24th Jul 2014 11:19
LONDON (Alliance News) - Greatland Gold PLC Thursday said it has found significant sulphide mineralisation following core drilling at its Firetower gold project in Tasmania.
The Australia-focused mineral exploration and development company said the drilling, which was completed by its partner at the site Unity Mining Ltd, was completed to a depth of 410 metres and found up to 30% sulphide mineralisation in the drill hole.
The company said the drilling hit its host sequence of Firetower stock work vein gold mineralisation for over 70 metres from 140 metres in depth and laboratory analysis of the core samples are underway.
Under the existing farm-in agreement, Unity Mining will earn up to 75% of the Firetower Gold project for expenditure of AUD7 million over five and a half years. The companies also had in place two milestone whereby Unity could earn an initial 51% of the project.
The first milestone was to spend a minimum of AUD200,000 within 12 months, which was completed, while the second was to spend AUD2 million within 30 months to earn 51%.
Unity advised recently that it would not achieve the second milestone within the 30 month period, which ended on April 6 - the shortfall was approximately AUD600,000. This has been due to a combination of impediments being primarily weather conditions and the time taken to interpret new geophysical data.
A 12-month extension was then agreed by both parties for the second milestone. Unity has until April 7, 2015 to spend the full AUD2 million.
Greatland Gold shares were up 3.8% to 0.368 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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