High-Grade African Discovery Pushes Mako Gold Share Price Higher
The share price of West Africa-focused gold explorer Mako Gold Ltd [ASX:MKG] has reversed most of its losses last week, with its latest high-grade gold find.
Drilling results last week from its Napié Project in the Ivory Coast hit the MKG share price hard.
Shares sunk by more than 17% last Tuesday because of concerns around the mineral continuity at the project.
These fears may have been allayed today.
Or, at the very least, the high grading of gold mineralisation is enough to offset the original concerns.
At the time of writing MKG shares are trading 0.3 cents higher, or 27.27%, to 14 cents per share.
Look before you leap
Last week’s drilling results weren’t all that bad.
They demonstrated average- to high-grade gold close to the surface.
Both quite positive signs.
What may have worried investors is that five of the 14 drill holes failed to intersect significant mineralisation.
Not a great result when looking for continuity.
But also, not a huge setback either.
The reason why I bring this up is to highlight the potential disparity in investors’ reaction to today’s announcement.
Of the nine holes last week, eight hit average to high gold mineralisation.
Today’s results show all five drill holes hit significant mineralisation.
And all but one hole doesn’t appear to be significantly better than last week’s.
The drill hole in question produced the following results:
- 13m at 20.82 grams of gold per tonne (g/t) from 32m; including 9m at 29.45g/t
- Includes multiple high-grade single metre assays up to 102.5g/t
A solid find.
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But like I said the rest do not differ too greatly from previous results.
Which is not a bad thing.
Mako has potential
From a geological perspective, what this single high-grade find represents is the potential for more similar finds.
Which could explain today’s big jump in share price.
Mako’s managing director Peter Ledwidge had this to say:
‘The high-grade (gold) encountered is associated with the intersection of one of the many southwest-northeast trending cross structures which may represent dilational zones. It is common to intersect high-grade shoots in these secondary dilational structures. This has provided us with greater geological insight within our project area and allowed us to define a range of new drill targets.’
Most of the mineralisation intersected to date appears to be north-south trending.
Meaning there could be potential for similar high-grade gold finds where the different trending mineralisation intersects.
Drilling at the Napié Project will continue until December 2020.
So far 24 of the planned 90 holes have been completed.
MKG’s exploration comes at a critical time in ASX-listed gold stocks. Our resident gold expert Shae Russell has tipped Australia to become the next ‘gold epicentre’, meaning there could be big spikes in Aussie-listed gold stock prices. If you want to learn more, download your free report here.
For The Daily Reckoning Australia