Placing a Lens over the Quarterly Activities of GSN

  • Nov 25, 2019 AEDT
  • Team Kalkine
Placing a Lens over the Quarterly Activities of GSN

Mineral Exploration Company, Great Southern Mining (ASX: GSN) is currently capitalising on an opportunity to advance a historic high-grade project with exceptional exploration potential. GSN’s maiden drilling program at the 100% owned Cox’s Find Gold Project is an exceptional opportunity for exploration and resource growth of an old high-grade gold mine.

Great Southern Mining is a Western Australian based Company with an aim to become a leader among the gold exploration companies in Australia. Over the quarter ended September 2019, GSN made significant headway and gained momentum in its operations to drive on a track which is in line with its objectives.

Let’s place a lens over the quarterly activities of GSN and have a closer look over the Company’s significant progress during the quarter ended September 2019.

Acquisition of Cox’s Find Gold Mine

During the quarter, the Company executed the formal sale and purchase agreement for the acquisition of the Cox’s Find Gold Mine and surrounding Mining tenure (located ~70 km north of Laverton), which comprises of a 100% interest in three granted Mining Leases.

The Mining Leases, namely M38/170, M38/578, M38/740, obtained under the agreement are located along strike from, and near, Regis Resources’ multi-million-ounce Garden Well discovery first drilled in 2008.

As agreed, the payment was made by mode of cash by GSN for an amount of $150,000 during the quarter. Apart from this, the Company had already made a cash payment of $50,000 during June 2019 to the Vendor.

Figure 1 Aerial View of Cox's Find (Source: Company's Report)

Marking their presence in the field, the Company initiated an on-site assessment of surface material remaining from historical production along with the commissioning of a high-resolution drone survey over the current mine footprint. The current mine footprint is said to contain a shallow abandoned open pit, underground mining stopes, untreated stockpiles of material on surface and tailings from the underground operation.

The Company’s focus is on gathering the required information to update the market with a JORC 2012 Resource estimate on the stockpiles in the future near time.

Drill Program at Rocky Ponds Breccia Pipe

The results of the reconnaissance drill program at its Rocky Ponds Breccia Pipe at the 100% owned Edinburgh Park Project in North Queensland during the quarter include:

  • The sighter holes intersected a significant and well-developed hydrothermal system
  • Intersections in excess of 30m were noted containing up to 30% sulphide mineralization with high silver content being 1 g/t - 50 g/t with elevated base metals of zinc and copper (0.1% to 0.8% Cu);
  • This shallow part of the system also carried gold mineralization of 0.22 – 0.64 g/t, which is encouraging for deeper drill programs currently being planned.

Following such results, the Company is putting its heads together to carry out the analysis of the data to develop an understanding about the controls on the mineralisation in terms of alteration mineralogy, multi-element zoning and vectors to the ore, involving petrology and Hylogger spectral scanning.

Moreover, the Company has also planned an extensive geophysics campaign and continued geological mapping and geochemistry programs to run in tandem to delineate structures and define size potential - particularly ground magnetics and electrical methods.

The measures are expected to provide solid drilling targets aimed at targeting the potentially gold-rich core.

According to the Company:

“The area is of interest to GSN based on a high-level due diligence review of copper and gold occurrences in the region and are considered to hold potential for Volcanic Massive Sulphide (VMS) copper and hard rock and associated placer gold mineralisation”

The company envisages an exceptional exploration upside advantage in the area, since it has not been subject to a major level of modern exploration techniques. Following the identification of the added advantage, the Company seeks to plan future exploration programs for achieving exploitative results.

To learn more about the Company’s Results On Rock Chips At Edinburgh Park Project, click here.

Capital Raising and Loan

During the quarter, the company also successfully raised $835,884 (before costs) via a Rights Issue to shareholders of New Options. The shortfall under the Offer was 17,548,997 New Options with the securities to be placed within three months.

In addition to this, the Company entered a $500,000 Director Loan facility, unsecured and on an arm’s length basis, on commercial terms bearing an interest rate of 9.9% p.a. with an entity related to Mr John Terpu (Executive Chairman, GSN).

Moreover, the Company issued 300,000 fully paid ordinary shares at $0.02, raising $6,000 following the exercise of Unlisted Options.

At quarter end, the Company has the following securities on issue:

  • 303,712,338 fully paid ordinary shares.
  • 83,588,449 Listed Options exercisable at $0.05 each on or before 4 September 2022.
  • 11,800,000 unlisted options exercisable at $0.02 on or before 31 December 2019.

With the availability of both its LR7.1 and LR7.1A placement capacities, the Company is considering its capital raising options, which shall be notified to the shareholders in due course.

According to the Company report, the Company’s cash in the bank at quarter-end amounted to $697,575. The net cash used in the operating activities stood at $554,000, cash used in investing activities stood at $248,000 and the cash flow from financing activities stood at $1,291,000. The company estimates a cash outflow of $688,000 in the next quarter.

GSN Stock Increased by 168% on a YTD basis

At market close on 22 November 2019, GSN stock was noted trading at a price of $ 0.075, with a market capitalisation of $ 24.99 million.

The company’s stock has inched closer to its 52-week high price of $ 0.080. As on 22 November 2019, GSN stock has appreciated by, 53% in the past 3 months alone and 168% on a YTD basis.


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