Golden State Mining Reports Highly Encouraging Assay Results at Yule South Project, Further Assay Results Awaited

Summary

• Golden State Mining has unveiled first pass gold hits at the Yule South project.
• Best intercepts at Targets 1 & 5, the first two target areas, drilled at the project included:
  • 8m @ 0.92g/t Au from 96m incl. 4m @ 1.81 g/t Au from 96m from Target 1
  • 19m @ 91ppb Au from 46m incl. 4m at 350ppb Au from 58m from Target 5
• Assay results for Targets 2, 3 and 5, along with commencement of Phase 2 drilling program, expected during the next month.
• Initial results and geological observations resulted in the interpretation of two new target corridors, which will be subject of future drill planning over the coming months.
• GSM has planned significant activities at Yule South Project as well as Yule North Project during the year.

Drilling endeavours of Perth-based gold and base metals exploration company, Golden State Mining Limited (ASX:GSM) look like paying well, as it announced highly encouraging assay results for the first two target areas drilled at the Yule South (E47/3503 & 3507) project in the Archaean Mallina Basin, Western Australia.

The Company commenced maiden drilling program at the 100% owned project in early July 2020 and has completed Phase 1 Aircore drilling program over five gold target areas.

Best intercepts from the first two target areas include the following:

Further assay results for Targets 2, 3 and 4 from the program are anticipated to be received during next month, and Phase 2 drilling is expected to recommence in the month of September.

GSM believes that the drill results returned from wide-spaced reconnaissance Aircore drilling provide validation to the sound geological greenfield targeting and highly prospective nature of its extensive ground holding in West Pilbara.

The Company completed the Phase 1 Yule South Aircore drilling program over a total of 199 holes drilled for a total advance of 13,275 metres covering the five gold target areas.

Drilling at Target 1

GSM tested the hinge zone of an interpreted Mallina Basin mafic-metasedimentary rock package and a prominent north-trending magnetic structure trending through the eastern part of Target 1 under the reconnaissance first pass angled Aircore drilling. On this target, a total of 30 drill holes have been completed for a total advance of 2,815 metres.

Multiple anomalous gold intersections were returned from the assay results with the best intercept from drill hole 20GSYSAC0002 recorded in a weathered, fine-grained schistose saprolitic metasedimentary sequence. Notably, 20 metres @ 0.15g/t Au from 102 metres including 8 metres @ 0.30 g/t Au were intersected from drill hole 20GSYSAC0013 in a similar regolith setting.

Of these gold intersections based on four-metre composite samples, GSM has now collected one-metre samples and submitted for assay.

Moreover, GSM drilled a scissor hole (20GSYSAC0199) angled 60⁰ west under drill hole 20GSYSAC0002 to obtain better insights about the attitude of the mineralised zone observed in the drill hole. The Company has submitted samples from these additional drill holes for assay.

Drilling at Target 5

GSM has completed 47 holes at Target 5 for a total advance of 2,575 metres. Lately, the Company tested the northern contact zone of an interpreted magnetic intrusive body in the Portree Granite Complex through reconnaissance first pass angled Aircore drilling.

The Company is gearing up for further drilling for additional drill lines to the east, on the basis of the results and initial observations.

Significantly, multiple elevated and anomalous gold intersections of >10 ppb gold were revealed through the assay results, and the best intersection from drill hole 20GSYSAC0062 was recorded in a weathered mafic-ultramafic horizon with <2% fine-grained, disseminated and smeared foliation pyrite.

Additional Target Areas Interpreted

Initial results and geological observations offered GSM the basis to interpret two new target corridors, including:

• A 5km structural corridor interpreted from the aeromagnetic data based on the drill results from Target 1, and
• A broad target area to the east of Target 5 interpreted as a continuation of the prospective mafic-ultramafic package logged in this area.

Golden State Mining seeks to place these new target areas for future drill planning in the coming months.

Way Ahead

GSM has planned significant activities to be undertaken at Yule South Project as well as Yule North Project.

Kalkine Image (Data Source: GSM ASX Announcement)

GSM stock settled at $0.320 on 14 August 2020 with a market capitalisation of $ 21.61 million. Notably, the stock has delivered a return of more than 342% over the last six months till 13 August 2020.