WA Government Backs Strata Minerals with $200,000 for Deep Gold Drilling
Strata Minerals has won a competitive $200,000 co-funded drilling grant from the WA Government to advance deep diamond drilling at its Penny South Gold Project, aiming to uncover high-grade gold mineralisation near Ramelius Resources’ Penny Mine.
- Secured up to $200,000 drilling grant under WA Government’s Exploration Incentive Scheme
- Grant supports deep diamond drilling targeting high-grade gold at Penny South
- Project located just 500m south of Ramelius Resources’ high-grade Penny Mine
- Grant reimburses up to 50% of drilling and mobilisation costs
- Drilling planned to commence in Q3 2025
Government Backing for Deep Drilling
Strata Minerals Limited (ASX, SMX) has successfully secured a highly competitive co-funded drilling grant of up to $200,000 from the Western Australian Government’s Exploration Incentive Scheme (EIS). This grant will support a "Deep Drill Program" at the company’s Penny South Gold Project, located in a prolific gold district of Western Australia.
The EIS grant, designed to stimulate mineral exploration, will reimburse Strata for up to 50% of direct drilling and mobilisation costs, enabling the company to undertake diamond drilling to depths of 600 metres or more. This funding is a significant endorsement of the technical merit and economic potential of the Penny South project.
Strategic Location Near High-Grade Gold Mine
The Penny South Gold Project lies just 500 metres south of Ramelius Resources’ Penny Mine, one of Australia's highest-grade producing gold mines. Recent reverse circulation (RC) drilling at Penny South has already confirmed near-surface gold mineralisation, setting the stage for deeper exploration.
Strata’s upcoming diamond drilling program aims to target these deeper mineralised zones, which could reveal high-grade gold deposits. Diamond drilling is preferred for its ability to provide high-quality core samples, allowing detailed geological analysis critical for assessing the economic viability of the resource.
Next Steps and Market Implications
Drilling activities are expected to commence in the third quarter of 2025, with the company finalising plans for one or two deep drill holes. The results of this program will be closely watched by investors and industry observers, as successful identification of deeper high-grade mineralisation could significantly enhance the project’s value.
Managing Director Peter Woods expressed enthusiasm about the grant, highlighting it as recognition of the project’s potential and a catalyst for advancing exploration efforts. The government’s continued support through the EIS scheme underscores Western Australia’s commitment to fostering mineral discoveries.
While the grant reduces financial risk, exploration inherently carries uncertainties, and the market will be keen to see assay results and further updates as drilling progresses.
Bottom Line?
Strata Minerals’ deep drilling program, backed by government funding, could unlock significant value if high-grade gold is confirmed at depth.
Questions in the middle?
- What specific assay results will the upcoming deep drilling reveal about gold grades and continuity?
- How will Strata Minerals leverage this government grant to attract further investment or partnerships?
- Could discoveries at Penny South influence Ramelius Resources’ operations or regional exploration dynamics?
