Hawkstone Mining Share Price Flat on High-Grade Potential at Lone Pine
The share price of US-focused gold explorer Hawkstone Mining Ltd [ASX:HWK] has spiked early today but is now flat despite high-grade rock chip samples from its Lone Pine Gold Project in Idaho.
Lone Pine was one of HWK’s projects that caused initial excitement in its share price, however the acquisition of the King Solomon gold mine at Lone Pine in August swung momentum downwards.
Upon today’s announcement HWK shares were up 10%, however, at time of writing its share price has made no gain and is trading at 1-cent per share.
Good gold grading but market still unsure on Hawkstone
HWK today released the remaining results from reconnaissance rock chip sampling at the Lone Pine Project.
Managing Director Paul Lloyd commented:
‘Our prospecting work across a number of areas has produced high grade gold results to be followed-up, which complement the initial rock chip sample results from areas along strike from Lone Pine and the King Solomon project where results of up to 92.70 g/t gold were returned from the old workings. Hawkstone is in the process of submitting permits for initial drilling to test these and other areas.’
According to the explorer the results confirm its belief that the area is prospective for multiple gold mineralised zones as part of a larger system at Lone Pine.
- 7 grams per tonne (g/t) gold (Au) and 28.1 g/t silver (Ag) — quartz vein material
- 6 g/t Au and 12.25 g/t Ag — quartz vein material
- 9 g/t Au and 6.6 g/t Ag — quartz veining
- 15 g/t Au and 8.25 g/t Ag — quartz veining
- 95 g/t Au and 4.54 g/t Ag — located just west of Lone Pine mineralised trend
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One reason for the lack of share price action today could be the ambiguity still surrounding the project.
Not that this is necessarily a fault of HWK, but the prospect of gold mineralisation alone isn’t going to be enough to get the share price going.
After all, there was likely known prospects in the area before gold exploration began.
Size and grading are what the market is usually after — or at least having a faint idea of what they might be.
Where to for the Hawkstone Mining Share Price?
Regardless of the waning enthusiasm in the share price, HWK appear confident in Lone Pine’s potential, staking an additional 18 claims to increase Project area to 20.23 km2.
HWK said drilling and permitting is being finalised for the 2021 field season, which is planned to test both the Lone Pine and King Solomon mineralised zones.
If the high grades seen in the rock chips continue to the underground mineralisation we could see a decent shift in the HWK share price.
For The Daily Reckoning Australia
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