Great Southern Identifies High Grade Zones Via RC Drilling Program; Stock up by 2.9%

Western Australia based gold exploration Company, Great Southern Mining Limited (ASX: GSN) is an ASX listed Company with noteworthy land holdings in the world-renowned gold districts of Mt Carlton Region of North Queensland and Laverton in Western Australia.

With the advantage of projects been situated within 25km of operating gold mills and major operations, GSN focuses on generating and capturing wealth for its shareholders through efficient exploration programs and strategic acquisitions of projects that match GSN’s existing portfolio of quality assets.

In an update on the GSN’s Cox’s Find Gold Project on 19 December 2019, GSN announced the completion of the miaden drilling program consisting 17 RC drill holes, with the program’s focus to define a geological model for the deposit by way of targeting the lode structure within the underground mining area.

• Drilling to date has successfully evaluated, and proven, the remnant high-grade mineralisation present in the unmined areas between and below stoped panels,

Figure 1 Geological Model cross-section through the modelled high-grade orebody at Cox’s Find Project (Source: Company's Report)

The exceptional drilling results have helped to define a high-grade zone, including:

• 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 @ 9.75 g/t gold from 88m.

Moreover, RC drill results into the unmined panel between 3-level and 4-level and the unmined panel below 5-level have returned multiple high-grade hits up to 143 g/t gold which has confirmed the presence of substantial amounts of remnant mineralisation at Cox’s Find which hasn’t been mined.

Current Exploration Targeting

The Company has already commenced a targeting review of the Cox’s Find Mine area in concurrence with the current drilling. For this purpose, GSN has involved technical consultants to assist the experienced technical team to design an extensional program for early 2020.

Detailed geological mapping and a review of recently acquired high-resolution magnetic data are expected to constitute the work activities with a drive to validating structural concepts and assessing the potential extension of the present workings.

Improved Geological Modelling

• Ultra-high-grade mineralised shoots localised within drag fold hinges with evidence for pinching and swelling within the structure, typical of vein deposits characterise the mineralisation;
• A distinct 1-3m thick stratabound quartz lode developed at the footwall-hanging wall contact between interflow sediments (Cherts + shales) and a mafic volcanic unit of key horizon developed;
• The high-grade shoots display outstanding continuity down plunge and consistency with the areas of stoping and subsequent historical production records in terms of width and grade reported from the development of the underground workings by WMC;
• Structurally controlled mineralisation through the complex interplay between various lithological and structural controls;
• Newly-developed deposit model concepts place the Company to conclude that mineralisation remains open, untested extensionally and down plunge and along strike with multiple structural targets to test;

Compelled to gain adequate information in the next campaign in order to define an initial resource and define preferable options to exploit the remnant deposit; GSN is planning to further test the down-plunge extension with drilling programs in the future.

The high grade and continuity of the mineralisation is encouraging and establishes the potential of the Project with extensions of the open-pit and underground workings being examined as likely alternatives for development.

The engagement of external consultants with a view to providing conceptual development scenarios on the revised geological model to give early sighted indications of:

• How might future mine extensions look with respect to the existing mine development? And
• Provide guidance on the merits of the present exploration results.

The shear hosted Archaean orogenic gold deposit Cox’s Find Gold Project (Cox’s Find), located in the Duketon Greenstone Belt, was operated by Western Mining Corporation’s (WMC) for a short period from 1936 to 1942, and later ceasing due to lack of personnel pertaining to the second world war.

During its short operation, the mine’s production accounted to approximately 76,000 ounces of gold at a reported head grade of ~23 g/t from a narrow vein stope operation.

It is worth noting that the grade and width of the intersections in the drill holes confirms to the consistency of the mineralisation style and grade with that of what was mined by Western Mining Corporation during 1936 and 1942.

Successful Application for Co-Funded Drilling

In addition to this, GSN’s application to participate in Round 20 of the Western Australian Governments Exploration Incentive Scheme’s (EIS) Co-funded Exploration Drilling Program has been approved for co-funding of up to $150,000 at the Cox’s Find Gold Project.

The funding received is expected to be used towards the testing of deep stratigraphic and structural targets identified as part of the present drill program.

Bottom-line

The preliminary RC drill program at Cox’s Find was focused on shallow high-grade gold mineralisation adjacent to the historic underground developments, wherein the integration and modelling of historic mining and exploration data from the past 80 years facilitated the identification of the drill targets.

The Company’s technical is highly encouraged by the drilling program’s results and has facilitated a further update to the geological model with the definition of the high-grade mineralisation trends and is seen as the first stage in revealing the real potential of the Cox’s Find Project while creating shareholder value.

Stock performance

On 19 December 2019, GSN stock closed the day’s trade at $0.070, up by 2.941% with a market capitalisation of $ 22.66 million.

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