Dreadnought Resources Share Price Climbs on Maiden Drill Results

Dreadnought Resources Share Price Climbs on Maiden Drill Results

The Dreadnought Resources Ltd [ASX:DRE] share price is higher today thanks to some very high-grade results delivered in its maiden drill program at Longmore’s Find.

Longmore’s Find is part of the Illaara Gold-VMS-Iron Ore Project in WA.

A project that has already delivered some promising results.

ASX DRE share price - Dreadnought Resources

Source: Tradingview

Results that have sent the DRE share price on a bit of a tear recently.

At time of writing, after emerging from a trading halt today, DRE shares are up 7.14% to trade at 30 cents per share.

Just south of its fresh 52-week high of 37 cents per share.

Longmore’s Find shows promise but grades aren’t everything

Longmore’s Find is located just north of Metzke’s Find, a prospect we analysed last month.

Recent drilling at Metzke returned further high-grade gold mineralisation, including:

  • 2m at 10.8 grams of gold per tonne (g/t) from 102m
  • 1m at 10.9 g/t from 89m

ASX DRE - Dreadnought Resources Illaara Gold Project Tenements

Source: Dreadnought Resources

Today’s maiden results from Longmore’s Find have produced the highest-grade drill intercept to date from the Metzke’s Corridor:

  • 1m at 100 g/t Au from 56m

Now that sounds pretty good.

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Although, with most of the drill results returning grading up to 1g/t, this extremely high-grade find may just be an anomaly.

Managing Director Dean Tuck commented:

This drilling has confirmed the potential for the ~10kms long Metzke’s Corridor to contain multiple high-grade deposits within over a dozen anomalies. Furthermore, the Illaara Greenstone Belt has potential to host other multi-deposit camps including Central Illaara and Lawrence’s Corridor.

DRE said that the high-grade intercept at Longmore’s Find confirms the potential of the Metzke’s Corridor to host multiple high-grade lodes and to turn into a camp with multiple deposits.

What the DRE share price says about today’s news

If you don’t know much about gold exploration, let me just say that 100g/t is a pretty big deal.

Considering that anything over 1.5g/t is considered high-grade in open-pit mining.

So, it’s easy to see why this result has excited the share price.

But has the share price action ignored the other, low-grade results?

The answer, in my opinion, is no.

Drilling has never occurred at Longmore’s.

And hitting the gold anomalies they did, DRE seems to have generated a number of decent drill targets.

DRE said that drilling will recommence next month, which should see us receive ongoing drill results through the rest of 2020.

With the gold price recovering nicely from its drop in September, now could be a good time to make a play. Our resident gold expert, Shae Russell, has tipped Australia to become the next ‘gold epicentre’, meaning there could be big spikes ahead in Aussie gold stock prices. If you want to learn more, download your free report here.

Regards,

Lachlann Tierney,

For The Daily Reckoning Australia