New Gold at Old Goldfield Pushes CYL and NML Share Prices Higher
Gold explorers Catalyst Metals Ltd [ASX:CYL] and Navarre Minerals Ltd [ASX:NML] have confirmed the extension of their Lawry gold zone.
In an announcement released this morning, the pair shared drilling results from their joint venture, the Tandarra gold project in Victoria.
At the time of writing, investors have responded positively to the news.
CYL is up 3.73% to $2.78 per share and NML is up 8.33% to 13 cents per share.
The Lawry gold zone was discovered in April this year and presented several high-grade gold intercepts.
Reconnaissance drilling has now been completed on the newly discovered zone, but the results are not necessarily conclusive.
CYL and NML working on a goldfield not so easily tamed
The Tandarra gold project, a joint venture owned by CYL (51%) and NML (49%), is located 40km north of the historical Bendigo Goldfield in Victoria.
An area that has historically produced approximately 22 million ounces of gold produced at a grade of 15 grams of gold per tonne (g/t).
It is also situated along the 100km long Whitelaw Fault which was extremely important in the genesis of gold deposits in Victoria’s goldfields.
However, exploration seems to be more difficult than what may have been first thought — at least for the Lawry zone.
According to the announcement this morning, the drill program encountered difficult drilling conditions resulting in around only half of the drill holes successfully reaching bedrock.
Meaning only half were able to test the target zone.
Additional drilling is said to be scheduled, albeit within the broad time frame of the 2020–21 field season.
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Not all bad news for CYL and NML share price
Even with the complications in drilling at Lawry, the zone has been extended northwards by 700m based on geochemistry analysis and trace gold mineralisation.
Other results from infill drilling at the Macnaughtan prospect has revealed some decent gold mineralisation.
- 3 metres at 94.9g/t from 87 metres
- 18 metres at 1.6g/t, including 3 metres at 7.8g/t, from 75 metres
- 1 metre at 2.5g/t Au from 108 metres
Source: Catalyst Metals and Navarre Minerals
If you’re having trouble telling whether this is good new or bad news, you’re not alone.
I believe that sometimes the market overacts when an explorer announces ‘significant, high-grade gold finds.’
Today’s results don’t tell us too much asides from it is difficult to drill at the Lawry zone (bad news) and they’re still finding gold at their other targets (pretty good news).
Although, the market could eventually figure this out and adjust accordingly.
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