The share price of gold and lithium explore Golden State Mining Ltd [ASX:GSM] is showing signs to reverse its downwards trajectory as the company announced results from its Yule Project will be released in the coming weeks.
GSM shares peaked at the beginning of July in the run-up to the first phase of drilling commencing at its Yule Project.
However, the share price has been rather sporadic ever since, with big swings in the share price closely following the price of gold.
At the time of writing, GSM shares are up 6.52% or 1.5 cents, trading at 24.5 cents per share.
Why the hype before the results?
Small-cap explorers are extremely speculative stocks, which means today’s share price action could indicate some investors are anticipating good results.
GSM announced it had completed phase two of its drill program for a total of 196 drill holes for 15,125m today.
GSM Managing Director Michael Moore commented:
‘We’re very pleased to have successfully completed another phase of drilling without incident, ahead of schedule and under budget which brings our total drilling at Yule in 2020 to 28,400 metres.
‘The results of these first two reconnaissance drill programs will form the basis for our targeting program in 2021 as we look to deploy further resources on our +700km2 tenement package in the highly prospective Mallina Basin.’
Essentially, the results we’ve seen thus far have only been preliminary, coming from drilling designed to seek out priority targets.
Yule is situated in the relatively underexplored area of the west Pilbara Craton.
So with logged assays to be released in the coming weeks, investors will finally get a better understanding of what lays underneath GSM’s tenements.
What is likely to be underneath?
GSM billed Yule as a gold, base metal and rare earth element project and has been the subject of previous exploration for copper-nickel, copper-lead-zinc and gold mineralisation since the early 1970s.
If you follow small-cap explorers, you might be familiar with Chalice Gold Mines Ltd [ASX:CHN], owner of the Julimar Nickel-Copper-Platinum Group Elements Project in WA.
Exploration at Julimar has seen CHN shares return more than 2,100% over the past 12 months.
Without drawing comparisons between the geologies at either explorer’s tenements (my geological knowledge just isn’t that good), interest could be returning to GSM as bets are placed on Yule becoming the next Julimar.
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For The Rum Rebellion