Renascor Resources Share Price Up on Large, Shallow Gold Find
When we last covered graphite and gold explorer Renascor Resources Ltd [ASX:RNU], it was around the time it had just hit a fresh share price high.
So, today it seems fitting that we again check in with RNU as it once again sets a fresh 52-week high.
The RNU share price gained strong upward momentum last week when it announced it had achieved first stage graphite product qualification with its offtake agreement partner.
Today, the share price has continued to climb on the announcement of a newly identified gold target at its Soyuz prospect in SA.
At time of writing the RNU share price is up 17.65% to trade at 2 cents per share.
Is RNU sitting on a pile of gold?
Back in August last year, RNU announced the results of some intriguing high-grade gold targets at its Carnding Project.
Today it has followed up those results, detailing a recently conducted survey confirmed large, shallow chargeability anomaly at the Soyuz prospect on the project.
RNU said it considers the anomaly, together with the gold zone defined by previous drilling at Soyuz, to be high-priority drill targets for primary gold mineralisation.
Results from previous drilling include:
- 7m at 5.14 grams of gold per tonne (g/t) from 26m, including 2m a 16.42 g/t from 30m
- 6m at 4.94g/t from 14m
Discover why this gold expert is predicting a HUGE spike in Aussie gold stock prices. Download your free report now.
The anomaly is depicted below:
Source: Renascor Resources
The anomalous zone is located approximately 500 meters along strike of previous Soyuz drilling.
With the ever-increasing gold exploration and development activity in the Central Gawler Craton of SA, RNU said it considers Soyuz to offer multiple drill-ready targets for near-surface, high-grade, gold deposits.
RNU to become another self-funded explorer
If you are a regular reader of The Daily Reckoning Australia, you might have noticed that we’ve covered several gold explorers that have developed small operations as a means to generate revenue.
If you weren’t aware, small-cap explorers do not typically generate revenue.
Instead, they rely on capital raisings to keep them funded.
With RNU securing an offtake agreement of 10,000 tonnes per annum of its Purified Spherical Graphite over a 10-year term, the company could be able to self-fund its gold exploration.
On that note, RNU said it has already received all approvals necessary to commence drilling at Soyuz, with a drill rig scheduled to be mobilised to site later this quarter.
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.
For The Daily Reckoning Australia