Great Southern raises $2.5m to expand Duketon gold drilling
Link copied to
New and existing investors have demonstrated their confidence in Great Southern and its projects with their wallets by oversubscribing for a $2.5m share placement.
Proceeds from the placement will be used to expand drilling that is currently underway at the Duketon gold project near Laverton, Western Australia, as well as continue target generation work at Edinburgh Park in North Queensland.
Great Southern Mining’s (ASX:GSN) placement of 50 million shares priced at 5c per share – presenting an 8.6% discount to the 15-day volume weighted average price – includes one attaching listed option for every four placement shares subscribed.
These options have an exercise price of 5c and expire on 4 September 2022.
“The recently announced intersections at Southern Star were a fantastic start to the company’s drilling program at the company’s 100% owned Duketon Greenstone Belt Project,” chief executive officer Sean Gregory said.
“Drilling at a number of regional targets has been brought forward to rapidly advance exploration activities in the region and to continue to build on this success at Southern Star.
“The company has a fantastic portfolio of assets in both Western Australia and Queensland and this funding will provide the opportunity to rapidly advance each project along the exploration pipeline, creating strong news flow and discovery potential.”
Recent drilling at Duketon returned significant gold hits in multiple holes with standouts such as 59m at 2.1 grams per tonne (g/t) gold from a depth of 53m with higher grade zones of 9m at 4.5g/t gold and 16m at 3.2g/t gold and 46m at 1.2g/t gold from 40m including 11m at 3.4g/t gold at the Southern Star prospect.
This confirms that strong mineralisation is present along the footwall of the same quartz dolerite that hosts Regis’ 390,000 ounce Ben Hur gold deposit 4km along strike on the Rosemont mineralised trend.
Importantly, this supports the company’s belief that Southern Star is analogous to both Ben Hur and the +1Moz Rosemont deposit.
Great Southern has expanded drilling at Duketon to include regional targets such as One Weight Wonder, Erlistoun and Ogilvies.
This article was developed in collaboration with Great Southern 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.