Great Southern Reports Quarterly Activities: Historic High-grade Gold System with High-Grade Zones Discovered

  • Jan 21, 2020 AEDT
  • Team Kalkine
Great Southern Reports Quarterly Activities: Historic High-grade Gold System with High-Grade Zones Discovered

Based Western Australian; Great Southern Mining Limited (ASX:GSN) is a mining exploration company which aims to create value for its shareholders through strategic acquisitions of projects that are in-line with its current mining assets.

Through its projects in Queensland and Western Australia, GSN primarily focusses on gold, rare earths and copper exploration and evaluation, with its primary focus on its two brownfields assets in Laverton, WA being the Mon Ami and Cox’s Find gold projects.

Here, we shall discuss the Company’s progress during the quarter ended 31 December 2019.

The below figure shows GSN’s project and tenement portfolio at its Western Australia Projects and Queensland Projects as at 31 December 2019.

Presence of Historic High-Grade Gold System with High-Grade Zones Discovered

During the quarter the Company undertook its maiden drilling and exploration campaign on the Cox’s Find Gold Project in Western Australia wherein a total of 17 RC holes were drilled for a total of 2,658 metres.

Intersections ranged from <5 g/t to over 143 g/t over 1m downhole lengths in the current drilling program within the main lode. Theseare broadly consistent with the main lode that exclusively supported historical production at the historical mine averaging approximately 22 g/t gold for 76,000 ounces between 1936-1942. These further suggest the potential for the development of 1 or more high-grade shoots within the unmined panels.

Following the completion of the drilling program, notable high-grade interceptions include:

  • 19CFRC001 - 2m at 9 g/t gold from 76m,
  • 19CFRC002 - 8m at 9.43 g/t gold from 73m, including 1m at 44 g/t from 140m,
  • 19CFRC004 - 2m at 36 g/t gold from 146m, including 1m at 68 g/t from 146m,
  • 19CFRC009 - 5m at 14.54 g/t gold from 140m, including 2m at 28.85 g/t from 140m,
  • 19CFRC011 - 6m at 7.90 g/t gold from 132m, including 1m at 35.9 g/t from 134m,
  • 19CFRC013 - 5m at 31.23 g/t gold from 134m, including 1m at 143.0 g/t gold from 135m,
  • 19CFRC014 - 2m at 9.75 g/t gold from 88m,
  • 19CFRC0172m at 4.9 g/t gold from 149m including 1m at 8.1 g/t.

The Company believes that there exists, in the majority of the holes, a distinct halo of gold values that extend for several meters’ marginal to the main lode.

There is evidence of parallel lodes developed above and below the main lode and are up to 3m thick and range from <2 g/t up to 9.75 g/t gold over 2m downhole lengths.

The maiden program included:

  • The drill program focused on targeting shallow high-grade gold mineralisation adjacent to the historic underground developments.
  • The drill targets were identified from the integration and modelling of historic mining and exploration data from the past 80 years.
  • Initial geological models developed by GSN geologists identified two un-mined panels which were tested for remnant mineralisation as well validating the continuance of the mineralised system from historical production records.
  • It was this consistency of vein width and exceptionally high-grade gold interceptions that supported the historical production throughout the mine’s life.

Having achieved the above, GSN believes that the drilling was highly successful and has provided validation for the remnant mineralisation is present in the unmined areas between and below the stoped panels.

High-Resolution Magnetic and Radiometric Survey

Alongside conducting the drilling program, GSN also undertook a high-resolution magnetic and radiometric survey and detailed structural and lithological mapping of the Cox’s Find open pit.

Currently, plans to further test the down-plunge extension with drilling are in the pipeline with the intention to gather ample information in the subsequent campaign to define an initial resource and determine preferable options to exploit the remnant deposit.

The upcoming drilling program is planned to test the following concepts:

  • The presence of additional panels of thickened lode down dip, stepping out and away from shear zones in this area, testing additional lodes between the lower parts of the historic mine, and the projected shear zone interpreted to the east of the open pits
  • Continuity of mineralisation along sides the SSE extension of the main shear zones running through Cox’s Find along the intersection between shear zones and projected lode/host rock; and
  • Potential mineralisation down-dip and down-plunge of the northern extension of the Cox’s Find host/lode that can be seen on the surface immediately NE of the pit

Hyperspectral Survey Over Edinburgh Park and Johnnycake Projects

A hyperspectral survey over the Company’s 100% owned Edinburgh Park and Johnnycake Projects in North Queensland co-fund by Evolution Mining Limited (ASX:EVN) was agreed upon by GSN in October 2019.

The hyperspectral survey is designed to gather substantial geophysical data to assist with target delineation and comes off the back of the reconnaissance drilling program which intersected a significant zone of well-developed, high-sulphidation epithermal-style mineralisation below the surface of the main outcrop discovery.

The results of the hyperspectral survey are awaited, and GSN is currently planning an extensive geological mapping and geochemistry program, aided significantly by the detailed geophysics to delineate structures and define size potential and further provide solid drilling targets for 2020.

On the Corporate Front, the Company in October 2019 raised Total funds of $1.485 million (before costs) through a placement to institutional and sophisticated investors of:

  • 27,000,000 Fully Paid Ordinary Shares at $0.045 per share, and
  • 27,000,000 Listed Options exercisable at $0.05 per Option on or before 4 September 2022.

During the same time, GSN completed the placement of 17,548,997 Shortfall Options from the Entitlements Issue which was completed in September 2019 and raised $175,490 before costs.

During early November, GSN issued to consultants under the Company’s Long-Term Incentive Plan:

  • 1,450,000 Fully Paid Ordinary Shares, and
  • 2,000,000 Listed Options exercisable at $0.05 per Option on or before 4 September 2022.

Cash Position

At the end of the quarter, GSN’s cash and cash equivalents stood at $ 1,122,565, and the Company estimates cash outflows of $ 777,000 for the next quarter.

Stock Performance

On 21 January 2020, the GSN stock stood at a price of $0.064 (AEDT: 1:47 PM) with a market capitalisation of $19.99 million.

During the last one year, the stock has delivered 93.55% returns as on 20 January 2020 closing price.

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