Greatland Gold PLC (LON:GGP) New Drill Targets at Scallywag

Greatland Identifies New Drill Targets at Scallywag

Geophysical surveys identify four new high-priority targets within the Scallywag prospect in the Paterson region

Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, is pleased to announce that results from geophysical surveys have outlined several new high-priority targets at its 100% owned Scallywag prospect in the Paterson region of Western Australia.

The Scallywag gold-copper prospect area sits within Greatland’s Havieron licence (E45/4701), approximately 6km west of the 12 block area under a Farm-in Agreement with Newcrest. Scallywag is an elongate magnetic feature with a strike length of more than 6km. As announced on 15 August 2019, Greatland recently completed an Induced Polarisation (“IP”) survey across the northern part of the Scallywag prospect, and an infill ground gravity survey across the entire prospect area. Results from the IP and ground gravity surveys have been received and are reported today.

Highlights

· Multiple chargeability responses identified from six IP traverses that were completed over 2km of strike.

· Several high-priority drill targets identified from a review of IP, gravity and magnetic data:

o Kraken: A high intensity ‘bulls-eye’ magnetic anomaly with the same amplitude, character and depth extent as observed at Havieron. IP results indicate a strong chargeability anomaly coincident with the Kraken magnetic anomaly.

o Barbossa: A large 2km by 1km residual gravity anomaly located in a structural corridor 3.5km west of the hinge of the Scallywag dome. Barbossa has semi-coincident gravity and IP chargeability anomalies.

o Blackbeard: An elongate 2.6km by 400m ultra-high intensity magnetic anomaly with a coincident moderate amplitude gravity feature. The IP chargeability response at Blackbeard is observed over 800m of strike.

o London: Located in a gravity low interpreted to be an intrusive rock within the hinge zone of the Scallywag antiform. The London target IP response is seen over 400m of strike as discrete chargeability anomalies.

· Greatland expects to drill test these four targets during the next field season and will be conducting additional IP surveys over the southern portion of the Scallywag prospect area at that time.

Gervaise Heddle, Chief Executive Officer, commented: “We are very pleased that these results have successfully generated multiple new high-priority drill targets at Scallywag, many of which share similar geophysical characteristics to Havieron. The identification of this first round of high-priority drill targets further reinforces our view regarding the prospectivity of the Scallywag prospect area itself and the Paterson region more generally, a region which we believe could hold multiple tier-one gold-copper deposits. We plan to accelerate drilling of these new targets in the next field season, while also carrying out additional work over Scallywag’s southern area to identify further targets.”

In addition to this release, a PDF version of this report, with supplementary information can be found at the Company’s website: www.greatlandgold.com/media/jorc

Overview of Paterson Project

The Company’s Paterson project comprises the Havieron, Paterson Range East, and Black Hills licences, located in the Paterson region of northern Western Australia. The three licences collectively cover more than 385 square kilometres and are prospective for Telfer style gold-copper deposits, and Havieron style gold-copper mineralisation.

In March 2019, Greatland signed a Farm-in Agreement with Newcrest Operations Limited (“Newcrest”), a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland’s Havieron gold-copper project in the Paterson region of Western Australia. Newcrest has the right to acquire up to a 70% interest in a 12-block area within E45/4701 that covers the Havieron target by spending up to US$65m.

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Greatland’s drilling campaigns at Havieron have yielded excellent results to date, including:

· HAD005: 103m @ 3.5g/t Au and 0.93% Cu from 459m; and

128m @ 7.4g/t Au and 0.54% Cu from 660m

· HAD006: 54m @ 2.7g/t Au and 0.79% Cu from 471m; and

179.1m @ 1.4g/t Au and 0.47% Cu from 547.9m

· HAD008: 67m @ 2.0g/t Au and 0.91% Cu from 426m

Recent drilling by Newcrest under the current Farm-in arrangement has returned:

· HAD012: 43m @ 7.9g/t Au, 0.83% Cu from 900m

· HAD013: 100.9m @ 2.0g/t Au, 0.48% Cu from 479m

· HAD014: 244.6m @ 2.0g/t Au, 0.40% Cu from 450m

· HAD017: 45.0m @ 7.1g/t Au and 0.08% Cu from 1077m

· HAD018: 96.4m @ 4.5g/t Au and 0.14% Cu from 916.4m

The Paterson region is currently one of the most active exploration areas in Australia. Recent exploration success achieved by Greatland (Havieron) and Rio Tinto (Winu) demonstrates the region has been underexplored, particularly the extensive areas under cover.

It is widely recognised that additional gold-copper discoveries in the Paterson will come from areas under cover, and that geophysics is a critical component of the discovery process. For example, Greatland’s exploration success at Havieron was largely driven by the application of detailed aeromagnetic and ground gravity geophysical data sets and subsequent modelling.

Scallywag Prospect

The Scallywag prospect lies approximately 6km west of the Havieron prospect within the Havieron licence. The Scallywag prospect is located within E45/4701 and 100% owned by Greatland. Limited historic drilling in the immediate area around Scallywag did not intersect basement.

Scallywag is a large, elongate magnetic anomaly with a strike length of more than 6km. It is interpreted to be a folded metasedimentary sequence under approximately 50-100m of cover. Geophysical programmes completed to date by Greatland include reprocessing of existing 50m line spaced aeromagnetic data and collection of ground gravity (400m x 200m). MMI sampling over the Scallywag prospect was completed in late Q3 2018 at a sample spacing of 400m x 200m. MMI results from Scallywag displayed discrete elevated gold, copper, silver and arsenic MMI responses along the western parts of the target area over a strike length of approximately 6km. Supporting pathfinder elements of cerium, lanthanum, iron and lead were also coincident along this trend with several clusters of samples displaying a strong multi element response. Highest results returned from MMI sampling were 8ppb silver, 50ppb arsenic, 0.4ppb gold, 480ppb cerium, 2750ppb copper, 280ppb lanthanum and 240ppb lead. Response of certain groupings (or suites) of elements over parts of the Scallywag target are similar to those that were seen in MMI sampling over the Havieron prospect.

Ground gravity has recently been completed over the Scallywag area and across the remainder of the Havieron licence E45/4701 (with the exception of the 12 block area within E45/4701 subject to the Farm-in Agreement with Newcrest). Approximately 1,180 gravity stations were collected which have finalised 200m x 200m gravity coverage across the Scallywag prospect itself. This data has better defined basement structures and lithological contacts when combined with detailed aeromagnetic data. From these data sets Scallywag is interpreted to be an antiformal (dome-like) feature of metasedimentary rocks analogous to those at Havieron and Telfer (Lamil Group, Paterson Province). Both magnetic and gravity data have undergone 3D modelling to assist IP survey planning and drill targeting.

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An IP programme has been completed over the northern third of the Scallywag prospect covering approximately 2km of the 6km of strike. The IP technique can detect disseminated sulphide mineralisation that may be associated with gold-copper mineralisation like that seen at the Havieron prospect. Six IP traverses were completed over 2km of strike. Traverses were between 400m and 800m apart with a minimum line length of 1.6km and maximum of 4.8km. Multiple chargeability responses were identified from the six traverses.

The IP data has been integrated with other data sets such as gravity and magnetics resulting in the identification of multiple targets; magnetic anomalies with IP response, gravity anomalies with IP response, structural targets with IP response and individual IP chargeability targets. From these, four high-priority targets have been initially selected: Kraken, Barbossa, Blackbeard and London. Details of these targets are outlined below.

New Drill Targets within Scallywag Prospect

Kraken: A high intensity ‘bulls-eye’ magnetic anomaly with the same amplitude, character and depth extent as observed at Havieron. Kraken has a structural location in the interpreted hinge of the Scallywag antiform. IP results indicate a strong chargeability anomaly coincident with the Kraken magnetic anomaly.

Barbossa: A large 2km by 1km residual gravity anomaly located in a structural corridor 3.5km west of the hinge of the Scallywag dome. Barbossa has semi-coincident gravity and IP chargeability anomalies.

Blackbeard: An elongate 2.6km by 400m ultra-high intensity magnetic anomaly with a coincident moderate amplitude gravity feature. The IP chargeability response at Blackbeard is observed over 800m of strike. The chargeability response increases in intensity toward the north.

London: Located in a gravity low interpreted to be an intrusive rock within the hinge zone of the Scallywag antiform. The London target IP response is seen over 400m of strike as discrete chargeability anomalies.

Greatland expects to drill test these four targets during the next field season. Concurrent with these drilling activities Greatland will be undertaking additional IP traverses over the southern portion of the Scallywag prospect and drilling will continue to test any further targets generated.

Further information on the Company’s Paterson project can be found on the Paterson project page of Greatland’s website at: www.greatlandgold.com/paterson

 

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