Caprice Resources Gets Share Price Moving with Island Gold Extension
The share price of Caprice Resources Ltd [ASX:CRS] is higher today thanks to the confirmation of strike extensions at its Island Gold Project in the Cue Goldfields of WA.
Shares tanked heavily last month, despite extensions to the Island Gold Project, closely following the decline in the gold price.
However, we’ve seen the CRS share price begin to tick upwards in the past few days upon the gold price showing some signs of strengthening.
At time of writing the CRS share price is up 9.09% to trade at 30 cents per share.
Extensions keep coming at the Island
CRS received the first batch of assays from its maiden drill program at its Island Gold Project at the beginning of November.
With results being released roughly every two weeks, we’ve seen considerable progress made at the Island in just one month.
Today’s results have confirmed the strike extension at the Baxters-Golconda prospect according to CRS.
- 0m at 5.6 grams of gold per tonne (g/t) from 82m, including 2.0m at 10.0 g/t from 84m
- 0m at 3.1 g/t from 46m, including 2.0m at 10.1 g/t from 54m
- 0m at 3.0 g/t Au from 70m, including 1m at 7.2 g/t from 72m
Mineralisation at Baxters is now defined over 200 metres and remains open at depth and along strike to the north.
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Source: Caprice Resources
CRS Executive Director Scott Patrizi said the drilling results confirmed the prospectivity in multiple targets at the Island Gold Project:
‘This is a “target-rich” system as confirmed by our initial drilling campaign, which has extended high-grade gold mineralisation at New Orient and now at Baxters. Our follow up drilling campaign in 2021 will systematically test additional targets that have not been explored using modern methods and continue to extend identified mineralisation at New Orient and Baxters.’
The New Orient prospect has returned some of the thickest and highest-grade mineralisation from the current drill program.
Results from the second phase drill program at the site are expected to be received in the coming weeks.
Will this mean a return in the CRS share price?
From September to the end of October, the CRS share price was able to make steady gains even as the gold price was waning.
Shares began to gather downwards momentum only when their correlation with the gold price strengthened (unsurprisingly).
Although now that correlation looks to be weakening again.
Meaning, if we continue to see the similar results from the Island over the coming weeks the CRS share price could continue its upwards trend.
Of course, there is nothing wrong with riding the gold price too if its heading in the same direction.
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For The Daily Reckoning Australia