Sabre Resources Share Price Up as Drilling Begins (ASX:SBR)
The share price of microcap mineral explorer Sabre Resources Ltd [ASX:SBR] has jumped up on the announcement the explorer has begun drilling at the Bonanza Gold Project in WA.
The junior explorer’s primary focus is the exploration and development of the Otavi Mountain Land Base Metals project in northern Namibia.
However, news over the past few months has centred around the Bonanza Gold Project.
SBR shares hit a 52-week high in early September however, this spike was not in response to price sensitive news.
Since then the share price has been depressed, only rebounding at the beginning of November.
At time of writing the SBR share price is up 22.22% to trade at 1.1 cents per share.
Potential for Bonanza gold?
SBR holds a 100% interest in the Bonanza Gold Project located in the Youanmi Gold Mining District, in Western Australia.
The project is situated adjacent to the recently discovered Penny West Gold Project, owned by Ramelius Resources Ltd [ASX:RMS].
The district has gained rapid investor attention with several companies including Rox Resources Ltd [ASX:RXL] and Venus Metals Corp Ltd [ASX:VMC] reporting significant exploration success on gold projects located in the same area.
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Source: Sabre Resources
So, at the very least, the explorer is situated within some well-endowed geology.
The drilling program is comprised of at least 50 holes, for approximately 1,500 metres, and will test high-priority targets generated by the airborne magnetic survey completed by SBR in August.
Some of the priority targets are the north east trending faults, which extend right through to the recent Penny West gold discovery area of RMS.
The company said it was encouraged by the recent discovery of the Grace Prospect at Younami by ROX.
High-grade gold mineralisation at Grace was intersected close to the granite-greenstone contact on fault splays related to the Youanmi Fault.
The Bonanza Gold Project covers a faulted granite-greenstone contact 800 metres from the Penny West Mine and interpreted splays off the Youanmi Fault.
When do we see results?
SBR did not give a specific time frame as to when we can expect the first round of drill results.
However, considering drilling is underway, we could see results within the month or early in the next month providing everything goes to plan.
In the meantime, be sure to read up about the future of gold in Australia.
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For The Daily Reckoning Australia