Is Golden State Mining (ASX:GSM) finally onto something after 5 years? Shareholders seem to think so

Golden State Mining (ASX:GSM) has been a difficult small cap resources stock to hold. However, it wasn’t the worst of weeks today, with a 40%+ share price increase. The catalyst was the biggest cause for optimism investors have had in half a decade.

Golden State Mining (ASX:GSM) share price chart, log scale (Source: TradingView)

Recap of the company

GSM listed in late 2018, named after its view that its home state of Western Australia was a ‘Golden State’. Whether or not that is the case, it is where their projects are based and where its first flagship project was, called Cue.

GSM had little success there ended up selling the project in 2021 for the grand total of…$1.125m. It then focused on a project called Yule that lay near De Grey’s Hemi prospect. Shares skyrocketed from 6c to as high as 52c in the first half of 2020 as investors hoped De Grey’s success would be replicated. Although the company hasn’t thrown in the towel here, it hedged its bets by picking up the Payne’s Find project in January 2022.

Is Golden State Mining onto something?

Today, Golden State Mining gave shareholders an update on the Paynes Find project. It told investors that field mapping had identified numerous pegmatite outcrops within elevated to anomalous lithium-caesium-tantalum (LCT) geochemistry envelopes. The company is expecting rock chip assay results next month, and is planning a drilling campaign.

Although we’ll need to wait until the rock chip assay results are analysed to see if there is the case for a drilling campaign, the inclusion in the ASX announcement of some encouraging pictures (including specimen observations under UV light) got shareholders excited.

Is GSM is onto something? Only the next few months will tell, but this is arguably the most hope this company’s shareholders have had in 5 years.

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