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Great Southern to ramp up exploration with $3M raise

Great Southern Mining has re-stocked its financial armoury with commitments received to raise $3.15M in a placement that will see the ASX-listed company turbo charge its exploration program at its Cox’s Find gold project in Western Australia.

Previous exploration has been very successful for Great Southern at Cox’s Find with numbers like 5 metres grading 14.54g/t gold from 140m down hole and 5m grading 31.23g/t gold from 134m, including 1m grading 143.0g/t gold from 135m.

Great Southern has churned out some exceptional drilling numbers at Cox’s Find with close to - and in excess of - ounce plus hits a consistent feature on the company’s results list.

Notable results from its maiden drilling program include 5 metres grading 14.54 grams per tonne gold from 140m down hole including 2m grading 28.85g/t and 5m grading 31.23g/t gold from 134m, including 1m grading 143.0g/t gold from 135m.

Cox’s Find is amongst a number of historic WA goldfields projects seeing a re-invigoration in recent times as the gold price soars to near record highs.

The project is centred around an old open pit and underground mining operation that produced just under 76,000 ounces at an impressive 22.6g/t gold in its day when WMC mined the underground material by hand.

Great Southern also recently polished off a first pass RAB program on its broader Cox’s Find land package where it identified a further eight high priority drilling targets.

Regis Resources’ Garden Well mine just so happens to be located about 12km directly along strike from Cox’s Find. Garden Well has an ore reserve of  1.01M ounces and a resource of 2.47M ounces.

Regis made a bid in 2018 for ASX-listed Capricorn Metals’ Pilbara Karlawinda gold project at a whopping 93.2% premium to Capricorn’s closing share price at the time in a clear demonstration of higher tier companies appetite for gobbling up junior’s in mutually beneficial and quite lucrative deals of late.

Great Southern said it is planning to use the latest placement funds to drill out its Mon Ami gold project in WA and keep its greenfields exploration efforts up at Edinburgh Park in North Queensland.

The Mon Ami gold project is located near Laverton in WA and Great Southern’s other project, the Mt Weld gold and rare earth element project lies just 12km southeast.

Laverton is surrounded by a number of significant gold mines and numerous other gold discoveries and occurrences, including AngloGold Ashanti’s Sunrise Dam and Gold Fields’ Wallaby operations that collectively hold about 25 million gold ounces between them.

Nearby, Mt Morgans, Lancefield and Granny Smith all impressively contain more than one million ounces each.

At Edinburgh Park, Great Southern is on the hunt for epithermal gold, silver and copper systems and it has already identified several hot spots that are screaming to be drilled.

Great Southern is headed up by Geologist John Terpu, who said: “The success of this capital raising is a testament to the hard work of the Executive team in putting together the Company’s portfolio of quality gold projects over the last two years.”…

“The Company is now in a strong position to unlock value for shareholders with two brownfields drill out opportunities in highly endowed gold districts in Western Australia in Cox’s Find and Mon Ami as well as additional greenfields discovery potential at Edinburgh Park in North Queensland.”

The $3.15M placement is being facilitated by Shaw and Partners, whose former team at DJ Carmichael played a role in assisting Spectrum Metals to pick up and fund the very successful Penny West project that concluded quite spectacularly when Ramelius Resources ate up Spectrum in a highly endorsed takeover.

Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au 

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