Gold explorer Draig Resources has made a new high-grade discovery at its Bellevue project in Western Australia, sending investors into a buying frenzy.

Shares reached an intra-day high of 2.4 cents just before midday, double the prior closing price of 1.2 cents, valuing Draig at around $78.7 million. The stock cooled to 20.5c just before the close — up 70 per cent for the day.

The company announced it had hit “extremely high grade” gold, returning an intersection of 5 metres at 37.5 grams of gold per tonne within a broader zone of 7m at 27.4 grams.

Grade refers to the proportion of gold contained in the ore of a particular mine and is represented in grams per tonne. Around 3 to 4 grams per tonne and higher is usually considered high grade.

Draig's share price over the past week. Source:
Draig’s share price over the past week. Source:

Draig has also intersected visible gold in drilling undertaken 80 metres to the south of the site.

Mineralisation appeared similar to the previously mined Bellevue Lode, where around 800,000 ounces at 15 grams per tonne was mined historically.

The company is waiting on further drill results.