Golden Horse Minerals (ASX: GHM) has wasted no time in pressing ahead with its exploration plans, launching a 4,500-metre reverse circulation (RC) drilling campaign at its Hopes Hill prospect in the prolific Southern Cross Greenstone Belt of Western Australia. This marks a significant step for the company, which only recently listed on the ASX.
Located just 6km north of Southern Cross, Hopes Hill boasts a strong gold mining history, with historical production of 2.9 million tonnes yielding 216,000 ounces of gold. This fresh drilling push aims to validate previous exploration data and unlock further mineralisation potential at depth and along strike.
A Long-Awaited Exploration Push
Hopes Hill was mined as an open pit in the 1980s and 1990s, but operations were hindered by tenement boundariesthat prevented deeper exploration. Now, with Golden Horse holding full control of the tenements, the company has the freedom to drill beyond previous limits and test for extensions of the mineralisation.
Golden Horse Managing Director Nicholas Anderson highlighted the significance of this campaign, stating:
"We are delighted to report Golden Horse has begun drilling at our key prospect so soon after ASX listing. The team have worked hard over the Christmas/New Year period and have also applied key logistical outcomes from our initial Hakes Find drilling to develop a significant programme that can be completed in an efficient timeframe."
Hopes Hill – A Forgotten Giant?
Hopes Hill sits within the Southern Cross Greenstone Belt, a region that has historically produced over 15 million ounces of gold. This belt is known for its structurally controlled orogenic gold deposits, where gold is often hosted in shear zones within greenstone sequences.
The prospectivity of Hopes Hill lies in several key geological factors:
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Limited Historical Drilling at Depth – Despite the pit measuring 1.3km long and 90m deep, historical drilling has already indicated that mineralisation continues beyond current limits. Many of WA’s major gold deposits, such as Jundee and St Ives, have shown that gold systems can persist to great depths.
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West-Dipping Shear Zone Targets – Golden Horse has identified mineralisation dipping west, with poorly tested hanging wall structures also providing potential for additional lodes. The current drill program specifically targets extensions of these mineralised zones, which could significantly add to the company’s resource base.
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Underexplored Tenements – Historical mining at Hopes Hill was constrained by tenement boundaries to the west, meaning that prior owners were unable to drill beyond a limited footprint. With Golden Horse now holding all necessary tenements, the company is effectively the first to fully explore the entire strike length and depth potential of the deposit.
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Favourable Metallurgy – Gold mining in the Southern Cross region has benefited from relatively simple ore processing, with free-milling ore dominant in several deposits. If Hopes Hill’s mineralisation follows a similar path, it could make future development more economically viable.
The Drill Plan and Strategy
The initial drilling phase will focus on testing the western side of the pit, targeting west-dipping mineralisation. Historical drilling indicates that gold-bearing structures continue below the pit and along strike, making this a high-potential target.
Golden Horse is betting on the idea that Hopes Hill, mined when gold prices were significantly lower, has much more to offer in today’s market.
Drilling is expected to be completed in 5–6 weeks, with results from both this program and the earlier Hakes Find drilling due for release in February.
Golden Market Conditions for Gold Exploration
Golden Horse is drilling at a time when gold remains a hot commodity, though prices have seen some volatility.
On February 3, 2025, spot gold was trading at USD $2,784.84 per ounce, slightly down from recent highs due to a stronger US dollar and global trade uncertainties.
Nonetheless, global economic instability, central bank buying (especially from China and Russia), and a potential slowdown in US Federal Reserve rate hikes continue to support a bullish long-term outlook for the yellow metal.
For Golden Horse, higher gold prices improve the economics of any future mining operations, making discoveries at Hopes Hill all the more valuable.
What’s Next?
With drilling now in full swing, investors will be closely watching for assay results over the coming months. If Golden Horse can confirm strong gold mineralisation at depth and along strike, it could be sitting on a significant resource expansion opportunity.
Additionally, the company is expecting results from soil sampling across five separate areas within its Southern Cross tenure, adding further exploration upside.
With several phases of resource definition drilling planned for 2025, Golden Horse has positioned itself well to take advantage of the current gold market and make its mark in WA’s historic goldfields.
For now, all eyes are on the drill rigs as they test what could be the next major gold discovery in the Southern Cross Belt.
