Strata Minerals Limited reports encouraging results from its maiden drilling program at the Penny South Gold Project, revealing extensions of key mineralised structures and securing a government co-funded grant to advance deeper diamond drilling.
- Maiden 12-hole RC drilling program completed at Penny South
- Key mineralised structures extended from Penny West and Penny North deposits
- Best intercepts: 1m at 1.65g/t Au (Target 1) and 4m at 2.02g/t Au (Target 3)
- Successful government Exploration Incentive Scheme grant awarded for deep diamond drilling
- Next drilling phase planned with heritage approvals underway for additional targets
Encouraging Maiden Drilling Results at Penny South
Strata Minerals Limited (ASX: SMX) has announced the results of its inaugural drilling campaign at the Penny South Gold Project in Western Australia, marking a significant milestone in its exploration journey. The maiden program comprised 12 reverse circulation (RC) holes totaling 2,583 metres, targeting extensions of the high-grade Penny West and Penny North gold deposits operated by Ramelius Resources just 500 metres to the north.
The drilling successfully intersected key structural zones interpreted as continuations of the Penny West shear system. At Target 1, the program encountered a shear zone characterised by strong magnetite alteration and sulphide-quartz breccia, with sporadic gold mineralisation. The standout intercept was 1 metre at 1.65 grams per tonne (g/t) gold from 189 metres depth in hole SMX001. However, the results suggest the main mineralised zone lies deeper than the RC drilling could reach, indicating a steeply plunging high-grade system yet to be tested.
Target 3 Delivers Notable Gold Intercept
At Target 3, five RC holes tested down-dip extensions of historical near-surface gold anomalies. The best result was 4 metres at 2.02 g/t gold from 88 metres in hole SMX009. This mineralisation remains open along strike and down plunge, warranting further drilling to delineate its full extent. These findings underscore the prospectivity of the Penny South corridor, which hosts approximately 2.5 kilometres of strike within Strata’s tenement.
Government Grant Accelerates Next Drilling Phase
Complementing these drilling results, Strata has secured a government co-funded Exploration Incentive Scheme (EIS) grant valued up to $200,000. This grant supports a deep diamond drilling program planned between June 2025 and May 2026, aimed at testing the untested down-dip mineralised zones at Target 1. The funding covers up to 50% of direct drilling and mobilisation costs, providing a financial boost to Strata’s exploration efforts.
Managing Director Peter Woods highlighted the significance of the maiden drilling, noting that it provides critical geological insights and a strong foundation for follow-up work. The company is actively planning the next drilling phase, which will include deeper diamond drilling at Target 1 and additional RC drilling at Target 3 to chase open extensions. Meanwhile, heritage and access approvals are progressing for Targets 2 and 4, located in the southern portion of the project area.
Strategic Positioning in a World-Class Gold District
The Penny South Gold Project lies within the prolific Youanmi greenstone belt, adjacent to Ramelius Resources’ Penny Mine, one of Australia’s highest-grade gold producers. The geological setting features steeply dipping greenstone stratigraphy with mineralisation hosted in quartz-sulphide lodes associated with major shear zones. Strata’s exploration strategy aims to expand on this proven mineralised corridor, leveraging structural interpretations and historical data to identify high-priority targets.
While the current drilling results are early-stage and true widths of mineralisation remain to be confirmed, the intersections provide a compelling rationale for deeper and more targeted drilling. The company’s methodical approach, supported by government funding, positions it well to unlock the potential of this underexplored gold system.
Bottom Line?
Strata Minerals’ maiden drilling success and government grant set the stage for a deeper exploration push that could redefine Penny South’s gold potential.
Questions in the middle?
- Will the upcoming diamond drilling confirm the depth and grade continuity of the Target 1 mineralised zone?
- How will heritage and access approvals impact the timeline for drilling Targets 2 and 4?
- Could further drilling at Target 3 reveal a significant strike extension or higher-grade zones?