Operational Update – Firetower Project Drilling Update
Greatland Gold plc (AIM:GGP), the gold focused mineral exploration and development company based in Australia, announces an update on drilling activities at the Firetower gold project (“Firetower”) in Tasmania. Farm-In partners Unity Mining Limited (“Unity”) have today announced base metal and gold intersections from diamond drill holes completed to date.
Firetower Project (gold), Tasmania
The Firetower project comprises four contiguous licences covering an area of 265sq km in Central North Tasmania. The project is subject to a Farm-In agreement dated 7 Oct 2011, whereby ASX listed Unity may earn 75% via expenditure of A$7million.
Work by the Company has outlined a large mineralised system of more than 6km in length with scope for a large gold resource. Firetower greatly resembles the nearby Henty gold mine, a plus one million ounce deposit, owned and operated by Unity. Work at Firetower has identified gold mineralisation near to the existing resource.
Unity has recently advised that drilling at Firetower is testing for depth extensions to known high-grade zones, and at Firetower West testing soil anomalies. At the end of the September quarter three holes had been completed (FTD38-FTD40), with one in progress (FTD041).
Hole FTD38, drilled at Firetower West, intersected anomalous copper and gold mineralisation in strongly altered volcanic breccias (peak of 0.64g/t gold over 1.0 m down hole from 60.0-61.0m ; 0.45% copper over 4.1m down hole from 417.9-422.0m, and 0.23% copper over 3.4m down hole, from 448.0-451.4 m).
Holes FTD39 and FTD40 both tested deep strike extensions on the western edge of the known Firetower gold mineralisation. The former did not return significant assays but FTD40 intersected 38m (down hole), from 132 m to 170 m which averaged 0.7g/t gold. This included 3m at 2.6 g/t gold from 137 to 140m and 2m at 3g/t gold from 142m to 144m (including 1m at 4.09 g/t from 143 to 144m).
Holes FTD41 and FTD42 are designed to test for northern extensions of the Firetower mineralisation. FTD41 is in progress and FTD42 will be drilled during the current quarter.
The first anniversary of the Farm-In agreement has recently passed. Under the agreement, Unity were to spend a minimum of A$200,000 in the first 12 months. Unity has advised that this minimum expenditure has been exceeded. Under the Farm-In agreement, Unity may earn an initial 51% with expenditure of A$2million, and 75% with a total expenditure of A$7million.
Callum Baxter, CEO of Greatland Gold, commented:
“Unity has completed a significant amount of work at the Firetower project in the last 12 months, which includes drilling activities since July of this year and drilling is continuing. Unity has fulfilled its first year expenditure commitment under the Farm-In agreement and the gold intersections reported today are quite a pleasing result for its efforts so far. We look forward to announcing further results from drilling at Firetower in the coming months.”