Dreadnought Resources’ Share Price Hits High Gear (ASX:DRE)
The share price of gold explorer Dreadnought Resources Ltd [ASX:DRE] today has reached heights not seen for nearly five years.
We last took a look at the DRE share price in August when the share price collapsed with the price of gold and mixed results from its Rocky Dam gold project.
Since then, the DRE share price has stormed up 125%.
At the time of writing, the DRE share price is 17.39% higher to trade at 2.7 cents per share, marking a new 52-week high.
What has the Dreadnought share price so excited?
DRE today released the first batch of drilling results from its Illaara Gold-VMS-Iron Ore Project in WA.
Specifically, from the Metzke’s Find prospect, which was noted for its historical high-grade gold intercepts.
DRE announced a 36-hole drilling program had commenced at Metzke’s Find on 7 September.
And the share price has been excited ever since.
DRE said it has now completed 17 holes of the program, with the results of eight being released today — and the other nine still in the lab.
- Four metres at 19.9 grams of gold per tonne (g/t) from 45 metres, including two metres at 39.2 g/t from 45 metres
- Four metres at 10.5 g/t from 108 metres, including three metres at 13.8 g/t from 108 metres
- Four metres at 10.5 g/t from 19 metres, including two metres at 20.7 g/t from 19 metres
The aim of the current drill program is to confirm a few things.
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- Fill the gap between previous shallow high-grade intercepts.
- Confirm historic shallow intercepts and test for the mineralised lode to the east at a depth of ~20–30 metres.
- Extend the Metzke’s lode at depth and to the south.
All of this have been achieved, according to DRE.
Things to heat up at Illaara
With the proceeding nine drill hole results expected mid-October, the share price could cool in anticipation.
With DRE saying it has already achieved its objectives, unless the next round of results reveals better than expected mineralisation, I can’t see the share price shifting too much.
But I could be wrong.
What I’d be on the lookout for are the results from Longmore’s Find, located to the northeast of Metzke’s Find.
Source: Dreadnought Resources
These assays are also expected in mid-October.
Recent rock chip sampling has returned results up to 18 g/t and has been historically underexplored.
With the gold price looking a bit depressed currently, now could be a good time to reconsider the shiny metal. 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.
For The Daily Reckoning Australia