Navarre Minerals’ Share Price Climbs on Expanded Gold Footprint
New drill results from Navarre Minerals Ltd’s [ASX:NML] Langi Logan Gold Project in Victoria pushed its share price more than 5% higher in early trade this morning.
Excitement was short lived with its share price falling back to yesterday’s closing price of 18.5 cents per share.
Like many of its peers, NML shares have taken a bit of a beating with the gold price regaining some volatility.
Since November, when volatility crept back into gold, the NML share price has dropped nearly 18%.
Why the lack in share price action?
Today, NML reported decent assay results for its recently completed reconnaissance drilling program at its Langi Logan Gold Project.
If you didn’t know, the Langi Logan Project is part of NML’s 70 kilometre-long Stawell Corridor Project, in the historically productive central Victorian goldfields.
Highlights from the recent program include:
- 2m at 1.2 grams of gold per tonne (g/t) from 46m
- 2m at 1.0 g/t from 12m
- 1m at 2.4 g/t from 57m
NML say the results suggest the existence of a previously unknown major south-dipping fault that appears to displace the north Langi Logan basalt dome 1.5 kilometres to the west.
Meaning the program has extended the known area of potential gold mineralisation by up to 2.5 kilometres.
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NML Managing Director Ian Holland said:
‘While we are still at an early stage of exploration, the results to date continue to support our view that this mineralised corridor has potential to host several multi-million-ounce gold systems across a significant area.’
So, what’s with today’s share price action?
The key thing to remember here is that this is reconnaissance drilling.
Which is essentially an ad hoc method of sampling before the full exploration program begins.
Meaning the picture of the mineralisation is still opaque.
You could interpret this as good news, especially given the managing director’s confidence that we could be looking at a million-ounce resource.
However, considering previous results from the eastern flank of North Langi Logan of:
- 11m at 5.1 g/t
- 2m at 19.4 g/t
- 1m at 21.2 g/t
Today’s results are a little lacklustre.
Where to for the NML share price?
The Langi Logan drilling formed 3,400 metres of NML’s ongoing 12,000metres regional drilling campaign.
NML is currently honing its 2021 work program, which will include further drilling at Langi Logan.
Specifically, the explorer is targeting the well-mineralised east flank and its offset continuation to the north.
Those results will be the ones to look out for in terms of share price action, in my opinion.
With a healthy cash balance of $11.9 million at end of September 2020, NML is well positioned to get back to work and begin churning out results.
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For The Daily Reckoning Australia