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Golden State Mining (ASX:GSM) making major headway at Yule, aims for terrific Q3

Summary

  • GSM has commenced a 4,000m follow-up reverse circulation (RC) drilling program to test four gold targets delineated during the Phase 1 and 2 aircore (AC) drilling programs at the Yule Project.
  • The Company has applied for two new exploration tenements at the Four Mile Well Project.
  • Subsequent to the quarter, GSM has announced a JV for its Cuddingwarra and Big Bell South projects.
  • Many exciting activities are planned during the September 2021 quarter.

Perth-based exploration company Golden State Mining Limited (ASX:GSM) continues to make major strides at the flagship Yule project in the sought-after Archaean Mallina Basin.

In its recently released activity report for the quarter ended 30 June 2021, the ASX-listed gold and base metals explorer has highlighted major milestones across its project portfolio during the period.

Developments at Yule gold and base metals project

The wholly owned Yule project stretches over 700km2 and hosts extensive discrete intrusive targets just 15kms from the renowned Hemi discovery with similar magnetic signatures.

RC drill target areas at the Yule project (Source: GSM quarterly report)

Reverse Circulation (RC) drilling at gold targetsIn one of the major post-June quarter developments, the Company commenced a 4,000m follow-up reverse circulation (RC) drilling program at the project on 13 July 2021, to test four gold targets delineated during the Phase 1 and 2 aircore (AC) drilling programs.

Some of the anomalous gold intersections to be followed up include –

Target 1 East

  • 20GSYSAC0002 – 4m @ 2.3g/t Au including 1m @ 7.6g/t Au from 99m
  • 20GSYSAC0013 – 18m @ 0.17g/t Au from 104m

For Detailed Discussion, read here

1,500m LCT Pegmatite Targeting RC Drill Program - The Company plans to undertake a 1,500m RC drilling program at four lithium-caesium-tantalum (LCT) pegmatite targets, identified from lithium pathfinder analysis from the Phase 1 and 2 AC program results of 2020.

Regulatory approvals for the drilling campaign have already been received. The commencement of the drilling program is contingent on the completion of a heritage survey and the availability of a drill rig.  

Lithium targets at the Yule project (Source: GSM quarterly report)

Related Read: Golden State Mining’s drilling plan at Yule  

Yule East tenement E45/5570 - During the June quarter, GSM secured the Yule East licence E45/5570, widening its ground footprint in the Mallina Basin.

The Company has already assessed open file aeromagnetic data over the tenement, delivering a number of intrusive style targets and prospective structural settings and corridors, prioritised under the 2021 field season. The new drill targets will add up to the already identified targets along the Yule River Shear Zone.

Yule East E45/5570 priority target areas (Source: GSM quarterly report)

Also Read: Golden State Mining expands footprint at the Yule project, secures new tenement

Quarry Well VHMS Pathfinders at Yule North targets - The Quarry Well prospect sits within the Sholl Shear Zone. The prospect witnessed similar chert intervals in holes 20GSYNAC0008 & 15. The chert intervals were recorded within a strongly sheared and hydrothermally altered mafic package comprising quartz-sericite-pyrite schists.

A historical VTEM anomaly was also found in the area. Additional work also resulted in a series of drill holes with elevated zinc, lead, manganese, and silver levels along with an interpreted distal alteration halo.

The Company will now focus on identifying targets to test the untested magnetic and non-magnetic conductive sources, expected to represent VHMS targets.

GSM boosting foothold at Four Mile Well Project

GSM has applied for two new exploration tenements at the Four Mile Well project. The new tenement applications include a recently identified geochemical anomaly from the assessment of historic geochemical datasets.

The Company plans to commence ground activities after securing the tenements.

Cue Project comprising Cue No. 1 and Salisbury mines

GSM has an agreement with Adaman Resources Pty Ltd including the purchase, mining, and processing of remnant mine tailings at the historical Cue No. 1 and Salisbury mines. Adaman has already processed the sands at its Kirkalocka Gold Mine processing plant during 1Q21.

In early May 2021, administrators for the mining project were appointed to Adaman and its subsidiaries. As per the creditor’s meeting outcomes and the correspondence of Adaman’s administrators, GSM expects a negligible return as a creditor of Adaman for the ore purchase agreement.

The Next Steps

GSM has planned the following activities at its portfolio for the September 2021 quarter –

(Source: GSM quarterly report)

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