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.
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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- 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.
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.
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For The Daily Reckoning Australia