Junior explorers soar on drilling results
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Shares in junior mining explorers Draig Resources and St George Mining have nearly doubled today after both companies announced positive drilling results.
St George intersected 17 metres of nickel-copper sulphide at its Mt Alexander project and registered a 73 per cent rise in its share price, finishing the day at 22 cents.
St George executive chairman John Prineas said the results indicated a strong possibility of mining at Mt Alexander.
“The results in MAD71 are outstanding with thick widths of high grade mineralisation at shallow depths,” he said
“This is very favourable for the economics of a potential mining operation at Mt Alexander.
“We have already established recurrent high grade mineralisation over a 3.5-kilometre strike length in the Cathedrals Belt.
“Now, with the exceptional intersection in MAD71, the confidence in the resource potential at Mt Alexander continues to build.”
Meanwhile, Draig Resources announced the discovery of gold at its Bellevue project, located north-west of Leinster.
The results showed an intersection of five metres at 37.5 grams per tonne from 92 metres downhole.
There was also a step out hole 80m to the south which intersected visible gold from 18m down hole.
The news sent the junior gold miner's share price up 75 per cent to 21 cents.
Draig executive director Steve Parsons said it was a positive drilling result.
“The technical team at Draig Resources are highly excited by this result which has intersected extremely high grade Bellevue Lode style mineralisation to the west of the Highway Fault within a high priority area we are calling the ‘Western Mineralised Corridor’,” he said.
“This drill result has demonstrated the potential for Bellevue style ore ‘shoots’ on the adjacent parallel Tribune Lode structure within the ‘Western Mineralised Structure’ and validated the exploration team’s belief that the potential for repeat and offset structures capable of hosting a significant orebody similar in size and grade of the historic Bellevue mine is very high.”