Draig Resources puts its foot on more land at Bellevue gold project
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Gold explorer Draig Resources has picked up more land next to its Bellevue project, which lies 400km north-west of Kalgoorlie, Western Australia.
Draig (ASX:DRG) was a hot topic among investors last Friday, when shares surged 26 per cent to an intra-day high of 29c, with around 15.7 million shares traded. In the past month, the company’s share price has rocketed nearly 190 per cent.
Draig revealed today that it is added to its portfolio a further 866 sq km of land adjoining the Bellevue project via an acquisition from Liontown Resources (ASX: LTR).
Investors responded more positively to Liontown’s announcement, with shares gaining 11.5 per cent to reach an intra-day high of 2.9c by mid-morning. The shares closed down 11 per cent at 24.5c.
The Liontown tenements, which increase Draig’s ground position by more than 3000 per cent, are believed to be “highly prospective” for gold and base metals, with past drilling indicating high-grade mineralisation of up to 19.77 grams of gold per tonne.
Liontown decided to divest a number of its non-core tenements at the Kathleen Valley lithium project to neighbouring gold players Draig and Ramelius Resources because a review of the tenements indicated low prospectivity for spodumene-related lithium mineralisation.
Draig acquired the additional tenements for $25,000 in cash and 1 million shares. The deal includes 22 sq km of granted mining licences and applications for 816 sq km.
The company is now undertaking detailed geological reviews and targeting in preparation for future exploration.
“We have been very encouraged by our recent exploration success at Bellevue and we now have a very large presence in the area,” executive director Steve Parsons said.
“Our geological team will now look to target areas prospective for high grade gold as well as a range of other commodities.”
Draig’s key focus is progressing its high grade gold discovery, the Tribune Lode within the Western Mineralised Corridor, at the Bellevue project.
The company announced last week that it had uncovered “extremely high grade gold” after drilling returned an intersection of 5m at 37.5 grams per tonne within a broader zone of 7m at 27.4 grams per tonne.
Step-out drilling, which intersected 7m of quartz, sulphides and visible gold from 18m down hole, is continuing.