Gold explorer Spectrum Metals (ASX: SPX) is still striking gold at its Penny North project in WA.

The company just got assay results back for a further eight drill holes at the site, with a series of “bonanza” gold deposits in excess of five grams per tonne.

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Penny North is situated 25km south of the Youanmi mining centre in WA, and sits adjacent to Spectrum’s open pit project at Penny West.

Shares in Spectrum were unchanged in morning trade at 2.7 cents. The company’s stock price has been on the charge from 0.4 cents in late February, when it went into a trading halt before announcing a new high-grade gold discovery at Penny West.

On to Phase II

Today’s results mark a consistent run of gold finds for Spectrum, which pivoted from its previous incarnation as a rare earths explorer once the lift in gold prices sparked increased investor interest in the sector.

The latest assay results at Penny North included a 2m intercept at 140 grams per tonne, with two separate 6m intercepts both in excess of 45 g/t.

“The Penny North Prospect continues to deliver exceptional results for Spectrum, remaining open in all directions,” managing director Paul Adams said.

“We are currently designing and preparing for our Phase II drilling program to expand on our recent discoveries both at the Penny North Prospect and under the open pit at Penny West”.

Today’s announcement follows another round of assay results from Penny North in late-March, which included a 4m intercept at 105.2 g/t.

In other ASX gold news today:

There’s some potential M&A activity on the cards with Alto Metals (ASX: AME) providing an update on the takeover offer from Middle Island Resources Ltd (ASX: MDI).

AME advised that MDI has now reduced its minimum acceptance condition from 90 per cent to 50.1 per cent of Alto shareholders. The change was made following an Alto announcement in late March, when it advised that a bloc of investors with a 32.12 per cent interest in the company said they intended to reject the Middle Island offer.

In response, Middle Island said it was reducing the minimum acceptance condition “in order to ensure that AME Shareholders were still afforded a reasonable opportunity to assess the offer presented by MDI”.

Middle Island is offering Alto shareholders five MDI shares for every one AME share they own. In today’s statement, the Alto board advised shareholders to take no action until the company releases its target statement on April 15.