Odyssey Gold Share Price Jumps after 20-Month Hiatus (ASX:ODY)

Odyssey Gold Share Price Jumps after 20-Month Hiatus (ASX:ODY)

It has been a long wait for some shareholders but today they can breathe a sigh of relief as Odyssey Gold Ltd [ASX:ODY] has officially been reinstated to the ASX after a 20-month suspension.

Known as Odyssey Energy Ltd at the time of its suspension, the company was removed from quotation after its operations were deemed inadequate to continue trading on the ASX.

During its hiatus, the company has shifted operations away from oil and towards gold exploration and, eventually, production.

Investors seem to have reacted positively to the change in business model.

On its first day of trading in nearly two years, the ODY share price is up 2.6 cents or 60.47% to trade at 6.9 cents per share.

What are Odyssey Gold’s prospects?

ODY first announced its transition into a junior explorer at the beginning of September last year, acquiring an 80% interest in the high-grade Stakewell Gold Project located in the Meekatharra-Cue region of WA.

A bit over a month later ODY acquired an 80% interest in the high-grade Tuckanarra Gold Project, directly adjacent to Stakewell.

And then in November 2020, ODY’s subsidiary, Peregrine Gold Ltd, acquire a 100% interest in Pilbara Gold Exploration Pty Ltd, which owns a suite of gold prospective tenements in the Pilbara region.

So, let’s take a peek at what some of these projects look like.

The Stakewell Gold Project has historical production of approximately 29,000 ounces from the Kohinoor Mine including 15,750oz at 12.0 grams of gold per tonne (g/t).

Historical drilling at the project delivered significant unmined high-grade intercepts including:

  • 4m at 26.6g/t
  • 2m at 18.5g/t
  • 7m at 21.8g/t

At the Tuckanarra Gold Project, Metana Minerals produced approximately 95,000oz at an average grade of 2.8g/t from a number of small pits between 1988 and 1994.

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Each of the four main historical pits at Tuckanarra still hosts high-grade mineralisation open along strike and/or at depth, according to ODY.

Historical unmined drill intersections include:

  • 5m at 156g/t, including 1m at 776g/t from 6m
  • 28m at 6g/t, including 10m at 15g/t from 35m
  • 3m at 36g/t

Are ODY shares a buy?

ODY has certainly made a big entry on its reinstatement to trade today.

There’s no doubt its recent acquisitions have provided some juicy prospects for speculators.

However, the usual risks still remain.

Despite the decent gold grades, we don’t know the extent of the remaining mineralisation at its projects.

ODY say they are currently planning exploration works at both the Tuckanarra and Stakewell projects in the near term.

With their maiden drill program scheduled to commence in Q1 2021.

One thing to consider here is the experience of ODY’s geology team.

Without knowing too much about their exploration experience, there is no guarantee ODY will replicate the historical results at its projects.

I’m not saying they can’t, just something to be mindful of.

In my opinion, we could see a capital raise soon to fund these exploration programs, which could be worth keeping an eye out for if you’re looking for a speculative gold play.

In the meantime, make sure you subscribe to The Daily Reckoning Australia if you want keep up with all the action from Australia’s gold miners and explorers. It’s also a great way to stay up to date with the latest investment trends and opportunities — and the best part is it’s FREE. Click here to learn more.

Kind regards, 

Lachlann Tierney

For The Daily Reckoning Australia