Has the Mako Gold Share Price Found Upwards Momentum? (ASX:MKG)
The share price of West Africa-focused gold explorer Mako Gold Ltd [ASX:MKG] is showing signs of uplift thanks to promising results at its Napié Project in the Ivory Coast.
The Mako Gold share price crashed hard in mid-September on the back of disappointing drill results at the Tchaga Prospect at Napié.
Although results showed some high-grade gold mineralisation, investors may have been disappointed by the narrow nature of the intercepts.
More still, only nine out of the 17 drill holes returned positive gold intercepts.
Drill results seem more positive today, at time of writing MKG shares are up 5% to trade at 10.5 cents per share.
Things are looking up at Tchaga
MKG released the assay results from a further four holes from its ongoing 10,000-metre drill program targeting extensions at the Tchaga Prospect.
Significant results returned from the shallow, high-grade zone include:
- 9m at 22.73 grams of gold per tonne (g/t) from 36m, including 2m at 92.95g/t from 36m
- 9m at 1.17g/t from 13m
- 15m at 3.59g/t from 16m, including 1m at 31.66g/t from 26m
- 4m at 14.26g/t from 33m, including 1m at 51.11g/t from 33m
Today’s results are a stark improvement on MKG’s September results.
REVEALED: What’s Next for Aussie Gold Stock Prices? Learn more.
MKG’s past two results releases have resulted in share price drops, which could have been caused by a number of missed drill results.
The explorer’s current program is targeting extensions to a previous intercept of 13m at 20.82g/t.
Despite the solid gold grading contained in today’s results, what this release shows is that MKG has been able to successfully reorient drilling to locate the contained mineralisation.
The recent holes were drilled in the revised south easterly orientation, which resulted from recent structural studies and 3D modelling.
Source: Mako Gold
A broader view of Mako Gold
Right now is probably a good time to take a broader view at what’s going on at Napié.
The number of ‘missed’ holes at the Tchaga Prospect over the past three releases now total 16 out of 36 — not great.
However, if MKG have now successfully reorientated their geological estimations, we could see more solid results in the future.
Mako’s Managing Director Peter Ledwidge said:
‘These new results provide the Company with confidence as we move towards targeting a maiden resource on the Tchaga Prospect. When you consider that we have multiple prospects to the North, South and East with previously reported high gold bearing intercepts, we consider that the Tchaga prospect has the makings of a significant gold discovery.’
A second drill rig is scheduled to commence drilling in early December to test prospective regional prospects.
So we could soon see the effectiveness of MKG’s reorientation.
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