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.
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
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.
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For The Daily Reckoning Australia