Greatland Gold (LON:GGP) was encouraged by the latest drilling results from its wholly owned Warrentina project in Tasmania as they showed economic gold grades at shallow depths. However, the results disappointed investors as shares in the company slipped 13.5 percent after the report was released. The Australia focused gold explorer said this morning that gold mineralisation was intersected by five of the seven holes drilled as part of a reverse circulation (RC) drilling programme completed at the Derby North prospect at Warrentina in April. The best drilling results included an intersection of 4 metres grading 5.16 grammes per tonne (g/t) gold and a broader intercept of 12 metres at 2.95 g/t gold. The latest results have confirmed additional mineralisation at Derby North. Drilling has so far established a broad 100 metre wide zone of gold mineralisation. The company pointed out that the results included in today’s report were “of economic tenor” even though they were obtained from relatively shallow depth, which it said was an encouraging sign. “These preliminary results from Warrentinna are encouraging...re-sampling of the holes will be a priority and we look forward to reporting further results from Derby North,” said chief executive of Greatland Gold Callum Baxter. More detailed results from this drilling campaign will be released in the third quarter of the year, when the company also expects to update investors on the ongoing discussions with potential joint venture partners for its Tasmanian licenses. Shares in Greatland slid 0.38 pence (13.5 percent) to 2.4 pence in London this morning after the report was released. The company currently has a market cap of a little more than £7 million.

Source