Greatland Gold : Paterson

Highlights

The Paterson Project comprises the Havieron and Paterson Range East licences, covering over 360 square kilometres of under-explored ground in the Paterson Province in Western Australia prospective for iron-oxide-copper-gold (IOCG) deposits.

The Paterson region hosts several large gold and copper deposits such as Telfer (27M oz) and Nifty (2MT copper). The region has been subject to more recent exploration which has outlined several other deposits including Magnum (Au), Calibre (Au), O'Callaghans (Cu) and Maroochydore (Cu).

Regional targeting by the Company has highlighted the potential for a new IOCG district with multiple targets idenitified across the Company's licences.

Geophysical data has outlined the Havieron target as covering approximately 1,000m x 1,000m. Depth to top of target is around 400m with these depths easily achieved with modern drilling equipment. Only six drill holes have been completed to date with all intersecting significant alteration and gold plus copper anomalism.

Thick lower grade zones of gold and copper have been intersected and within these gold grades peak at 15.4g/t and copper to 2.5%. Current drill hole spacing is broad and so the core of Havieron represents an immediate resource definition drilling target.

Paterson Region

The Paterson Province is the northern portion of the Proterozoic Paterson Orogen. More recent exploration throughout several Proterozoic Orogens identified within the western parts of the Australian continent have resulted in the discovery of the large Tropicana gold deposit (7.9M oz) and large Nova nickel-copper deposit (10MT). Globally these Proterozoic Orogens are highly prospective for large deposits, and are often under-explored.

Alteration and mineralisation at Havieron displays similarities to IOCG-type deposits. Examples of these are the large Olympic Dam and Ernest Henry deposits in central and eastern Australia.

Although the region is remote infrastructure is good with several operating mines, sealed roads and formed tracks plus rail networks nearby which branch out from the regional industrial hub of Port Hedland 500km to the west.

The Paterson Project licences are located approximately 40 kilometres east of the prolific Telfer gold mine (owned by Newcrest) that has produced 27 million ounces of gold since it began operations in 1977. Other discoveries in the region include Magnum (Au) and Calibre (Au), both owned by Antipa Minerals, O'Callaghans (Cu), Maroochydore (Cu) and the recent Paterson North gold discovery by SIPA Minerals .

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Target areas

The Havieron target as outlined by geophysics is large, covering approximately 1,000m x 1,000m. During the period 1991-2003, Newcrest completed six diamond drill holes at Havieron. All holes intersected significant alteration and three holes intersected significant Au-Cu skarn style mineralisation. Hole HAC9101 intersected 103m@0.44g/t Au, including 30.6m@1.0g/t Au and 0.28% Cu with a peak gold value of 14.7g/t Au. Hole HAC9201 intersected 82.3m@0.4g/t Au, including 28m@1.0g/t Au and 0.22% Cu with a peak gold value of 15.4g/t Au. Mineralisation starts at 400 metres below surface. Mineralisation is open in all directions and at depth.

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Following a review of regional geophysical and geochemical data over the Paterson project approximately fifty IOCG targets have been identified in the broader region, with around half in ground held by Greatland. The setting of these licences is on the western margin of a Proterozoic basin which ranges in depth from less than 100m below surface to more than 400m below surface.

Basement rocks of the basin are predominantly calcareous rich sandstones intruded by several late stage granitic bodies exploiting basin margin faults which have also provided a focus for ore fluids.

Historically, several of these targets have been subject to initial first-pass work and show promise at hosting mineralisation as seen at Havieron. The geophysical signature of these targets is very similar to that at Havieron. Basement rocks do not outcrop and Greatland intends to employ modern geophysical and geochemical methods to define targets prior to drill testing.

Prospectivity of the Paterson Province is widely recognised with several large industry participants present. These include Rio Tinto, Newcrest and Antipa. Greatland's licences lie adjacent to Rio Tinto and Antipa.