Why the Metal Bank Ltd Share Price is Up Over 57% Today (ASX:MBK)
Shares for Metal Bank Ltd [ASX:MBK] are up 57.14% today (at time of writing). The MBK share price increased from $0.007 yesterday to $0.011.
Metal Bank is an Australian diversified mineral exploration company. Their goal is to create value by combining exploration success together with purchasing quality projects.
Metal Bank has three gold projects in eastern Australia: Triumph, Eidsvold, and 8 mile — all located in the northern New England Ford Belt of central Queensland.
You can see their location in the image below:
Source: Metal Bank
Why is the MBK share price up today?
The company revealed they’ve defined a significant gold target at their Eidsvold project, The Great Eastern Target. Eidsvold is 100% owned by MBK.
As the company announced:
‘MBK has modelled a 7 km² alteration system interpreted as a very large IRG [intrusion related gold] system beneath surface geochemical anomalies at the Great Eastern Target, overlain by 50 – 100 m of sediment.’
Source: Metal Bank
MBK conducted a scout drilling to the southwest of the historical Eidsvold goldfield and at Mt Brady historical workings, which yielded the following results: up to 1m at 17.4 grams per tonne gold.
MBK’s Executive Chair Inés Scotland said:
‘We are excited to have defined a significant untested intrusion related gold target in Queensland. The scale of the target places it at a similar size to many other multi-million ounce gold deposits in the region. The Great Eastern Target is now a genuine drill ready opportunity within a highly prospective area as attested to by the nearby presence of a 100,000 oz Au historical goldfield.’
What could happen next for Metal Bank?
The company has started designing a 1500m drilling program in the area of the Great Eastern Target.
They are also looking at the possibility of a joint venture in Eidsvold to fast track this drilling program.
While Metal Bank shares have increased over 57% today, there’s the concern that the company has no profits and the doubt of if it has enough cash.
Investing in gold explorers is one way to invest in gold, but it’s hard to pick the winners and losers.
Lucky for us, there are easier ways to get exposure to the shiny metal.
The Daily Reckoning Australia’s editor Shae Russell has prepared a step-by-step guide titled ‘Best Way to Buy, Sell and Store Gold’.
To read this FREE report, click here.
For The Daily Reckoning Australia