Greatland Gold reports further progress at Havieron

Greatland Gold updated the market on recent exploration and development work at the Havieron gold-copper project in the Paterson region of Western Australia on Thursday, reporting that seven drill rigs were currently onsite, all focussed on growth.

The AIM-traded firm said the first target was the South East Crescent, where continuous mineralisation had been identified across 1,000 vertical metres and remained open.

Drilling there was continuing to progressively test for extensions to the South East Crescent, with drilling planned up to 400 metres below the updated mineral resource.

At the Eastern Breccia, Greatland said drilling was continuing to define the greater mineralised footprint, including definition of higher-grade zones recently announced.

On the Northern Breccia, meanwhile, drilling was aimed at extending high-grade zones of mineralisation at depth.

The company also said that the drilling was continuing to define new geophysical targets outside of the main Havieron system, with follow-up drilling planned at regional targets on the Havieron mining lease.

Looking at new drilling results, Greatland said work in the South East Crescent had extended the high grade zone down a further 100 metres, with the Crescent zone now continuously intersected to over 1,000 vertical metres and remaining open at depth.

It said hole HAD133W9 returned 85.8 metres at 3.0 grams of gold per tonne and 0.06% copper from 1,604 metres, and 25.3 metres at 1.1 grams of gold per tonne and 0.08% copper from 1,471.1 metres.

High grade results in the Northern Breccia, meanwhile, reinforced the potential for further high-grade sulphide mineralisation adjacent to the South East Crescent Zone.

The firm said hole HAD055W4 returned 149.9 metres at 2.7 grams of gold per tonne and 0.12% copper from 877.4 metres, including 13.9 metres at 22.8 grams of gold per tonne and 0.46% copper from 1,013.4 metres.

Hole HAD055W5, meanwhile, returned 39.6 metres at 2.8 grams of gold per tonne and 0.07% copper from 983.6 metres, including 0.5 metres at 96 grams of gold per tonne and 0.1% copper from 1,020.7 metres.

The company also reported early works improvements, reporting that construction activities by Newcrest were progressing, including an exploration decline advance of 377.5 metres as at the end of May, while the fuel facility had been “fully commissioned”.

Greatland said the decline experienced improved ground conditions in the June quarter, adding that advance rates had improved after changes in the design of the decline brought forward the first downward spiral to the current advance position.

That, it explained, had allowed the decline to transition into better ground conditions, with the Havieron fuel facility now complete and commissioned into operation.

Finally, feasibility study work by Newcrest was said to be progressing and key contracts awarded, with the study still forecast to be delivered in the December quarter.

“The growth drilling programme continues to expand Havieron's mineralised system,” said managing director Shaun Day.

“The existing high grade mineralised zone of the South East Crescent now extends a further 100 metres below our previous Mineral Resource estimate.

“Testament to the scale of Havieron, there is now continuous mineralisation observed over 1,000 metres of vertical extent with the system remaining open at depth.”

Day said that, with an “extensive” growth drilling programme planned over the next year, there was “tremendous potential” to further expand the Havieron resource and “unlock the true scale and value” of the broader system.

“Pleasingly, the decline has encountered better ground conditions, resulting in recent improvements to the decline advancement rates.”

At 1518 BST, shares in Greatland Gold were down 1.64% at 12p.

Reporting by Josh White at Sharecast.com.