Greatland Gold Share News (GGP)

(Sharecast News) - Precious and base metals exploration and production company Greatland Gold updated the market on Newcrest's drilling campaign at the Havieron deposit, in the Paterson region of Western Australia, on Thursday.
The AIM-traded firm said "exceptional" drill results from Havieron further demonstrated the continuity of the higher grade mineralisation within an arcuate sulphide zone, and expanded the footprint of the mineralisation within that zone and the surrounding proximal breccia.

Drilling had further developed the understanding of mineralised breccias, the board said, with broad high-grade intersections in the breccia zone reported for a second successive set of drill results.

Newcrest was currently progressing a concept study, with targeted completion in the second half of 2020, investigating the potential to develop the orebody under both underground selective mining and bulk mining alternatives.

Among the best new results, Greatland said that at hold HAD039, Newcrest reported 86.6 metres at 2.8 grams of gold per tonne and 0.37% copper from 693 metres, including 27. 1 metres at 4.4 grams of gold per tonne and 0.74% copper from 710.9 metres.

At hole HAD039W2, it reported 148 metres at 2.7 grams of gold per tonne and 0.45% copper from 668 metres, including 53 metres at 6.2 grams of gold per tonne and 0.71% copper from 700 metres.

On hole HAD043, it reported 167.4 metres at 2.4 grams of gold per tonne and 0.66% copper from 608 metres, including 22.8 metres at 9.3 grams of gold per tonne and 0.96% copper from 712.3 metres.

Finally, at hole HAD052, ir reported 234 metres at 1.7 grams of gold per tonne and 0.29% copper from 563 metres, including 62 metres at 3.8 grams of gold per tonne and 0.5% copper from 614.2 metres.

Looking at the next steps, the company said nine rigs were operational as drilling activity continued towards delivering a maiden resource in the second half of 2020.

Step-out drilling along strike to the north-west and at depth was expected to start in the near term, following the completion of the current phase of infill drilling.

Newcrest was planning around 80,000 metres of drilling at Havieron over the 12 months from 1 July.

Greatland said environmental and baseline studies were progressing, to support the fast tracking of decline commencement at Havieron by the end of 2020 or in early 2021, subject to the market and operating conditions and the receipt of all necessary permits, consents and approvals.

It added that it was investigating the potential to achieve commercial production within two to three years from the start of decline.

"We are delighted by the seventh consecutive set of excellent results from Newcrest's drilling campaign, further demonstrating the robustness and continuity of high-grade mineralisation at Havieron, which remains open to the north west and at depth," said chief executive officer Gervaise Heddle.

"These results represent another important step towards our near-term objective of a maiden resource at Havieron, and further reinforce the potential to accelerate the timetable for commercial production."

Heddle said the company was "pleased" by the steps taken by Newcrest to mitigate the risks of the Covid-19 pandemic at site, while maintaining their ongoing commitment to Havieron with nine drill rigs currently operational.

"We expect step out drilling along strike and at depth to commence in the near term, which will begin to provide us with a clearer picture of the potential to further extend the zone of high-grade mineralisation at Havieron."

At 1325 BST, shares in Greatland Gold were down 2.02% at 8.74p.