GME Resources Share Price Rockets on Confirmation of High-Grade Gold

GME Resources Share Price Rockets on Confirmation of High-Grade Gold

Nickel focused explorer/developer GME Resources Ltd [ASX:GME] has watched its share price skyrocket today on the news it has confirmed the presence of high-grade gold at its Fairfield gold deposit in the Northeast Goldfields, WA.

It’s been a volatile 12 months for the GME share price, during which the explorer has invested most of its time in the pre-development stage of its NiWest Nickel Cobalt Project.

ASX GME Share Price Chart

Source: Tradingview

GME announced the discovery of gold targets at Fairfield in June; however, due to the tight availability of drill rigs, drilling did not begin until late October.

At time of writing the GME share price is up 52.38% or 2.2 cents to trade at 6.4 cents per share.

Has Fairfield been worth the wait?

GME’s Fairfield Gold Project is located 25 kilometres north of the historic Laverton township.

The site has been subject to historical underground workings with recorded production during 1912–14 and 1935–38.

Although, only 411oz were ever produced during this time.

Previous drilling at Fairfield returned the following intercepts, which GME targeted:

  • 7m at 13.5 grams of gold per tonne (g/t) from 49m, including 4m at 22.7 g/t from 49m
  • 14m at 4.9g/t from 30m, including 1m at 40.6 g/t from 35m

GME completed 19 drill holes for 720 metres to further delineate and test the immediate strike potential of a shallow, high-grade deposit.

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Highlights include:

  • 10m at 2.9 g/t from 13m, including 4m at 5.4 g/t from 16m
  • 3m at 4.8 g/t from 3m, including 1m at 12.3 g/t
  • 3m at 4.5 g/t from 37m, including 1m at 7.5 g/t from 38m

The explorer said drilling confirmed the presence of two shallow, moderate- to high-grade shoots and associated broader zones of low- to moderate-grade gold mineralisation.

According to GME, the mineralisation is open both along strike to the north and down dip and opens up potential for extension of the deposit to the north, which is untested.

GME Resources Fairfield Gold Project Cross Section

Source: GME Resources

What does this mean for the GME share price?

GME said further work is currently being planned, with further exploration warranted to test the strike extent of mineralisation discovered to the north.

However, they did not specify when further drilling could be expected to commence.

It could be another six months before follow-up drilling commences if GME have already had difficulty securing drill rigs.

That’s because gold exploration and production is ramping up in Australia, despite the recent slip in the gold price. With gold still at historic highs, Australia is looking to knock China off the top spot 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. 

Regards, 

Lachlann Tierney

For The Daily Reckoning Australia