Golden State hits all-time high as investors wait to see if it has the next Hemi
Special Report: Investors have been keenly watching Golden State Mining to see just whether or not it is sitting on another big discovery like De Grey’s Hemi deposit.
Hemi has shot De Grey to a $1bn market cap and that same excitement has put a rocket under its close neighbour, Golden State Mining (ASX:GSM).
Late last week Golden State hit an all-time share price high of 70.5c, up from just 9c three months earlier. That is a 683 per cent increase. It’s massive share price gain earned it a spot on Stockhead’s list of 33 stocks that had more than tripled this year.
While Golden State’s share price has edged back a bit, it is still sitting +370 per cent higher than it was in early April.
Golden State’s Yule South project has the potential to host intrusives and structures bearing geological similarities to the Hemi discovery, which sits about 13km to the southwest of Golden State’s ground in the fertile Mallina Basin in Western Australia.
Managing director Mike Moore told Stockhead that the interpretation of aeromagnetic, regional gravity and ASTER/LANDSAT data showed similar geological settings to Hemi, including some major structures and large granitoid bodies and possibly other intrusions.
The company has now kicked off a large aircore drilling program at Yule South using the same experienced contractor that drilled the Hemi discovery – Bostech Drilling Australia.
Bostech has significant drilling experience in the Yule region having recently been involved in De Grey’s Hemi discovery.
“Bostech have experience of drilling through similar alluvial cover and potential drilling difficulties that can arise from drilling loose sand, clay and hard bands and gravel beds,” Moore said.
Golden State’s maiden +10,000m, aircore drilling program is basically looking for the ‘interface’ between the transported sand cover and the bedrock. It’s essentially a geochemical sampling program but if there is significant bedrock weathering we’ll get good coverage before intersecting fresh rock, Moore says.
“The transported sand cover — which has traditionally ‘masked’ potential discoveries like Hemi — has stymied gold explorers in the past,” he says.
Where there isn’t a lot of cover an explorer can usually just take samples from surface.
“But because there is a lot of ‘transported’ sand cover you can’t rely on surface samples to give you an accurate indication of what is below,” Moore says.
“The aircore drilling will get down to that interface where we will hopefully find the ‘signature’ of something big lurking beneath in the hard rock.”
Golden State is replicating De Grey’s Hemi discovery model, which involves a more tightly spaced 640m by 80m drill pattern.
The company has already identified several high priority gold drill targets.
First results from drilling are expected in early August.
Not wasting any time, Golden State has also submitted a Heritage Survey request to cover additional target areas at Yule. This will lead into a second +10,000m drilling campaign that is planned to start in September.