Golden State Mining Hits Major Milestone with First Drilling at Southern Cross East
Golden State Mining (ASX: GSM) has successfully completed its maiden drilling program at the Southern Cross East Gold Project, marking a significant step in exploring this untouched greenfields opportunity. The 1,127-meter air-core drilling program, consisting of 17 holes, was executed on time, on budget, and without safety incidents.
Targeting Virgin Gold Territory in Western Australia
The drilling targeted a previously identified north-south trending gold-in-soil anomaly discovered by GSM in 2023. What makes this particularly noteworthy is that the area has no previous subsurface exploration data, positioning GSM as the first company to test the potential of this completely untapped region.
"The complete lack of any previous exploration work presents an interesting greenfields exploration opportunity," noted Michael Moore, Managing Director of Golden State Mining.
The drill program investigated a broad, subtle gold-in-soil anomaly located in sandy, nodular calcrete regolith. Company geologists interpret this anomaly to be associated with a possible north-south trending shear or structural zone within a buried gneissic-granitic terrain—a geological setting that could host significant gold mineralisation.
Understanding Gold-in-Soil Anomalies: Why They Matter to Investors
For investors new to resource exploration, a gold-in-soil anomaly represents one of the earliest indicators of potential mineralisation beneath the surface. These anomalies occur when gold particles, often microscopic, weather from underlying rock formations and become concentrated in surface soils.
Gold-in-soil anomalies are detected through systematic sampling programs where field teams collect soil samples in a grid pattern across target areas. These samples are then analysed for gold content using sensitive laboratory techniques that can detect gold at parts-per-billion levels.
The significance of a gold-in-soil anomaly depends on several factors:
- Consistency – Whether multiple adjacent samples show elevated gold values
- Intensity – The concentration of gold detected relative to background levels
- Correlation with geology – Whether the anomaly aligns with favourable geological structures
- Pathfinder elements – The presence of other elements typically associated with gold deposits
What makes the Southern Cross East anomaly particularly promising is its association with:
- Pathfinder elements – These are other minerals that typically occur alongside gold deposits
- Structural controls – The potential north-south trending shear zone could serve as a "plumbing system" for gold mineralisation
- Untested ground – The absence of previous drilling means GSM has first-mover advantage in a prospective area
In gold exploration, soil sampling represents a cost-effective first step before committing to expensive drilling programs. The fact that GSM has progressed from soil sampling to drilling indicates confidence in the target's potential.
Near-Term Catalysts: Results Expected Soon
Investors won't have to wait long for results from this Golden State Mining maiden drilling program. The company has already dispatched samples for laboratory analysis with results anticipated in early June 2025—approximately one month from now.
This timeline provides a clear, near-term catalyst that could significantly impact the company's valuation depending on the results. Positive drill results from a previously unexplored area could generate substantial interest in the stock.
Strategic Position in the Southern Cross Region
The Southern Cross East project adds to GSM's portfolio of Western Australian gold assets. The Southern Cross region has historical significance in Western Australia's gold mining history, with numerous productive gold mines having operated in the broader district.
GSM's project is positioned in the eastern extension of this prolific belt, where less exploration has historically occurred due to deeper cover obscuring potential gold-bearing structures. Modern exploration techniques now allow companies like GSM to effectively explore these covered areas.
The Southern Cross region is known for its structurally controlled gold deposits, typically associated with shear zones within greenstone belts. While GSM's target area features gneissic-granitic terrain rather than typical greenstones, the structural controls (the potential north-south trending shear zone) could still provide favourable conditions for gold mineralisation.
The Exploration Process: From Soils to Drilling
GSM has followed a methodical, staged approach to exploration at Southern Cross East:
- Initial soil sampling (2023) – Identified the north-south trending gold-in-soil anomaly
- Verification work (2024) – Conducted check soil sampling and regolith reconnaissance to confirm the anomaly
- Maiden drilling (2025) – Completed the 17-hole air-core program to test the subsurface
This systematic approach demonstrates disciplined capital allocation and technical rigour. Rather than rushing to drill, the company built multiple layers of supporting evidence before committing to the more expensive drilling phase.
Air-core drilling, the method used in this program, is particularly suited for first-pass testing of targets under shallow cover. It provides a cost-effective means of collecting samples from the weathered rock profile down to the fresh bedrock interface, where gold mineralisation often concentrates.
Why Investors Should Watch Golden State Mining
Golden State Mining presents several compelling reasons for investor attention:
- First-mover advantage in an untested area with gold anomalies
- Near-term results expected in early June 2025
- Methodical exploration approach – progressing systematically from soil sampling to verification to drilling
- Experienced management with Michael Moore (Managing Director) and Greg Hancock (Non-Executive Chairman) leading the company
- 100% ownership of the Southern Cross East project, meaning no dilution of potential discovery value
The company's capital structure consists of 279.4 million shares and 97.3 million options currently issued, providing investors with a clear understanding of potential dilution factors.
Management Commentary
Michael Moore, Managing Director of Golden State Mining, commented on the completion of the drilling program: "The completion of the maiden Southern Cross East air-core drilling program on time, on budget and without incident is a credit to the GSM exploration team and the company engaged to undertake the drilling. Our previous work in defining a robust 'gold in soil' anomaly supported by associated gold pathfinder elements has resulted in the execution of this 1,127m 17 hole program. The complete lack of any previous exploration work presents an interesting greenfields exploration opportunity, and we look forward to announcing results as soon as practicable."
Looking Ahead: What's Next for GSM
Following the receipt of results in early June 2025, GSM will likely evaluate the data to determine next steps. Depending on the findings, these could include:
- Follow-up drilling – More detailed drilling to better define any mineralisation encountered
- Expanded soil sampling – Further soil sampling to extend the anomalous zone if results are encouraging
- Geophysical surveys – Additional geophysical work to better understand the underlying structures
The company's 100% ownership of the project provides maximum flexibility in planning and executing future work programs without the need to consult joint venture partners.
Key Takeaway:
Golden State Mining has positioned itself with first-mover advantage in an untested gold terrain. With results just weeks away and 100% ownership of a potentially significant discovery, investors seeking exposure to early-stage gold exploration in Western Australia's proven goldfields should keep GSM on their watchlist.
Ready to Explore This Untapped Gold Opportunity?
Discover more about Golden State Mining's pioneering work at the Southern Cross East Gold Project and their strategic position as first-movers in this virgin gold territory. With results expected in early June 2025 and 100% ownership of this promising project, now is the time to investigate this potential investment opportunity. Visit Golden State Mining's website for comprehensive information about their projects, management team, and latest announcements.
