A simple ‘getting ready to drill’ update sent gold explorer Golden State Mining (ASX:GSM) up nearly 92 per cent this morning.

The company is preparing drill operations at its fully-owned Yule project in the Pilbara Craton region.

It follows recent developments in Pilbara Caton have given rise to investor optimism towards companies with operations in the area.

In particular, Golden State highlighted Yule’s close proximity (13km) to the Hemi discovery made by De Grey Mining (ASX:DEG), which has seen DEG shares climb by more than 200 per cent in February.

“We are very excited by the recent De Grey drilling results which underpins our commitment to gold exploration and discovery in this very prospective and underexplored region,” Golden State managing director Michael Moore said.

The Yule project gives Golden State access to 702sqkm in the Pilbara Craton, on land which was originally pegged by famous prospector Graham Hutton.

Drilling is expected to commence in April this year, where the company will target similar geological settings to those found at the Hemi discovery.

Golden State said the 4,000m aircore drill program would focus on four key areas described as “untested major and secondary structures” (mainly greenstone composition) which were more likely to act as a “fluid pathway for gold mineralisation”.

The company is currently on the hunt for a suitable drilling contractor and expects to get final regulatory clearance by March.


In other ASX gold news today:

Shares in Anglo-Australian (ASX:AAR) rose by 8 per cent to a 2020 high of 13c after the company announced more high-grade gold intercepts at its Mandilla project near Kalgoorlie. The company flagged more drilling in the months ahead as it proves up what it now believes to be a “substantial gold discovery”.

Emerald Resources (ASX:EMR) took another step forward at its Okvau project in Cambodia, executing on a contract equipment contract for long lead-time items with multinational service company Outotec Pty Ltd. Emerald said the deal would allow it to lock in timelines as it moved towards commissioning gold production in Q2 2021, following a recent $75m equity raise.

NOW READ: Tim Treadgold: Cashed up Emerald could be more than just a one-mine pony

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