My research, future outlook and personal views for Greatland Gold LON:GGP
Overview,
Greatland Gold are an exploration company with a focus on Gold. Their strategy is to identify areas of potential mineralisation through historic data, acquire licences, and progress projects to the next level. This early stage work is key to making the tenements far more attractive to a prospective joint venture partner or to enable an out right sale of the project.
At present Greatland have 6 projects all 100% owned or with the option to take 100% ownership.
Greatlands philosophy, that the next generation of discoveries will come from areas under deep cover is closely aligned with that of Newmount Exploration and the recent agreement between the two companies is validation of that ethos. RNS 16th May 2017 for details.
Ernest Giles
Ernest Giles is now a 1800sq km project and certainly has the scale required by the majors. Grades of up-to 2g/t have been intersected through early drilling works, interestingly the Kalgoorie super pit has very similar grades. Newmount will be looking to bring on line new mines as existing mines are depleted and approach end of life.
With Chinese demand at 10 year highs and new large scale mines becoming rare, it may be a case of right place, right time, right strategy for GGP.
The project at Ernest Giles is the flagship project and could be the biggest near term catalyst for a major uplift in the share price. This will depend on the findings of Newmount, these findings have been subject to a confidentiality agreement which CEO Gervaise Heddle has honoured admirably. All findings from the work by Newmount will be shared with Greatland in due course. Newmount have a right of 1st refusal should Greatland wish to sell or joint venture the project any time within the 6 month agreement, this is due to expire 16th November to it is my opinion the market will come alive through October.
Panorama
October links in nicely with the next project, as works at Greatland latest tenement is due to start in early October. I believe this will be another major catalyst to the share price. Chief technical officer Callum Baxter identified the project as the host of an under explored Cobalt anomaly, the 2 licence areas are said to contain the highest Cobalt in streams anomaly in Western Australia.
In addition to the Cobalt anomaly the Pilbara region is currently under a huge spotlight due to the discovery of gold nuggets in the region by Novo/Artemis. The worldwide attention this is bringing can ignite every explorer in the Pilbar Craton. The timing of the recent license application has been fantastic and I believe all eyes will be on Greatlands early works at Panorama.
Paterson
The Haverion target within Paterson is near to the prolific Telfer mine 27m oz to date.
The core sample shown on is from drills undertaken by Newcrest in the late 90’s.
Antipa minerals recently reported some of the highest grade intercepts in recent decades in close proximity to the license area, significant enough that Greatland released their own RNS to make the market aware of the grades. A tightly spaced gravity survey is planned in the near term and I believe this will be another catalyst to the share price.
The Haverion target within Paterson range has grades of up to 15.4g/t and 2.5% copper and the area is surrounded by majors such as Rio.
The 3 remaining projects include,
Warrentina that shows 15km of strike prospective for gold mineralisation.
Bromus that has approx 10km of strike prospective for Nickel.
Firetower that has around 11km of strike throughout the license prospective for gold and Nickel.
In Summary, the gold exploration sector is gaining traction and GGPs licenses areas are all within mining friendly Australia. The projects are robust and of high quality. Demand for Gold from China is at 10 year highs. Uncertainties surrounding the dollar and Americas insurmountable national debt make gold a safe play. The upside from an exploration company that turn into mine finders can be enormous. I have confidence in the CEO and the technical team and I believe they delivery fantastic share holder communication.
All in all I am very happy to hold long term and go on a great journey with Greatland Gold as the exciting projects advance to the next level.
Watch this space.
