The Pantoro Ltd (ASX: PNR) share price soared 17.39% higher today to close trade at 27 cents per share. This positive share price action came after Pantoro announced this morning that it had encountered high grade mineralisation in its maiden drilling campaign at the Sailfish prospect on Lake Cowan.
What does Pantoro do?
Pantoro is an Australian gold producer. The company's Halls Creek gold project in the Kimberley region of Western Australia is its key operational focus. The project provides Pantoro with a platform for growth through the operation of its first producing gold asset and includes underground and open pit mines, and a modern processing facility.
Why did the Pantoro share price storm higher today?
Pantoro announced very high grade mineralisation was encountered in its maiden drilling campaign on Lake Cowan. These finds demonstrated the sheer potential of the site, with the potential for more high grade finds in the future. Some of the key highlights were as follows:
- Drilling returned 8.1 m @ 67.29 g/t Au from 78.6 m down hole
- The intersection included 0.7 m @ 521 g/t and 0.25 m @ 252g/t Au.
- Other significant intercepts include 1.8 m @ 4.25 g/t Au, and 3.5 m @ 2.56g/t Au.
- Confirms historical intersection of 1.5 m @ 461.47 gt/Au, drilled by Western Mining in 1992
Commenting on the results, Pantoro managing director Paul Cmrlec said: "These results from our initial eight diamond drillhole program at the Sailfish prospect on Lake Cowan highlights the immense exploration potential of the project, and in particular the likely presence of further very high grade mineralisation that Norseman has been known for over many decades."
What now for the Pantoro share price
Whilst the discoveries are excellent news, the company advises the exploration is in very early stages and so it is too early to speculate what the results may mean in the context of the broader project. Nonetheless, the results are definitely a positive for Pantoro.
Pantoro has seen a strong resurgence in its share price this year, climbing almost 280% since its lows in March. The Pantoro share price is up 63% since this time last year, and the company's market capitalisation is currently sitting around the $270 million mark.