These small cap gold stocks are on the rise after revealing ‘bonanza’ grades
Mining & Resources
Two West Australian explorers, Bellevue Gold and First Au, have reported ‘bonanza’ gold grades of more than 350 grams per tonne at their respective projects.
First Au (ASX:FAU) shares were up almost 35 per cent on their news to 3.1c, while Bellevue (ASX:BGL) had received a small 2 per cent bump to 26.5c by mid-morning.
There is no agreed-upon, official definition for ‘bonanza’ grade – but 5 grams per tonne of gold and above are considered high-grade.
Bellevue Gold says its Viago discovery could be a “company maker”, after drilling returned exceptional results include 3m at 85.9 grams per tonne gold from 597m (including 0.5m at 445 grams per tonne).
These high grades are consistent across the 800m length drilled so far, the company said, with gold mineralisation continuing in all directions.
A maiden resource estimate at Viago was expected this quarter, which would add to the overall Bellevue project resource of 1.9 million tonnes of gold ore grading 8.2 grams per tonne for 500,000 ounces of gold.
Viago is just 150m from the historic Bellevue gold mine, which company director Steve Parsons calls “one of the standout high-grade gold mines of the 1980s and 1990s in Australia”.
Explorer First Au struck 4m at 393 grams per tonne just 52m from the surface at the Gimlet gold project near Kalgoorlie – and the hole was terminated at 60m.
The gold hit is also 200m from First Au’s tenement boundary with Intermin Resources’ (ASX:IRC) 104,000 ounce Teal gold mine.
Another hole intersected 4m at 4.34 grams per tonne gold from 52m.
Gold at depths of between 36m and 56m has now been defined over a length of 500m – and mineralisation continues in all directions, according to First Au.
The First Au share price has traded between 2.2c and 4c over the past year.
Lodestar Minerals (ASX:LSR) also reported high grades — 5.1m at 28 grams per tonne, 143m from surface at its Neds Creek project in Western Australia.