Golden State Mining's December Quarterly Report reveals promising exploration progress with three new gold target areas identified near the 11.2Moz Hemi deposit, alongside encouraging assay results from Canning Hill and planned drilling at Southern Cross East.
- Three new gold target areas identified at Yule Project near Hemi deposit
- ~4000m air-core drilling planned for early Q2 2025 at Yule
- Encouraging rock chip assays at newly granted Canning Hill Gold Project
- 1000m air-core drilling planned at Southern Cross East to test gold anomaly
- Company ends quarter with $1.29 million cash reserves
Exploration Momentum Builds at Yule Project
Golden State Mining Limited (ASX: GSM) has delivered a robust December 2024 Quarterly Report, highlighting significant advances across its Western Australian gold exploration portfolio. Central to the update is the identification of three new gold target areas at the Yule Project, located within striking distance, approximately 13 kilometres, of the prolific 11.2 million ounce Hemi gold deposit held by De Grey Mining.
The independent review by RSC Consulting has been pivotal, leveraging geological data, previous drill results, and geophysical interpretations to pinpoint these targets. Notably, Target A in the southeastern corner of Yule South has already yielded promising drill intersections, including a high-grade 1 metre interval at 7.6 g/t gold from 99 metres. RSC's analysis suggests further drilling north of this zone could unlock additional mineralisation.
Targets B and C also present compelling geological settings, with Target B featuring misaligned fault segments and hydrothermally altered rocks, and Target C showing structural alignments conducive to gold trapping near major shear zones. These findings underpin Golden State’s planned ~4000 metre air-core drilling campaign slated for early Q2 2025, with heritage surveys underway and regulatory approvals secured.
Canning Hill Project Shows Early Promise
Golden State’s recently granted Canning Hill Gold Project in the Murchison region adds another layer of excitement. Situated about 13 kilometres south of the Kirkalocka Gold Mine, the project lies within the Wydgee-Meekatharra Greenstone Belt, a known gold-prospective geological setting. Initial reconnaissance has validated historic gold anomalies through rock chip sampling, with assays revealing gold concentrations up to 1.0 g/t and pathfinder elements such as arsenic and tungsten.
The company has prioritized three geochemical anomalies for follow-up, with a second field campaign completed to collect additional samples. Assay results from this phase are expected imminently and will inform the design of a maiden drilling program. The strategic location adjacent to historic workings and structural features enhances the prospectivity of this greenfields exploration ground.
Southern Cross East Drilling Plans Take Shape
At the Southern Cross East Project, Golden State is advancing towards its first drill program, targeting a robust gold-in-soil anomaly supported by pathfinder geochemistry and structural interpretation. The planned 1000 metre air-core drilling aims to test a potential structural gold trap near a major fault splay. Program of Work submissions and heritage surveys are in progress, with drilling anticipated in Q1 2025 pending approvals.
Financial and Corporate Updates
Golden State Mining closed the quarter with $1.29 million in cash and cash equivalents, providing a solid foundation to fund its upcoming exploration activities. The company reported $246,000 in exploration and evaluation expenditure during the quarter, reflecting its active field programs. On the corporate front, the AGM saw a leadership transition with Greg Hancock appointed as Chair, succeeding Damien Kelly who had been instrumental since the company’s inception and ASX listing.
Managing Director Michael Moore emphasised the strategic importance of the Yule Project’s proximity to the Hemi deposit and the company’s extensive tenement footprint of nearly 595 square kilometres in the Pilbara. He highlighted the value of the substantial geological database and the disciplined approach to exploration that positions Golden State well for potential resource growth in 2025.
Bottom Line?
With drilling programs imminent and assay results pending, Golden State Mining is poised for a pivotal year in expanding its gold footprint near one of Australia’s richest deposits.
Questions in the middle?
- Will the upcoming air-core drilling at Yule confirm extensions of high-grade gold mineralisation?
- How significant will the pending assay results from Canning Hill be in shaping future exploration priorities?
- What impact will the new leadership under Chair Greg Hancock have on the company’s strategic direction?