Drilling Update – Gold Intersected at Ernest Giles Project

Greatland Gold plc (AIM:GGP), the gold focused mineral exploration and development company based in Australia, announces an operational update on its drilling activities at the Ernest Giles gold project in Central Western Australia. Results have been received for the four holes completed to date and the Company confirms gold mineralisation has been intersected.

Ernest Giles Project (gold), Central Western Australia

The Ernest Giles project comprises three contiguous tenements covering an area of 948sq km in Central Western Australia. It is located in a prolific gold producing region of the north-eastern goldfields where Greatland has previously completed encouraging first phase exploration.

Four reverse circulation (RC) holes have been completed to date at Ernest Giles (ERC001-ERC004), three holes at the Calanchini target area and one hole at the Peterswald target area. Drill hole collar details are presented in Table 1. Results from these four holes have been received and the Company confirms gold mineralisation has been intersected at Calanchini. Prospective Archean basement occurred at shallower depths than expected at Calanchini; from 129m below surface.

Table 1 – Ernest Giles RC Drill Hole Collar Details

Hole East North Dip RL Depth
ERC001 598995 7017600 vertical 472m 300m
ERC002 599399 7017601 vertical 465m 288m
ERC003 598601 7017629 vertical 474m 199m
ERC004 570600 7039500 vertical 483m 348m
GDA94 ZONE51

Calanchini Area
ERC001 – Archean basement at 142m. End of hole 300m.
ERC002 – Archean basement at 129m and best of 4m at 106ppb from 149m. End of hole 288m.
ERC003 – Archean basement at 195m. End of hole 199m.

Peterswald Area
ERC004 – no basement intersection. End of hole 348m.

At Calanchini, intersections occurred 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 ERC002 4m at 106ppb (parts per billion) gold from 149m. As a comparison, background gold levels at Calanchini are typically less than 5ppb. This is encouraging as it confirms a mineralised system at shallower depths than previously thought. These were assayed at 4m intervals and the Calanchini holes will now be re-sampled at 1m intervals. It is envisaged that individual assays will be higher in the 1m samples and results are expected to be reported during Q3 2012.

Although results from Calanchini have been positive, drilling productivity (metres per day) has not been as expected. Consequently the Company is in the process of sourcing more suitable drilling equipment to achieve its aims. The Company will advise when alternative equipment is in place to continue with the drill programme as planned.

At Peterswald, Archean basement was not intersected despite drilling to a depth of 348m.  As a result, the Company now considers the Peterswald area to be low priority for further investigation.

Callum Baxter, CEO of Greatland Gold, commented:
“We are delighted to have intersected gold mineralisation so early in our drilling at Ernest Giles, and shallower than expected. However, whilst we take great confidence in the results achieved so far, we are striving for a higher drill rate, and as such, are in the process of optimising our equipment. As soon as this equipment is in place, we will continue with our drilling programme, focusing initially on further exploration at Calanchini. We look forward to providing further updates on our efforts in due course”.

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