Cue Drilling Reveals Multiple Anomalous Alteration Zones
ASX Announcement 25 February 2019
Highlights
- GSM completed 2 deep diamond holes (see ASX:GSM 25 Jan 19) of planned initial four-hole program
- Deep Diamond Hole 18GSCRCD0002
- Significant shallow gold mineralised zone in weathered tonalite (7m @ 1.6 g/t Au from 44m)
- Large, relatively shallow, 140m width structural-alteration downhole interval, with multiple gold anomalous zones intersected
- Substantial alteration and structural zones with anomalous gold recorded in core associated with a sheared, quartz veined zone with strong to intense silica alteration
- Deep Diamond Hole 18GSCRCD0001
- Best assay results include 1m @ 2.4 g/t Au from 39m and 2m @ 1.5 g/t Au from 76m
- The interpreted granite-greenstone contact was intersected at 219 metres downhole consisting of a 130m+ interval of structurally deformed, contact metamorphosed granite-greenstone zone
- Near Surface Hole 18GSLARCD0003
- High grade intersection at Light of Asia *0.3m @ 25.7 g/t Au from 75.5m *from 1.2m Interval with 0.9m of core loss
- Awaiting petrological report and results of geophysical core modelling
- Significant gold values in the 18GSCRCD0002 pre-collar, along with the widths and intensity of alteration and structural deformation + anomalous gold zones are essential pathfinders for drilling
- Follow up drill programmes to commence in April targeting geophysical and shallow high grade targets
Figure 1: Cross Section of 18GSCRCD0002 Showing Alteration Zones and Significant Intercepts
CUE PROJECT 100% GSM
Golden State Mining Limited (ASX: GSM, ‘Golden State’ or the ‘Company’) is pleased to report assay results from two deep diamond drill holes of the inaugural geophysical exploration target program at its Cue Gold Project as well as a shallow diamond hole at the Light of Asia mine.
The diamond drilling program was designed to test geophysical seismic reflector targets and granitegreenstone contact zones. The drilling achieved both of these aims and returned multiple, gold anomalous alteration-structural deformation (18GSCRCD0002) and a large, strongly deformed granitegreenstone contact zone (18GSCRCD0001).
Golden State’s Managing Director, Mike Moore, commented:
“The key takeaway from this deeper drilling program is that we appear to have discovered a potentially large system of alteration which contains encouraging signs of gold mineralisation. Albeit early days, we have enhanced the understanding of controls on this mineralisation and we will now focus on the potential for new, quality gold targets at our 100% owned Cue Gold Project. These include down-dip positions of high-grade gold workings, our new high-grade drill intercept at Light of Asia North and exciting upside of anomalous gold intercepts in the geophysical target holes.”
“Significant gold values recorded in the pre-collar of 18GSCRCD0002, along with the widths and intensity of alteration and structural deformation, plus anomalous gold zones are essential pathfinders for follow-up drill targeting.”
“The next phase of drilling is currently being optimised based on the results of the first two holes and is expected to be underway in April”.
December 2018 Quarterly Activities Report
ASX Announcement 31 January 2019
Highlights
- GSM lists on the ASX 8 November 2018
- First drilling program completed at the flagship Cue Gold Project situated in a premier gold district of WA
- High-grade gold results from the shallow RC program and broad structural alteration zones intersected in the diamond drilling
- Strategic ground acquisition quadruples tenure at Cue
- Exploration footprint increased by 120km2
- Includes ‘Big Bell South’ Exploration License
- WA Government awards co-funded drilling grant for Cue
- Up to $150,000 to cover 50% of direct drilling costs
- Loyalty option issue announced
- Initial mapping and reconnaissance work completed at Yule
Golden State Mining Limited (ASX code: “GSM” or the “Company”) is pleased to present its quarterly report for the period ending 31 December 2018. Since listing on the ASX on 8 November 2018 the Company has got off to a flying start, having undertaken its first and successful drilling campaign at its flagship Cue project, secured a co-funded drilling grant, initiated it first post-listing exploration at Yule and significantly increased its exploration footprint around Cue.
Corporate
IPO and ASX listing
GSM commenced trading on ASX on 8 November 2018. The Company raised $4,560,000 pursuant to the offer under its prospectus dated 22 August 2018 by the issue of 22,800,000 shares at an issue price of $0.20 per share.
Quadrupling of tenure around Cue
The Company also announced (on 20 December 2018) that it had entered into a binding Asset Sale Agreement to acquire a 100% interest in the tenements held by Lefroy Exploration Limited (ASX code: “LEX”) in the Murchison region of Western Australia (“the Murchison Project”).
The LEX Murchison Project tenements are considered highly prospective, with synergies to GSM’s exploration strategy in the Cue region. The new tenements are considered positive, ‘Greenfields’ exploration ground and cover substantial prospective greenstone stratigraphy and structure in a wellendowed gold mining district either along strike, or in the vicinity of previous and current gold mining operations.
The new tenure compliments the current GSM held flagship Cue Project where location, access and infrastructure are considered excellent along with the presence of +1 Moz gold mines in the area (Big Bell, Day Dawn Mining Centre).
Figure 1. GSM and LEX tenement packages at Cue
FLYING START AT CUE
ASX Announcement 25 January 2019
HIGHLIGHTS
- Near Surface Drilling
- New mineralised zone identified approximately 500m along strike to the north of historic Light of Asia mine
- Best intercept includes:
- Light of Asia North 3m at 20.1g/t (from 64m), including 1m at 56.6g/t – remains open in all directions
- Salisbury 2m at 6.0g/t (from 80m), including 1m at 7.8g/t – remains open down dip and to the south \
- Diamond Drilling of Seismic Targets
- 2 holes completed of a planned four-hole program
- Broad zones of alteration observed, assay results expected in 3- 4 weeks
- Ongoing work includes petrology, detailed logging, updating of seismic model and further core assay work
- Co-funding available for further diamond drilling of deep targets
CUE PROJECT 100%
Golden State Mining Limited (ASX:GSM, ‘Golden State’ or the ‘Company’) is pleased to announce encouraging high grade gold results from the shallow RC program and broad structural alteration zones intersected in the diamond drilling program at Cue.
Golden State’s Managing Director, Mike Moore, commented:
“The Company’s first RC drill program at Cue has been successful in demonstrating significant prospectivity down-dip and along strike of historic workings and previous drilling but more importantly, revealing new high-grade gold intercepts away from the historic workings.
The Company is further encouraged by the observations obtained from the first two deep diamond holes that suggests previously unrecorded alteration and structure will assist in interpreting possible sources of mineralisation.
We are very pleased by the early results of our strategy at Cue to systematically assess the shallow high-grade potential and the deeper targets beneath an established underexplored goldfield.”
NEAR SURFACE DRILLING
The Reverse Circulation (RC) drilling program accomplished the following target criteria:
1) Targeting untested down-dip gold potential related to high-grade historic gold workings and shallow historic drilling
2) Defined structural and ‘along trend’ targets with negligible existing drill coverage
The Golden State shallow RC program (Figure 1) consisted of 15 holes for a total of 1524 metres varying in depth from 60-152 metres with an average depth of 102 metres. Eight holes (18GSLARC0001-8) were drilled at the Light of Asia and Queen of the May workings including two pre-collars and one diamond tail targeting down-dip and plunge positions and along strike to the north. A further five holes (18GSSLRC0001-5) were drilled at the Salisbury workings targeting similar positions. Another two holes (18GSCNRC0001-2), were drilled at the Cue North Prospect including one pre-collar targeting a downplunge position to the north of existing mineralisation.
The RC drilling recorded both high-grade gold intercepts and anomalous gold zones in a coarse-grained granodioritic-tonalitic intrusive setting with minor dioritic phases and quartz feldspar porphyry units. A table of collar locations and significant intercepts is included in Appendix 1.
Figure 1: Location Plan of Drill Collars at Cue Project
