Golden State Announces Further Robust Assay Results at the Yule South Project, Strong Gold and Arsenic Anomaly at Target 2

Summary

• Golden State Mining has announced assay results from Targets 2 and 3 drilled at the Yule South Project in the Phase 1 aircore drilling program. The Company earlier revealed first pass gold hits from Targets 1 and 5.
• Assay results across Target 2 highlighted significant 800m x 1400m high arsenic anomaly in multiple holes. The results indicated multiple +100ppb gold intersections with over 500ppm arsenic intersected.
• Assay results from Target 4 are expected in mid-September while Yule Phase 2 aircore drilling program is slated to commence by the end of September 2020.

Advancing with remarkably encouraging assay results, Golden State Mining Limited (ASX: GSM) on 7 September 2020 reported further anomalous gold with additional arsenic assay results from targets 2 and 3 drilled at the Yule South Project.

Golden State completed the Phase 1 Yule South aircore drilling over five gold target areas during mid-August 2020, with a total of 199 holes drilled for a total advance of 13,275m. Post the completion, the Company reported impressive gold assays from Target 1 and Target 5.

The latest assay results in conjunction with the early success are fostering buoyant exploration prospects for the Company. GSM believes that with each drill line, Yule is revealing its gold potential with a clear demonstration that it has the right ingredients for exploration success. The Company indicated that the exploration team is engaged in preparation for the Phase 2 aircore drilling program, which is expected to commence in approximately three weeks.

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Mr Moore indicated that the Company is undertaking the evaluatory work on follow-up programs for Target 1, where it intersected 8m @ 0.92g/t Au from 96m including 4m @ 1.81 g/t Au from 96m and Target 2. Significantly, Target 2 has a close association between arsenic and the gold mineralisation.

Drilling at Target 2

Reconnaissance first pass angled AC drilling tested the target area on selective drill lines orientated to test target corridors on 80-160m hole centres. The testing area included prospective zones in the north and south of an over 10km structural corridor, which is ‘squeezed’ between nested and deformed granitoid complexes.

Golden State recorded multiple gold intercepts including 4m @ 0.44 g/t Au from 106m in 4m composite samples collected from a weathered to fresh, sheared in part, silica-chlorite altered, mafic-ultramafic units, minor quartz veined in hole 20GSYSAC0096. In the cover sequence of the hole, the Company witnessed an unusually high gold anomaly including 6m @ 101ppb from 18m.

A shallow anomalous gold interval (4m @ 135ppb Au from 32m) was recorded adjacent to hole 20GSYSAC0103, collared 80m to the east in a deeply weathered schistose horizon.

The Company recorded another anomalous gold interval (4m @ 81ppb Au from 75m) in 20GSYSAC0095 in a weathered interpreted arkosic metasedimentary unit, stationed close to a granite contact to the east. It may represent a sheared metasedimentary-granite contact target corridor.

Significantly, Golden State indicated most of the assay results on the drill traverses on Target 2 have been intersected in the weathered saprolite clay horizon, which is developed immediately above the fresh bedrock. Furthermore, strongly anomalous gold results have also been returned from the fresh bedrock, which is also moderately to strongly hydrothermally altered and sheared.

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Drilling at Target 3

Reconnaissance angled AC drilling on selective line spacing, and 80-160m hole centres was used to testing an interpreted tightly folded greenstone/ultramafic sequence or intrusive target. The target lies along a granite contact zone parallel to a regional NNE trending regional structure.

The AC lines tested the southern and northern parts of Target 3, with two lines on each area. Furthermore, transported sandy clay calcretised and silcreted sediments with weakly developed laterite close to the base in the depth range of 25-45m were recorded by drill logging.

The Company recorded all the best-elevated gold results in 6m composite samples in various horizons of the cover sequence.

Hole 20GSYSAC0134 in a sand and clay sequence with a silcrete horizon intersected 6m @ 147ppb Au from 6m downhole.

Hole 20GSYSAC0130 at the base of the cover sequence in a pebble rich layer, which contained well-rounded maghemite rich pebbles, intersected 6m @ 54ppb Au from 24m downhole.

Hole 20GSYSAC0168 at the base of clay and calcrete mixed horizon with some coarse grit intersected 6m @ 80ppb Au from 30m downhole.

Ongoing Analysis and Upcoming Activities

Final assays from Target 4 along with additional drilling at Target 1 are expected during mid-September. Notably, infill and scissor holes were completed on hole 20GSYSAC002 to follow up a previous intersection of 8m @ 0.92g/t Au from 96m incl. 4m @ 1.81 g/t Au from 96m. The gold assays from the infill and scissor holes would be included in the expected Target 1 results.

The Company is currently undertaking petrological studies, which include thin and polished sections of selected drill chips of representative holes from all target areas. It would add significant value to the understanding of mineralogy, geological setting, alteration and possible controls on mineralisation intersected to date.

On 8 September 2020 (AEST 11:29 AM), GSM stock traded at $0.265. The stock has generated a price return of more than 310% on a year-to-date basis.

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