Why Greatland Gold (GGP) Share Price Was Muted on Drill Results

The Greatland Gold plc (LON: GGP) share price was muted after announcing the results of its 2022 drilling campaign at its fully-owned Scallywag project in the Paterson region of Western Australia.

Investors barely reacted to the news as GGP shares edged 2.1% higher before giving up their gains and falling back into negative territory at writing. Given that today’s drilling results were positive, we can attribute the muted investor reaction to the news to disappointment.

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Some of the results released by Greatland Gold were from Hole A35RD001, which targeted the A35 Prospect conductor. The company discovered gold deposits from  2m @ 2.04g/t Au from 70m within a mineralised gold halo of 12m @ 0.48g/t Au from 69m. 

Greatland Gold explained that today’s results were from a ground electromagnetic (EM) survey, a follow-up to the 2021 exploration programme, which confirmed and refined several EM conductor targets. The company then tested the EM conductor targets with reverse circulation (RC) pre-collar and diamond core drilling.

The company’s other gold intersections included 1m @ 0.76g/t Au and 109ppm Bi from 251m, 1m @ 1,364g/t Ag and 0.35% Cu from 76m (remains open at depth), 1m @ 50.9ppm Bi from 65m and 1m @ 0.1% Cu and 22.6ppm Bi from 418m. 

Greatland Gold recently released its half-year results, which was disappointing as the company has yet to generate revenues since all its projects are in development. The firm has a significant debt burden of £43.5 million but has cash reserves of £59.8 million.

Shaun Day, Greatland Gold’s Managing Director, commented: “Our recent exploration campaign at Scallywag has delivered the most encouraging results to date. At the A35 Prospect, pre-collar drilling was completed with gold mineralisation intercepted plus important pathfinder geochemistry encountered, including bismuth which is associated with the Havieron and Telfer gold-copper deposits.  The high-grade silver and copper mineralisation intercepted at the Pearl Prospect confirms the possibility of a new style of deposit being identified. The underlying deeper geophysical targets at both prospects are yet to be tested but have now been prioritised for diamond drilling in 2023.”

*This is not investment advice. 

Greatland Gold (GGP) share price. 

The Greatland Gold (GGP) share price edged 2.1% higher to trade at 7.61p, from Tuesday’s closing price of 7.45p.