Tracing the Projects and Progress of Great Southern Mining Limited

Over the past 18 months, Great Southern Mining Limited (ASX: GSN) has witnessed a transformation from a pure junior exploration Company with 2 projects to a dynamic Company with multiple exploration and development opportunities.

With an aim to become a leader in gold exploration in Australia, the Company has considerable land holdings on both sides of the continent, the highly prolific gold district of Laverton in Western Australia and the Mt Carlton Region of North Queensland.

Great Southern’s exploration activities focus on two brownfields gold assets in Western Australia and gold exploration at its expansive North Queensland assets, 20km north of the Mt Carlton Mine (currently owned by Evolution Mining).

A summary of the Company’s 100% owned projects includes:

WESTERN AUSTRALIAN PROJECTS

South and East Laverton – GSN 100%

  • The Laverton area includes three groups of tenements, the Mon Ami Gold project, the Mt Weld rare earth project and the East Laverton Nickel/Gold project.
  • Mon Ami has a total area of 3.54 km2, comprising of one granted Mining Lease and one Granted Exploration Licence – both are long term and in good standing.
  • Mt Weld is immediately adjacent to the world class Lynas Corporation rare earth mine and has a recently identified a scandium-cobalt deposit.
  • The East Laverton tenements are highly prospective for gold and nickel and have seen only limited historical exploration.

Cox’s Find – GSN 100%

  • The Historical high-grade Cox’s Find Gold mine comprises three current Mining Leases for 2.55 km2, located ~70 km north of Laverton located within the Burtville Greenstone Belt, which straddles the Kurnalpi and Burtville Terranes of the Eastern Goldfield.
  • The Project is within 12km of significant operating gold mills.
  • The Project has seen little exploration for the past 30 years.
  • The Company is currently undertaking an assessment of the surface stockpiles, with this including volume and grade assessment targeting an initial MRE for this material.
  • The Company’s maiden drilling program is currently underway.

NORTH QUEENSLAND PROJECTS

Edinburgh and Johnnycake Projects – GSN 100%

  • Edinburgh and Johnnycake include seven granted EPMs for 1,047 km2 – all tenements in good standing
  • Edinburgh Park and Johnnycake are located over the northern extents of the Lower Permian Lizzie Creek Volcanics of the Bowen Basin, and the underlying intrusive of the Late Carboniferous to Early Permian Connors Sub-Province.
  • The Project’s tenure is situated from 20km to within 5km of the Mt Carlton Gold Mine.

Palmer River Project – GSN 100%

  • The Palmer River Project comprises two EPM applications for 360 km2 (Figure 19), located in the vicinity of the historic Palmer River Goldfield, some 300 km from Cairns via the Mulligan Highway and then station tracks
  • The Project is located over the Hodgkinson Formation (a unit within the Hodgkinson Province which is host to orogenic and placer style gold mineralisation, and Besshi type VMS copper mineralisation).

Whilst the Company’s current focus is on the West Australian tenements, regional scale activities in the Nth Queensland region leading occurred throughout 2019 and led to the recent discovery of the Rocky Ponds breccia pipe in early May 2019, located within 20 km of Evolution Mining’s Mt Carlton operation. Drill results were released in July 2019 with extensive mineralisation noted.

In addition to this, the Company has acquired strategically sought unloved, quality gold projects in Laverton, Western Australia with the objective of potentially providing cash flow to fund ongoing exploration and evaluation activities. The focus was on brownfields assets close to processing infrastructure that have the potential for rapid commercialisation.

During August 2019, the Company announced the acquisition of the Cox’s Find Gold Mine and surrounding Mining tenure through the execution and completion of a formal sale and purchase agreement for the acquisition.

The acquisition of Cox’s Find has significant potential as it is a historical operation that has witnessed no modern exploration. This provides significant exploration upside for the Company along with the material on surface which is running grade and is currently being assessed with the view to provide a resource estimate on the material.

The Company has strategically acquired quality projects in the highly prolific gold districts. The Company’s project quality and potential of the projects to provide low cost, short term cash flow to fund ongoing activities makes them compelling.

A brief summary of the last 18 months is below:

  • At the Mon Ami Gold project, GSN reported 59,000 oz’s at 1.7 g/t gold maiden Mineral Resource Estimate for shallow mineralisation with the deposit open in all directions.
  • The Company has an estimated exploration target of 200,000 oz’s to 250,000 oz’s based on lower and upper grade cut-off values of 1.0g/t gold to 2.0g/t gold
  • There is the potential for a Resource upgrade and expansion with only limited drilling (now due to commence)
  • The acquisition of the historic high-grade Cox’s Find Gold mine located along strike from, and in close proximity to Regis Resources’ multi-million-ounce Garden Well with a historic high-grade production of 77,000 ounces of gold at a grade >21 g/t
  • The Cox’s Find mine property has significant stockpiled assets (M38/170, M38/578 and M38/740) on the surface that the Company is currently assessing.
  • Initial reconnaissance drilling of the Rocky Ponds breccia pipe has resulted in the interpretation that the drilled section represents the significant zones of high-sulphidation epithermal alteration associated with semi-massive sulphides mineralisation and accompanying gold (up to 0.2 g/t), silver (up to 49.7 g/t) and copper (up to 0.44%)
  • The Company has recently entered into an agreement with Evolution Mining Limited to co-fund an airborne hyperspectral survey over Edinburgh Park and Johnnycake Projects to provide an unprecedented view of the geology of the Projects
  • GSN received commitments to raise $1,485,000 (before costs) from eight leading Australian and international institutional investors and a small number of high net worth individuals
  • Lately, the planned exploration program at the historic high-grade Cox’s Find Gold Project has been expanded, wherein Phase 1 shall consist of up to 5,000m of Reverse Circulation (RC) and Diamond Drilling (DD) to extend high-grade gold mineralization beyond the current workings

GSN is currently focused on active exploration programs at Cox’s Find and North Queensland which include resource delination, expansion and upgrade drilling in Western Australian, with a view to quick commercialisation of the key projects.

Further, the Company expects that the forthcoming work in Queensland shall at first focus on further regional activities, including geophysics, geology and remote sensing to produce additional drill targets in the extremely potential region.

GSN stock last traded at a price of $ 0.066 as on 12 November 2019 (AEST: 3:35 PM). GSN has a market capitalisation of approximately $ 21 million. Over a period of past six months, GSN stock has provided 106% return.


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