Western Australian based Great Southern Mining Limited (ASX: GSN) aims to be a leading gold exploration company in Australia, with significant land holdings in the world-renowned gold districts of Laverton in Western Australia and the Mt Carlton Region of North Queensland.
GSN strives to generate and capture shareholder wealth through efficient exploration programs and strategic acquisitions of projects that complement the existing asset portfolio.
Great Southern Mining Limited has taken significant decisions to explore new opportunities and capitalise on the partnerships that carry lucrative potential. Let us take a look at GSN’s recent decision to expand one of its gold projects.
GSN Accelerates Exploration at Cox’s Find Gold Project
After the successful capital raising and placement of securities, the Company made a strategic decision to significantly expand and accelerate GSN’s maiden drilling program at its 100% owned Cox’s Find Gold Project.
As per Company reports, GSN plans to complete up to 5,000m of RC and DD drilling targeting several historically identified and untested ultra-high-grade quartz reefs that were delineated in development drives but never extracted during stoping and which have not been drill tested.
Additional regional targets on the greater Project area have also been added to the program
The Company believes that Cox’s Find Gold Project is a compelling project that provides tremendous exploration upside for shareholders and investors.
On 11 October 2019, GSN announced it had received approval for a Program of Works (“POW”) with the Western Australian Government’s Department of Mines, Industry, Regulation and Safety (“DMIRS”) to undertake its maiden drilling campaign on the Project.
Initially, up to 2,000m of RC and DD drilling was to be carried out which was now increased to up to 5,000m. Currently, the contractors and drill rigs are engaged, with drilling scheduled to begin the week of the e4 November 2019.
The areas targeted by the drilling are as follows:
- Cox’s Find historical workings- Down dip and along strike, testing potential for further unmined high-grade material
- Cox’s Find regional targets- GSN’s exploration model has identified several high priority targets in the greater Project tenement area
- Material on Surface- Drilling to provide the information required to Resource the material on the surface under JORC 2012
Executive Chairman’s comments:
The Program is expected to be the first to drill exploration holes into the deposit in over 25 years and the first to include significant drilling past a vertical depth of 60m providing GSN with considerable exploration potential. The program puts forward the opportunity for GSN to employ modern exploration techniques to a historical high-grade gold mine which is poorly understood and significantly underexplored.
The current site is said to contain the abandoned shallow open pit, underground mining stopes, untreated stockpiles of ore on the surface and remnant tailings from the underground operation.
The Company is making efforts to obtain the required information to update the market with a JORC 2012 compliant Resource on the surface stockpiles.
Following the exploratory surface drilling, the workings reflect that the gold mineralisation is open at depth and down plunge, which shall further provide immediate drill targets.
Commenting on the expanded exploration program, GSN’s Executive Chairman John Terpu said:
“Cox’s Find presents an opportunity for the Company to advance a historic high-grade project with exceptional exploration potential”
“It was an easy decision to allocate additional funds to expand the drilling program”
“The immediate down dip and along strike potential of the historical workings combined with our updated geological exploration model suggests that we have a strong chance of finding additional analogue systems on our tenement package”
“The increased drilling budget allows us to test these great opportunities for new discoveries and resource growth”
The Company’s exploration program has been designed following the significant exercise in collating the 80 years’ worth of historical data. Through GSN’s initial interpretation the use of modern exploration techniques and drilling programs provides exciting potential for exploration success.
Moreover, GSN is of view that the exploration model adopted historically was not suitable for the primary structural controls in targeting the extensions of discrete high-grade shoots.
GSN receives commitment to raise $1,485,000
Recently, Great Southern Mining Limited received commitments to raise $1,485,000 (before costs) through placement. The Company received commitments from eight leading Australian and international institutional investors and a small number of high net worth individuals.
The Company plans to utilise the funds raised from the placements in the expansion and acceleration of the exploration program at Cox’s Find Gold Project in Western Australia.
The proposed structure of the placement comprises of 27,000,000 fully paid ordinary shares at $0.045 per share and 27,000,000 Listed Options at $0.01 per listed option exercisable at $0.05 on or before 4 September 2022.
105.71% return by GSN stock
GSN stock last traded at a price of $0.067 as on 5 November 2019 (AEST: 1:12 PM). GSN has a market capitalisation of approximately $ 23.88 million. Over a period of past six months, GSN stock has provided 105.71% return.
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