Twenty Seven Co Share Price up 20% on Drilling Approval (ASX:TSC)

Twenty Seven Co Share Price up 20% on Drilling Approval (ASX:TSC)

Micro-cap base metals and gold explorer Twenty Seven Co Ltd [ASX:TSC] has jumped 20% today to 0.6 cents per share upon drilling approval at its Mt Dimer Mining Lease development.

ASX TSC Twenty Seven Co Share Price

Source: TradingView

When we last covered the TSC share price back in October, it looked as though results from its Rover gold project were bolstering the share price.

Unfortunately, like many other Aussie gold stocks, the share price has slipped recently due to renewed confidence in equities markets.

Time to see what’s at Mt Dimer

TSC announced today it has secured approval to commence an extensive drilling campaign at the Mt Dimer Mining Lease to test below and along the strike of the existing open pit.

Drilling will focus on confirming and extending gold mineralisation, targeting priority areas around historical intercepts comprising of:

  • Five metres at 15.4 grams of gold per tonne (g/t)
  • Five metres at 10.64g/t
  • Six metres at 13.3g/t

Twenty Seven Co - Mt Dimer Project

Source: Twenty Seven Co

The Mt Dimer Gold Project, which comprises a mining lease and exploration licence, is located 100 kilometres north-east of Southern Cross.

Twenty Seven Co Gold Projects

Source: Twenty Seven Co

 

The area was last mined in the mid-1990s when the gold price was around AU$500 per ounce.

The open pit produced ~77,000 tonnes at 3.44g/t for roughly 8,500 ounces of gold to a depth of just 50 metres.

No significant production or exploration work has been completed since 1996.

CEO Ian Warland said the company is eager to get to work as soon as possible.

Once logistics and drilling contractors have been selected and signed up, if feasible, we aim to get to work in the early part of the New Year. The core objective with the drilling campaign is to confirm and extend known gold mineralisation at depth and along strike. Leveraging historical and fresh data from the upcoming campaign, we plan to model up a JORC complaint inferred resource over the balance of 2021.’

What kind of size potential are we looking at?

The 8,500 ounces produced from the open pit isn’t a great deal of gold.

However, when we consider the gold price at the time, it might not have been an economically viable project, even with the high grade.

Now that the gold price is nearly five times higher, there appears to be more viability at Mt Dimer.

As for the resource size, in my opinion, we’re not going to see a million-ounce project here.

However, TSC says there’s potential to explore the prospective mafic rocks to the west of the project.

Meaning there is room to expand the resource westwards, or at least locate regional gold targets.

It is also worth being mindful of prevailing macro-economic factors that could impact share prices, with Australia tipped to soon knock China from its 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.

Kind regards, 

Lachlann Tierney,

For The Daily Reckoning Australia