Greatland Gold acquires Black Hills project in Australia

Precious and base metals exploration and development company Greatland Gold has acquired 100% of the Black Hills gold project in the Paterson Region of Western Australia, it announced on Monday, for AUD 225k.

The AIM-traded firm said that consideration consists of a cash payment of AUD 25k, as well as the issuance of 6,500,000 new ordinary shares of 0.1p each in the company, with an approximate value of AUD 200k.

It confirmed it was acquiring 100% of the rights, title and interest in the mining tenement E45/4512, which covers 25 square kilometres in the Paterson region and sits adjacent to the north western border of Greatland's Havieron licence.

Historical work at Black Hills by Newcrest had apparently demonstrated high grade gold at surface, with rock chip results up to 90g/t gold and drill intercepts including 4m at 7.0g/t gold from 25m.

Greatland said the Black Hills project was regarded as having “high potential” for hosting gold deposits similar to Newcrest's Telfer Mine, with the acquisition increasing the size of Greatland's Paterson project to more than 385 square kilometres prospective for iron-oxide-copper-gold and Telfer-style deposits.

“Black Hills represents an important strategic addition to Greatland's significant and expanding position in the Paterson region,” said Greatland chief executive Gervaise Heddle.

“Historical exploration at Black Hills has demonstrated high grade gold near surface and the potential for the Black Hills licence to host gold deposits similar to Telfer.

“The acquisition is a continuation of our strategy to target under-explored areas with significant potential and to increase the scale of the company's exploration campaigns at our key projects.”