Greatland Resources Regulatory News (GGP)

14 May 2008 07:00



GREATLAND GOLD PLC

Exploration Update

14 May 2008

Greatland Gold plc ("Greatland Gold" or "the Company"), the mineral exploration and development company focused on gold projects in Tasmania and Western Australia, announces an update of recent activities and analytical results.

At Warrentinna recent drilling has returned results including 3m at 2.9g/t gold and 3m at 2.1g/t gold. These results are within broader intercepts of 9m at 2.06g/t gold and 51m at 0.51g/t gold. Silver reported a maximum of 3g/t. The continuity of mineralisation over the strike length tested by drilling indicates potential for a large tonnage open pittable gold resource.

At Firetower a program of Sub Audio Magnetics (SAM) has been completed over the immediate resource area. Imaging of data has demonstrated fault control to the steep plunging shoots, and will enable revisions of geological mapping in areas where there are poorly exposed rocks.  

Warrentinna

The Warrentinna project is located in north eastern Tasmania and covers some 170 square kilometres. It comprises the four historic goldfields of Warrentinna, Forester, Southern Cross and Waterhouse over a strike length of 25km. Gold mineralisation at the Warrentinna and Forester goldfields has been defined over two separate trends, each more than 6km long. 

Warrentinna Goldfield

A program of Reverse Circulation (RC) drilling was completed at the Warrentinna goldfield during March. Drilling tested the Golden Mara, Derby and Golden Dyke areas over a strike length of approximately 2km. A total of 12 holes for 888m were drilled. Maximum hole depth was 108m. All holes were angled at 55 degrees, drilled with a face sampling RC bit, geologically logged and sampled as 3m composites. Drillhole collar details are presented in Table 1.

Table 1 - Warrentinna RC Drillhole Details

Best results from drilling were 3m at 2.9g/t gold in WTR004 and 3m at 2.1g/t gold in WTR003. The former result was within broader intercepts of 9m at 2.06g/t gold and 51m at 0.53g/t gold in WTR004. Silver reported a maximum of 3g/t. Further results are presented in Table 2. All 3m composite sample results have been received. All results are interpreted as true widths. Single metre sampling of select composites will be undertaken and results reported when received.

Table 2 - Warrentinna Goldfield RC Drill Results (>0.15g/t Au)

Mineralisation is coincident with disseminated pyrite and arsenopyrite in sandstone which has a low quartz vein content. All mineralised zones coincide with the most intense sulphidic zones. No large, primary quartz reef structures were intersected which explains the lower tenor of mineralisation reported in the drillholes compared to that returned from surface sampling. However, despite this, the continuity of mineralisation over the strike length tested by drilling indicates potential for a large tonnage open pittable gold resource.

Further work will include review and interpretation of drilling results with a view to resource definition drilling at the Warrentinna goldfield. RC drill testing of the Forester goldfield is required, and surface sampling of the Southern Cross and Waterhouse goldfields is planned.

Firetower

A program of, Sub Audio Magnetics (SAM), has been completed at Firetower. SAM is a state-of-the-art detailed ground based geophysical technique that measures electrical and magnetic characteristics of the ground. 

Electric current in the sub-audio frequency range (3-200Hz) is induced in the ground while a total field magnetometer continuously measures natural and synthetic changes in the electric field and its properties. The geophysical measurements obtained include Total Field High Definition Magnetics (TFHDM), Total Field Magnetometric Resistivity (TFMMR), Total Field Magnetometric Induced Polarization (TFMMIP) and Total Field Electromagnetics (TFEM).

The SAM survey was completed over the immediate Firetower prospect to better define structure and lithology. The survey was successful in defining a strong fault control to the steep mineralised shoots and interpretation suggests potential for immediate easterly repetition of mineralisation untested by drilling. Geological units were also well defined by the SAM data. The full survey data is still being received and interpreted, and it is likely to yield much more information of use in targeting for mineralisation.

Broad spaced SAM data was also collected over the Firetower West prospect, but final results have not been received.

Surface geochemical work has been ongoing at other prospects within the larger Firetower project area. Drainage sampling has returned significant results from two separate areas some 2km east and 30km south east of the Firetower prospect. Results include 41.87ppb gold with 31.0ppb silver and 33.36ppb gold with 279.9ppb silver. These are considered significant and will be followed up with further surface sampling in the following quarter.

Lackman Rock

Lackman Rock in southern Western Australia is located in a region known for its producing gold and nickel sulphide mines. The original licence area covered approximately 130 square kilometres. Further interpretation of recent geological and geophysical data has outlined prospective geology along strike form the original licence area. Consequently the licence area has been revised to cover the additional area. The project now covers some 210 square kilometres.

Corporate

Greatland Gold owns 100% of all projects in its portfolio. These projects are located in Australia with low political risk and established mining culture.

Commodity prices remain robust and demand for raw materials is strong. Gold remains favourably priced at above US$850 per ounce and the Company has ample cash to continue its exploration activities through 2008.

Competent Persons

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Paul Askins and Mr Callum Baxter, directors of Greatland Gold, who are both members of the Australasian Institute of Mining and Metallurgy. Paul Askins and Callum Baxter have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Paul Askins and Callum Baxter consent to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.

All drill sample results are obtained from 3m composite spear sampling to 3kg. All samples are prepared at Genalysis Laboratory Services' Adelaide facility using a single stage pulverisation, and assayed at Genalysis Laboratory Services' Perth laboratory. A 50g Fire Assay with atomic absorption spectrometry analysis technique (AAS) is used for gold while silver is determined using a Four Acid digest and optical emission mass spectrometry (OES) analysis technique. All drainage samples were 2kg, prepared at Genalysis Laboratory Services' Adelaide facility using a single stage pulverisation, and assayed at Genalysis Laboratory Services' Perth laboratory. Gold and silver were determined by cyanide leach with mass spectrometry analytical technique (CN2/MS). Full quality control is achieved using a suite of standards, duplicates, repeats and blanks.

All drill hole co-ordinates are metric, refer to the 1966 Australian Geodetic Datum (AGD66) and are Zone 55.

Enquiries:

Greatland Gold plc

Callum Baxter

Tel +44 (0)20 7099 5845

Email: info@greatlandgold.com

www.greatlandgold.com

Grant Thornton Corporate Finance Gerry Beaney / Colin Aaronson Tel +44 (0)20 7383 5100