Shares of Greatland Gold plc (LON: GGP) fell 28.4% after the company announced disappointing drill results from the first three holes at its 100% owned Scallywag project located in Australia.
The company completed seven drill holes at Scallywag in the second half of last year, testing targets at the Kraken, London and Blackbeard prospects. The miner released the assay results of the first three drill holes today triggering the selloff.
According to the results, peak gold intersected was 1m @ 0.25g/t from 398m (LOD001) and peak copper intersected was 1m @ 1,105ppm from 461m (BLD001), with anomalous levels of other pathfinder elements including silver and bismuth also detected.
Gervaise Heddle, Greatland Gold’s CEO, commented: “Greatland's first drilling campaign at Scallywag has identified pathfinder element anomalism and provides us with valuable geological information which we expect to use in further assessing and ranking drill targets across the Scallywag licence.”
Adding:
“In addition, further analysis of geophysical data has built on our existing understanding to generate a number of new compelling targets. We look forward to progressing with further drill testing at Scallywag during 2021, particularly at the new Teach target and other high-priority targets identified by the EM survey conducted last year.”
The company plans to do follow up drilling in 2021 field season to test for further development of brecciated and mineralised lithologies, especially along strike at the newly defined Teach target.
The firm also plans to drill new EM targets this year starting in March and will also initiate a detailed review of the drilling data. The CEO later gave an interview saying that the markets overreacted to today’s data.
Greatland gold share price
Greatland gold shares plunged 28.36% to trade at 24p having fallen from Tuesday’s closing price of 33.5p.