Twenty Seven Co’s Share Price on the up as Rover Potential Emerges
Former uranium explorer turned gold and base metals explorer Twenty Seven Co Ltd [ASX:TSC] has watched its share price rise after releasing good results from its Rover project in WA.
The microcap explorer had a turbulent beginning to 2020; however recent results from Rover have begun to bolster the share price.
TSC shares spiked in mid-September when the company announced it would acquire a host of new tenements, including the advanced Mt Dimer gold project to complement Rover.
At time of writing the TSC share price is up 14.29% to trade at 0.8 cents per share.
Gold, fresh from the surface
TSC today release results from the first nine drill-holes from the recently completed 33-hole program at the Harmonic gold prospect at Rover.
- 18m at 1.0 grams of gold per tonne (g/t) from 5m, including 3m at 5.4g/t from 17m
- 17m at 1.0g/t Au from surface, including 3m at 2.1g/t from 2m
- 8m at 1.1g/t Au from surface, including 2m at 2.8g/t from surface
Now, as you can see, these are not particularly high-grade results.
But they’re solid.
What they lack in grading, they make up for in width. And sometimes broad, average-grade intercepts can be better than narrow, high-grade ones.
They are also located close to the surface, which is also highly encouraging.
CEO Ian Warland commented:
‘The initial drilling results are off to a solid start, with shallow broad intercepts of gold intersected at Harmonic. These new drill-holes, which build significantly on earlier work, confirm a continuous broad pervasive mineralised gold zone at Harmonic starts at surface and plunges to the south.’
He’s not wrong either.
Today’s results also complement previous work nicely, just look at some of the past results:
- 10m at 1.8g/t from 44m, including 1m at 9.2g/t from 46m
- 13m at 1.2g/t from 58m, including 1m at 11.8g/t from 59m
- 8m at 1.0g/t from 0m, including 1m at 3.5g/t from 2m
The similarity between the two sets of results could indicate geological continuity.
An opinion also held by TSC who said ‘a continuous zone of gold mineralisation is evident which is hosted within the extensive Illaara shear.’
What’s the true value of Twenty Seven Co’s shares?
If you’re wondering where the TSC share price might be headed, take a look at the figure below.
Source: Twenty Seven Co
The Rover project is situated near some pretty big projects, particularly the Penny gold project to the west.
TSC have only just begun to scratch the surface at Rover.
While results have been positive, in my opinion we are yet to see results that scream ‘company making project’.
Assays for the remaining 24 drill-holes, which include specific tests on the down-plunge component of Harmonic, are expected to be released shortly.
Results to lookout for will be those from the Creasy 1 prospect where previous drilling intersected 15m at 3.8g/t from 49m.
TSC’s share price could also see a boost from prevailing macroeconomic factors, with Australia tipped to soon knock China off the top spot as the undisputed global leader in gold exploration, mining, and production. In our latest report, gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and your Aussie gold stocks. Click here to download the free report.
For The Daily Reckoning Australia