The shares rose 13% to 2p after the company said “excellent drill results” confirm the presence of higher grade gold-copper mineralisation at the Havieron licence in the Paterson region of Western Australia.
Australian mining giant Newcrest Mining Ltd (ASX:NCM), which has the right to acquire a 70% stake in the project by spending up to US$65mln on exploration and development work, started drilling in May.
Earlier today, Newcrest issued a stock market statement in Australia in which it revealed the best results from the drilling included 17 metres at 21 grams per tonne gold and 0.39% copper from 1153 metres.
Two rigs were operational with one existing drill hole extended (HAD006) and two new holes completed (HAD010 and HAD011) for a total of 2,800 metres of drilling. A third rig has commenced operation at Havieron and a fourth rig is expected to arrive at the site in August.
Assay results for HAD006 include 12 metres at 3.1 grams per tonne gold and 0.08% copper from 1071 metres, and 52 metres at 7.0 grams per tonne gold and 0.17% copper from 1,122 metres.
Results from hole HAD011 included 39 metres at 1.1 grams per tonne and 0.82% copper from 745 metres, and 48 metres at 0.59 grams per tonne gold and 0.90% copper from 838 metres.
Hole HAD010 traversed over the top of the mineralised zone in the cover sequence and did not intersect significant mineralisation.
"We are delighted by these excellent early results from Newcrest's drilling campaign and by Newcrest's acceleration of the exploration programme at Havieron as demonstrated by the commencement of a third rig at site and the imminent addition of a fourth,” declared Gervaise Heddle, the chief executive officer of Greatland Gold.
"These results also reinforce our view regarding the prospectivity of the Paterson region and, more specifically, the potential for other magnetic anomalies in the region, such as the multiple targets recently identified at our Paterson Range East licence, to host tier-one gold-copper deposits.