Frontier Resources Share Price Flies on 101g/t Gold Find (ASX:FNT)
Papua New Guinea-focused explorer Frontier Resources Ltd [ASX:FNT] has its 52-week high today after announcing some bonanza grade gold finds at its Tolukuma Gold Mining Lease.
At time of writing the FNT share price is up 57.14% to trade at 2.2 cents per share, hitting a 38-month high.
Sampling teases potential at Tolukuma
FNT today released final results from its sampling and mapping program at the Kimono and Kimono South prospects, along the eastern boundary of Tolukuma.
The explorer said final sampling results demonstrate a high‐grade segment along the Kimono Central Vein with rock sample results including highlights of:
- 101 grams of gold per tonne (g/t), 80.9g/t, 52.7g/t and 22.2g/t
- And trench results of 2.1m at 24.68g/t, including 1.1m at 42.70g/t
Source: Frontier Resources
Certainly, some impressive grading.
But it is also the potential size mineralised system that could be what has sent the share price flying today.
FNT said the newly discovered Tassy vein is interpreted to extend to over 1km strike length with rock sampling results including 2.13g/t and trench sampling results including 3.0m at 2.87g/t.
Continuity of gold mineralisation occurs at 360m and 600m further to the south‐southwest at Lower Holsiga Creek where trench sampling returned 1.0m at 4.03 g/t.
What to make of small gold explorers in 2021
As you might have noticed, there was an abundance of news coming out from micro and small-cap gold explorers last year thanks to the historic gold price.
A high price of gold means that projects that may have been economically unviable in previous years are now worth investing in.
Which means, depending on your outlook for gold, the outlook for stocks like FNT are up for debate.
To be clear, I’m not suggesting that gold will give up its 2020 gains.
Currently, it looks like it’s trying to find its new floor amongst some renewed volatility.
In fact, our resident gold expert believes there is still a lot of growth left in gold and Aussie gold stocks.
Australia is shaping up to be the new gold capital of the world and could soon surpass China in exploration, mining, and production.
You can read more about that here.
As for FNT, the explorer did not provide an update on further planned exploration at the site.
So, we’ll have to sit tight on this one and just wait and see what happens.
In the meantime, make sure you subscribe to The Daily Reckoning Australia if you want keep up with all the action from Australia’s gold miners and explorers. It’s also a great way to stay up to date with the latest investment trends and opportunities — and the best part is it’s FREE. Click here to learn more.
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