Dreadnought Resources Share Price up 25% (ASX:DRE)

Dreadnought Resources Share Price up 25% (ASX:DRE)

The Dreadnought Resources Ltd [ASX:DRE] share price is up 25%, to $0.01.

This comes on the back of an encouraging announcement about the company’s newest drilling program.

ASX DRE Share Price Chart - Dreadnought Resources

Source: Optuma

What’s happening at Dreadnought Resources?

DRE is an explorer, which focuses on Western Australia.

The company recently announced a new drilling program that will commence at Rocky Dam in the hunt for gold.

Commencing on 9 July, the program is expected to be completed mid-July 2020 with assays expected during August 2020.

The DRE share price moved up on the day and retraced the following day to 0.8 cents.

In the announcement, Dreadnought Managing Director, Dean Tuck, commented: ‘Dreadnought is excited to be back out at Rocky Dam to follow up on our encouraging shallow oxide intercepts.

The bigger news today however, is from the company’s Metzke project site where their drilling hit high grade gold.

Here are the highlights:

  • 2m @ 12.8 g/t Au from 51m including 1m @ 24.8 g/t Au from 51m
  • 8m @ 8.1 g/t Au from 84m including 3m @ 21.0 g/t Au from 85m
  • 13m @ 4.2 g/t Au from 48m including 7m @ 7.5 g/t Au from 51m
  • 5m @ 2.4 g/t Au from 71m including 1m @ 11.3 g/t Au from 71m

You can see what Metzke looks like below:

ASX DRE - Dreadnought Resources gold Discovery

Source: Dreadnought Resources Ltd

DRE share price chart

Taking a look at the charts, the DRE price is now sitting at one-cent, should it continue the move up the level of 1.3 cents which is the most recent high, may provide future resistance.

If price were to fall back, then the levels of $0.008 and $0.006 may provide support in the future.

ASX DRE - Dreadnought Resources Share Price Chart 2

Source: Optuma

While it is tempting to purely focus on the news flow and the intercepts with small-cap explorers, charting can provide a useful frame of reference.

In today’s announcement, DRE provided some helpful information on when it expects results.

This includes a quarterly activities and cash flow report due this month, which will tie in nicely with more results from Rocky Dam and Metzke.

So plenty to look forward to for DRE enthusiasts.

We’ll be sure to keep you updated with developments from some of Australia’s most interesting gold explorers and miners. In the meantime, make sure you subscribe to The Daily Reckoning Australia. It’s a great way to stay ahead of the curve when it comes to Australian gold stocks. It’s free too. Subscribe here.

Regards,

Lachlann Tierney,

For The Daily Reckoning Australia