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Greatland Gold making headway with exploration in Western Australia

Greatland Gold is well financed to support its exploration projects
Gold
Greatland has been extending its field operations

Greatland Gold PLC (LON:GGP) has a busy year of exploration ahead after expanding its operations in Western Australia.  

The group announced in November that it was adding to its portfolio in the Paterson region of the Australian state with the acquisition of the Black Hills gold project for A$225,000.

WATCH: Greatland Gold well financed with a busy year of exploration ahead

Black Hills lies right next door to Greatland’s Havieron licence and is considered to have high potential for hosting gold deposits similar to the large Telfer gold deposit situated some 30 kilometres (km) to the west.

Greatland bought the Havieron gold project in the Paterson region from Pacific Trends Resources for A$25,000 in cash and the issuance of 65,490,000 ordinary shares in August.

Ground gravity surveys have commenced at the project with the aim of providing data that can be modelled with modern 3D inversion techniques to better define drill targets, the company said in November.

"The ground gravity survey at Havieron represents an important step towards defining drill targets for a drilling campaign currently scheduled for early 2018,” said Gervaise Heddle, chief executive officer of Greatland.

Ernest Giles the flagship 

The company’s Western Australian assets also include the Ernest Giles project, which covers more than 1,800 square kilometres of a virtually unexplored greenstone belt that hosts multiple gold exploration targets.

In May, Greatland signed an agreement granting North American gold miner Newmont Mining access to the tenements and exploration database of the project for six months.

Newmont Mining (NYSE:NYM) eventually decided to walk away, which was disappointing and surprising given the strength of the exploration results from the project said Heddle.

WATCH: Greatland Gold in a 'terrific position' after multiple new targets identified at Ernest Giles

What it does mean, he added, is that Greatland now has 100% of a highly prospective project and has received 'a whole bunch of new information essentially for free'.

in particular, a new anomaly near to the Meadows target is an outstanding prospect he believes.

Greatland extends field operations in at Panorama 

Elsewhere in the state, Greatland has extended its field operations at the Panorama project in the Pilbara region.

The extended operations aim to assess gold potential, focusing on the possible mineralisation in the southern licence area, and it will involve additional mapping, stream sampling and metal detection.

The Panorama project includes two adjoining exploration licence applications that cover a total area of 130 square kilometres and are prospective for both gold and cobalt mineralisation.

In October, the company announced that a gold prospective conglomerate horizon had been confirmed at two locations within the project area, with strike lengths of 2.6km and 1.9km respectively.

Well-financed

Greatland is well financed to support its exploration projects, having announced in October that its cash pile has grown recently.  

Net cash stood at roughly £4mln on October 27, supported by a £750,000 fundraise through the placing of shares in the previous month. The recent conversion of warrants into Greatland shares also brought in about £2.5mln.

Management believes that these funds will facilitate a step change in the scale of the exploration campaigns at the company's key projects. 

"The encouraging results from our recent exploration work give us great confidence in our strategy of targeting under-explored areas with significant potential to host sizeable, high quality mineral deposits,” said Heddle.

"Our strengthened cash position means we can aggressively pursue comprehensive and sustained exploration campaigns across all of our key projects over the next two years.”

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