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22 May 2017

Agreement with Newmont on Ernest Giles



Market Cap: £6.3m

May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17

12m high/low

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

Enterprise value




Next news

FY 17 results – Nov. 17



Interest cover


Following recent positive drilling results


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.



Christopher Legg

Ernest Giles

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
Gareth Evans

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

Disclaimers and Disclosures
Copyright 2017 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.

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