Penny South Drilling Could Unlock Extensions Near High-Grade Penny Mine—Risks Remain

Diamond Drilling Begins at Penny South

Strata Minerals Limited (ASX, SMX) has mobilised its diamond drill rig to the Penny South Gold Project in Western Australia, marking the first time diamond drilling is being conducted at this promising site. The program involves three drill holes totaling around 1,250 meters, designed to explore extensions of gold mineralisation previously identified through reverse circulation drilling.

The initial focus is on Target 3, where two diamond drill holes of approximately 200 to 250 meters depth will test down-dip and down-plunge extensions of gold mineralisation confirmed in earlier drilling. Notably, hole SMX009 intersected 4 meters at 2.02 grams per tonne gold, highlighting the potential of this zone.

Strategic Deep Drilling with Government Support

Following the Target 3 drilling, Strata will undertake a high-priority deep hole at Target 1, reaching depths of about 800 meters. This deep drill hole is co-funded by the Western Australian Government’s Exploration Incentive Scheme (EIS), which covers up to 50% of direct drilling and mobilisation costs, capped at $200,000. This partnership underscores the project’s prospectivity and the government’s confidence in its potential.

The deep hole aims to intersect down-plunge extensions of the high-grade Penny Gold Mine mineralisation, located just 500 meters north of Strata’s tenement boundary and currently mined by Ramelius Resources Limited (ASX, RMS). Ramelius is actively drilling for mine life extensions towards Strata’s boundary, adding strategic significance to Strata’s exploration efforts.

Unlocking Geological Insights and Future Exploration

Diamond drilling provides high-quality core samples, offering detailed geological and structural information that reverse circulation drilling cannot. These insights will be critical for refining Strata’s exploration models and guiding future drilling programs along the 2.1-kilometer strike length of the Penny West Shear, a key structural feature controlling gold mineralisation in the region.

Managing Director Peter Woods expressed enthusiasm about the program, highlighting the opportunity to share costs with the government while testing extensions of mineralisation adjacent to a world-class gold district. The drilling is expected to take about three weeks, with assay results anticipated within 4 to 6 weeks after completion.

Context within a World-Class Gold District

The Penny South Gold Project lies in a highly prospective gold region, just south of the Penny Mine, one of Australia’s highest-grade gold producers. The project area contains 2.5 kilometers of the Penny West Shear, which hosts significant gold deposits on adjoining tenements. Strata’s recent reverse circulation drilling has confirmed near-surface gold mineralisation, and this diamond drilling program represents a critical step toward unlocking deeper and potentially higher-grade zones.