mine is made by the Purchaser, an additional
145,530,000 fully paid ordinary shares in Greatland Gold PLC to the
Vendor.
Havieron Project, Western Australia
The Havieron project is located in the Paterson region of
northern Western Australia. The Paterson region hosts several large
gold and copper deposits such as Telfer (27M oz) and Nifty (2MT
copper). The region has been subject to more recent exploration
which has outlined several other deposits including Magnum (Au),
Calibre (Au), O'Callaghans (Cu) and Maroochydore (Cu).
The project is remote, however infrastructure is good with
several operating mines and sealed roads and formed tracks plus
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 identified within the western parts of the
Australian continent have resulted in the discovery of the large
Tropicana gold deposit (7.9M oz) and large Nova nickel-copper
deposit (10MT). Globally these Proterozoic Orogens are highly
prospective for large deposits, and are often under-explored.
Alteration and mineralisation at Havieron displays similarities
to IOCG-type deposits. Examples of these are the large Olympic Dam
and Ernest Henry deposits in central and eastern Australia.
Geophysical data has 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. Only six drill holes have been completed to date with
all intersecting significant alteration and gold plus copper
anomalism.
Thick lower grade zones of gold and copper have been intersected
and within these gold grades peak at 15.4g/t and copper to 2.5%.
Current drill hole spacing is broad and so the core of Havieron
represents an immediate resource definition drilling target.
Other regional exploration targets are evident within the
licence area and Greatland intends to pursue these during the
course of field activities.
Additional information on the Havieron project will be made
available on the Company's 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/Alex Borrelli
Tel +44 (0)20 7747 9980
Email: info@greatlandgold.com
www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated Adviser)
Mark Brady/ Sean Wyndham-Quin /James Keeshan
Tel +44 (0)20 3368 3550
SI Capital Limited (Broker)
Nick Emerson / Andy Thacker
Tel +44 (0)14 8341 3500
Notes for Editors:
Greatland Gold PLC is a 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.
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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