What an astonishing week for the mighty Greatland Gold Plc (GGP:L) share price this week on the London AIM stock exchange. The Friday close was technically 27 pence per share on a massive 250 million shares in turnover.
And aftermarket there were massive prints, one of which was 3% of all the shares on issue in GGP.
What’s more remarkable, is that up until now, most of this market value increase in Greatland has been driven by retail share traders all the way from sub 1 pence a share. Until now, no Fund Manager has stuck its head up owning up to a +3% reportable/disclosable stake in the Company.
But I suspect that may change this week coming. Was it the Gold ETF, was it Newcrest, was it another fund manager thinking this is a great punt? I have my suspicions.
And why is GGP punching through £1 billion in value? Simple, the Havieron gold discovery, only 40km due east of the famous 27 million ounces Newcrest owned Telfer gold mine, is truly one of the great Australian gold discoveries of a generation and maybe a few generations.
It won’t be long before Newcrest and GGP report their maiden JORC Gold Resource. We’ve been told it’s in the coming quarter. We all know it will be BIG. How big is anyone’s guess? But the first published number won’t the end of it all. The Havieron deposit just keeps growing and growing and delivering.
First, it was the coincident Magnetic and Gravity anomaly drilling. Now it’s the new Beccia zones, and there will be more.
And what about GGP’s Scallywag project to the immediate west of Havieron. There is no reason at all why there won’t be more discoveries there. And Scallywag is 100% GGP’s. No JV there. Drill away GGP.
So, what’s next?
£1.5 billion value, £2 billion or maybe even £3 billion.
As soon as the Fund Managers start taking their +3% disclosable holding in GGP, which is inevitable, this could get very exciting indeed and very quickly. Blink and you may we’ll miss it.
What I really like about Havieron, as we know it today, is that Newcrest is now employing the decline management and crew. They want to get into this orebody yesterday. And the recent news on the progress of the Mining Lease is a great step forward.
I know from experience how hard it is to convert Exploration Licences to Mining Leases. Great work from a great Australian gold miner. Plus there is a very hungry +20 million tonne per annum plant at Telfer that will soon run out of ore. Havieron will add decades to Telfer’s life.
One of my oldest friends (sadly departed now) was the original Mine Manager at Telfer. I also spend time at Telfer sinking their new decline in the 1990’s. The rocks there were great for declining. I think Havieron should also be OK for declining. Newcrest knows what they are doing.
And what else am I interested around the Havieron area?
Artemis Resources of course on the ASX. (ARV) They surround Havieron on 3 sides on a massive 600 square KM block. And they are going drilling now. They have over half a dozen priority ONE drill targets right now and they have only looked in detail at half their massive block. Roll on Artemis. But it’s ASX, so the London crowd find it hard to trade Artemis. But one thing is for sure, things are starting to happen on ARV as people really started looking at Artemis this week. Share price and trading volume started rising.
This could go to the moon if they hit something. The drill is the truth pill though in this sort of country – that’s for sure. And researchers with a lot of knowledge on the area have suggested the possible feeder zones for Havieron gold could be in the ARV ground to the east of Havieron. Time will tell.
And another little tiddler I am watching, that London can trade, is Gunsynd Plc (GUN.L). I wrote something on that this week. Why?
They are the biggest shareholder in a private company called Rincon that owns a lot of square kilometres just south of Telfer (with some great historic Newcrest drilling grades) and a big chunk of ground called Westin to the south-west of Havieron. And yes – Newcrest drilled gold there as well in the early 2000’s. And yes Newcrest also drilled into the top of Havieron and walked away in the same drilling era as Rincon’s Westin and Hasties.
But as usual, I must qualify everything and state outright that all these views are my personal ones and I may have it all wrong. So do your own research and always seek independent regulated advice if you buy or sell any shares on the stock market. The stock market is a gamble. You could lose everything.
Good luck all GGP holders. But the wind is in its sails and let’s hope the wind gets stronger.
(The opinions expressed here are those of the author, a columnist for Share Talk.)
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