Exploration Capital Headwinds Persist as NSM Commits to Drilling in Stawell Corridor
North Stawell Minerals has secured $1.3 million in new equity funding to propel exploration at its North Stawell Gold Project, with diamond drilling set to begin in January 2025 targeting the promising Wildwood and Darlington prospects.
- Completed $1.3 million equity raise via placement and fully underwritten entitlement offer
- Diamond drilling program of approximately 1,500m commenced in January 2025
- Focus on priority targets Wildwood and Darlington with significant exploration upside
- Ongoing collaboration with CSIRO leveraging machine learning and AI for target refinement
- Maintained disciplined financial management with over $1 million cash on hand
Capital Raise Secures Exploration Funding
North Stawell Minerals (ASX: NSM) successfully completed a $1.3 million equity raise in late 2024, combining a placement and a fully underwritten entitlement offer priced at 1 cent per share. This capital injection strengthens the company’s financial position, providing the necessary liquidity to advance its exploration agenda at the North Stawell Gold Project in Victoria.
The placement attracted strong institutional and sophisticated investor participation, signaling market confidence in NSM’s strategic direction and exploration potential. With cash reserves exceeding $1 million as of December 31, 2024, the company is well-positioned to execute its near-term drilling programs.
Drilling Program Targets Wildwood and Darlington
Following preparatory works, NSM commenced a diamond drilling campaign in January 2025, focusing on approximately 1,500 metres of step-out and infill drilling across its priority targets, Wildwood and Darlington-Caledonia. These targets are situated within the highly prospective Stawell Mineralised Corridor, a region with a rich history of gold production exceeding five million ounces.
Wildwood, located 25 kilometres north of the operating Stawell mine, hosts an inferred and indicated mineral resource of 87,300 ounces at 2.4 g/t gold. The mineralisation is open along strike and at depth, with recent reinterpretations highlighting structural controls analogous to the multi-million-ounce Stawell deposit. Drilling aims to test extensions of mineralisation on the flanks of the basalt dome, which could significantly increase resource tonnage.
Darlington presents a compelling exploration target with recent drilling intersecting a previously untested basalt unit 100 metres beneath surface mineralisation. This discovery suggests the potential for a deeper Stawell-type gold system. Planned drilling will test structural links between surface mineralisation and the basalt, potentially expanding the known mineralised footprint.
Innovative Collaboration with CSIRO Enhances Targeting
NSM continues its collaboration with CSIRO, Australia’s national science agency, applying machine learning and artificial intelligence techniques to interpret extensive geophysical and geological datasets. This partnership aims to refine exploration targeting by identifying structural dilation zones and fluid flow pathways that are conducive to gold mineralisation, thereby improving drilling success rates and exploration efficiency.
Such advanced data analytics complement traditional geological models, allowing NSM to better prioritize drill targets within its extensive 500 km2 tenement portfolio.
Maintaining Momentum Amid Market Challenges
Despite persistent exploration capital headwinds in the broader market, NSM’s management remains committed to advancing its exploration programs. The company’s disciplined financial management and strategic partnerships underpin its ability to sustain field activities and pursue resource growth opportunities.
Looking ahead, NSM plans to integrate drilling results with ongoing CSIRO modelling efforts to inform subsequent exploration phases and potential resource updates. The company also emphasizes proactive stakeholder engagement and is exploring additional funding avenues to support its long-term growth ambitions.
Bottom Line?
As drilling unfolds, North Stawell Minerals stands at a pivotal juncture where data-driven exploration could unlock significant new gold resources in a proven corridor.
Questions in the middle?
- Will initial drilling at Wildwood and Darlington confirm extensions of Stawell-type mineralisation?
- How will CSIRO’s machine learning insights influence future target prioritization and drilling success?
- What are NSM’s plans for advancing secondary and emerging targets beyond the current drilling program?
