Great Southern Mining Share Price Down Despite Gold Find
It’s been a poor start to the week of trade for gold focused stocks.
For the Great Southern Mining Ltd [ASX:GSN] share price, the story is no different.
At time of writing, the microcap gold explorer is down 7.14% to 13 cents per share.
The downward moment comes despite news of a significant find its Cox’s Find Project in WA.
Many ASX-listed gold stocks have taken a tumble today too.
The price of gold also took a tumble, which may be a contributing factor to the share price actions.
REVEALED: What’s Next for Aussie Gold Stock Prices? Learn more here.
New drill holes expand scope
Today’s news comes from phase 2 drilling at Cox’s Find focusing on two key along-strike targets to the north of the Cox’s Find deposit (see figure below).
According to GSN, results showed significant gold mineralisation with the best results including:
- 8m at 1.1 grams of gold per tonne (g/t) from 91m including, 2m at 3.2 g/t
- 6m at 1.0 g/t from 114m, including 2m at 1.7 g/t
- 13m at 0.7 g/t from 34m, including 1m at 1.7 g/t
Source: Great Southern Mining
Although the gold grading might not be overly impressive (at least compared to some of the results we’ve seen previously from GSN) they have identified new mineralised zones.
Meaning gold mineralisation is not constrained to the Cox’s Find deposit.
GSN CEO Sean Gregory said that the latest drill holes provide evidence that mineralisation continues for at least a further one kilometre along strike.
‘They also show that historical RAB drilling in these northern areas by previous owners stopped short of genuine target depth in multiple zones. In short, the results substantially increase the overall prospectivity of the target corridor to the north of Cox’s Find.’
Where does this leave Great Southern Mining’s share price?
GSN’s share price has been in steady decline since late July, with momentum only beginning to swing upwards at the beginning of September.
Oddly enough, the market hasn’t reacted positively to the last four GSN drilling releases.
The green bars on the chart indicate the share price in the past for drilling releases.
In my opinion, the good news from today’s results have been overshadowed by a more macro downward trend on the stock market.
GSN said follow-up drilling is currently being planned on targets 2 and 3.
Which should give us a better idea of what the mineralisation looks like further north of the Cox’s Find deposit.
And could see the GSN share price lift.
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For The Daily Reckoning Australia