Gold: Junior explorers on the ASX are getting more hits than The Beatles
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It’s been a solid morning for listed gold small-caps, with plenty of high-grade discoveries announced to market.
Among them was Cardinal Resources (ASX:CDV), which announced results from a 15‐hole, 883m diamond-drill program at its Ndongo East discovery in Ghana.
The company said it showed five more “intersections of shallow, high‐grade gold mineralisation”, ranging between 2 and 5m in length with grades up to 18.3 grams per tonne (g/t).
The shallow results “further increase our level of confidence to continue drilling along strike and at depth, as we have only drilled down to approximately 80m vertically below surface,” CEO Archie Koimtsidis said.
Markets were slightly less excited, with CDV little-changed in morning trade at around 33c.
The company reported six “significant” drill hits, including 27m at 8.7g/t, which it said will help “de-risk” initial production at its open-pit mine.
“We are fully funded, with construction progressing on time and budget. Commercial gold production is on track for the second half of 2020,” managing director Richard Hyde said. Shares in WAF were unchanged at 35c.
And Frontier Resources (ASX:FNT) said the first phase of drilling at its Saki deposit in Papua New Guinea indicated a “600m wide system” with multiple gold hits.
The company said it would now compile all trench and mineral results from Saki before delivering a resource estimate.
Embattled gold miner Dacian Gold (ASX:DCN) caught the market’s eye this morning, after announcing an updated life-of-mine plan for its Mt Morgans gold operation. The company estimates it will produce 170,000oz of gold in the first five years and 1.1moz over the mine’s eight-year life. Shares in DCN climbed by as much as 20 per cent, back above 60c.
The stock price fell a month ago after DCN downgraded production forecasts by over 25 per cent. It’s since bounced (slightly) off the mat on the back of further gold discoveries, which were among the thickest and highest grade intersected in WA.
And Cygnus Gold (ASX:CY5) announced it has recommenced drilling at its Lake Grace joint venture with Gold Road Resources (ASX:GOR). “The program of up to 77 aircore holes is expected to take up to three weeks to complete with final results expected in August,” Cygus said. Shares in CY5 were up 4 per cent to 5c.