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22 May 2017
Agreement with Newmont on Ernest Giles
Market Cap: £6.3m
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May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17
An agreement with Newmont Exploration, a subsidiary of NYSE
listed Newmont Mining Corporation – one of the world's largest gold
producers - provides a significant endorsement of Greatland Gold’s
exploration strategy and underlines the potential of its projects. It
grants Newmont access to Greatland's Ernest Giles project
tenements and exploration database for six months and gives
Newmont a right of first refusal on a purchase or joint venture during
that period. Greatland’s previous drilling identified two large zones
of gold mineralisation. Greatland's recent application for four
additional licence areas effectively completes its coverage of the
newly discovered buried Ernest Giles greenstone belt.
Newmont will fund its exploration of the Ernest Giles project and will
use its own technologies, some proprietary, that are well suited to
finding gold under cover. Newmont has a right of first refusal should
Greatland wish to sell all or part of the Ernest Giles project during the
six month period of the agreement.
While the proprietary exploration methods to be used by Newmont at
Ernest Giles have not been disclosed, we believe that Newmont's
deep-sensing geochemistry technology could be ideally suited to the
exploration of covered targets at Ernest Giles.
Greatland Gold had already taken a significant step in its systematic
exploration campaign of the very promising buried greenstone
discovery at the Ernest Giles project.
Mineralisation was observed in 13 out of 23 holes in Greatland’s initial
drill programme with gold anomalism between 5 and 95ppb in more
than 10 holes, peaking at 784ppb. Anomalous silver was also noted.
Greatland subsequently commenced gravity and passive seismic
survey work with a view to providing greater clarity on the multiple high
priority gold targets.
More recently, it announced that it had significantly expanded its
interest in the region by applying for four additional exploration
licences covering a further 800 square kilometres.
Source: LSE Data
FY 17 results – Nov. 17
Following recent positive drilling results
GREATLAND GOLD IS A RESEARCH
CLIENT OF PROGRESSIVE
This agreement enhances the exploration programme at Ernest Giles and
provides Greatland with a set of additional options for the future
development and ownership of the project.
GREATLAND GOLD PROJECTS
Western Australia - 100% owned – Gold and Nickel
Western Australia - 100% owned – Gold and Copper
Western Australia - 100% owned – Nickel
+44 (0)20 7781 5301
Tasmania - 100% owned - Gold
Tasmania - 100% owned - Gold
+44 (0)20 7781 5307
Source: Company Information
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.
22 May 2017
The Newmont agreement
The agreement is for a period of six months and it grants Newmont access to the
Ernest Giles project tenements and exploration database and also grants Newmont a
right of first refusal should Greatland wish to sell all or part of the Ernest Giles project.
The agreement with Newmont is very important: Newmont is one of the world's major
gold producers and is very active in exploration in Australia and around the world. Its
expertise and in-house proprietary techniques will be of great benefit to Greatland. The
association with such a major player reflects well on Greatland’s business model, its
project potential and exploration strategies. Newmont has successfully applied
proprietary exploration techniques to other buried gold deposits in Australia and these
could be especially relevant at Ernest Giles.
Newmont’s recent R&D produced its proprietary airborne NEWTEM system
(Newmont’s time domain electromagnetic platform) and the ground-based IP
distributed acquisition system, NEWDAS, a 3-D distributed acquisition platform similar
to the 3-D seismic systems used in the oil industry. It has also developed a new
proprietary method, deep-sensing geochemistry (DSG), which uses geochemical
methods on the surface to investigate to a depth of more than 500 meters through
many types of cover. We note, from Newmont’s presentations, that it credits the recent
discoveries at the Long Canyon East Zone and Rita K—Pete Bajo to the use of DSG.
Although the Greatland statement is silent as to the proprietary technology being put to
use, we would suggest that Newmont’s DSG technology (which it views as a distinct
competitive advantage) looks ideally suited to exploration of the Ernest Giles project.
New licence applications
In May 2017, Greatland announced that it was applying for four additional exploration
licences covering a further 800 square kilometres. Three of those (Westwood)
represent an area of 600 square kilometres to the east of the Ernest Giles project,
while the fourth (Empress North) is contiguous to the existing Ernest Giles tenement
area and lies immediately to the north of the Empress target where previous surface
geochemistry surveying detected a 3km long by 1km wide gold in soil anomaly. The
announcement also said that the gravity survey across the Ernest Giles project was
progressing to schedule.
The application for the four additional licence areas effectively completes Greatland
Gold’s coverage of the newly discovered buried Ernest Giles greenstone belt. It is a
logical move following the results of the RC drilling campaign at the Meadows prospect
at Ernest Giles. That had confirmed the presence of extensive zones of anomalous
gold which was likely to provoke interest in this new discovery and it makes very good
sense to protect the Company’s investment by covering all prospective ground in the
area. The Empress North licence covers a northern extension to a previously known
greenstone zone while the three Westwood licences to the east cover an aeromagnetic
anomaly of probable greenstone origin.
The plan to obtain more information on buried Basement topography using gravity
measurements and passive seismic will assist planning and costing of further drilling
campaigns. Buried Basement topography has proved to be significantly more rugged
than the current land surface, resulting in considerable variation in the depth of cover
to be penetrated before reaching Archaean greenstones. It is also possible that the
buried topography is, to some extent, geologically controlled, and can thus contribute
to better understanding of mineralisation.
22 May 2017
The Ernest Giles project - 100% owned – Gold and Nickel
The Ernest Giles project is located in central Western Australia, covering an area of
more than 1800 square kilometres following its augmentation by the recent application
by Greatland for four further licences (Empress North and the three Westwood
licences) covering 800 square kilometres. The area is covered by desert sands and
sediments, making it virtually unexplored. The region is home to several successful
exploration discoveries such as Tropicana and Yamarna. The previously unknown
Ernest Giles greenstone belt was discovered by airborne geophysics, and confirmed
by initial Greatland drilling, including intersections of gold mineralisation and banded
iron formation. MMI geochemical surveys of the greenstone belt gave outstanding
results despite the very thick cover, locating many new anomalies. A detailed
aeromagnetic survey in 2014, as well as improving understanding of the main
greenstone belt, revealed an outstanding nickel anomaly which was named Carnegie,
and initial drilling in 2015 intersected promising lithologies. The new areas which are
subject to the recent licence applications have been subject to very little prior
exploration work but are an extension of Ernest Giles’ known prospective sequences
as the chart below shows.
The Ernest Giles project
Source: Greatland Gold
22 May 2017
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