Greatland Gold (AIM:GGP) said on Tuesday that its recent diamond drilling programme at Derby North had intersected high-grade gold mineralisation.
The natural resource company told investors it had received “positive results” at the prospect which is within the company’s 100% owned Warrentinna project in Australia.
The drilling campaign was designed to provide ‘a better understanding’ about the host rocks, type and tenor of gold mineralisation, as well as highlight any structural controls, the company noted.
Prior to the maiden drilling, Greatland conducted a limited reverse circulation (RC) drilling at Derby North which demonstrated a gold mineralised system about 150m long and 100m wide, open to the north, east and at depth.
Shares in Greatland Gold were trading 8.82% higher at 3.7p on Tuesday morning.
Results included a 21.7 metres intercept grading 3.3 grams per tonne gold from a depth of 9.3m as well as 11.7 metres grading 2.8 grams gold from 115m, a new zone of gold mineralisation beneath previous drilling.
Other highlights included 2.2 metres grading 12 grams gold and 43 metres grading 1.5 grams gold.
Gervaise Heddle, Chief Executive of the group, said the results “further increased” the depth extent of the previously known mineralised zone whilst demonstrating significant gold mineralised system potential at Derby North.
A follow-up evaluation of the results will be completed to assess the project's potential, the statement added.
On Monday, Numis securities increased its target price for Greatland Gold by 50% following “outstanding results” at its 100% owned Havieron deposit in Western Australia.
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