Great Southern raises $3m for its gold exploration war chest
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Special Report: Investors have lined up behind Great Southern Mining (ASX:GSN), which has raised more than $3.1m through an oversubscribed share placement.
The placement is priced at 8c per GSN share and includes one option for every four shares subscribed. The options are exercisable at 5c each and expire on 4 September 2022.
Proceeds will be used to follow up and extend recent exploration initiatives at the Cox’s Find and Mon Ami gold projects in Western Australia’s highly prospective Laverton region.
Funds will also be used to progress geochemical programs at the Edinburgh Park project in north Queensland.
Chief executive officer Sean Gregory says the funding will be used to accelerate drilling activities in the Laverton region, with drill mobilisation expected in the first week of December.
“The 2020 drilling programs at Cox’s Find and Mon Ami have delivered the company some excellent outcomes,” he added.
“The additional and highly prospective regional tenure we have acquired during the last six months has also seen GSN establish what is now a substantial landholding within the Duketon belt, with some of the dominant regional mineralised structures running right through our tenements.
“We are also now well-funded to continue the extensive geochemical program underway at our large-scale Edinburgh Park Project in northern Queensland.”
Gregory explained that the geochemical program is designed to generate drill-ready targets for planned testing in the June 2021 quarter.
Great Southern is fast tracking its ~60,000oz (and growing) Mon Ami gold project towards being “shovel ready” for presentation to nearby mills as part of proposed commercial discussions.
This will require drilling to upgrade resources along with environmental, heritage and other technical studies to secure mining approvals during 2021.
It has flagged that upcoming drilling will seek to upgrade the resource to the higher confidence ‘Indicated’ classification, which allows mine planning, and target high grades at depth.
Previous drilling had returned several high-grade intersections such as 5m at 80g/t gold from 160m including 1m at 404g/t gold.
Mon Ami could potentially deliver early, robust cash-flow for the company.
Over at Cox’s Find, Great Southern has pinpointed large scale, drill ready targets on clearly identifiable mineralised structures that host both the 1.9 million ounce Garden Well and 800,000oz Rosemont gold deposits.
The Erlistoun Queen, Golden Boulder, Thocklewurst and Amy Clarke targets were identified following a site visit and interpretation of magnetic, geological, geochemical and drillhole datasets.
Great Southern is currently carrying out ground truthing and geochemical programs at Edinburgh Park, which the company says is located in “elephant country” surrounding Evolution’s low cost, 107,000ozpa Mt Carlton mine.
Less than 15 per cent of the 1,000sqkm project has been explored using modern techniques though the company has uncovered very promising anomalies.
These large epithermal, porphyry and intrusive related gold systems could have tier 1 potential.
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.