Golden State set to launch off strong December quarter platform
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Special Report: Golden State Mining has celebrated a quarter in which it made exploration progress at its promising Yule gold project and commenced tailings mining at Cue.
The company’s December 2020 quarterly activities report highlighted just how far Golden State (ASX:GSM)has come at Yule in the Pilbara’s Mallina Basin, where it completed its phase two aircore drill program of 196 holes and more than 15,125m on six target areas.
The program added to encouraging targets identified during the first pass reconnaissance drilling carried out earlier in the year, and will guide a follow up, fully funded RC program planned for March.
“Shareholders can look forward to an active program of targeted reverse circulation drilling,” the company said in its release to the ASX.
Target generation was also completed in the December quarter at the Yule East tenement, where multiple structural and intrusive-style targets were identified for aircore drilling in Q2 of 2021.
GSM’s exploration campaign is led by Geoff Willetts, who ran Stockhead through his approach in a feature piece last October.
Yule, which sits adjacent to De Grey’s company making Mallina gold project and its flagship Hemi discovery, appears to be showing the right signs as we enter 2021.
Meanwhile, at the 100% owned Cue project, mining activities kicked off in the quarter under an agreement with Adaman Resources.
Remnant battery sands tailings from the Salisbury and Cue No. 1 mines are being purchased and mined Adaman and processed at its Kirkalocka gold mine processing plant.
The company considers the arrangement low risk, with pricing driven by a formula based on the tonnage trucked and processed, the gold recovered, the gold price achieved and certain agreed costs. Conceptually, the deal is structured similar to a 50:50 profit share.
GSM said when the deal was announced that it would explore further options to extract value from its Cue assets, which include several other historical mine tailings dumps, mine stockpiles and in-ground opportunities which could also be mined.
The reprocessing of tailings with Adaman is expected to be completed in the March 2021 quarter.
GSM said it would further drill plan and refine the Cuddingwarra project, also in the Murchison.
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.