Golden State Mining sells Cue project for $1.125m

In a move to focus on gold and lithium exploration Golden State Mining has agreed to sell its Cue Project in Western Australia’s Murchison region to Cue Revival Pty Ltd for $1.125 million in cash. 

After entering into a binding agreement with Cue, Golden State Mining (ASX:GSM) said the cash sale will allow the company to zone-in on its 100% owned Yule Project within the Archaean Mallina Basin near Port Hedland.

Key terms of the agreement include a $200,000 non-refundable deposit (already paid) and a further $925,000 upon completion.

GSM will also retain a royalty on any kaolin produced from the Cue project tenements, equal to 200% of the statutory royalty payable to the WA government.

Cue Revival is a recently incorporated, private Australian company owned and operated by Mark Hargreaves based in Western Australia.

Strong financial position heading into 2022

Golden State Mining managing director Michael Moore said drilling is continuing at several gold and lithium exploration targets at the Yule Project.

The Yule project’s tenement package hosts intrusive bodies and major structural corridors as well as high priority gold, lithium, and base metal targets.

Large discrete intrusive targets 15 kilometres from Hemi with similar magnetic signatures include the Target 1 East with hits of up to 4 metres at 2.3 g/t gold, including 1 metre at 7.6 g/t and Target 2A, an 800m x 1400m arsenic anomaly.

GSM says the project is seriously underexplored with the 2021 drilling program comprising a 3,500m reverse circulation (RC) gold program across three targets, a 1,500m RC lithium program across four targets, and a 15,000m aircore gold and lithium program.

This article was developed in collaboration with Golden State Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.