Why the Great Southern Mining Share Price is Off to a Flying Start in 2021
Shares of WA and Queensland focused gold explorer Great Southern Mining Ltd [ASX:GSN] has had a hot start to the new year.
Since the beginning of the year, GSN shares have tacked on 25% as the gold price continues to show some nice recovery.
In fact, in less than a month GSN has returned close to 50% thanks to a rising gold price and continued speculation around its Cox’s Find deposit.
At time of writing, the GSN share price is up 6.52% to trade at 9.8 cents per share.
Mon Ami drilling adds to speculation
Today, GSN announced drilling at its Mon Ami Gold Project is now underway.
Mon Ami and Cox’s Find are the two projects GSN is actively exploring in the Laverton district in WA.
The project is located 17km southeast of Laverton in Western Australia and has an Inferred Mineral Resource of 1.1Mt at 1.7 grams of gold per tonne (g/t) for 59,000 ounces of gold.
GSN is progressing the necessary technical and environmental studies to facilitate a mining approval that seeks to begin processing at one of several nearby mills.
The drilling program seeks to define and extend near-surface, high-grade gold mineralisation for incorporation into a targeted resource upgrade.
Previous drilling at the sight returned several high-grade targets, including:
- 11m at 7.9 g/t from 26m, including 4m at 15.9g/t
- 4m at 12.4 g/t from 80m
GSN CEO Sean Gregory, commented:
‘The drilling at Mon Ami is expected to support an upgrade to the existing Mineral Resource in the first half of 2021 as part of the potential development pathway identified. A gold mine at Mon Ami could be a useful source of cash for GSN to fund our aggressive exploration plans at depth at Mon Ami, Cox’s Find and in North Queensland.’
Why is the GSN share price flying?
Both Mon Ami and Cox’s Find present quite good potential in terms of grading and opportunity to grow the respective resources.
Further, GSN’s intensions to quickly monetise Mon Ami to fund further exploration might also be an attractive factor to some investors.
Just take a look at the Red River Resources Ltd [ASX:RVR] share price.
Having the cash to chase targets of up to 5m at 80.0 g/t from 160m including 1m at 404 g/t at Cox’s Find without capital raising isn’t a bad thing.
With results from both Mon Ami and Cox’s Find expected sometime next month, the current speculation driving the share price could stick around in my opinion.
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For The Daily Reckoning Australia