Predictive Discovery Share Price Lifts on ‘Outstanding’ Gold Intercepts

Predictive Discovery Share Price Lifts on ‘Outstanding’ Gold Intercepts

The share price of West African mineral explorer Predictive Discovery Ltd [ASX:PDI] is one of the few heading upwards today in what has been a bit of a bloodbath on the ASX.

Currently, the PDI share price is up 3.28% to trade at 6.3 cents per share after announcing they have hit some very broad sections of gold at their Bankan Gold Project in Guinea.

ASX PDI Share Price Chart

Source: Tradingview

You’ll notice there has been a slow but steady downward trend in the PDI share price with the recent repricing of gold.

Although, shares appear to have found their bottom and could be trending upwards again.

Widening at depth

One of the trickiest things about geological exploration is conceptualising what shape your mineral resource can take.

It’s a mental exercise that requires a lot of brainpower.

Just think about a time when you’ve found a broken piece of something and racked your brain to try and figure out where it may have came from.

Looking for gold is a somewhat similar exercise.

Today, PDI released the first results from its December 2020 drill program.

The results indicate that the Bankan Creek gold mineralised zone is widening at depth, according to PDI.

Highlights include:

  • 88m at 1.8 grams of gold per tonne (g/t) from 112m, including 35m at 2.6g/t from 165m, and 50m at 1.3g/t from 112m
  • 23m at 0.8g/t from 174m
  • 33m at 1.6g/t from 167m

You’ll notice that the gold grading isn’t overly high, but when you’re getting intercepts longer than Olympic sized swimming pools, the tonnage can make up for lower grades.

PDI Managing Director Paul Roberts commented:

These first holes, drilled on 80m step-outs, have intersected abundant gold and successfully extended the known mineralisation to depth. Each gold intercept in these new, deeper holes is therefore adding very significantly to the project’s scale and tonnage potential.

All this new information has provided further confirmation that we are exploring very large gold mineralised systems on the Bankan Project.

Expect aggressiveness from PDI

These new results have demonstrated that the gold mineralised zones at both of PDI’s prospects remain open at depth and widen at depth too.

PDI said that today’s strong results mean they have emboldened their aggressive strategy to define its Maiden Mineral Resource estimate by mid-2021.

If they indeed hit that goal, it will mean that PDI was able to identify two greenfield discoveries and produce resources estimates all within 12–13 months.

Pretty impressive stuff in my book.

Of course, the time frame isn’t the important focus here; it’s the size of the mineralisation.

Our resident gold expert, Shae Russell, reckons there is a gold rally on the horizon this year, albeit delayed by a flying Aussie dollar.

The current set up isn’t great for gold miners, but the double whammy of a falling US gold price and the strong Aussie dollar presents a rare opportunity for Aussie investors to get gold on the cheap.

Shae has also provided a longer-term positive outlook for Aussie gold stocks as Australia surpasses China as the undisputed global leader in gold exploration, mining, and production. In our latest report, Shae breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.


Lachlann Tierney,

For The Daily Reckoning Australia