Final Results For The Year Ended 30 June 2012
Greatland Gold plc (AIM:GGP), the gold focused mineral exploration and development company based in Australia, announces its financial results for the year ended 30 June 2012.
The year to June 2012 was a period of significant activity for your Company, including ongoing activities at Ernest Giles and commencement of work at Firetower by our JV partner Unity Mines Ltd (ASX:UML).
Overall, the last 12 months has seen substantial progress across all aspects of our gold exploration programme. Aside from drilling at Ernest Giles in Western Australia, and (post period on 24 July 2012) at Firetower in Tasmania, earlier stage work moved along at all of Greatland’s assets.
At the beginning of June 2012, the Board announced a fundraising of £375,000 before expenses, via the placing of 50,000,000 ordinary shares of 0.1p each at a price of 0.75p per share. This money was raised to provide working capital for the Company whose activities are spread across a wide variety of locations and stages. These funds enable us to remain active with our exploration efforts.
Gold continues to perform well, albeit off its highs of $1,923 in early September 2011. However, sitting consistently above $1,500 across the last twelve months it, in my view, remains underpinned as a safe asset in a volatile global market.
We continue to remain amenable to further third party interest at our other projects, following the operational success of Firetower. As we have previously stated on several occasions to the market, we see this as a clear and obvious way to advance our exploration activities, whilst benefitting from the more substantial progress a larger investment brings.
I would like to express my most sincere gratitude to Greatland’s loyal shareholders. Knowing full well that newsflow is the lifeblood of an AIM company’s investment case, we will continue to keep shareholders updated as to our progress, at every available opportunity via the Stock Exchange and our website (greatlandgold.drench-development.com). The Board also expresses its gratitude to Paul Askins, a founding director, who retired late last year. We thank him once again for his contributions and wish him very well for the future.
Andrew R. McM. Bell
10 September 2012
Chief Executive’s Review of Operations and Finance
In the year ending 30 June 2012 the Group reported a slightly increased net loss of £590,828 equating to a loss per share of 0.19 pence (30 June 2011: loss of 0.17pence).
Net cash outflow for the year was £376,344 which reflects total administrative expenses plus exploration expenses. The Group’s cash deposits stood at £717,117 at the period end.
Shareholders will know that we have three ‘core’ projects, Ernest Giles, Firetower and Warrentina. Our highest priority during 2012 was Ernest Giles which comprises three contiguous tenements covering 948 sq km in central Western Australia. Following the necessary Government approvals, and lead up work, drilling was carried out on a number of targets across the licences. Towards the end of the period we announced initial results from early stage drilling.
In the southern licence drilling showed mineralisation occurring at shallower depths than expected. The rocks intersected included a typical greenstone sequence of basalt and banded iron formation with quartz veining and sulphide mineralisation to 10%. Rocks showed visible alteration, quartz veining and structural deformation. The highest mineralised intercept was 4m at 106ppb (parts per billion) gold from 149m. As a comparison, background gold levels are typically less than 5ppb. This result was seen as encouraging as it confirms a mineralised system at shallower depths than previously thought.
Strong progress has been made at the Firetower project, which consists of four contiguous tenements covering an area of 265 sq km located 65km west of Launceston in Northern Tasmania. The project has an initial JORC inferred resource of 90,000oz gold.
In October 2011 we announced we had secured a farm in agreement with Unity Mining Ltd. Unity Mining can earn up to 75% of the Firetower Gold project for an expenditure of A$7m over a five and half year period.
Interpretation of geology and structural features from detailed satellite imagery has been undertaken by Unity Mining, and all necessary government approvals were received for diamond drilling at the Firetower and Firetower West prospects. At the time of writing this report, and as published to the market on 24 July 2012, drilling has now commenced at the site.
Finally, moving to our Warrentina project, which consists of several historic goldfields over 30km of strike, the Company has single metre mineralised intercepts up to 103g/t gold at the Derby North area.
Surface sampling and mapping has been completed on additional gold occurrences within the central parts of the project area. Results have returned subtle gold in soil anomalies peaking at 5ppb gold that may represent strike extensions to known mineralisation. Additional drilling at the Derby North area is scheduled for late Q4 2012.
Our remaining projects of Bromus, Lackman Rock and East Lisle have also seen developments. At Bromus and Lackman Rock, which covers prospective greenstone near the prolific mining district of Norseman in Western Australia, we received encouraging auger geochemical soil sampling results. While at East Lisle, located about 30km north-east of Launceston in north-east Tasmania, the company has completed surface sampling and mapping.
I am pleased to report that we continue to receive third party enquiries relating to joint ventures across our licences and I firmly believe that the Greatland asset portfolio will unlock significant value for investors; we remain focussed on delivering the best results for our shareholders.
Callum N Baxter
10 September 2012
Results and dividends
The Group’s results are described in the Group statement of comprehensive income below as are the audited financial statements for the year ended 30 June 2012 The Group has incurred a loss for the year of £590,828 (2011: £506,060).
The Directors do not recommend the payment of a dividend.
The Group’s results have been audited by Messrs Chapman Davis LLP who have signed an unqualified report.
Please refer to the PDF below for the full report