Greatland Gold slumps on drilling results
Shares in Australasia-focused gold miner Greatland Gold slumped in early trading Wednesday after it said drilling at its Warrentinna goldfield in Tasmania showed lower mineralisation than had been reported from surface sampling.
However, it said drilling still indicates the potential for a large gold resource, adding that it was cheered by high commodity prices.
"Commodity prices remain robust and demand for raw materials is strong," Greatland said.
(Article continues below)Advertisement
"Gold remains favourably priced at above US$850 per ounce and the company has ample cash to continue its exploration activities through 2008."
The Warrentinna project is located in north eastern Tasmania and covers some 170 square kilometres. It comprises the four historic goldfields of Warrentinna, Forester, Southern Cross and Waterhouse over a strike length of 25 kilometre.
Gold mineralisation at the Warrentinna and Forester goldfields has been defined over two separate trends, each more than 6 kilometres long.
