Great Southern Mining Identifies Major IP Anomaly at Edinburgh Park Joint Venture
GREAT SOUTHERN MINING LIMITED (GSN) Share Update November 2024 Tuesday 12th
Great Southern Mining Unveils Major IP Anomaly at Edinburgh Park JV
Great Southern Mining Limited (ASX: GSN) has announced the identification of a significant induced polarisation (IP) anomaly at its Edinburgh Park Joint Venture in Northern Queensland, marking a potential breakthrough in their exploration efforts.
Instant Summary:
- A$15M joint venture agreement with Gold Fields for a 75% stake.
- Large-scale (>2 km wide) IP anomaly identified.
- Potential for a significant gold-copper porphyry system.
- Surface samples show elevated gold, silver, and copper.
- Drilling expected to commence in 2025.
Joint Venture and Exploration Progress
In October 2023, Great Southern Mining (GSN) entered into a joint venture agreement with G Ex Australia Pty Ltd, a subsidiary of Gold Fields Ltd, to explore the Edinburgh Park Project. The agreement allows Gold Fields to earn a 75% interest by investing A$15 million over six years.
The joint venture has already made significant progress, identifying a large-scale IP anomaly over 2 kilometers wide. This anomaly is interpreted as a potential porphyry system, which could host a large gold-copper deposit. The anomaly is partly overlain by a mapped quartz-pyrite stockwork veining area, further supporting the presence of a mineralized system.
Geochemical and Geophysical Findings
Surface soil and rock chip samples from the area have revealed elevated levels of gold, silver, copper, and molybdenum. Notably, rock chip samples have shown gold grades as high as 10.5 g/t, indicating a strong potential for economic mineralization.
Ongoing IP and helicopter-borne aeromagnetic surveys are being conducted to refine the exploration model and identify additional targets. These efforts are crucial in preparing for the anticipated drilling campaign in 2025.
Next Steps and Strategic Importance
GSN plans to conduct a three-dimensional IP survey to further define the anomaly and enhance the exploration model. Drilling is expected to commence after the northern Queensland wet season in 2025, following the completion of heritage agreements and further geophysical refinements.
The Edinburgh Park Project holds significant strategic importance, being located near the high sulphuration epithermal Mt Carlton gold-silver-copper mine. The project's potential for hosting large-scale gold and base metal deposits makes it a key focus for both GSN and Gold Fields.
The identification of a significant IP anomaly at Edinburgh Park is a positive development for Great Southern Mining. This discovery could potentially lead to the identification of a large gold-copper deposit, which would significantly enhance the company's asset base. The involvement of Gold Fields, a major player in the mining industry, adds credibility and resources to the exploration efforts. This announcement is likely to boost investor confidence and could positively impact GSN's stock price.
Investor Reaction:
Analysts are likely to view this announcement as a positive step forward for Great Southern Mining. The potential for discovering a major gold-copper deposit at Edinburgh Park could attract significant interest from investors. However, the actual impact on the stock will depend on the results of the planned drilling campaign in 2025.
Conclusion:
Investors should keep a close eye on the progress of the Edinburgh Park Project, particularly the upcoming drilling campaign. The potential discovery of a significant gold-copper deposit could have a substantial impact on Great Southern Mining's valuation. Staying informed on the developments of this project will be crucial for making informed investment decisions.