Strata Minerals to Restart Diamond Drilling at Penny South Gold Project with Government Co-Funding

Renewed Exploration Momentum at Penny South

Strata Minerals Limited (ASX, SMX) is preparing to recommence diamond drilling at its Penny South Gold Project in Western Australia, following encouraging results from its maiden drilling campaign earlier this year. The upcoming program is designed to extend and deepen the understanding of gold mineralisation zones identified in previous reverse circulation drilling, marking a significant progression in the project’s exploration phase.

The Penny South Project is strategically located just south of the high-grade Penny Mine operated by Ramelius Resources, within a well-known gold district. This proximity, combined with the presence of the Penny West Shear, a key structural feature controlling gold deposits, positions Strata’s tenements as highly prospective for further discoveries.

Focused Targets and Technical Advances

The drilling program will focus on two main target areas. At Target 1, Strata plans a diamond tail extension of a previously drilled hole to test the down-dip continuation of a mineralised quartz sulphide vein. This approach aims to overcome limitations of earlier drilling depths and better define the geometry of the mineralised system. At Target 3, two diamond holes will test down-dip and down-plunge extensions of gold mineralisation confirmed in prior drilling, potentially revealing deeper or more extensive zones of mineralisation.

Importantly, this will be the first diamond drilling undertaken at Penny South, providing core samples that offer superior geological and structural information compared to earlier methods. These insights are expected to be pivotal in refining future drill plans and advancing the project towards more definitive resource delineation.

Government Support and Strategic Implications

The program benefits from up to $200,000 in co-funding through the Western Australian government’s Exploration Incentive Scheme (EIS), which supports drilling programs targeting deeper mineralisation. This financial backing not only reduces Strata’s exploration risk but also underscores the project’s potential significance within the region.

Managing Director Peter Woods expressed optimism about the upcoming drilling, highlighting the value of the geological data expected to be gained. The results will directly inform the planning of a deeper, more ambitious drill hole designed to test extensions of the high-grade Penny Gold Mine located just north of Strata’s tenements.

Looking Ahead

With statutory approvals in place and drilling contracts being finalised, Strata anticipates commencing the program in early August 2025. The approximately 600 metres of diamond drilling planned represents a measured but critical step in unlocking the full potential of the Penny South Gold Project. Investors and analysts will be watching closely for assay results and geological interpretations that could reshape the project’s outlook.