Golden Rim Resources Share Price Shows Signs of Recovery (ASX:GMR)
The share price of Africa-focused gold explorer Golden Rim Resources Ltd [ASX:GMR] is showing signs of recovery with new broad zones of gold discovered at its Kada Gold Project in Guinea.
We last took a look at the GMR share price when it first acquired Kada in late July, which sent shares up 20%.
Kada looks like it could be GMR’s saving grace after the share price slumped hard when the explorer delivered an updated resource estimate of two million ounces at its Kouri Gold Project in Burkina Faso.
At time of writing GMR shares are up 15.39% to trade at 1.5 cents per share.
Will this be a turning point for Golden Rim Resources?
With the market reacting poorly to the resource update at Kouri, things are looking more favorable for the Guinea situated Kada project.
Today, GMR announced results of due diligence works currently underway at the site.
Highlights show broad and deep gold mineralisation:
- 18m at 2.0 grams of gold per tonne (g/t) from 1m
- 78m at 1.4g/t from 71m, including: 10m at 2.1g/t from 72m and 34m at 2.1g/t from 87m
- 7m at 4.3g/t from 0m
- 43m at 1.7g/t from 109m, including 21m at 2.6g/t from 130m
GMR says the interpreted mineralised zones extend north south for a least 1.4 kilometres with a central area of intense mineralisation that is 500 metres wide.
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The due diligence holes are located in the east of this 500-metre wide area.
To the west of these holes drilling has returned parallel gold intersections equally as wide.
New drilling has also confirmed a deep oxide zone at Kada, with two of the three drill holes intersecting gold oxide from surface to more than 130 metres below surface.
Where to next for Golden Rim Resources?
GMR’s Managing Director Craig Mackay commented on today’s announcement:
‘Given the positive attributes of the mineralisation and with a central mineralised core that is 500m wide, Kada appears well suited to low cost open pit mining.
‘The Company believes the project can be advanced quickly. With nearly 300 previous drill holes, there is an opportunity to calculate a maiden JORC Mineral Resource at Kada in the near-term and then to considerably expand on this Mineral Resource given the exceptional exploration upside in the project area.’
That’s a bold outlook.
But one that seems to have excited investors.
Putting political and sovereign risk aside for a moment, for the current share price of 1.5 cents, investors get a company with a two million ounce resource and potentially more on the way.
Back home, however, Australia is fast becoming the new global ‘gold epicentre’. Our resident gold expert Shae Russell is predicting this could mean huge spikes in Aussie gold stock prices. Find out more in our free report. Get you copy here.
For The Daily Reckoning Australia