(Alliance News) - Greatland Gold PLC's shares rose on Monday as the company reported "outstanding" drilling results from the Havieron licence in Western Australia.
London-based Greatland shares were 13% higher on Monday at midday at a price of 1.80 pence each.
The results "significantly" extend the zones of existing high-grade mineralisation at the licence, Greatland said, to the north. In one hole, it found 107 metres at 2.2 grams of gold per tonne of ore, including 21 metres at 10 grams.
Following this, Newcrest Mining Ltd, which carried out the work at Havieron, has finished a USD10 million first stage of a farm-in agreement, and a second stage also worth USD10 million of expenditure has now begun.
The farm-in was signed in March this year. Newcrest can take up to 70% of Havieron in return for spending up to USD65 million on the site. Havieron is located in the Paterson region on Western Australia.
Greatland Chief Executive Gervaise Heddle said: "These outstanding results significantly extend the known limits of high-grade mineralisation, particularly to the north. It has become clear that the size of the mineralised footprint now significantly exceeds our initial expectations.
"We are very pleased by Newcrest's continued enthusiasm and commitment to the project, and we look forward to providing further updates on Havieron as drilling continues through the Australian summer period."
Other work being carried out at Havieron includes baseline environmental studies and preliminary work for metallurgical and geotechnical studies.
By George Collard; georgecollard@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Greatland Gold (GGP)