Gold: Here are the sweetest strikes in morning trade
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Explorers Twenty Seven Co, Arrow Minerals and Musgrave Minerals are all celebrating potentially significant discoveries this morning.
The share price of former cobalt play Twenty Seven Co (ASX:TSC) has jumped all over the shop lately, prompting a ‘please explain’ from the ASX on January 6.
The explorer used the classic ‘not aware of any info to explain the recent trading’ platitude, before pointing to “highly encouraging” exploration results at the Rover project in December as a potential trigger.
Today’s results from Rover — a figurative stone’s throw from high-profile gold darling Spectrum Metals (ASX:SPX) — confirm those initial results, Twenty Seven Co says.
Assays up to 51.2 grams per tonne (g/t) gold verifies significant high-grade shallow gold mineralisation at the Creasy 1 prospect.
As a rule of thumb, anything above 5g/t gold is considered high grade.
“In an exciting complementary development, assays from Creasy 2 and Harmonic prospect, verify strong potential for a VMS [volcanic massive sulfide] system within the Rover project,” managing director Ian Warland says.
VMS deposits — rich in base and precious metals like copper, zinc, lead, gold and silver – also tend to ‘cluster’ together, which means VMS camps can often be mined for a very, very long time.
“A second, more comprehensive, RC [reverse circulation] drilling campaign to further define the underlying gold/VMS mineralisation is planned,” he says.
The stock – which is up 300 per cent over the past six months – fell 10 per cent in early trade.
Results from the maiden drilling campaign returned hits like 3m at 15.1g/t gold (including 1m at 44.7g/t), about 50m from surface.
“The first drilling on the Divole West permit yielded significant gold mineralisation with clear expansion potential through further drilling to be completed this quarter,” Arrow chief exec Howard Holden says.
“Two continuous zones of shallow gold mineralisation with grades to 45g/t gold were confirmed, with both zones open in multiple directions and at depth.
“We will very shortly be following up these very positive results with further drilling as well as aggressively pursuing our other exploration projects.”
And Musgrave Minerals (ASX:MGV) has nudged 5 per cent higher on high-grade gold intersections at the advanced Cue project in WA.
Results included 5m grading 12.1g/t gold, 82m from surface.
“These are further strong results at Lena, Break of Day and Mainland and continue to highlight the resource growth potential of all three prospects,” Musgrave managing director Rob Waugh says.
“With drilling already commenced for the 2020 year we are looking forward to more exciting results as the programs progress.
“The strong results from drilling at Lena to date confirm the geological interpretation which is showing good continuity of the high-grade shoots at depth and will further enhance the resource update expected later in Q1 2020.”