18:59 Mon 09 Mar 2020
Greatland Gold PLC - Interim Results
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).
("Greatland" or "the Company")
Interim Results
Operational Highlights
· Havieron emerges as a significant gold-copper discovery
o Five successive sets of excellent, high-grade results from
o Continuity of mineralisation demonstrated over 450m of strike, up to 150m wide, and in excess of 600m in vertical extent
o Mineralisation remains open to the north-west and at depth
o
o
· Multiple high-priority drill targets identified across the Paterson region
o Scallywag: Four new high-priority targets identified following geophysics programme, including Kraken,
o
o
· Continuing to unlock value across portfolio of projects
o Firetower: Drilling supports the potential for a robust, near-surface gold system as well as indications of a new Volcanic Hosted Massive Sulphide system at Firetower East
o Warrentinna: Maiden diamond drilling programme at Derby North prospect intersects high-grade gold mineralisation
o Panorama: Geophysics and geochemistry extend strike length of mineralised trend to over six kilometres
Corporate and Financial Highlights
· Raised
· Well capitalised to push forward with Paterson exploration programmes in 2020 with cash and cash equivalents in excess of
· Significant additional funds raised since
Outlook Highlights
· Havieron (
o
o
· Greatland to test multiple, high-priority targets across Paterson region:
o Airborne Electromagnetic ("AEM") survey to commence in early April, covering approximately 1,000 line kilometres across targets on the western portion of the Havieron,
o Drilling at Scallywag to commence by the end of April, to initially focus on three primary targets: Kraken,
o Once drilling completed at Scallywag, other high-priority targets to be drill tested at Paterson Range East (including Goliath and Los Diablos) and
"Looking ahead, we will continue to focus on moving our portfolio of assets up the value curve, especially in the Paterson, which we regard as the leading frontier in
Enquiries:
Tel: +44 (0)20 3709 4900
Email: info@greatlandgold.com
Tel: +44 (0)20 3368 3550
Tel: +44 (0)14 8341 3500
Tel: +44 (0)20 7260 1000
Harry Chathli/
Tel: +44 (0)20 7618 9100
Notes for Editors:
The Company has six main projects; four situated in
In
Greatland is seeking to identify large mineral deposits in areas that have not been subject to extensive exploration previously. It is widely recognised that the next generation of large deposits will come from such under-explored areas and Greatland is applying advanced exploration techniques to investigate a number of carefully selected targets within its focused licence portfolio.
The Company is also actively investigating a range of new opportunities in precious and strategic metals and will update the market on new opportunities as and when appropriate.
Operational Review
Greatland made significant progress during the period in advancing key exploration targets across its portfolio of 100% owned exploration projects. This included a strategic focus on the Paterson province, a region which management believes has the potential to host multiple tier-one gold-copper deposits. At Havieron,
PATERSON PROJECT
Havieron
Greatland's 100% owned Havieron gold-copper discovery is currently being explored by
Havieron is on track to fulfil its potential as a large, multi-commodity, bulk tonnage, underground mining operation. Since the Farm-in Agreement commenced,
During the period,
Subsequent sets of reported drill results have confirmed the presence of higher-grade mineralisation on step out drill sections to the north, and increased the vertical extent. In particular, step-out drill hole HAD023 intersected high-grade mineralisation over 300 metres north of one of Greatland's early outstanding holes, HAD005, thereby significantly extending the known limits of high-grade mineralisation. Post period,
Best results to date include:
· HAD006: 52m at 7.0 g/t Au and 0.17% Cu from 1,122m, including 17m @ 21g/t Au, 0.39% Cu from 1153m
· HAD012: 139.4m @ 2.9g/t Au, 0.39% Cu from 865.7m, including 43.0m @ 7.9g/t Au, 0.83% Cu from 900m
· HAD014: 244.6m @ 2.0g/t Au, 0.40% Cu from 450m
· HAD017: 45m @ 7.1g/t Au, 0.08% Cu from 1,077m
· HAD018: 96.4m @ 4.5g/t Au, 0.14% Cu from 916.4m, including 15.4m @ 20g/t Au, 0.32% Cu from 928.5m
· HAD021: 128m @ 3.4g/t Au, 0.44% Cu from 670m
· HAD023: 107m @ 2.2g/t Au, 0.22% Cu from 656m, including 21.0m @ 10g/t Au, 0.74% Cu from 665m
· HAD025: 10.6m @ 22g/t Au, 1.3% Cu from 764.9m
· HAD028: 45.8m @ 6.8 g/t Au, 0.51% Cu from 543.2m, including 32.0m @ 9.2g/t Au, 0.67% Cu from 555m
· HAD034: 136m @ 2.9g/t Au, 0.6% Cu from 504m, including 43.5m @ 6.1g/t Au, 1.2% Cu from 577.9m
Based on results to date, the trend of mineralisation appears to be heading to the north-west. In order to test the extent and continuity of the interpreted mineralised trend,
The progress to date has led to
Scallywag
The Scallywag prospect sits within the E45/4701 Havieron licence, approximately 6km west of the 12 block area under a Farm-in Agreement with
In
The geophysical surveys returned multiple chargeability responses and, based on IP, gravity and magnetic data, Greatland successfully identified four new high-priority targets within the Scallywag prospect, many of which exhibit similar geophysical characteristics to Havieron. These were Kraken, a high intensity 'bulls-eye' magnetic anomaly with a coincident chargeability anomaly;
The
During the period, Greatland used a suite of geophysical and geochemical tools as a fast, effective and relatively low-cost method to screen for high-priority targets over the large licence area.
Following modelling of detailed magnetic and gravity data, the Company identified numerous high-priority targets. A subsequent MMI geochemical surface soil survey enhanced existing targets and identified multiple new targets. In particular, the Goliath and Los Diablos targets represent two of the company's highest strategic priorities at Paterson Range East. Goliath is a large 'bulls-eye' magnetic anomaly with semi-coincident gravity anomaly, displaying very similar characteristics to Havieron.
Greatland completed its maiden drilling campaign at
Ground gravity surveys also identified three new geophysical targets in the
FIRETOWER PROJECT
The Firetower project is located in central north
Greatland successfully demonstrated the potential for a robust, near-surface gold system at Firetower after drilling confirmed broad widths of gold mineralisation. The Company completed a systematic, grid-based drilling programme at Firetower during the period, showing continuity of mineralisation over an extensive strike length of more than 200m. The programme comprised 14 diamond holes with depths from 50m to 160m, for a total of approximately 1,530m. Best results included 54.5m @ 1.36g/t Au from surface (0m) (2019FTD001), 5m @ 8.72g/t Au from 81m (2019FTD004), and 13.5m @ 2.00g/t Au from 14.5m (2019FTD008), and 13.5m @ 2.44g/t Au from 59.5m (2019FTD011).
With mineralisation remaining open along strike to the east and west of Firetower, the Company also intersected zinc, gold and silver mineralisation from drilling at Firetower East, approximately 500m east of Firetower. This underscores the potential for a new Volcanic Hosted Massive Sulphide ("VHMS") system with precious metal content. Two holes were drilled for a total of approximately 670m with the second drill hole (2019FTD016) intersecting 31m @ 2,581ppm Zn from 184m, including 3m @ 8,745ppm Zn from 191m, and 1m @ 2.1g/t Au from 224m.
WARRENTINNA PROJECT
The Warrentinna project is located in north-east
Greatland completed its maiden drilling programme at the Derby North prospect, with three targeted, low-cost diamond holes for a total of 285m of drilling. Results reported post period confirmed that drilling had intersected high-grade gold mineralisation, including 21.7m @ 3.3g/t Au from 9.3m (2019WTD001), and identified a new zone of gold mineralisation beneath previous drilling.
The results clearly demonstrate the potential for a significant gold mineralised system at Derby North. The drill core and associated data collected has greatly improved Greatland's understanding of the mineralised system and should assist with any potential divestment of the project, in line with the Company's previously stated strategy to seek to divest non-core projects and focus on those assets which present the opportunity to deliver significant shareholder value in the medium term.
PANORAMA PROJECT
The Panorama project consists of three adjoining granted exploration licences located in the Pilbara region of northern
Greatland conducted a dual geochemical and geophysical campaign at Panorama during the period, representing a step up in the scale of exploration previously conducted at this project. Field reconnaissance successfully located multiple gold nuggets, demonstrating mineralisation over 6.1km of strike, supported by a soil sampling campaign which highlighted several areas of gold anomalism along this trend. These results, combined with images from the detailed aeromagnetic survey completed during the period, have enhanced the Company's understanding of the project.
Corporate Development
Greatland has continued to scale up from both a corporate and operational standpoint as it grows and successfully progresses its exploration activities. During the period, Greatland appointed
Financial Review
Greatland reported an unaudited operating loss for the six months ended
Outlook
During the first six months of the financial year, general commodity and financial market conditions improved, with the gold price reaching five year highs in most currencies. Despite recent financial market turbulence, the Company maintains a positive outlook for the gold price and the sector generally. Greatland has six 100% owned projects in
At Havieron, an additional 20,000 to 30,000 metres of drilling is planned by
During calendar year 2020, Greatland intends to systematically explore many of the high-priority drill targets identified across the Paterson region in 2019, subject to required approvals. The Company expects to commence an Airborne Electromagnetic ("AEM") survey in early
Drilling at Scallywag is targeted to commence by the end of
The Company is well capitalised to conduct this comprehensive exploration campaign and make further strong progress in delivering on its strategy throughout the year.
Competent Person:
Information in this announcement that relates to exploration results has been extracted from the following announcements:
"Update on Newcrest's Activities at Havieron", dated 24 February 2020
"Warrentinna Drilling Intersects High-Grade Gold Mineralisation", dated
"Further Outstanding Drill Results at Havieron", dated
"Final Results from Firetower Drilling Programme", dated
"Firetower drilling confirms further broad widths of gold mineralisation", dated
"Positive Results from
"New Outstanding Drill Results at Havieron Extend the Strike Length of High-Grade Mineralisation", dated 2 December 2019
"
"Greatland begins drilling programme at Warrentinna", dated
"Greatland identifies multiple targets at Paterson Range East", dated
"Greatland Identifies New Drill Targets at Scallywag", dated
"Further High-Grade Drilling Results from
"
"Exploration Update - Firetower Drill Results", dated
"Exploration Update - Black Hills Drill Results", dated
"Update on Newcrest Drilling Results at Havieron", dated
"
"Greatland Advances Exploration at Scallywag Prospect",
"First Results from
"Paterson Range East - Airborne Survey Results and Exploration Update", 15 July 2019
Information in this announcement that relates to exploration results has been reviewed and approved by Mr
Additional information on the projects can be found on the Company's website at www.greatlandgold.com/projects/
In addition to this release, a PDF version of this report, with supplementary information can be found at the Company's website: www.greatlandgold.com/media/jorc/
Group statement of comprehensive income
|
6 months to 31 December 2019 |
|
6 months to 31 December 2018 |
|
Year ended 30 June 2019 |
|
Unaudited £ |
|
Unaudited £ |
|
Audited £ |
Turnover |
- |
|
- |
|
- |
|
|
|
|
|
|
Exploration expenses |
(1,881,532) |
|
(937,732) |
|
(2,309,760) |
Administrative expenses |
(732,506) |
|
(523,026) |
|
(888,661) |
Depreciation |
- |
|
- |
|
(37,131) |
Impairment cost |
(11,321) |
|
- |
|
(18,450) |
|
|
|
|
|
|
Operating loss
|
(2,625,359) |
|
(1,460,758) |
|
(3,254,002) |
Net finance income/(costs) |
1,384 |
|
2,587 |
|
(10,305) |
|
|
|
|
|
|
Loss on ordinary activities before taxation
|
(2,623,975) |
|
(1,458,171) |
|
(3,264,307) |
Tax on loss on ordinary activities
|
- |
|
- |
|
- |
Loss for the financial period
|
(2,623,975) |
|
(1,458,171) |
|
(3,264,307) |
Other comprehensive income |
|
|
|
|
|
Exchange differences on translation of foreign operations |
(142,956) |
|
(51,299) |
|
(52,730) |
Other comprehensive (loss) for the year net of taxation |
(142,956) |
|
(51,299) |
|
(52,730) |
|
|
|
|
|
|
Total comprehensive loss for the year attributable to equity holders of the parent |
(2,766,931) |
|
(1,509,470) |
|
(3,317,037) |
|
|
|
|
|
|
Loss per share - see note 3 Basic |
|
|
|
|
|
Group balance sheet
|
|
|
|
|
30 June 2019 |
||||
|
Unaudited £ |
|
Unaudited £ |
|
Audited £
|
||||
Assets |
|
|
|
|
|
||||
Non-current assets |
|
|
|
|
|
||||
Tangible assets Intangible assets
|
106,850 2,022,633
|
|
97,571 2,030,230
|
|
103,114 2,016,783 |
||||
Total non-current assets
|
2,129,483 |
|
2,127,801 |
|
2,119,897 |
||||
Current assets Cash and cash equivalents Trade and other receivables
|
4,058,070 166,695
|
|
3,969,359 122,405
|
|
2,755,998 77,480
|
||||
Total current assets
|
4,224,765 |
|
4,091,764 |
|
2,833,478 |
||||
Total assets |
6,354,248 |
|
6,219,565 |
|
4,953,375 |
||||
Liabilities |
|
|
|
|
|
||||
Current liabilities |
|
|
|
|
|
||||
Trade and other payables
|
(659,432) |
|
(606,171) |
|
(630,369) |
||||
Total liabilities
|
(659,432) |
|
(606,171) |
|
(630,369) |
||||
Net assets
|
5,694,816 |
|
5,613,394 |
|
4,323,006 |
||||
|
|
|
|
|
|
||||
Equity Called up share capital Share premium reserve Share based payment reserve Retained losses Other reserves
|
3,577,234 16,337,431 423,257 (14,668,610) 25,504 |
|
3,225,620 12,186,073 440,426 (10,408,615) 169,890 |
|
3,323,420 12,554,173 349,606 (12,072,653) 168,460 |
||||
Total equity
|
5,694,816 |
|
5,613,394 |
|
4,323,006 |
||||
Group cash flow statement
|
6 months to 31 December 2019 |
|
6 months to 31 December 2018 |
|
Year ended 30 June 2019 |
||||||
|
Unaudited £ |
|
Unaudited £ |
|
Audited £ |
||||||
Cash flow from operating activities |
|
|
|
|
|
|
|||||
Operating loss |
(2,625,359) |
|
(1,460,758) |
|
(3,254,001) |
|
|||||
(Increase)/Decrease in receivables |
(89,215) |
|
(43,344) |
|
1,581 |
|
|||||
Increase/(Decrease) in payables |
29,062 |
|
(79,151) |
|
(70,454) |
|
|||||
Share option charge |
101,669 |
|
196,954 |
|
248,232 |
|
|||||
Depreciation |
- |
|
- |
|
37,131 |
|
|||||
Impairment charge |
11,321 |
|
- |
|
18,450 |
|
|||||
|
|
|
|
|
|
|
|||||
Net cash outflow from operations |
(2,572,522) |
(1,386,299) |
(3,019,061) |
|
|||||||
Cash flows from investing activities |
|
|
|
|
|||||||
Interest received |
1,384 |
|
2,587 |
|
5,195 |
|
|||||
Payments to acquire intangible assets |
(85,640) |
(677,762) |
(688,517) |
|
|||||||
Payments to acquire tangible assets |
(7,173) |
(56,285) |
(98,774) |
|
|||||||
|
|
|
|
|
|||||||
Net cash outflow from investing activities |
(91,429) |
(731,460) |
(782,098) |
|
|||||||
Cash inflows from financing activities |
|
|
|
|
|||||||
Proceeds from issue of shares Transaction costs of issue of shares |
4,255,950 (218,878) |
|
2,650,000 (132,500) |
|
3,115,900 (132,500) |
|
|||||
Net cash flows from financing activities |
4,037,072 |
2,517,500 |
2,983,400 |
|
|||||||
Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of period Exchange (loss) on cash and cash equivalents |
1,373,121
2,739,045
(54,096) |
399,740
3,641,183
(71,565) |
(817,759)
3,597,101
(23,344) |
|
|||||||
Cash and cash equivalents at end of period |
4,058,070 |
3,969,359 |
2,755,998 |
|
|||||||
|
|
|
|
|
|||||||
Statement of group changes in equity
|
Called up share capital |
Share premium account |
Share based payment reserve |
Retained earnings |
Other reserves |
Total |
|
£ |
£ |
£ |
£ |
£ |
£ |
As at
|
3,002,256 |
9,749,891 |
243,472 |
(8,950,444) |
221,190 |
4,266,365 |
Loss for the period |
- |
- |
- |
(3,264,307) |
- |
(3,264,307) |
Currency translation differences |
- |
- |
- |
- |
(52,730) |
(52,730) |
Total comprehensive income |
- |
- |
- |
(3,264,307) |
(52,730) |
(3,317,037) |
Share option charge |
- |
- |
248,232 |
- |
- |
248,232 |
Transfer on exercise of options |
- |
- |
(142,098) |
142,098 |
- |
- |
Share capital issued |
321,164 |
2,936,782 |
- |
- |
- |
3,257,946 |
Cost of share issue |
- |
(132,500) |
- |
- |
- |
(132,500) |
Total contributions by and distributions to owners of the Company |
321,164 |
2,804,282 |
106,134 |
142,098 |
- |
3,373,678 |
As at
|
3,323,420 |
12,554,173 |
349,606 |
(12,072,653) |
168,460 |
4,323,006 |
Loss for the period |
- |
- |
- |
(2,623,975) |
- |
(2,623,975) |
Currency translation differences |
- |
- |
- |
- |
(142,956) |
(142,956) |
Total comprehensive income |
- |
- |
- |
(2,623,975) |
(142,956) |
(2,766,931) |
Share option charge |
- |
- |
101,669 |
- |
- |
101,669 |
Transfer on exercise of options |
- |
- |
(28,018) |
28,018 |
- |
- |
Share capital issued |
253,814 |
4,002,136 |
- |
- |
- |
4,255,950 |
Cost of share issue |
- |
(218,878) |
- |
- |
- |
(218,878) |
Total contributions by and distributions to owners of the Company |
253,814 |
3,783,258 |
73,651 |
28,018 |
- |
4,138,741 |
As at
|
3,577,234 |
16,337,431 |
423,257 |
(14,668,610) |
25,504 |
5,694,816 |
Statements of changes in other reserves
|
Merger reserve |
Foreign currency translation reserve |
Total other reserves |
Group |
£ |
£ |
£ |
As at
|
225,000 |
(3,810) |
221,190 |
|
|
|
|
Currency translation differences |
- |
(52,730) |
(52,730) |
As at
|
225,000 |
(56,540) |
168,460 |
Currency translation differences |
- |
(142,956) |
(142,956) |
As at
|
225,000 |
(199,496) |
25,504 |
Half-yearly report notes
1. Half-yearly report
This half-yearly report was approved by the Directors on
The information relating to the six month periods to
The information relating to the year to
2. Basis of accounting
The report has been prepared using accounting policies and practices that are consistent with those adopted in the statutory financial statements for the year ended
These half-yearly financial statements consolidate the financial statements of the Company and its subsidiary and are prepared in accordance with International Financial Reporting Standards as adopted for use in the
This half-year report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended
3. Loss per share
|
6 months to 31 December 2019 |
|
6 months to 31 December 2018 |
|
Year ended 30 June 2019 |
|
Unaudited £ |
|
Unaudited £ |
|
Audited £ |
|
|
|
|
|
|
These have been calculated on a loss of:
|
(2,623,975) |
|
(1,458,171) |
|
(3,264,307) |
The weighted average number of shares used was:
|
3,511,070,717
|
|
3,190,497,121
|
|
3,252,941,141 |
Basic loss per share: |
|
|
|
|
|
Copies of this half-yearly report are available free of charge by application in writing to the Company Secretary at the Company's registered office,
End
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