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First results at Greatland Gold’s Ernest Giles project confirm proof of concept

Published: 23:20 07 Oct 2010 AEDT

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Greatland Gold (LON:GGP) said that the first results from its maiden drilling programme at the Ernest Giles project in Western Australia signalled the potential for a large scale mineralisation.

Even though the company was encouraged by the results, they fell well short of investor expectations as shares plummeted on the update, and were down 31% by early afternoon.

The highest result returned was 0.7 metres at 0.44 grammes per tonne (g/t) gold although many other highly anomalous results below 0.1 g/t gold were reported.

The drilling encountered large alteration systems which could host major mineralisation. Total strike length of greenstones covered by the company's licences is over 100 kilometres (km).

The first tranche represents 25% of all samples sent for analysis. Further results are expected to be available in early November.

According to the company, the results provided it with proof of concept, confirming the potential for large scale mineralisation.

“Although these partial, early results contain only low gold grades they confirm the potential for large scale mineralisation. We look forward to releasing the remaining results and our interpretation, although we are already confident that further work is justified,” said managing director Callum Baxter.

The maiden drill programme consisted of four vertical diamond holes with two intersecting gold bearing alteration systems.

The Ernest Giles gold project is located in the far eastern goldfields of Western Australia.

Greatland has recently secured co-funding of A$60,000 from the government, and it has applied for an additional licence to expand the project to 948 square kilometres.

The funding initiative was aimed at enhancing the mineral prospectivity of under-explored regions. The exploration work carried out to date has given Greatland enough confidence to further expand its acreage in the prospective and under-explored region.

Greatland Gold encouraged by link zone mineralisation at Havieron

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on 20/6/23