Happy hunting ground: Golden State targets the Pilbara’s next big gold discovery
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Special Report: In late April Golden State Mining announced it would boost the scale of a maiden drilling program at the Yule South project — 13km from De Grey’s Hemi discovery — to provide a more robust test of the five priority gold targets in late Q2.
The De Grey (ASX:DEG) share price is up ~580 per cent in 2020 as the Hemi gold discovery evolves into something truly massive.
$5.5m market cap Golden State Mining (ASX:GSM) is hunting a ‘Hemi’ of its own at Yule South, right next door.
Managing director Michael Moore says the recent expansion of an initial +4000m, aircore program at Yule South due to kick off in late Q2 “will provide shareholders with a much greater opportunity for exploration success”.
Investors agree. The stock is now up +80 per cent over the past month and 144 per cent since the start of 2020, from ~6.5c to 15c per share.
Golden State plans to increase the “scale and drill density” of this upcoming maiden program to more effectively test at least five completely undrilled, high-priority targets.
Hemi was discovered using an initial 640m by 80m drill pattern, Golden State says; this is a suitable drill pattern for testing the similar geological features at Yule.
The explorer has also applied for co-funding from the Western Australian government’s Exploration Incentive Scheme (EIS).
As part of the EIS program, companies and prospectors share in millions of dollars in grants to encourage innovative drilling in greenfields areas.
Successful applications are expected to be announced in mid to late May.
Golden State has now strengthened its already dominant landholding, submitting two new exploration licence applications to the east of the current ‘Yule North’ area.
This brings the size of the total Yule project area to 702sqkm.
One of these new tenements was the subject of a geophysical review by a previous owner which identified 14 priority targets.
Subsequent broad spaced drilling revealed a 9km zone of bedrock gold ‘anomalism’, but research by Golden State found that little or no follow up drilling was completed.
The majority of these targets are designated robust drill targets for evaluating in the 2020 field season, the company says.