Is the Dampier Gold Share Price This Month’s Star Performer? (ASX:DAU)
The share price of underappreciated gold explorer Dampier Gold Ltd [ASX:DAU] could be the star performer of small-cap explorers this month.
In October, the gold explorer’s share price has risen more than 230% on the back of solid results from several of its projects.
DAU’s portfolio of projects include two exploration and one development project, namely K2 Gold Mine, all focused in the gold-rich Kalgoorlie region.
At time of writing the DAU share price is up 43.75% to trade at 9.2 cents per share.
Big hits at Zuleika
DAU shares began trading again today after entering a trading halt on Monday.
Today, DAU announce results from its Phase 2 drilling on the Paradigm East Project in the Zuleika Gold JV with Torian Resources Ltd [ASX:TNR].
The project is located 25 kilometres north west of Kalgoorlie and extends 45 kilometres to the north west of the Kundana/EKJV mines.
Highlights from the announcement include:
- 24m at 6.39 grams of gold per tonne (g/t) from 28m, including 4m at 34.74 g/t from 32m
- 8m at 2.20 g/t from 48m, including 4m at 3.25 g/t from 48m
REVEALED: What’s Next for Aussie Gold Stock Prices? Learn more.
DAU said the confirmation of the mineralisation zone is considered to be highly encouraging for this system to produce high-grade gold zones.
However, in my opinion, the kicker from today’s announcement is the extension to the strike on the project.
See the figure below.
Source: Dampier Gold
Dampier’s Managing Director Annie Guo said:
‘Our latest successful exploration results have vindicated Dampier’s strategy of maintaining an aggressive drilling campaign in parallel with our technical team’s increasing understanding of the mineralised systems within the project area.
‘We have hit more high-grade mineralisation in previously untested areas. These results extend the known limits of mineralisation. This points to a larger mineralised envelope which in turn will give greater scale to the project.’
Do these results justify the DAU share price rise?
In my book, today’s share price rise is in combination with a few other factors that could contribute to DAU’s potential.
Other than the highlights I’ve already presented, the rest of today’s results were rather low-grade, not clocking above 0.8g/t.
The basis of the current drill program is to follow up on the high-grade results uncovered in Phase 1 drilling.
Which DAU say has so far been a success, but still have a further two kilometres to test.
Another factor that may contribute to DAU’s potential is Australia’s growing presence on the global gold scene. Right now, Australia is gearing up to surpass China as the undisputed global leader in gold exploration, mining and production. In her latest report, gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.
For The Daily Reckoning Australia