The Dacian Gold Ltd (ASX: DCN) share price has surged as high as 7% this morning after a strong drilling update and higher gold prices boosted the gold miner’s shares. The share price has since retreated slightly to be trading for $1.00 per share at the time of writing.
What did Dacian Gold announce this morning?
Dacian reported yet another strong drilling update, which confirms it has made a high-grade discovery below the historic Morgans North open pit at its Mount Morgans gold operation near Laverton in Western Australia.
The Morgans North open pit mine lies approximately 500 metres north of the operating Westralia underground gold mine, one of the two principal operating centres at Mt Morgans.
Dacian said that the new discovery is interpreted to be hosted by a previously unrecognised banded-iron-formation (BIF) unit that lies in the footwall of the BIF units that were mined as part of the historic (1990s) Morgans North open pit.
The results continue to confirm the potential for significant increases in mineral resources and mine life with Dacian accelerating activities to complete a maiden mineral resource for this new discovery by the end of the September quarter.
Dacian reported that its infill diamond drilling has returned significant intersections, with strong levels of gold detected from various depths at the site.
The company also said that high-grade mineralisation is now confirmed over a strike length of 300 metres with Dacian targeting a maiden mineral resource estimate for the new discover this quarter.
What’s happening to gold prices?
Global gold prices have been on the rise recently with Friday’s announcement that US President Donald Trump is introducing further tariffs on China, driving gold prices higher still.
Despite a US Bureau of Labor Statistics showing strong US employment data and wage growth, gold prices held their recent highs following the tariff news.
The news saw several of the ASX gold mining share prices surge higher on Friday, with Saracen Mineral Holdings Ltd (ASX: SAR) and Resolute Mining Group Ltd (ASX: RSG) climbing more than 10% to close out the week.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.