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Greatland Gold Share Price Spiked 5.1% on Extraordinary Havieron Drill Results, Later Fell

Simon Mugo trader
Updated 28 Oct 2021

Greatland Gold plc (LON: GGP) share price spiked 5.1% after telling investors that it had encountered the best gold intercept yet after drilling over 200,000 metres at its Havieron project in Western Australia.

The mining and exploration company revealed that it had struck an intercept at 120.4m @ 10.0g/t Au & 0.66% Cu as it was drilling beneath the South-East Crescent Resource.

Also Read: Greatland Gold Stock Forecast

The resource was showing increasing grade and thickness, and the high-grade mineralisation discovered extended over 250 metres.

Other high grade intercepts discovered included 44.7m @ 7.1g/t Au & 0.17% Cu at the South-Est Crescent, 72.3m @1.4g/t Au & 0.07% Cu at Northern Breccia, and 43.3m @2.7g/t Au & 0.06% Cu at Eastern Breccia.

Investors initially cheered the announcement leading to the spike higher, but the move was short-lived as Greatland Gold shares later gave up most of their initial gains.

Greatland noted that the latest results were part of the results released by its Australian mining partner Newcrest Mining earlier today.

The results were taken from 22 new drill holes that were part of the infill and growth drilling programme combined with results from 11 holes reported in the past.

Newcrest noted that it encountered significant mineralisation in 18 of the new holes drilling at Havieron.

The firm has drilled 254 holes at Havieron with a cumulative depth of 210,629 metres and plans to drill an additional 90,000 metres as part of its growth drilling programme by June 2022.

The company is currently expanding its construction activities, having completed a box cut and portal in May 2021. It has also started planning for the first ventilation shaft, scheduled to begin in Q1 2022.

Greatland Gold and its partner are also working to acquire the necessary permits and approvals to start constructing an underground mine and the accompanying infrastructure at Havieron.

The company’s future seems excellent, yet its share price has fallen 52.33% since January. Nevertheless, long-term investors may find the current prices quite attractive, given the firm’s long term prospects.

Meanwhile, short-term traders may look to buy at the lower end of GGP’s current trading range, expecting to cash out at the top of the range.

*This is not investment advice. Always do your due diligence before making investment decisions.

Greatland Gold share price.

IG chart of Greatland Gold share price 28-10-2021
Source: IG

Greatland Gold share price spiked 5.09% higher to trade at 18.39p, rising from Wednesday’s closing price of 17.50p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading