Paterson

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Introduction

The Paterson Project comprises the Havieron, Black Hills and Paterson Range East licences, covering over 385 square kilometres of under-explored ground in the Paterson Province in Western Australia.

The region is highly prospective for intrusion related gold-copper systems such as the Telfer deposit. Greatland has identified multiple targets across its licences and recent drilling has demonstrated the potential for one such target, Havieron, to represent a very large mineralised system.

  • The Paterson region hosts several large gold and/or copper deposits such as Nifty, Winu and Newcrest’s Telfer
  • Greatland’s Havieron prospect is strategically located 45km east of the major Telfer gold mine, and 500km east of rail and port infrastructure at Port Hedland
  • Several new exploration licence applications made across the region and high levels of exploration activity from key regional players
  • Following a review of regional geophysical and geochemical data over ther Paterson project approximately fifty targets were identified in the broader region, with around half in ground held by Greatland
Newcrest Farm-In Agreement

In March 2019 Greatland Gold signed a Farm-In Agreement with Newcrest Operations Limited (Newcrest), a wholly owned subsidiary of Newcrest Mining Limited (ASX:NCM), Australia’s leading gold producer and one of the world’s largest gold mining companies, to explore and develop Greatland’s Havieron gold-copper project in the Paterson region of Western Australia.

The farm-in agreement includes Joint Venture and Tolling Principles which reflect the intention of both parties that, subject to a positive Feasibility Study outcome, ore from the proposed Havieron Joint Venture will be toll processed at Newcrest’s Telfer Gold Mine

Additionally, during the farm-in period, Newcrest will have a first right of refusal over the remainder of Greatland’s Paterson project (Black Hills, Paterson Range East and remaining areas of Havieron licence)

Highlights
  • Newcrest has the right to acquire up to a 70% interest in 12 blocks within E45/4701 that cover the Havieron target (the “Tenement Blocks”) by spending up to US$65m (roughly £50m or AUD$90m) and completing a series of exploration and development milestones in a four-stage Farm-in over six years.
  • After meeting the milestones in the four-stage Farm-in (set out below), Newcrest has the option to acquire an additional 5% interest at fair market value taking Newcrest’s interest in the Farm-in to 75%.
  • Newcrest will have the right but not the obligation to acquire up to an initial 70% Farm-in Interest in the Tenement Blocks in accordance with the following four-stage farm-in procedure:
    • Stage 1: Newcrest incurs US$10 million in expenditure (inclusive of the Minimum Commitment of US$5 million) in relation to the Tenement Blocks (the “Stage 1 Commitment”) within a period of 12 months;
    • Stage 2: If Newcrest incurs an additional US$10 million in expenditure in relation to the Tenement Blocks (the “Stage 2 Commitment”) within a period of 12 months from the date following satisfaction of the Stage 1 Commitment, Newcrest will earn a 40% Farm-in interest;
    • Stage 3: If Newcrest incurs an additional US$25 million in expenditure in relation to the Tenement Blocks and delivers a Pre-Feasibility Study for a project on the Tenement Blocks (the “Stage 3 Commitment”) within a period of 24 months from the date following satisfaction of the Stage 2 Commitment, Newcrest will earn an additional 20% Farm-in Interest (cumulative 60% Farm-in interest);
    • Stage 4: If Newcrest completes and delivers, or incurs no less than US$20 million in expenditure toward the carrying out of, a Feasibility Study for a project on the Tenement Blocks (the “Stage 4 Commitment”) within a period of 24 months from the date following satisfaction of the Stage 3 Commitment, Newcrest will earn an additional 10% Farm-in Interest (cumulative 70% Farm-in interest).
  • Newcrest must incur US$5m in expenditure within 12 months of the Farm-in commencing (the “Minimum Commitment”).
  • Newcrest will act as Manager during the Farm-in period and it is expected that drilling at Havieron will recommence in April 2019, under Newcrest’s management and at Newcrest’s expense, and subject to Newcrest receiving all required regulatory and heritage approvals.
  • The current intention of both parties is, that subject to a positive Feasibility Study outcome, the ore from the proposed Havieron Joint Venture will be toll processed at Newcrest’s Telfer Gold Mine (“Telfer”), which sits approximately 45km to the west of Havieron, delivering material economic and operational benefits for both parties. These include:
    • lower upfront capital costs (no requirement to build a new processing plant);
    • ability to leverage all existing infrastructure at Telfer (roads, airport, power, water);
    • reduced time to production and first cash flows; and
    • potential for a significantly higher net present value for the project than if a new processing plant and supporting infrastructure was required.

      HAV_Project AreaPaterson Tenements

      HAV_Project Area_Sub_blocks

      Newcrest Blocks

Paterson Landholdings PatMagTen _with BH_06 11 17Regional Targets WA Gravity Map 15 08 17Regional Geophysics PATLoc 15 08 17Regional Mines

Havieron

  • Large geophysical target consisting of a coincident magnetic and gravity anomaly covering an area approximately 1,000m x 1,000m
  •  In the late 1990s and early 2000s, Newcrest completed six historic drill holes at Havieron
  • All Newcrest drill holes intersected significant alteration, with several high-grade zones detected (peak gold to 15.45g/t and peak copper to 2.5%)

Greatland’s first drilling campaign: April-May 2018

  • Excellent results from maiden drill campaign including 121m at 2.93g/t Au and 0.23% Cu (HAD001)
  • Results from the four core holes highlighted potential for Havieron to be a very large mineralised system

Greatland’s second drilling campaign: Commenced in September 2018

  • Spectacular results from first hole of second drill programme: overall 275m at 4.77g/t Au and 0.61% Cu (HAD005) from an upper intercept of 118m at 3.08g/t gold and 0.84% copper from 459m and a lower zone of 157m at 6.04g/t gold and 0.44% copper from 660m, separated by an unmineralised mafic intrusion
  • Established new peak grades at Havieron of 211.3g/t Au12.38% Cu and 4,104ppm Co

Newcrest drilling campaign

  • Newcrest began drilling at Havieron in late May 2019
  • Drill programme designed to:
    • Further define the extent of the gold mineralisation zone;
    • Test the depth extents of the mineralisation and associated magnetic anomaly; and
    • Search for additional zones of mineralised breccia within the footprint of the coincident magnetic anomaly
  • Results from Phase 1 drilling have to date confirmed
    • high-grade gold-copper mineralisation,
    • broaden mineralised extents defined by prior drilling
    • extend the depth of observed mineralisation at Havieron (over 950m vertical extent) and
    • defined up to four sub vertical zones of higher-grade mineralisation within a larger mineralised envelope.
  • Phase 2 of the Havieron exploration programme  includes plans to significantly increase the amount of both step out and infill drilling.
    • To date this has significantly extend zones of high-grade mineralisation to the north.
      with step out drill hole HAD023 intersecting high-grade mineralisation 300 metres north of
      HAD005

Geophysics

  • New 3D gravity and magnetic models indicate potential for mineralisation at Havieron to extend from approximately 400m below surface to depths in excess of 1,200 metres below surface
  • Modelling of gravity data outlines a large irregular shaped body, some 300m across, from approximately 400m below surface (top of basement) to 1,200m below surface with an overall subvertical attitude
  • Modelling of magnetic data defines a single, discrete, high amplitude elliptical shaped body that is steeply dipping (subvertical) toward the south east with a depth extent from around 800m below surface to approximately 1,400m below surface, but the body may continue beyond 1,400m as this is the current limit of data resolution
  • A comparison of 3D gravity and magnetic models shows an approximate 500m vertical and 200m lateral offset between the causative bodies

Laboratory assay results from drilling at Havieron include:

HAD grades table Dec2019

 

HavHistMag 20 06 18 v2
Historic Magnetics
HAV_Plan_Nov_Final_v2
Havieron Plan View

 

HAV_section7600mN_Final_v2
Havieron Cross Section
HAV_section7650mN_Final_v3
Havieron Cross Section
HAV_section7750mN_Final_v4
Havieron Cross Section
HAV_section7950mN_Final
Havieron Cross Section
IMG_5618HAD005 Drill Core IMG_5631HAD005 Drill Core IMG_5633HAD005 Drill Core IMG_5636HAD005 Drill Core
20180923_093440HAD005 Drill Core 20180923_092527HAD005 Drill Core IMG_5599HAD005 Drill Core HAD005 Example of Mineralisation


Black Hills

The Black Hills licence lies 30 km east of the large Telfer gold mine. Covering 25 square kilometres it sits adjacent to the Company’s Havieron exploration licence.

The Black Hills area is regarded as having high potential for hosting gold deposits similar in style to Newcrest’s Telfer Mine.

  • Greatland acquired the Black Hills gold project in late 2017 – now 100% owned (E45/4512)
  • Sits adjacent to the north-western border of Greatland’s Havieron licence
  • Prospective for high-grade, near-surface gold mineralisation
  • Comprehensive review of historic data carried out by Greatland has identified four distinct areas of gold mineralisation (Saddle Reefs, Eastern, Rogers and Northern Granites)
    • Saddle Reefs has a north-westly trend and results from sporadic historic drilling include 3m at 9.14g/t gold from 26m downhole, including 1m at 21.2g/t from 27m, in hole CBR073
    • This zone is in the core of an anticlinal feature and, overall, is gold prospective over a strike length of approximately 3km

Greatland’s maiden exploration campaign at Black Hills: Commenced in June 2018

  • Multiple gold nuggets and gold pieces in bedrock discovered in first few days of field activities reveal the area is prospective with numerous indications of mineralisation in bedrock
  • Gossanous samples have been collected from outcrop and gold nuggets have been found within thin sand cover at the prospect
  • High-grade gold detected in rock chip samples
    • 11 of 28 samples collected returned over 10g/t gold, best gold results include 81.7g/t, 45.7g/t, 37.6g/t
  • Strong surface gold mineralisation is present at the Saddle Reefs prospect
    • rock chips including 55.6g/t, 20.0g/t, 19.65g/t, 18.45g/t and 17.0g/t
  • Rock chip sample results from Saddle Reefs have established an 800 metre strike length of surface gold mineralization
    • Recent 3DIP survey outlined a large, virtually untested, buried target at Saddle Reefs over 1,000m of strike, which is coincident with high-grade gold mineralisation at surface
  • The Eastern prospect is a linear zone of gold mineralised stratigraphy apparent over a strike of approximately 4km
    • Surface rock chip results include 1.9g/t,  1.2g/t and 1.0g/t Au
    • Historic broad spaced drilling along the zone has returned results including 1m at 10.0g/t gold from 16m (CBH138), 1m a 4.93g/t from 12m (CBH071) and 1m at 3.12g/t from 37m (NBH004)
    • The mineralisation appears to track along a structural contact and the focus will be on identifying the higher grade mineralisation along this trend
  • The other prospects of Rogers and Northern Granites show gold mineralisation at surface with rock chip results including 50.2g/t and 10.45g/t at Rogers and 6.9g/t at Northern Granites
    • Historic drill testing is limited but results have included 1m at 1.48g/t from 38m (NBH008) at Rogers and 1m at 2.35g/t gold from 5m (CBH253) at Northern Granites

Greatland’s second drill campaign at Black Hills 2019

  • Focusused on Saddle Reefs prospect
  • A total of twenty RC holes for 5,846m were drilled
    • to depths ranging from 154m to 500m
  • All holes  sampled from surface to end of hole as four metre composites
  • Results received to date confirm the presence of gold mineralisation at the Saddle Reefs prospect
  • Encouraging initial four metre composite results with several broad intersections subparallel to a large Induced Polarisation (“IP”) chargeability response
  • Best four metre composite results include:
    • 36m at 0.53g/t Au and 0.21% Cu from 104m (SRRC007),
      • including 4m at 1.65g/t Au from 104m
    • 36m at 0.36g/t Au from surface (0m) (SRRC010)
    • 12m at 0.57g/t Au from 32m (SRRC011
    • 56m at 0.56g/t Au from 68m in hole (SRRC012),
      • including 4m at 2.52g/t Au from 76m
  • Results received from resampling at 1 metre intervals confirm the presence of high-grade gold mineralisation at the Saddle Reefs prospect.
  • Best results include:
    • 13m @ 2.01g/t Au from 67m (SRRC012), including
      • 2m @ 7.38g/t Au from 77m
    • 12m @ 1.38g/t Au from 32m (SRRC011), including
      • 1m @ 10.96g/t Au from 35m
    • 36m @ 0.35g/t Au from surface (0m) (SRRC010)
    • 19m @ 0.51g/t Au from 118m (SRRC007)
  • New drill results are considered very positive with several intervals greater than 5g/t gold, indicating the potential for a fertile gold system at Black Hills.

 IP Survey 2019 

  • A high powered, deep sensing Induced Polarisation (“IP”) survey successfully extended  the strike length of a chargeability anomaly spatially coincident with gold mineralisation identified at surface by a further 400m
  • Results of the IP survey confirm the location of the chargeability anomaly identified in 2018 and extend the anomaly a further 400m to the south-east.
    • The total length of the chargeability anomaly now exceeds 1,400m

Ground Gravity Surveys 2019

  • Greatland has completed ground gravity surveys over the entire Black Hills licence and adjacent Havieron licence, which have identified three new geophysical targets in the Black Hills area:
    • Parlay – Located in the south-western corner of the Black Hills licence, the Parlay target includes magnetic and gravity anomalies on an interpreted key lithological and structural contact.
    • Black Hills North – Located to the north of recent drilling, Black Hills North comprises coincident gravity, magnetic and IP anomalies.
    • Black Hills South – Located on Greatland’s Havieron licence (E45/4701), Black Hills South is a very high amplitude gravity anomaly located at the interpreted closure of the Black Hills Dome to the south of outcrop under relatively thin cover (approximately 50m).

The Company will carry out field work over several prospects at Black Hills including surface geochemical sampling and geological mapping to determine the areas with the greatest potential for high-grade gold mineralisation. Results of this work will outline drill targets at the Black Hills project.

Black Hills Prospect LocationsBlack Hills Prospect Locations 20190530 Fig2 Black Hills IP survey Black Hills Field SampleBlack Hills Field Sample –
Gold in bedrock
Black Hills Field SamplesBlack Hills Field Samples –
Gold nuggets
BlkHlPlan_13 11 19
Black Hills Collar Locations
BlkHlsecAA_13 11 19
Black Hills Section A-A’
BlkHlsecBB_13 11 19
Black Hills Section B-B’
BlkHlsecCC_13 11 19
Black Hills Section C-C’
webBlkHlsMagGrav_13 11 19
Black Hills Geophysics
Gravity & Magentics

Paterson Range East

The Paterson Range East licence, E45/4928, is 100% owned by Greatland and lies approximately 25 kilometres north of the Company’s Havieron gold-copper prospect. The licence covers 224 square kilometres of Proterozoic basement rocks prospective for Havieron style gold-copper mineralisation.

New aeromagnetic data collected across Paterson Range East successfully identifies and defines numerous high-priority targets with a similar magnetic signature to Havieron.

2019 Ground Gravity Survey 

  • A comprehensive ground gravity survey has been completed
    • A total of 3,736 new gravity stations were collected over the entire tenement
      • on a spacing of 400m by 200m
      • with station spacing closed to 200m by 200m over selected magnetic anomalies.
  • Results from the ground gravity survey have been modelled in conjunction with previously announced detailed airborne magnetic data
  • Eight high-priority targets have been identified following modelling of detailed magnetic and gravity data, including four primary targets:
    • Goliath: Originally identified as a very high amplitude, bulls-eye magnetic feature in Greatland’s recent aeromagnetic survey, new data shows a very large amplitude gravity anomaly semi-coincident with the magnetic anomaly.
    • Los Diablos: A bulls-eye, high intensity magnetic anomaly located in a structurally favourable position with a gravity response of moderate to high amplitude coincident with the magnetic feature.
    • Prefect: A high amplitude magnetic anomaly with a semi-coincident moderate amplitude gravity response.
    • Atlantis: Characterised by two distinct east-west trending high amplitude magnetic anomalies on the western edge of the tenement, new ground gravity data has defined three target areas within Atlantis.
Fig 1_Regional Overview_201912
Regional Overview
20190715 PattersonRangeMagnetic_Image_V3 (002)
Paterson Range East Aeromagnetic Targets
Figure2_Local Targets_gravity
Local Geophysics Targets – Gravity
Figure3_Local Targets_magnetic
Local Geophysics Targets – Magnetics
Figure4_Goliath target
Goliath Target
Figure5_Los Diablos target
Los Diablos Target
Figure6_Prefect target
Prefect Target
Figure7_Atlantis target
Atlantis Target

2019 Geochemical MMI Survey 

  • MMI is a proprietary surface geochemical technique designed to detect metal ion anomalism through transported cover.
  • A total of 2,183 MMI samples were collected over existing targets
    • at a station spacing of 200m by 200m
  • Widespread geochemical response, including gold and copper, enhances the prospectivity of multiple targets at Paterson Range East
  • Goliath target upgraded:
    • Significant geochemical response identified at Goliath
    • Similar geochemical signature to Havieron
    • Goliath represents a large ‘bulls-eye’ magnetic anomaly with semi-coincident gravity anomaly and is a high-priority target
  • Three new additional targets identified (G1, G2, G3):
    • New targets are geochemical anomalies with favourable geology and/or geophysical characteristics
Fig 2_MMI Geochem Survey_201912
Geochemical Survey

Scallywag

The Scallywag prospect lies approximately 6km west of the Havieron prospect within the Havieron licence, E45/4701, and is 100% owned by Greatland. Scallywag is a large, elongate magnetic anomaly with a strike length of more than 6km and is interpreted to be a structurally deformed sedimentary dome feature under approximately 50-100m of cover.

MMI sampling programme 2018

  • Conducted on a sample spacing of 400m x 200m.
  • Results displayed discrete elevated gold, copper, silver and arsenic MMI responses along the western parts of the target area over a strike length of approximately 6km.
  • Supporting pathfinder elements of cerium, lanthanum, iron and lead were also coincident along this trend with several clusters of samples displaying a strong multi element response.
  • Highest results returned from MMI sampling were 8ppb silver, 50ppb arsenic, 0.4ppb gold, 480ppb cerium, 2750ppb copper, 280ppb lanthanum and 240ppb lead.
  • Response of certain groupings (or suites) of elements over parts of the Scallywag target are similar to those that were seen in MMI sampling over the Havieron prospect.

 Geophysics programmes

Greatland completed reprocessing of existing 50m line spaced aeromagnetic data and collection of ground gravity on 400m x 200m spacing in 2019. The Company subsequently completed an Induced Polarisation (“IP”) survey across the northern part of the Scallywag prospect, and an infill ground gravity survey across the entire prospect area.

Results from the IP and ground gravity surveys show:

  • Multiple chargeability responses identified from six IP traverses that were completed over 2km of strike.
  • Several high-priority drill targets identified from a review of IP, gravity and magnetic data:
    • Kraken: A high intensity ‘bulls-eye’ magnetic anomaly with the same amplitude, character and depth extent as observed at Havieron. IP results indicate a strong chargeability anomaly coincident with the Kraken magnetic anomaly.
    • Barbossa: A large 2km by 1km residual gravity anomaly located in a structural corridor 3.5km west of the hinge of the Scallywag dome. Barbossa has semi-coincident gravity and IP chargeability anomalies.
    • Blackbeard: An elongate 2.6km by 400m ultra-high intensity magnetic anomaly with a coincident moderate amplitude gravity feature. The IP chargeability response at Blackbeard is observed over 800m of strike.
    • London: Located in a gravity low interpreted to be an intrusive rock within the hinge zone of the Scallywag antiform. The London target IP response is seen over 400m of strike as discrete chargeability anomalies.
Fig1 - Scal_MMI
Scallywag Target
2018 MMI Sample Results
Copper (ppb)
Regional Magnetics_Scallywag
Regional Magnetics
Scallywag 2DIP&targets
Scallywag 2D IP & targets
Scallywag ground gravity_2DIP
Scallywag Ground Gravity
with 2D IP Chargeability
& Targets
Scallywag Kraken target_xsection
Kraken cross-section
Magnetics with 2D IP chareability
Scallywag Barbossa target_xsection
Barbossa cross-section
Gravity with 2D IP chareability
Scallywag_Blackbeard target_xsection
Blackbeard cross-section
Magnetics with 2D IP chareability

Additional Prospects

Historically, several targets within the tenements have been subject to initial first-pass work and show promise of hosting mineralisation as seen at Havieron. The geophysical signature of these targets is very similar to that at Havieron. The setting of these licences is on the western margin of a Proterozoic basin which ranges in depth from less than 100m below surface to more than 400m below surface. Basement rocks of the basin are predominantly calcareous rich sandstones intruded by several late stage granitic bodies exploiting basin margin faults which have also provided a focus for ore fluids.

Other discoveries in the region include Magnum (Au) and Calibre (Au), both owned by Antipa Minerals, O’Callaghans (Cu), Maroochydore (Cu) and the recent Winu gold discovery.