Greatland Gold (LSE:GGP) was one of Wednesday's biggest winners after announcing another excellent set of drilling results at its Havieron project in Australia.
The company said work by major miner Newcrest (ASX:NCM), which is currently completing a farm-in to Havieron, has expanded further the continuity of high-grade gold mineralisation at the project. Mineralisation now extends over a 450-metre strike length to vertical depths of 600 metres while still remaining open at depth and to the northwest.
Highlight intersections from Newcrest's latest round of drilling include:
-142 m @ 1.9g/t Au, 0.38% Cu from 534m, including 15.7m @ 9.8g/t Au, 0.61% Cu from 572.3m
- 24m @ 3.9g/t Au, 0.21% Cu from 734m, including 17.3m @ 19g/t Au, 0.62% Cu from 790.7m
Work will now continue with the aim of establishing a maiden resource for Havieron by the second half of this year. Numerous environmental, geotechnical, and metallurgical studies are currently in place to support these efforts alongside future permitting requirements.
Meanwhile, Greatland expects Newcrest to complete the second stage of its farm-in to Havieron by the end of this month. The company is looking to begin an exploration decline at the project by the of this year or early 2021. It is also examining the likelihood of establishing commercial production within two to three years from this point.
Results to date support both high-grade selective and bulk mining methods at the project, and both options are currently being evaluated.
Greatland's chief executive Gervaise Heddle said: "We are delighted by this sixth consecutive set of excellent results from Newcrest's drilling campaign, which continue to demonstrate the continuity of high-grade mineralisation and expand the mineralised footprint. These latest results represent one of the best sets of drilling results at Havieron since Newcrest began its exploration campaign and reinforce the potential to accelerate the timetable for commercial production.
"As we enter the Australian exploration season, Newcrest continues to drill Havieron at pace and will shortly complete Stage 2 of the Farm-in. Meanwhile, we are planning to be very active with our own systematic exploration campaign across the Paterson, which will focus on drill testing many of the high-priority targets we identified last year."
As at writing, the company was trading 11.45 higher with a share price of 4.7p and a market capitalisation of £170.9 million.
The latest round of work adds further fuel to our recent argument that Havieron could be truly transformational for Greatland. To read our analysis, please click here.
Author: Daniel Flynn
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