Greatland Gold PLC (AIM:GGP) Interim Results

Greatland Gold plc (“AIM:GGP) the precious and base metals mineral exploration and development company, announces its results for the six months ended 31 December 2017.

 

H1 Summary

 

·     Successful exploration campaigns at its Ernest Giles, Paterson and Panorama projects

o  Ernest Giles:

§ Mobile Metal Ion (“MMI”) surface geochemistry identified multiple gold anomalies at Ernest Giles East with key clusters exhibiting a strike in excess of 9 kilometres long and 3 kilometres wide;

§ Post period, the Company announced a drilling programme after Newmont Exploration Pty Ltd’s (“Newmont”) proprietary technology identified a new large gold anomaly at the Meadows area.  

o  Paterson:

§ Increased its land holdings in the Paterson region by acquiring 100% of the Black Hills gold project;

§ Encouraging exploration results indicated that the Havieron copper/gold target may be significantly larger than previously expected.

o  Panorama:

§ First exploration campaign in the Pilbara region confirmed the potential for a high grade zone of gold mineralisation in the northern licence;

§ Identified two clusters of gold anomalies coincident with the base of the Mt Roe basalt and adjacent conglomerates in southern licence.

·     Company is well financed with cash and cash equivalents of approximately £4.5 million at 31 December 2017 (30 June 2017: £930,500; 31 December 2016: £547,713).

 

Gervaise Heddle, Chief Executive Officer, commented“The first half of the year was characterised by operational progress across all the Company’s key projects as well as achieving financial stability through successful fundraising. Specifically, the first half saw strong progress and encouraging results at Ernest Giles, Paterson and Panorama projects.

 

“Looking ahead, the Company is in a very strong financial position to pursue its strategy of  advancing exploration across its portfolio of quality projects and identifying and acquiring new underexplored projects, such as the Black Hills gold project in the Paterson region.  The next 12-18 months will see the Company pursue multiple targeted exploration campaigns across its portfolio, including at Ernest Giles where encouraging gold anomalies were identified during Newmont’s examination of the project.”

 

 

Strategy

 

The Company’s strategy remains to maximise shareholder value by advancing exploration across the Company’s core portfolio of existing exploration projects while seeking to acquire new opportunities in the precious and base metal sectors.

 

During the first six months of the financial year, general commodity and financial market conditions continued to improve. In anticipation of a sustained recovery in the commodity sector, the Company believes that active exploration across its portfolio of existing projects and the selective acquisition of new projects provides the best path to enhance shareholder value.

 

Operational Review

 

During the first half of the financial year, the Company engaged in active exploration campaigns across three of its key exploration projects and acquired the right to 100% of the Black Hills gold project in the Paterson region.

 

Ernest Giles

 

At Ernest Giles, Mobile Metal Ion (“MMI”) surface geochemistry identified multiple gold anomalies over 60 kilometres of strike at the eastern region of the Ernest Giles gold project. Several clusters of gold anomalies were identified with key clusters exhibiting a strike in excess of 9 kilometres long and 3 kilometres wide. These results followed the successful drilling results at the western region of the Ernest Giles project (announced 12 January 2017 and 19 January 2017) and further highlighted the potential of the vast and virtually unexplored Ernest Giles greenstone belt.

 

Subsequent to the end of the first half of the financial year, Greatland was notified by Newmont that it would not be proceeding with the Ernest Giles project. Newmont had a six month right of first refusal over the Ernest Giles project (as announced 16 May 2017) which has lapsed. While Newmont’s decision was disappointing, the Company was very encouraged by the results of Newmont’s Deep Sensing Geochemistry (“DSG”) survey. In particular, the DSG survey identified a large 5km by 1km gold anomaly at the Meadows area, immediately to the north of Greatland’s previous drilling, that has not been drill tested. Subsequently, the Company has announced a drilling programme at the Ernest Giles project including plans for approximately twenty-four drill holes at the Meadows area to test the anomalies identified by Newmont.

 

Paterson

 

At the Paterson project, encouraging MMI and gravity results indicated that the Havieron copper/gold target might be significantly larger than previously expected. Moreover, detection of certain pathfinder elements by MMI sampling, including cerium, lanthanum and uranium, supports the Company’s view that Havieron is potentially an Iron Oxide Copper Gold (“IOCG”) system.

 

Black Hills

 

In November 2017, the Company acquired 100% of the Black Hills gold project (E45/4512). The Black Hills gold project covers 25 square kilometres and represents an important strategic addition to the Company’s Paterson project. Historical work at Black Hills by companies including Newcrest Limited 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 25 metres. Greatland has been encouraged by the increased level of interest in the Paterson region as evidenced by the substantial number of new exploration licence applications lodged by several key industry participants in recent months.

 

Panorama

 

At the Panorama project in the Pilbara region, the Company embarked on its first exploration campaign at this new and exciting project. The Pilbara region received a lot of attention from resource investors in the second half of 2017 and the Company is fortunate to have an established position in the region. The maiden exploration campaign conducted by the Company was successful in identifying two clusters of gold anomalies coincident with the base of the Mt Roe basalt and adjacent conglomerates. Moreover, rock chip sampling on the northern licence also confirmed historic rock chip sampling results that indicate a potential high grade zone of gold mineralisation in bedrock approximately 3.2 kilometres long.

 

Financials

 

Greatland reported an unaudited operating loss for the six months ended 31 December 2017 of £718,096 (six months to December 2016: loss of £608,421). Loss per share for the period of 0.03p (six months to December 2016: 0.04p). The Company is well financed with approximately £4.5 million in cash as at 31 December 2017, which will enable the Company to pursue multiple targeted exploration campaigns across its key projects over the next 12-18 months.

 

Outlook

 

In 2018, Greatland intends to use its strong financial position to accelerate exploration across its portfolio of exciting exploration assets. In the second half of the financial year, the Company has already announced new drilling campaigns at the Ernest Giles project and the Paterson project, both of which are scheduled for the second quarter of calendar 2018. We look forward to updating the market on the results from these exploration campaigns and to providing details on additional exploration campaigns at Greatand’s other key projects as exploration plans are finalised.

Full RNS Update Link Here 

 





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