Duketon Mining has made a “major new discovery” at its Golden Star prospect in Western Australia, news that sent investors into a buying frenzy on Tuesday.

Shares closed up 53.3 per cent at 23c on Tuesday — marking a new 52-week high for the gold and nickel explorer. Duketon (ASX:DKM) has rocketed 130 per cent since mid-August when it was trading at a low of 10c.

DKM shares over the past year. Source: Investing.com
DKM shares over the past year. Source: Investing.com

Drilling has so far unearthed thick intersections of shallow gold mineralisation over a 500m strike length.

The program returned intercepts of 50m at 1.6 grams per tonne (g/t), including 17m at 3.8g/t, and 20 meters at 0.9g/t, including 1m at 9.4g/t. Mineralisation starts at about 20m from surface and is open to the North, South and down dip.

Anything over about 4g/t is generally considered high grade. The higher the grade, the less ore that has to be dug up, meaning a lower cost for a company.

“These are significant thickness and grades across multiple sections,” boss Stuart Fogarty noted. “The proximity to surface and the geometry of the mineralisation bodes well for the future of the project.”

Drilling will restart in the new year.