Greatland Gold plc (LON: GGP) have seen their shares dip on Tuesday, despite reporting gold mineralization in Australia.
A fortnight ago, the firm saw its shares dip in similar fashion. In this update on December 3, the firm said that the results extend the zones of existing high grade mineralization at their licence.
Greatland added that, Newcrest Mining Ltd (ASX: NCM), which carried out the work at Havieron, has finished a $10 million first stage of a farm-in agreement, and a second stage also worth $10 million of expenditure has now begun.
Greatland have said today that further drilling at its wholly owned Firetower project in Tasmania confirmed the presence of additional broad widths of shallow gold mineralisation.
The firm said it completed a systematic grid-based drilling programme at Firetower, comprising 14 diamond holes with depths from 50 metres to 160 metres, for a total of approximately 1,530 metres.
The programme was designed to test the main zone of gold mineralisation and results to date have confirmed broad widths of gold mineralisation, Greatland said.
In addition, two further holes were drilled for around 670 meters to test the new targets identified by a 3D induced polarisation survey at Firetower East, approximately 500m east of Firetower.
Gervaise Heddle, chief executive officer, said: “We are pleased to report a second set of positive results from our recent drilling campaign at Firetower. They show a further improvement in the continuity between drill sections and highlight the potential for a robust, near-surface gold system.”
Back in September, the company had said that initial drill results from Firetower had confirmed “broad widths of gold mineralisation”.
Initial results included 54.5 metres at 1.4 grammes of gold per tonne of ore from surface, including 5 metres at 5.4 grammes per tonne from 45 metres.
Greatland Gold will be pleased that they have reported further positive results, although shareholders do not seem so keen on the announcement following this mornings stock price movement.
Fellow Australian gold miner Resolute Mining Limited have appointed a new CEO yesterday, in an attempt to stimulate business in a tough environment and look to develop discovery and mining operations to keep up with competitors such as Greatland
Resolute appointed Stuart Gale rom Australian iron ore company Fortescue Metals Group Ltd where he was group manager for Corporate Finance for nine years since 2010.
Resolute in similar Fashion to Greatland have seen results and discoveries made in Australia, and both firms will be hoping that operations can be enhanced going into 2020.
Shares in Greatland trade at 1.75p (-3.58%). 17/12/19 12:38BST.