Gold Find Doubles Carawine Resources Share Price (ASX:CWX)
Western Australian explorer Carawine Resources Ltd [ASX:CWX] has seen its shares double today upon the release of exceptionally high-grade results from its Tropicana North Project in WA.
At time of writing the CWX share price has almost doubled, up 20.5 cents to trade at 42 cents per share.
CWX shares have been in steady decline since October as interest in its Tropicana North Project has begun to wane.
Maiden drilling saves the CWX share price
CWX today released results from its maiden drill program at Hercules prospect at Tropicana.
Assays returned multiple record high-grade intersections with mineralisation open along strike and at depth, with CWX claiming Hercules as a ‘significant gold discovery’.
Managing Director David Boyd commented on the potential of the new discovery:
‘These exceptional first results from our maiden drilling program at Tropicana North are highly significant.
‘Multiple high-grade intersections have been returned which extend the existing mineralisation with improved grade continuity between drill holes, as well as uncovering additional parallel high-grade lodes. This gives us high confidence that Hercules could develop into a major new gold deposit.’
So, just what have CWX found?
Their highlights include two new high-grade gold lodes discovered parallel to the main zone:
- 4m at 25.9 grams of gold per tonne (g/t) from 84m, including 3m at 34.2g/t Au from 84m (main zone)
- 3m at 22.2g/t from 101m, including 2m at 33.0g/t from 101m
- 3m at 10.6g/t from 118m, including 2m at 15.6g/t from 118m
These are obviously some very high-grade finds.
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In gold exploration, it isn’t uncommon to find small, isolated pockets of higher-grade mineralisation and then go on to discover it does not share continuity with neighbouring areas.
Which is not the case here today.
CWX say that new parallel lodes define a much wider, ‘blown-out’ zone of mineralisation just 70 metres from surface.
These additional high-grade gold intersections extend mineralisation along strike and at depth.
Here are a few highlights from those:
- 3m at 15.2g/t from 125m, including 2m at 22.4g/t from 125m
- 3m at 15.4g/t from 111m, including 2m at 22.7g/t from 111m
What does this mean for the CWX share price?
If interest is Tropicana had waned, then it has definitely returned today.
The results are sure to put CWX on a few investors watchlists.
Mr Boyd said we could now expect exploration intensity to increase given the promising results:
‘This is a tremendous start for Tropicana North, where we have an experienced, successful exploration team and an extensive ground position in a Tier-1 gold province.
‘We look forward to the exploration program at Tropicana North increasing in intensity over the coming weeks and months as we mobilise to follow-up the results reported today as soon as possible.’
CWX also said that further results are expected over the coming weeks.
Meaning we could see the CWX share maintain its lofty level until we see further results.
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For The Daily Reckoning Australia