18 July 2018 www.progressive-research.com This marketing communication has not been prepared in accordance with requirements designed to promote the independence of investment research. Please refer to important disclosures at the end of the document. GGP.L 1.44p Market Cap: £43.6m SHARE PRICE (p) 12m high/low 2.44p/0.17p Source: LSE Data KEY INFORMATION Enterprise value £39.1m Index/market AIM Next news Final results Gearing N/A Interest cover N/A GREATLAND GOLD IS A RESEARCH CLIENT OF PROGRESSIVE Promising gold-copper exploration in the Paterson Province The Paterson Province is emerging as one of the most exciting gold- copper exploration plays in Australia this year. A number of companies, including Greatland Gold (the only AIM-listed explorer in the region), have recently announced gold/copper discoveries. The Great Sandy Desert covers much of the area, and sand cover and the lack of rock outcrops means that the region has been relatively underexplored, notwithstanding the fact that the area contains the huge Telfer gold mine. Drilling at Greatland’s Havieron prospect has yielded extremely encouraging gold and copper intersections, and visible gold has been found in surface samples at Black Hills. ▪ Improvements in geophysical techniques and interpretation in the Paterson Province have led to a number of early-stage exploration successes below sand cover by junior explorers. In December 2017 Rio Tinto staked a huge area, and now has by far the largest land position in the Paterson Province, 9,000sqkm in all. Rio is rumoured to have made a potentially significant gold-copper discovery. ▪ Greatland has three 100%-owned licences in the Paterson Province - Havieron, Black Hills and Paterson Range East – covering over 385sqkm, and thought to be prospective for iron-oxide-copper-gold (IOCG) orebodies, like the huge Olympic Dam mine, and intrusion- related Telfer-style gold deposits. Greatland’s licences are just 40km to the east of Telfer, a major gold mine that started production in 1975 and still has resources of 8.2moz of gold and 440,000t of copper. ▪ At Havieron, Greatland drilled four holes in its maiden drilling campaign. In June the company reported results from the first hole, 121m at 2.93g/t gold and 0.23% copper from 497m, which included some bonanza grades; 0.5m at 137.69g/t gold and 1.8% copper from 573m and 0.5m at 100.15g/t gold and 4.1% copper from 575.5m. Results from the other three holes were announced in early July. Though less spectacular, one included 21m at 3.78g/t gold and 0.44% copper from 418m. A further 10-hole drilling campaign is to start in September 2018. ▪ Greatland acquired Black Hills in November 2017. Located 30km east of the Telfer mine, the company is targeting Telfer-style mineralisation. Initial exploration in June 2018 identified visible gold in outcrops, and gold nuggets in sand nearby, suggesting very high grade mineralisation reminiscent of the upper portion of the Telfer deposit. ▪ Following the receipt of drilling approvals from the Australian Department of Mines, Industry Regulation and Safety, Greatland will shortly undertake a 3D Induced Polarisation ("3DIP") survey covering a strike length of 1,200 metres over the high-grade gold mineralised zone identified at the Saddle Reefs. ▪ Greatland’s strategy is to seek large ore deposits from areas under cover that have not been subjected to significant exploration in the past. Apart from Paterson, Greatland has three other projects in Western Australia, Ernest Giles, Panorama and Bromus, as well as Firetower and Warrentina in Tasmania. The group is well financed, with £4.5m of cash and cash equivalents and no debt at the end of 2017. 0 1 2 3 Jul '17 Oct '17 Jan '18 Apr '18 Jul '18 ANALYSTS Nick Hatch +44 (0)20 7781 5316 [email protected]Chris Legg +44 (0)20 7781 5307 [email protected]GREATLAND GOLD MINING
Transcript
18 July 2018
www.progressive-research.com This marketing communication has not been prepared in accordance with requirements designed to promote the independence of investment research. Please refer to important disclosures at the end of the document.
GGP.L
1.44p
Market Cap: £43.6m
SHARE PRICE (p)
12m high/low 2.44p/0.17p
Source: LSE Data
KEY INFORMATION
Enterprise value £39.1m
Index/market AIM
Next news Final results
Gearing N/A
Interest cover N/A
GREATLAND GOLD IS A RESEARCH CLIENT OF PROGRESSIVE
Promising gold-copper exploration in the Paterson Province
The Paterson Province is emerging as one of the most exciting gold-copper exploration plays in Australia this year. A number of companies, including Greatland Gold (the only AIM-listed explorer in the region), have recently announced gold/copper discoveries. The Great Sandy Desert covers much of the area, and sand cover and the lack of rock outcrops means that the region has been relatively underexplored, notwithstanding the fact that the area contains the huge Telfer gold mine. Drilling at Greatland’s Havieron prospect has yielded extremely encouraging gold and copper intersections, and visible gold has been found in surface samples at Black Hills.
▪ Improvements in geophysical techniques and interpretation in the Paterson Province have led to a number of early-stage exploration successes below sand cover by junior explorers. In December 2017 Rio Tinto staked a huge area, and now has by far the largest land position in the Paterson Province, 9,000sqkm in all. Rio is rumoured to have made a potentially significant gold-copper discovery.
▪ Greatland has three 100%-owned licences in the Paterson Province - Havieron, Black Hills and Paterson Range East – covering over 385sqkm, and thought to be prospective for iron-oxide-copper-gold (IOCG) orebodies, like the huge Olympic Dam mine, and intrusion-related Telfer-style gold deposits. Greatland’s licences are just 40km to the east of Telfer, a major gold mine that started production in 1975 and still has resources of 8.2moz of gold and 440,000t of copper.
▪ At Havieron, Greatland drilled four holes in its maiden drilling campaign. In June the company reported results from the first hole, 121m at 2.93g/t gold and 0.23% copper from 497m, which included some bonanza grades; 0.5m at 137.69g/t gold and 1.8% copper from 573m and 0.5m at 100.15g/t gold and 4.1% copper from 575.5m. Results from the other three holes were announced in early July. Though less spectacular, one included 21m at 3.78g/t gold and 0.44% copper from 418m. A further 10-hole drilling campaign is to start in September 2018.
▪ Greatland acquired Black Hills in November 2017. Located 30km east of the Telfer mine, the company is targeting Telfer-style mineralisation. Initial exploration in June 2018 identified visible gold in outcrops, and gold nuggets in sand nearby, suggesting very high grade mineralisation reminiscent of the upper portion of the Telfer deposit.
▪ Following the receipt of drilling approvals from the Australian Department of Mines, Industry Regulation and Safety, Greatland will shortly undertake a 3D Induced Polarisation ("3DIP") survey covering a strike length of 1,200 metres over the high-grade gold mineralised zone identified at the Saddle Reefs.
▪ Greatland’s strategy is to seek large ore deposits from areas under cover that have not been subjected to significant exploration in the past. Apart from Paterson, Greatland has three other projects in Western Australia, Ernest Giles, Panorama and Bromus, as well as Firetower and Warrentina in Tasmania. The group is well financed, with £4.5m of cash and cash equivalents and no debt at the end of 2017.
Gold/copper mineralisation in the Paterson Province
The Paterson Province, which plays host to Greatland’s Havieron and Black Hills projects, is in the northern portion of the Proterozoic Paterson Orogen. In recent years, exploration activity in other Proterozoic orogens in Western Australia has resulted in the discovery of the Tropicana gold deposit (7.9moz) and the Nova nickel-copper deposit (10mt). The Paterson Orogen has been relatively underexplored historically, but improving techniques have allowed for more definitive geophysical target definition through the sand cover, and as a result a number of new discoveries have been made in the region. The Paterson Province is now emerging as one of Australia’s most exciting gold/copper exploration plays.
The tenement map of the Paterson Province below shows the existing landholdings and prospects in the region.
Tenement map of the Paterson Province
Source: Greatland Gold
18 July 2018
3
While most gold deposits in Western Australia occur in Archean greenstone belts, and are some 2,700 to 2,600Ma old, the Paterson Province is Paleoproterozoic to Neoproterozoic in age (2,500Ma to 541Ma). The Paterson Province was relatively under-explored in the past, in part because of widespread (but often shallow) sand cover (the Great Sandy Desert), which resulted in limited cropping-out of the underlying rock sequences. It is no coincidence that the two major gold and copper mines in the region, Telfer and Nifty, were both discovered thanks to surface outcrops.
In recent years, exploration activity has increased, as companies of varying sizes prospect for iron-oxide-copper-gold (IOCG) and Telfer-style gold deposits in the region, as well as Zambian Copperbelt-style copper deposits like Nifty.
While the style of mineralisation at both Telfer and Nifty are fairly unique for Western Australia and the Paterson Province, this could simply be a function of the lack of outcrops and, because of ground cover, a historical focus on exploration in other parts of the state and country.
The Telfer gold mine
Telfer is located some 400km ESE of Port Hedland, a hub for a wide range of mining activities in Western Australia, iron ore in particular. Telfer is the largest mine in the Paterson region. It was discovered in 1970, and mining commenced in 1975, initially by open-pit mining of oxide ores, with underground mining commencing in 1990 as the mine moved to processing supergene sulphide ore. Around 6moz of gold had been extracted by 2000. At this point, oxide resources were largely exhausted. Mining was moving to hypogene sulphide ore, which created recovery and cost problems, and as a consequence production was suspended pending the results of a feasibility study into this type of ore.
Mining resumed in 2004, and since then a further 7moz of gold have been recovered. Newcrest produced 386,000oz of gold and 20,100t of copper in FY 2017 (June y/e) and as at the end of calendar 2017 the mine still had total in-situ resources of 8.2moz of gold and 440,000t of copper. O’Callaghan’s, also on Newcrest’s leases, is a skarn-hosted tungsten-copper-zinc-lead deposit containing a total resource of 220,000t copper, 260,000t tungsten, 380,000t zinc and 190,000t lead.
Gold and copper mineralisation at Telfer is intrusion-related and is contained in two types of orebody - relatively high grade stratabound “reefs” or veins and lower grade stockworks (cross-cutting vein-style mineralisation) hosted within Proterozoic sediments. Deep surface weathering has depleted copper in the upper sections of the orebody, whilst underlying ore has retained both copper and gold. This type of mineralisation is one of the key exploration targets for companies in the region.
The Nifty copper mine
Nifty is located c.65km due west of Telfer. The Nifty copper deposit was discovered in 1981. Open-pit mining of oxide ore commenced in 1993, with copper cathode being produced via heap leaching and solvent extraction – electrowinning (SXEW). Underground mining of sulphide ore commenced in 2006 as the open-pit closed. Metals X acquired the Nifty mine and the Maroochydore deposit when it acquired Aditya Birla Minerals in 2016. At the time of acquisition, the mine-life at Nifty was estimated at only c. 1-year. Since then, exploration by Metals X has increased copper reserves by 55%, and increased mine-life to c.6 years. Copper resources now total 622,000t. Metals X hopes that further exploration can transform Nifty into a large scale, long-life mine with an annualised production rate in excess of 40,000t of contained copper in concentrate.
18 July 2018
4
The Nifty mine falls into the Zambian Copperbelt type of deposit – mineralised stratabound and stratiform carbonaceous and dolomitic shales that have undergone folding. This style of mineralisation is rare in Australia, but the mines of the Zambian Copperbelt have been substantial producers since commercial mining commenced in 1928 at Luanshya, and expanded in the 1930’s, 1950’s and 1960’s. According to the Zambian government, the country produced 800,000t of copper in 2017, and is targeting 1mt this year.
Maroochydore is c.100km SE of Nifty and was discovered in 1984. It has identified resources of 486,000t of copper and 18,500t of cobalt, and similar geology to Nifty.
Iron-oxide-copper-gold targets
The third style of gold/copper mineralisation being sought in the Paterson Province is deposits of the Iron-oxide-copper-gold type (IOCG). The best examples of this type of deposit in Australia are the huge Olympic Dam mine in South Australia, and the smaller Prominent Hill mine and Carapateena project (also in South Australia), and the Ernest Henry mine in Queensland.
Exploration fever – a Rio Tinto discovery?
A select number of ASX-listed junior explorers as well as AIM-listed Greatland Gold, are now active in the region. Much of the land under exploration was previously held by Newcrest. While Newcrest relinquished large areas of land in the past, it is now once again increasingly active in exploration in the region. A number of recent discoveries (almost all at very early stages of exploration, at a similar or earlier stage than Greatland) have been made.
According to resources journalist Barry FitzGerald (www.resourcesrising stars.com.au, 6th April 2018 and 15th June 2018), one of the world’s largest mining companies, Rio Tinto, may have made a significant copper discovery in the Paterson Province. The find is suspected to be roughly 120km NW of Telfer on wholly-owned ground, and Fortescue Metals has now taken up a large ground position to the north of Rio Tinto. Clearly a Rio discovery would bode well for the junior explorers in the area, and FitzGerald notes that geophysical mapping suggests a clear trend of distinctive anomalies in an arc from ground controlled by Sipa Resources, Antipa Minerals and on to Rio Tinto’s discovery site.
FitzGerald notes that public-domain satellite imagery shows that Rio has drilled at least 10 holes and is preparing a site for what is said to be a 40-man camp. FitzGerald claims that after mapping a subtle IP granite-related anomaly, drilling by Rio hit primary copper at a depth of 40m and then visible primary mineralisation down to depths of 180m in two holes 200m apart. He notes that “intersections of 140m of visible mineralisation in spaced holes is something to get excited about, even for a company the size of Rio”. Following this, Rio undertook a significant pegging campaign in December 2017 and now has a massive 9,000sqkm land position. If Rio Tinto’s exploration campaign is successful, this could stimulate substantial interest in other junior explorers in the area.
The table on the following page summarises the copper/gold deposits in the Paterson Province by operator and project.
18 July 2018
5
Gold/copper deposits in the Paterson Province
Source: Company websites, Progressive Equity Research
Operator Project Status Details
Newcrest Telfer mine In production Initial discovery in 1970. Production started in 1975, closed in 2000 with the
exhaustion of oxide ore
Open-pit production resumed in 2004, and underground in 2006
Telfer has produced c.12moz of gold; FY2017 production was 386,000oz gold,
20,000t copper and 229,000oz silver
Total resources end-CY2017 8.2moz gold & 660,000t copper, total reserves
2.4moz gold & 210,000t copper
O'Callaghan's Resources
outlined
Resource contains 220,000t copper, 260,000t tungsten, 380,000t zinc and
190,000t lead
Metals X Nifty mine In production Initial discovery in 1981. Production started in 1993. Metals X acquired mine in
2016, through takeover of Aditya Birla Minerals
Since then, mine life has been increased from c.1 year to c.6 years; objective to
turn Nifty into long-life 40,000t copper mine
October 2017 - 55% increase in copper reserves to 237,500t increasing mine life
to c.6 years; total copper resources of 622,000t
Maroochydore Resources
outlined
Acquired through Aditya Birla acquisition; 85km from Nifty
Aditya Birla (2016) identified resources of 486,000t copper and 18,500t of
cobaltAntipa Minerals Minyari - WACA Resources
outlined
Telfer-style mineralisation. Initial indicated & inferred resource of 723,000oz
Au, 26,000t Cu, 4,000t Co & 233,000oz Ag
Tim's Dome Mineralisation Near-surface high grade gold +/- copper mineralisation found from drilling
Chicken Ranch Mineralisation Near-surface high grade gold +/- copper mineralisation found from drilling
Citadel (Rio Tinto farm-
in)
Resources
outlined
Rio Tinto A$60m staged earn-in for up to 75% of project (Rio has right to
Contains Magnum deposit (2km from Calibre) - inferred resource contains
339,000oz Au, 58,000t Cu & 511,000oz Ag
Encounter Resources East Thomson's Dome Mineralisation Outcropping gold reefs with visible coarse gold; positive drill results and gravity
survey
Telfer West Mineralisation Recently identified large scale gold system. Historical drilling , and drilling by
Encounter
Yeneena Mineralisation High grade copper-cobalt drill intersections
Hardey Resources Grace Mineralisation Leases immediately south of Newcrest's Telfer mine and O'Callaghan's W, Cu,
Zn, Pb deposit
Historical drilling, geochemistry and geophysics
Red Metal Ltd Yarrie Mineralisation 160km along trend from Nifty mine; mineralisation identified by geophysics
Sipa Resources Paterson North (80%
earn-in)
Mineralisation Adjoins Citadel project; geophysics and drilling have outlined copper +/- gold
mineralisation
Greatland Gold Havieron Mineralisation Four holes drilled (one with spectacular results); further 6-hole programme
planned for September 2018
Black Hills Mineralisation Geochemistry and mapping under way; gold pieces found in surface samples
18 July 2018
6
Junior gold/copper explorers in the Paterson Province
Greatland Gold (AIM:GGP, 1.62p, mkt cap £43.8m)
Greatland’s Paterson Project comprises three 100%-owned licences, Havieron, Black Hills and Paterson Range East covering 385sqkm and prospective for iron-oxide-copper-gold (IOCG) and Telfer-style mineralisation. The company’s licences are 30-40km east of Newcrest’s Telfer mine. Drilling carried out by Newcrest between 1991 to 2003 at Havieron indicated gold and copper mineralisation, and Greatland has followed this up with additional drilling. The 4-hole programme included one with very high grades, and a further 10-hole programme is planned for September2018. At Black Hills, acquired by Greatland in November 2017, Newcrest identified gold in rock chip samples and in drilling, and in the last month Greatland has encountered visible gold in surface samples. Greatland’s Paterson Project is described in more detail later.
Antipa Minerals (ASX:AZY, A$0.015, mkt cap A$27.0m)
The most advanced of the ASX-listed junior explorer in the Paterson Province is Antipa. Of all the juniors, it holds the largest land position, with extensive leases primarily to the north of Newcrest’s lease area (which contains the Telfer mine and the O’Callaghan’s deposit). Rio Tinto is farming in to Antipa’s northernmost leases. Known as the Citadel project, Rio Tinto is spending A$60m to earn up to a 75% interest. To date, two potentially key deposits have been found. Calibre contains an inferred resource of 1.3moz gold, 70,000t copper, 730,000oz silver, and tungsten, while 2km away at Magnum exploration has identified an inferred resource of 339,000oz gold, 58,000t copper and 511,000oz silver, plus tungsten. (Note that Rio’s rumoured major discovery is on wholly-owned tenements, and is not part of the joint venture with Antipa).
On its wholly-owned leases, Antipa has discovered Telfer-style mineralisation at Minyari-WACA with an indicated and inferred resource containing 723,000oz gold, 26,000t copper, 4,000t cobalt and 233,000oz silver. The project is 40km from Telfer. At Tim’s Dome, just 12km from Telfer, Antipa has encountered gold and copper mineralisation, as well as gold mineralisation at Chicken Ranch, 15km from Telfer.
Sipa Resources (ASX:SRI, A$0.011, mkt cap A$13.2m)
Rio’s rumoured discovery is thought to be just 8km from Sipa’s SW tenement boundary, according to Barry FitzGerald (www.resourcesrisingstar.com.au, 15th June 2018). Sipa is earning up to an 80% interest in the Paterson North project from Ming Gold. 120km north of Telfer, and directly along strike from Antipa’s Magnum and Calibre discoveries, Sipa has identified a number of targets via geophysics, and in particular the Obelisk deposit. A large intrusive-related copper alteration halo has been identified, with high grade vein-hosted gold and copper, plus silver, molybdenum and tungsten.
Red Metal Ltd (ASX:RED, A$0.125, mkt cap A$26.3m)
Red Metal holds leases in the north Paterson Province, to the west of Sipa and Fortescue’s leases, and bounded to the SE and NW by Rio Tinto. Red Metal’s Yarrie project is 160km on-trend from the Nifty mine. Red Metal is seeking copper-cobalt (as well as zinc-lead-silver) mineralisation. Magnetic imagery suggests potential dome-shaped structures that are highly prospective for deposits similar to Nifty/Maroochydore.
18 July 2018
7
Encounter Resources (ASX:ENR, A$0.061, mkt cap A$14.5m)
Encounter holds leases to the NW of Telfer called Telfer West, where a large scale gold system has been identified, and north of Telfer, at East Thomson’s Dome, where widespread coarse gold has been found adjacent to high grade gold reef outcrops. C.50km south of Nifty and c.60km west of Maroochydore, high grade copper-cobalt intersections have been encountered at Yeneena – similar style mineralisation to Nifty/Maroochydore.
Hardey Resources (ASX:HDY, A$0.005, mkt cap A$6.8m)
Hardey’s Grace project is located on a small 56sqkm lease area immediately south of the Telfer mine tenements (and 25km from the mine and mill). Historical exploration was undertaken by Newcrest.
18 July 2018
8
Greatland’s Paterson Project
Havieron Prospect
The Havieron Prospect is the most prominent of ten circular aeromagnetic anomalies discovered and partly investigated by Newcrest, and covered by up to 400 metres of younger rocks and sand. Geophysical data has outlined a target at Havieron covering an approximate area of 1,000m x 1,000m. Six holes drilled by Newcrest between 1991 and 2003 showed significant alteration, and three holes intersected significant gold - copper skarn mineralisation associated with extensive iron oxide and brecciation, suggesting that these aeromagnetic anomalies are caused by IOCG mineralisation similar in character to the giant Olympic Dam deposit in South Australia. Newcrest reported that mineralisation starts at 400 metres below surface, and is open in all directions and at depth. Results included:
▪ Hole HAC9101 - intersected 103m at 0.44g/t gold, including 30.6m at 1.0g/t gold and 0.28% copper with a peak gold value of 14.7g/t;
▪ Hole HAC9201 - intersected 82.3m at 0.4g/t gold, including 28m at 1.0g/t gold and 0.22% copper with a peak gold value of 15.4g/t.
Mineralisation of this type produces significant magnetic anomalies, and the introduction of iron increases the density of the host rocks, producing positive gravity anomalies. A new more detailed magnetic survey by Greatland, accompanied by a detailed gravity survey, suggested that the core of the altered and mineralised zone is about 200 metres south of the position indicated by the earlier reconnaissance aeromagnetic survey, and a new drilling programme of four diamond drill holes was undertaken based on the new geophysical data. In late June 2018, Greatland released the results of the first hole, HAD001, drilled at the core of the magnetic anomaly, which included exceptional results:
▪ Hole HAD001 – 121m at 2.93g/t gold and 0.23% copper from 497m, including 11.5m at 21.23g/t and 0.67% copper from 568.5m, which in turn includes bonanza intervals of 0.5m at 137.69g/t gold and 1.8% copper from 573m, and 0.5m at 100.15g/t gold and 4.1% copper from 575.5m.
Results from the other three holes, HAD002, HAD003 and HAD004 provided further evidence of gold and copper mineralisation at Havieron, but were less spectacular than the first hole. Holes HAD003 and HAD002 produced encouraging results:
▪ Hole HAD003 - 21m at 3.78g/t gold and 0.44% copper from 418m, including 1m at 29.12g/t gold and 0.4% copper from 428.5m;
▪ Hole HAD002 - 1m at 5.9g/t gold and 0.24% copper from 443m and 2m at 5.44g/t gold from 488m.
Holes HAD002 and HAD004 appear to have intersected peripheral mineralisation, with narrow zones of anomalous gold and copper. Mineralisation is still open to the south, east and west and all holes bottomed in altered and mineralised ground, suggesting that depth extensions are possible. Greatland notes that grades increased with depth in all holes.
Source: Greatland Gold, modified by Progressive Equity Research
Greatland is planning a new drilling campaign, comprising 10 holes of c.600m, for a total of approximately 6,000m. The programme is due to start in September 2018, and is expected to take 10 weeks to complete. The company hopes to further determine the extent and direction of the high grade zone of mineralisation at Havieron. Results are therefore likely in November/December 2018, so the next few months could be exciting.
All of the other aeromagnetic anomalies need to be further defined by detailed magnetic and gravity surveys, and possibly also by sensitive geochemical techniques such as Mobile Metal Ion (MMI) geochemistry in order to develop new drilling targets. This is a very promising area, although exploration is challenging because of deep cover.
18 July 2018
10
Black Hills Prospect
The Black Hills Prospect, to the north-west of Havieron, on the western edge of the Paterson Project licences, presents totally different challenges and potential targets. There is no deep post-Proterozoic cover, only wind-blown sand and somewhat subdued topography, and the target is more conventional, non-IOCG, gold and copper mineralisation. The geological setting, in terms of lithology and structure, appears very similar to that of the hugely significant Telfer deposit, only 30 km to the west.
Black Hills has been previously investigated, in a fairly superficial way, by Newcrest, and four main mineralised zones demarcated along a five-kilometre strike length of a north-westerly trending antiformal structure. The carbonate-rich metasediments and the structural style are analogous to those hosting the Telfer gold-copper mineralisation, and the gold mineralisation revealed at Black Hills by earlier Newcrest exploration and the most recent Greatland field work is similar to that seen in the uppermost and earliest-mined portions of Telfer.
Newcrest identified high gold grades in rock chip samples, commonly around 20g/t gold, but some samples returned up to 90g/t, with visible free gold in places. Previous widely-spaced drilling included the following results:
▪ Hole CBR073 – 3m at 9.14g/t gold from 26m downhole, including 1m at 21.2g/t from 27m;
▪ CBH138 – 1m at 10.0g/t from 16m;
▪ CBH071 – 1m at 4.93g/t from 12m;
▪ NBH004 – 1m at 3.12g/t from 37m.
Initial Greatland fieldwork in June 2018, in the Saddle Reefs zone, has produced some spectacular and eye-catching results in terms of visible gold in quartz and gossan, as well as gold nuggets in sand near the reefs, all suggesting very high grade gold mineralisation in these reefs. In the upper portions of the Telfer deposits, gold mineralisation mainly occurs in quartz reefs 0.5 to 2 metres thick, with strike lengths of up to 600 metres and similar extensions down-dip, roughly conformable within carbonate-rich metasediments. Weathering commonly extends to depths of 200 metres, with most copper leached out of the near-surface zones and some secondary enrichment of copper deeper in the weathered zone. The Black Hills mineralisation seen in shallow Newcrest drill holes, and now in surface outcrops examined by Greatland, conforms to this pattern, with no sulphides of iron or copper, and release of gold at the surface from weathered material.
Following the receipt of drilling approvals from the Australian Department of Mines, Industry Regulation and Safety, Greatland has said that the first phase of the new exploration programme includes plans for a 3D Induced Polarisation ("3DIP") survey covering a strike length of 1,200 metres over the high-grade gold mineralised zone identified at the Saddle Reefs. The 3DIP survey is scheduled to take approximately two weeks to complete and is expected to provide detailed 3D chargeability and resistivity models which will assist with drill programme planning.
18 July 2018
11
Black Hills Prospect, Paterson Project
Source: Greatland Gold, modified by Progressive Equity Research
Black Hills is an exciting prospect, with many similarities to Telfer. High-grade gold mineralisation at the surface, being revealed by painstaking geological mapping and sampling, could present a viable open-cast mining target in itself, but could also, as at Telfer, be only the uppermost expression of a complex gold-copper deposit of significant size.
18 July 2018
12
Disclaimers and Disclosures
Copyright 2018 Progressive Equity Research Limited (“PERL”). All rights reserved. PERL provides professional equity research services, and the companies researched pay a fee in order for this research to be made available. This report has been commissioned by the subject company and prepared and issued by PERL for publication in the United Kingdom only. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable; however, PERL does not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of PERL at the time of publication, and any estimates are those of PERL and not of the companies concerned unless specifically sourced otherwise. PERL is authorised and regulated by the Financial Conduct Authority (FCA) of the United Kingdom (registration number 697355).
This document is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. PERL does not make investment recommendations. Any valuation given in a research note is the theoretical result of a study of a range of possible outcomes, and not a forecast of a likely share price. PERL does not undertake to provide updates to any opinions or views expressed in this document.
This document has not been approved for the purposes of Section 21(2) of the Financial Services & Markets Act 2000 of the United Kingdom. It has not been prepared in accordance with the legal requirements designed to promote the independence of investment research. It is not subject to any prohibition on dealing ahead of the dissemination of investment research.
PERL does not hold any positions in the securities mentioned in this report. However, PERL’s directors, officers, employees and contractors may have a position in any or related securities mentioned in this report. PERL or its affiliates may perform services or solicit business from any of the companies mentioned in this report.
The value of securities mentioned in this report can fall as well as rise and may be subject to large and sudden swings. In addition, the level of marketability of the shares mentioned in this report may result in significant trading spreads and sometimes may lead to difficulties in opening and/or closing positions. It may be difficult to obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance.
