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Exploration Update


January 25, 2011 - London

25 January 2011

 

GREATLAND GOLD PLC

 

Exploration Update

 

A New Gold Project in the Southern Yilgarn Region of Western Australia

 
 

Greatland Gold plc (the "Company"), the mineral exploration and development company focused on gold projects in Australia, announces it has been awarded mineral title to the gold prospective Bromus exploration licence in the Norseman region of Western Australia.

 

 

Bromus

 

The Bromus project is located in the southern Yilgarn region of Western Australia. It lies 25km south-west of Norseman Gold Plc's (AIM:NGL) gold mining operations at Norseman, and 65km south of the historic Chalice gold mine. Other nearby licence holders in the region include AngloGold Ashanti Limited and Teck, the Canadian mining company.

 

Bromus is the Company's third project in the highly prospective Yilgarn region; adding to its Ernest Giles and Lackman Rock licences.

 

The Bromus exploration licence covers 140 km² in the prolific mining district of Norseman in Western Australia. There is little outcrop and the land is currently vacant crown land with good infrastructure in place and nearby roads from Kalgoorlie to Esperance as well as the main Norseman-Esperance highway which passes through the far south-eastern parts of the licence area. Furthermore, the Kalgoorlie to Esperance railway runs adjacent to the highway. Water and electrical infrastructure is also close, hence we do not envisage any operational difficulties in undertaking either sampling or drilling. Bromus is approximately 150km north of the Southern ocean and its easy logistics make it an attractive mining location.  

 

Bromus includes a north-west trending greenstone belt that is situated between the Goodia granite dome to the east and granite gneisses to the west. Interpretation of aeromagnetic data suggests the greenstone belt has a width of some 2km. The majority of the tenement is covered by calcareous soils with little exposure of the underlying gold prospective greenstones.

 

The Chalice gold mine is located 65km north of Bromus in the same greenstone belt. Gold was produced from the Chalice mine from 1995 to 2000. The pre-mining inferred resource at Chalice was 3.5 million tonnes at 8.19g/t gold for 922,000 oz gold. Chalice was discovered in 1993 by drill testing below a surface gold anomaly of only 7ppb gold.

 

Previous exploration activities at Bromus have been carried out by Resolute Ltd and Goldfields Exploration between 1994 to 2000. Their surface sampling outlined numerous scattered gold anomalies from 10ppb gold to 97ppb gold near and parallel to the eastern edge of the greenstone belt in the central parts of the current licence. Strike length of this zone is some 8km. Greatland has concluded that in-fill surface sampling and drill testing of these gold anomalies is a high priority.

 

Greatland proposes to carry out surface sampling during the first quarter of 2011 and review results with a view to drill testing surface gold anomalies later in 2011. The director's believe that Bromus has the potential for a shallow depth gold resource, with possible gold bearing mineralisation at shallow depths that might, with proper appraisal, support a low cost, open-pit operation.

 

Reflecting our confidence in the region, Greatland has also made application for a further two exploration licences adjoining the current Bromus exploration licence. Further details of these will be provided in due course.

 

 

Corporate

 

Greatland Gold owns 100% of all projects in its portfolio. The Company's policy is to develop its projects via systematic exploration activities culminating in the drilling of strategic targets in an effort to locate new orebodies.

 

The Company concentrates its efforts in Australia where there is low political risk, an established mining culture and regions prospective for new orebodies.

 

 

Callum Baxter, Managing Director, commented: "We have added another gold project to our portfolio in the southern goldfields of Western Australia; one of the most prolific gold producing regions in the world. The Bromus licence complements our licence holding at Lackman Rock and is near to the gold mininig centre of Norseman. Already we have defined surface anomalies at Bromus in a geological setting analogous to large gold mines nearby. We look forward to working on these promising targets in the coming months."

 

 

Competent Persons

 

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Paul Askins and Mr Callum Baxter, directors of Greatland Gold, who are both members of the Australasian Institute of Mining and Metallurgy. Paul Askins and Callum Baxter have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Paul Askins and Callum Baxter consent to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.

 

 

Enquiries:

 

Greatland Gold plc                                      
Callum Baxter                                              
Tel+44 (0)20 7099 5845                          
Email:info@greatlandgold.com
www.greatlandgold.com                             

 

Grant Thornton Corporate Finance
Gerry Beaney / Colin Aaronson
Tel+44 (0)20 7383 5100

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Greatland Gold PLC via Thomson Reuters ONE

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