Hawkstone Mining Share Price Stagnant on Final Drill Results (ASX:HWK)
The share price of US-focused gold explorer Hawkstone Mining Ltd [ASX:HWK] has barely budged today despite final drilling at its Lone Pine Gold Project in Idaho confirmed high-grade potential.
At the beginning of October, we asked the question, ‘is the HWK share price showing signs of recovery?’
At the time the explorer had just acquired the Devil’s Canyon Gold Project in Nevada, following up its 233% increase in landholding at Lone Pine.
Unfortunately, for shareholders, the HWK share price has continued to slip despite further land acquisitions and high-grade results.
At time of writing there has been no change in the HWK share price, which is trading at 1.1 cents per share.
Maiden drill program fails to excite
The share price action from HWK’s drilling results might be considered lacklustre by some, with the share price hovering just higher than the price when drilling commenced.
However, according to HWK, drilling at Lone Pine has confirmed the high-grade and geological continuity of the Lone Pine quartz vein zone.
The latest results include:
- 93 grams of gold per tonne (g/t) over 1.91m
- 6 g/t over 0.45m, including 29.7 g/t over 0.82m
- 39 g/t over 0.86m, including 16.95 g/t over 0.52m
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HWK Managing Director Paul Lloyd commented:
‘We are very pleased with the results from the 2020 field season drilling completed at the Lone Pine Gold Project. Exploration has demonstrated the presence of high-grade gold mineralisation and the excellent geological continuity of the Lone Pine vein zone providing the impetus to continue with further drilling at Lone Pine and also the highly prospective King Solomon mineralised zone 900m to the southeast.’
So why hasn’t the share price reacted to what the company believes are solid results?
Judging from the results we’ve seen thus far; I’d guess that it’s because we’re yet to see a substantial resource.
Source: Hawkstone Mining
Take a look at the figures above.
Yes, there is some very high-grade gold, but it is extremely narrow, which doesn’t lend itself easily to punters betting on the ‘next big gold find’.
But they could be wrong.
Where to for the Hawkstone Mining share price?
HWK is positive about the prospects at Lone Pine, saying they are currently seeking approval for further drilling, with planning currently underway for additional holes.
Drilling will focus on depth and strike extensions to the mineralised vein, with an airborne magnetic geophysical survey planned across the project in 2021.
Meanwhile, Aussie gold stocks could soon be set for a huge bump in their share price. Gold expert Shae Russell has tipped Australia to knock China off the top spot as the undisputed global leader in gold exploration, mining and production. In our latest report, Shae breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.
For The Daily Reckoning Australia