GOLDEN STATE RESOURCES LIMITED - ASX: GDN

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Description

Golden State Resources Limited (GDN) is an ASX-listed public company with headquarters in Perth, Western Australia. Floated in 1996, the Company is primarily focused on oil and natural gas exploration in the USA and mineral projects in the Eastern Goldfields region of Western Australia.

The Paradox Basin, USA

The Paradox Basin is richly productive. Currently home to 171 oil and gas fields containing estimated recoverable reserves of one billion barrels of oil (BMbo), or six trillion cubic feet of gas (Tcf) equivalent. The potential for more hydrocarbon reserves is thus enormous. Over its history, the Paradox Basin has produced 500 million barrels of oil and 3.5 trillion cubic feet of gas. Even at current prices that equates to approximately US$57 billion that the area has already produced, with a similar amount again estimated still to be recoverable.

Most encouragingly, the Golden Eagle Prospect has been described as a geological ‘look-alike’ to the largest producing fields in the Paradox Basin. It is the only documented geological structure in the Paradox Basin that is similar in terms of structural style and size. These fields run along the same northern/southern producing trend plain, notably, the Lisbon Field (which is 64 km to the projects south and has produced 50 million barrels of oil and 780 billion cubic feet of gas), the Greater Aneth Field (150 km south with production of 385 million barrels of oil.

Johnston Range Iron Ore Project, Western Australia

Golden State sells its interest in Johnson Range Iron Ore Project in WA to Cliffs for A$3M 2% sales royalty retained

· Golden State Resources has entered into a letter agreement with a subsidiary of Cliffs Natural Resources for the sale of its interests in the Johnson Range Iron Ore Project;
· Cliffs will pay Golden State A$3M, by way of a non-refundable prepayment of a royalty;
· Cliffs will pay Golden State a gross royalty of 2% on the iron ore sales from the tenements as well as a 2% gross royalty on the sale of all other minerals;
· Cliffs Asia-Pacific Iron Ore business unit operates the Koolyanobbing and Cockatoo Island mining operations which sold 8.5 million tons in 2009;
· The Johnson Range tenements adjoin Cliffs existing Yilgarn developments and can be developed to supplement exports via Esperance; and
· The sale will entitle Cliffs, an existing producer in the region, to contribute to the development of the Johnson Range Iron Ore Project and is seen as an ideal way to accelerate the project development.

Leonora Gold Project, Western Australia

Golden State Resources owns 100% of the Leonora Project.Located 30 km NE of the Sons of Gwalia Mine (~6Moz) and the Tarmoola Mine (~4Moz) the Leonora Project is highly prospective for large tonnage gold and base metal deposits, fitting the Company’s exploration strategy for the discovery of a major deposit through acquisition of significant land holdings in preferred geological settings.

The project covers greenstones on the southern end of the Bundarra Granite Batholith, and at the zone of intersection of the gold mineralised Mertondale Shear with the major regional Kilkenny Lineament. Other gold deposits in a similar structural position on the west and northern extremities of the Bundarra Batholith include Nirilsks’Thunderbox (~2Moz) and Barrick Golds’ Darlot-Centenary (~3Moz) deposits.

Drilling by Golden State and previous explorers has located gold mineralisation across the project. Mineralised structures are broad and intensely altered with zones of gold anomalism up to 150 metres thick. Drilling in the southern part of the project produced intersections of up to 13m at 3.46g/t gold, indicative of the potential to delineate significant grades and widths.

The northern part of the project area is also prospective for Teutonic Bore-style base metal mineralisation with zones of sulphide mineralisation and gossan in felsic volcanic rocks located by the Company and previous explorers. The south-eastern part is structurally similar to the nearby Thunderbox gold discovery.

Mine For

gas, oil, gold

Location of operation(s)

USA, Western Australia

Address

18/40 St Quentin Ave
CLAREMMONT, WA, AUSTRALIA

Phone

(61 8) 9385 0700

Email

Website

http://www.goldenstate.com.au/

Last Updated

6/4/2011