Today Greatland Gold Plc (LON:GGP) , the Australian focused Aim listed junior gold miner, have today announced an exploration update. This update shows some promising results for Greatland, especially at Warrentinna where they have been drilling the Derby North prospect. To run through the RNS:
Warrentinna
At Warrentinna, they have been drilling at the Derby North prospect, where they have reported some excellent drilling and sampling results, as shown:
‘Results from 1m re-sampling include 5m at 29.26g/t gold from 36m, including 1m at 103.07g/t gold’
This shows that the mine has the potential to be profitable grade wise, but it is the below sentence that highlights the potential for this prospect:
‘The mineralised zone and the high grade reef remain open to the north and to the south and at depth. The system was not previously found by prospectors.’
What this indicate is that the prospect has the potential to have a decent size resource which is one of the most important factors when looking at a prospect. It is no good having good grades if the mine does not have enough reserves to make it profitable. The below further re-affirms this point and further seems to highlight the potential of this prospect:
‘Re-sampling results confirm the original 4m composite sampling results and suggest there is potential for an open pittable gold resource at Derby North.’
The above is important for Greatland as if they can mine gold from Derby North via an open pit mine, it should mean that they can very likely get it online cheaply and quickly. This of course should be a very big plus for Greatland in terms of cash-flow generation.
Ernest Giles, Lackman Rock and Firetower
In terms of what they have reported on Ernest Giles, the gold prospect that they hope will be their company maker (and which will be getting the most focus over the rest of this year with Lackman Rock), they have reported that all is on track:
‘Drill contracts have been signed and formal government approval for the drill program is awaited. Airborne geophysical data has been re-processed and drill targets refined.…
