TIDMGGP
RNS Number : 6407V
Greatland Gold PLC
06 November 2017
6 November 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")
Greatland Gold adds to its Paterson Project through Acquisition
of Black Hills Gold Project
Black Hills Gold Project hosts known high-grade gold at surface
in similar style to the Newcrest Telfer gold mine
Greatland Gold plc (AIM:GGP), the precious and base metals
exploration and development company, is pleased to announce that it
has acquired 100% of the Black Hills gold project in the Paterson
Region of Western Australia for A$225,000. The consideration
consists of a cash payment of A$25,000 and the issuance of
6,500,000 new ordinary shares of 0.1 pence each in the Company
("Ordinary Shares") with an approximate value of A$200,000.
Highlights:
-- Greatland acquires 100% of the rights, title and interest in
the mining tenement E45/4512 (the "Black Hills gold project");
-- The Black Hills gold project covers 25 square kilometres in
the Paterson region and sits adjacent to the north western border
of Greatland's Havieron licence;
-- Historical work at Black Hills by Newcrest Limited has
demonstrated high grade gold at surface with rock chip results up
to 90g/t gold and drill intercepts including 4m at 7.0g/t gold from
25m;
-- The Black Hills project is regarded as having high potential
for hosting gold deposits similar to Newcrest's Telfer Mine;
and
-- The acquisition increases the size of Greatland's Paterson
project to more than 385 square kilometres prospective for
iron-oxide-copper-gold ("IOCG") and Telfer style deposits.
The Black Hills gold project is located in the Paterson Region
of Western Australia and lies adjacent to the Company's Havieron
licence. Previous work by Newcrest Limited has outlined several
zones of gold mineralisation in rocks equivalent to those of the
large Telfer gold deposit (27m oz) which lies 30km to the west.
Surface rock chip samples from Black Hills have returned up to
90g/t gold. Historical drilling is wide spaced (drill holes at
least 400 metres apart), with intercepts including 4m at 7.0g/t
from 25m. Management believes that the gold prospects identified to
date on the Black Hills licence may extend into the north western
portion of Greatland's Havieron licence.
Gervaise Heddle, Chief Executive Officer, commented: "Black
Hills represents an important strategic addition to Greatland's
significant and expanding position in the Paterson region.
Historical exploration at Black Hills has demonstrated high grade
gold near surface and the potential for the Black Hills licence to
host gold deposits similar to Telfer. The acquisition is a
continuation of our strategy to target under-explored areas with
significant potential and to increase the scale of the Company's
exploration campaigns at our key projects."
A regional map showing the Black Hills licence with regional
targets and adjacent landholdings will be available within the next
few days at:
http://greatlandgold.com/project/2016/havieron/
Acquisition Terms
Under the sale and purchase agreement executed on 6 November
2017 between Mr Peter Wiltshire (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 E45/4512 (the "Black Hills gold project").
The consideration to be paid to the Vendor by the Purchaser
consists of AUD$25,000 in cash and that number of fully paid
ordinary shares in Greatland Gold PLC to the value of
AUD$200,000.00 calculated on the basis of the volume weighted
average price of those shares on AIM on the 5 trading days
immediately prior to the Date of Execution. The number of fully
paid ordinary shares in Greatland Gold PLC to be issued by
Greatland Gold PLC has been calculated as 6,500,000 (SIX MILLION,
FIVE HUNDRED THOUSAND).
The Consideration is payable by the Purchaser to the Vendor upon
receipt by the Purchaser of 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.
Issuance of Shares
As a result of the completion of the Black Hills project
acquisition, 6,500,000 new ordinary shares are expected to be
admitted to trading on or around 6 December 2017 ("Admission").
Following Admission the total issued share capital of the
Company will consist of 2,941,637,461 ordinary shares. As such the
total number of voting rights in the Company will be 2,941,637,461
ordinary shares. This number may be used by shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the Company under the FCA's Disclosure and
Transparency Rules.
Overview of Black Hills
The Black Hills licence, E45/4512, lies 30 km east of the large
Telfer gold mine (27m oz) in the Paterson Region of northern
Western Australia. Black Hills is a granted exploration licence
that covers 25 square kilometres and sits adjacent to the Company's
Havieron exploration licence, part of its Paterson Project. The
Black Hills licence is regarded as having high potential to host
further gold deposits similar to Telfer.
There has been a reasonable amount of historical exploration
work at Black Hills with several discrete zones of mineralisation
identified over 5km of strike. Rock chip samples have returned up
to 90g/t gold, and commonly 20g/t gold, with free (visible) gold in
places. Drill intercepts include 4m at 7.0g/t from 25m, 5m at
2.3g/t from 25m, 2m at 3.4g/t from 23m and 2m at 1.29g/t from 10m.
Historical drill spacing appears quite broad with holes at least
400m apart, some up to 600m. Additional work by the Company will
include compilation of historical data, surface geochemistry,
ground geophysics and RC drilling.
Gold prospects identified to date extend from Black Hills into
the north western parts of the Havieron licence. Proterozoic
sandstone and carbonate rocks of the Yeneena Group formations are
present, including the Telfer Formation, in a domal structure which
is the equivalent geology to that of the large Telfer gold deposit
(27m oz) located 30km to the west.
Overview of Paterson Project
The Company's Paterson project now comprises the Havieron and
Paterson Range East licences, and the Black Hills licence, located
in the Paterson region of northern Western Australia. The three
licences collectively cover more than 385 square kilometres
prospective for IOCG deposits and Telfer style gold deposits.
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 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 (7.9M oz) and the large Nova nickel-copper deposit (10MT).
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
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, all of
which intersected significant hematite alteration and gold, plus
copper anomalism. Thick lower grade zones of gold and copper have
been intersected and gold grades within these peak at 15.4g/t and
copper to 2.5%. Current drill hole spacing is broad and the core of
Havieron therefore represents an immediate resource definition
drilling target.
Following a review of regional geophysical and geochemical data
over the Paterson project approximately fifty IOCG targets have
been 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 have been 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 intends to employ modern geophysical and geochemical
methods to define targets prior to drill testing.
Prospectivity of the Paterson Province is widely recognised with
several large industry participants present. These include Rio
Tinto, Newcrest and Antipa. Greatland's licences lie adjacent to
Rio Tinto and Antipa.
Additional information on the Paterson 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 +44 (0)20 7747 9980
Email: info@greatlandgold.com
www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated Adviser)
Mark Brady/James Keeshan
Tel +44 (0)20 3368 3550
SI Capital Limited (Broker)
Nick Emerson
Tel +44 (0)14 8341 3500
Luther Pendragon (Media and Investor Relations)
Harry Chathli/Ana Ribeiro/Alexis Gore
Tel +44 (0)20 7618 9100
Notes for Editors:
Greatland Gold plc is a London listed (AIM:GGP) 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 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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