Shares in Greatland Gold (LON:GGP) plummeted on Monday morning, following an update to investors on its Ernest Giles project.
The precious metals exploration and development company provided the market with an update regarding work by Newmont Exploration (NYSE:NEM) on the project.
According to the announcement, Newmont Exploration has informed Greatland that it will no longer be proceeding with the Ernest Giles project, as it looks to focus on alternative districts.
In addition, the company noted that Newmont’s withdrawal has lapsed over the six-month right of refusal.
Nevertheless, Greatland re-affirmed plans to continue to proceed with “alternative plans” to develop its progress, utilising the Deep Sensing Geochemistry (DSG) survey carried out by Newmont.
As of currently, Greatland maintains a 100 percent interest in the Ernest Giles project, which is located in Western Australia.
Back in October of last year, the metal exploration company announced the identification of new targets at the project, causing shares to tick up as much as 15 percent.
Gervaise Heddle, Chief Executive Officer, commented: “The collaboration between Newmont and Greatland has successfully defined several additional gold anomalies, and we would like to thank Newmont for their efforts. ”
He added, “The results of their survey have enhanced our understanding of the project and identified multiple new targets for further exploration work, reinforcing our view that the Ernest Giles project has the potential to host several multi-million-ounce gold deposits. ”
Looking ahead, Heddle noted: “We are well financed to actively progress exploration at Ernest Giles and look forward to reporting progress through the year.”
Greatland Gold was originally founded London back in 2005, and has been listed on the AIM-market since 2006.
Current projects in development across Australia include Paterson, Ernest Giles, Bromus, Warrentinna, Firetower and Panorama.
Shares in the company are currently down 50.37 percent as of 10.38AM (GMT), as the market reacts to the announcement.