Why this ASX gold share is soaring

ASX gold share Emetals Ltd's share price is surging on strong drilling results at its Twin Hills Gold Project in Western Australia.

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The price of ASX gold share, EMetals Ltd (ASX: EMT), is up 15% in intraday trading and up 43.8% since last Friday 31 July.

The strong share price growth is being driven by the mineral resource exploration company's positive drill results at its Twin Hills Gold Project in the Goldfields of Western Australia (WA).

According to the company's report to the ASX today, EMetals has completed a 250-hole auger drilling program at Twin Hills. EMetals owns 100% of the project. The tenement covers an area of approximately 30 square kilometres.

EMetals reported drilling along almost 2 kilometres of prospective shear zone. It interprets the results to show numerous gold mineralised structures. These form an intersection south of the historical Twin Hills mine, which has recorded historical production of 1,100 tonnes of ore at an average grade of 23.6 grams per tonne.

The ASX gold share, with a current share price of 2.3 cents per share, has a market cap of $9.4 million.

A word from EMetals Director Mathew Walker

Walker is understandably pleased. He stated:

"The Company has decided to accelerate exploration activities at Twin Hills in response to favourable market conditions within the gold sector. Twin Hills is an exciting exploration Project with over 5 kilometres of prospective strike length adjacent to two excised historical high-grade gold mines. We are delighted that the recent auger geochemical program has validated our structural modelling and provided us with multiple ready to drill targets".

Future plans

EMetals is now planning reverse circulation drilling to test the shear intersection target. The company is also expanding its auger drilling to the north, where it has identified multiple potential targets along a 5-kilometre prospective shear zone.

The company notes that, "Gold mineralisation is associated with banded, brittle-ductile shear zones conformable with the north-south trend of the region and contains quartz carbonate veining."

Motley Fool contributor Bernd Struben 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.

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