Exploration campaign in the Paterson region will initially focus on drill testing high-priority targets within the Scallywag prospect area including Kraken, Blackbeard and London
Further to the announcement of 30 June 2020, Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, is pleased to provide an update on its exploration activities in the Paterson region (excluding the Havieron Farm-in area).
Highlights of Exploration Activities in the Paterson (excluding the Havieron Farm-in)
· Drilling has commenced at the Scallywag prospect area (100% beneficially owned by Greatland) in the Paterson region following receipt of relevant cultural heritage approvals.
· The drilling campaign will initially focus on high-priority targets within the Scallywag prospect area including Kraken, Blackbeard and London.
· Once the initial phase of drilling is complete at Scallywag, the Company expects to drill additional high-priority targets on its Paterson Range East and Black Hills licences including Goliath, Los Diablos and Parlay.
· Airborne Electromagnetic (“AEM”) survey has commenced, covering 1,033 line kilometres across the western portion of Greatland’s Paterson project.
· The survey aims to identify conductive responses related to massive sulphide mineralisation across western parts of the Havieron and Paterson Range East licences, and the whole of the Black Hills licence.
Gervaise Heddle, Chief Executive Officer of Greatland Gold plc, commented: “We are very excited to be moving forward with systematic drill testing of high-priority targets in the Paterson region. These targets were identified by previous geophysical and geochemical surveys across our Paterson licences, and many of these targets display similar geophysical characteristics to our nearby Havieron gold-copper deposit, where ongoing drilling under a Farm-in with Newcrest has returned a series of outstanding results. ”
Background to the Paterson Project
The Company’s Paterson project comprises three granted licences (Havieron, Paterson Range East, and Black Hills) and one licence application (Rudall), located in the Paterson region of northern Western Australia. The four licences collectively cover more than 450 square kilometres and are prospective for Telfer and Havieron style gold-copper deposits.
Drilling will initially focus on high-priority targets within the Scallywag prospect area including Kraken, Blackbeard and London. Once the initial phase of drilling is complete at Scallywag, the Company expects to continue with drilling of additional high-priority targets on its Paterson Range East licence including Goliath and Los Diablos, and Parlay on its Black Hills licence.
In addition to the drill programme, a high-resolution helicopter borne electromagnetic survey utilising NRG’s XciteTM Airborne Electromagnetic (“AEM”) system has commenced. The AEM survey comprises 1,033 line kilometres covering the western parts of the Havieron and Paterson Range East licences and complete coverage of the Black Hills licence. Flight line spacing will be 200m, closing to 100m spacing where increased resolution is required. The AEM survey aims to identify conductive responses related to the accumulation of massive sulphide mineralisation as observed at the Company’s Havieron gold-copper deposit.
The Paterson region is currently one of the most active exploration areas in Australia. Recent discoveries by Greatland (Havieron) and Rio Tinto (Winu) demonstrate the potential of the region and highlight the lack of historical exploration, particularly over the extensive areas under cover. As well as hosting several large gold and copper deposits such as Telfer and Nifty, more recent exploration has outlined several other deposits including Magnum (Au), Calibre (Au), O’Callaghans (W, 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.
In March 2019, Greatland entered into a Farm-in Agreement with Newcrest Operations Limited, a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland’s Havieron gold-copper discovery in the Paterson region of Western Australia. Newcrest has the right to earn up to a 70% interest in a 12-block area within E45/4701 that covers the Havieron target by spending up to US$65m. Newcrest may acquire an additional 5% interest at the end of the Farm-in period at fair market value. To date, Newcrest has completed Stage 2 and progressed to Stage 3 of the Farm-in Agreement, and holds a 40% Farm-in interest in the 12-block area.
During the Farm-In period, Newcrest will have a right of first refusal over three of Greatland’s Paterson licences (Black Hills, Paterson Range East and the remainder of the Havieron licence). The right of first refusal does not extend to the Rudall licence (E45/5533).
Additional information on the Paterson project, including maps showing regional targets, can be found at: www.greatlandgold.com/paterson
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