Golden State Mining Share Price Pushes Higher on 2021 Outlook
This year is shaping up to by a busy one for Golden State Mining Ltd [ASX:GSM].
The GSM share price has pushed 13.79% higher at time of writing to 16.5 cents per share thanks to the release of its quarterly activities report.
Although the share price slumped in the second half of last year, things could be on the up for GSM with the explorer outlining a long list of works on for the new year.
And with plenty of funding banked up, it’s looking like it’s full steam ahead.
December quarter sets scene for 2021
GSM today released its quarterly activities and cash flow reports, and they’ve caused a decent bit of excitement.
Not only do GSM look like they’re funded for the next four quarters, but the list of work they have planned is extensive.
In fact, GSM has announced a scope of work that could keep them busy for the next 12 months.
And with a large scope of work comes the chance the share price could retrace its June 2020 highs.
Last year GSM completed phase two of its reconnaissance drill program at its Yule Project in WA.
REVEALED: What’s Next for Aussie Gold Stock Prices? Learn more.
Drilling identified two target areas at Yule South and four at Yule North — further drilling is expected to begin in March.
While aeromagnetic data helped to identify numerous intrusive style targets at Yule East, with drilling expected in the second quarter of this year.
GSM also secured new exploration licenses, expanding its granted tenure in the Yule North region.
Drilling is expected to commence here in the second quarter also.
GSM also began mining activities at its Cue project during the quarter at the Salisbury and Cue No 1 mines.
Operations are for the processing of remnant mine tailings and will be conducted by Adaman Resources Pty Ltd with profit to be split 50:50.
Where could the GSM share price head?
It is difficult to pinpoint what exactly caused the GSM share price to rocket at the beginning of July 2020.
Perhaps it was just a psychological effect — investors saw others piling in and followed.
Which is what could make 2021 a better year for GSM shareholders.
Now that we have gotten a taste of what GSM has to offer in terms of its assets, we can more accurately assess its potential.
In my opinion, GSM is a company to add to your watchlist this year now that it has some tangible results to back it up.
And with a big load of work on this year, I anticipate we’ll get a decent look at what’s below its tenements.
The GSM share price could also be bolstered further in the coming months and years as Australia gears up to surpass China as the gold capital of the world. In her latest report, gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.
For The Daily Reckoning Australia