Cashed up and ready for drilling Pic: Getty
Golden State fills war chest for drilling the Pilbara’s next gold find
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Special Report: Golden State Mining is all cashed up to kick off an expanded maiden drilling program that will provide a robust test of five priority gold targets at its Yule South project in Pilbara.
The funds were raised through an oversubscribed placement of shares priced at 12.5c each to sophisticated and professional investors.
Golden State Mining’s (ASX:GSM) initial drilling of more than 10,000m is aimed at finding a “Hemi” of its own at Yule South, which is just 13km from De Grey’s exciting Hemi discovery.
Managing director Michael Moore says the strong support for the placement comes during an exciting time for the company as it embarks on the fully approved and expanded drilling program.
The expanded drill program is aimed at more effectively testing the priority gold targets at a greater drill density.
No drilling has previously been conducted over these targets.
Hemi was discovered using an initial 640m by 80m drill pattern, a pattern that Golden State recognises as being effective for testing similar geological features at Yule.
This approach has already been lauded by the company’s shareholders, who have sent shares in the company soaring more than 176 per cent since the beginning of this year to 18.5c per share.
Golden State has also applied for co-funding from the Western Australian government’s Exploration Incentive Scheme (EIS).
As part of the program, companies and prospectors share in millions of dollars in grants to encourage innovative drilling in greenfields areas.
The company plans to test additional priority targets at Yule South in the second half of the year using a similar strategy as the maiden drilling program.
Follow up drilling with infill lines and deeper reverse circulation drilling will also be planned if required.
Additionally, Golden State is planning maiden drilling campaigns over the Sholl Shear Zone at the Yule North project, which is a major deep-seated regional structure similar to the Tabba Tabba Shear zone at the southern boundary of the Mallina Basin.
The initial aircore drilling will test prospective structural targets along the shear corridor with a gold and base metals focus.
Field exploration is also ongoing at the Balla Yule project with planning underway for a maiden drilling program in the second half of this year.
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