Predictive Discovery Share Price Sinks Despite High-Grade Gold Extensions

Predictive Discovery Share Price Sinks Despite High-Grade Gold Extensions

The share price of Africa-focused gold explorer Predictive Discovery Ltd [ASX:PDI] has sunk today despite further gold extensions found at its Bankan Gold Project in Guinea.

The PDI share price is down 2.94% to 6.6 cents per share at time of writing, as the gold explorer gears up to release its maiden resource estimate at Bankan.


Source: Tradingview

Despite the slow decline in share price through the second half of 2020, PDI shares appear to have been less affected by the volatility in the gold price.

Further broad gold intercepts

We took a look at the PDI share price earlier in the year when they hit some very broad gold mineralisation at Bankan Creek.

The gold explorer’s latest results from the project appear to continue that trend.

New drilling shows that Bankan Creek gold mineralisation extends at least 160 metres north along strike, with widths of 50–100 metres on three-drill sections.

PDI say mineralisation remains open to the north, south and at depth.

Highlights include:

  • 40m at 3.0 grams of gold per tonne (g/t) from 104m, including 7m at 10.2g/t from 104m, including 5m at 14.2g/t
  • 5m at 1.1g/t from 60m
  • 8m at 2.6g/t from 10m, including 9.2m at 5.9g/t

REVEALED: What’s Next for Aussie Listed Gold Stock Prices? Learn more.

Managing Director Paul Roberts said he is pleased with the results but is expecting the projects footprint to continue to grow.

We are very pleased that the Bankan Creek gold mineralisation is extending to the north, as we had hoped, with shallow, wide, high-grade gold intersected. With more drilling planned to the north, south and at depth, we believe that the mineralised footprint and strike at Bankan Creek will continue to grow and should make a material contribution to our planned Bankan Mineral Resource Estimate.


Source: Predictive Discovery

What’s got the share price down?

The gold price has sunk slightly today, which could be weighing on the share price.

Although, I’m betting that investors aren’t overly impressed by today’s results.

That’s because they aren’t really that exciting.

Yes, they have managed to extend the known mineralisation some, but from a speculator’s point of view it’s not by much.

With assays still pending from the current round of drilling, we could excitement build once they are released.

However, it is the north eastern part of the project that has the most potential, in my opinion.

And with the drilling focus now turned to that area of Bankan Creek, we could see more meaningful moves in the share price as results are released.

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, Shaw 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