BUY
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loadsadough
on
03 Apr 2014 14:00
Price at rating: 0.42, now:
Australian gold producer Unity Mining (ASX: UML) are rumoured to be circling Greatland Gold with an all share offer of 5p but they are not alone there is talk of two other interested parties.26r r Wednesdayr r r r Posted by profith in Uncategorized r ¡Ö Leave a Comment r .Australian gold producer Unity Mining (ASX: UML) are rumoured to be circling Greatland Gold with an all share offer of 5p but they are not alone there is talk of two other interested parties.r r During the month of January ¨C Unity produced 3616 gold ounces, at a cash operating cost of $877 per ounce from the Henty Gold Mine on the West Coast of Tasmania.r r Full year production guidance is on track for 40-50,000 ounces.r r The company is also developing the Dargues Gold Mine in New South Wales.r r A gold deposit south of Devonport has strong potential for mining.r r Parts of it have six times the gold grade that the Henty mine has recently produced.r r The Firetower deposit has so far been defined as 400 metres long with a width of up to 80 metres.r r Greatland Gold completed a three hole reverse circulation drill program in December at the Warrentinna gold project in north eastern Tasmania.r The program has yielded encouraging results, with mineralization identified within quartz vein structures and disseminated within sulphides.r r The 113 square kilometre Warrentinna project covers the four historic goldfields of Warrentinna, Forester, Southern Cross, and Waterhouse, which were exploited during the 1800s and 1900s using both open pit and underground mining techniques.r r Within this historic region, Greatland Gold has had success with exploration already ¨C grades as high as 464 grams per tonne gold have been assayed at the historic Warrentinna workings, while other goldfields within the project area remain completely untested.r r Greatland Gold believes that there is potential within the project area for the discovery of high-grade shoots beneath known shallow historical workings and within un-mined quartz-lodes.r r There is also potential for the discovery of larger tonnages of lower-grade mineralisation adjacent to the high grade quartz.r r Having received the permits necessary to begin drilling at the Derby North area of Warrentinna in late November, the Greatland team kicked off a 300 metre reverse circulation drilling program which concluded during December.r r All of the holes were drilled to a maximum depth of 100 metres at a 60 degree angle and intersections with both quartz veins and sulfides were made.r r The best result from the program was four metres of mineralization grading at 3.19 grams per tonne gold within a broader intercept of eight metres at 3.11 grams per tonne gold.r r In another hole an intersection of four metres grading 2.16 grams per tonne gold was made within a broader intercept of eight metres at 1.83 grams per tonne gold.r r Also of note is that one hole ended in mineralization ¨C indicating that deeper drilling could extend the known area of mineralisation. All three RC holes intersected gold mineralisation above 0.7 grams per tonne gold.r r ¡°Drilling efforts at our Warrentinna gold project continue to provide encouraging results¡±, said Callum Baxter, Greatland¡¯s chief executive.r r ¡°The tenor and widths of mineralisation are good and the potential for depth extensions is high. Warrentinna is a key project for Greatland Gold and these results are yet another step forward in our plan to establish resources across our portfolio of assets.¡±r r Drilling to date had found gold grades of up to 30 grams a tonne, Henty Gold Mine operator Unity Mining Limited said in its 2012-13 annual report.r r The Henty mine produced at a grade of 5.3 grams a tonne over the past financial year.r r Mined and current resource at Henty cover a much bigger area.r r The overall Firetower project covered 265 square kilometres and had similar rocks to those at Henty, the company said is a recent report for a mining conference.r r The project comes under an agreement between Unity and London-listed Greatland Gold.r r The agreement would allow Unity to earn up to 75 per cent from the tenements in return for spending $7 million in two stages.r r Unity is also continuing exploration efforts at Henty, on the West Coast.r r It will focus exploration spending on resource extensions at its Read Zone.r r Unity made a gross profit of $3.9 million for 2012-13.r r The Firetower area is about 35 kilometres from Devonport.
Score: 87.50