Doray up on Andy Well find

Gold producer Doray Minerals was up more than 26 per cent today after confirming high grade gold results at its Andy Well mine, saying it confirmed the potential of extensions to the mine’s life.

It follows an 11 per cent increase yesterday on the back of positive drilling results at its Horse Well joint venture with Alloy Resources.

The company said the most recent discovery was the third high-grade deposit at Andy Well, located 45 kilometres north of Meekatharra, located parallel to the Wilber Lode.

Doray will now proceed to an evaluation of open pit mining at the location, intending to then commence a regulatory approvals process.

The company also plans to commence mining at stage 2 of Wilber next month.

Managing director Allan Kelly said it was a significant find, with other structures at the mine potentially extending deeper.

It comes as the state’s gold miners are facing pressure from falling grades, rising costs and lower global gold prices.

Relief has come in recent weeks, however, thanks to the depreciation of the Australian dollar.

Doray closed at 38.5 cents per share, well down from its July peak of more than 80 cents.