The Lefroy (ASX:LEX) share price rose by 237% today. Here’s Why

The Lefroy share price gained an astounding 237% today as the company reported drill results. We take a closer look.

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The Lefroy Exploration Ltd (ASX: LEX) share price went gangbusters today as the company released outstanding mining results. Shares in the small-cap miner are currently trading a whopping 236.59% higher on the news.

This means the Leroy share price is currently sitting at a price of 69 cents. However, it did break its record high as it touched 90 cents earlier in the day.

What does Lefroy do?

Lefroy is a Perth based miner that is focused on greenfields exploration in Western Australia. Greenfields exploration simply means that the company relies on the predictive power of models to find deposits in previously unexplored areas.

The company’s flagship product is the Lefroy gold project near Kalgoorlie. It is aiming to target “multi-million-ounce gold discoveries”.

What happened?

Today, shares in Lefroy are soaring as the company announced high-grade copper and gold mineralisation results at Burns.

Results were received for an initial ten holes in the program totalling 4026m at the Burns Au-Cu prospect. A single traverse, containing two holes intersected particularly remarkable results. Consequently, the results contained:

  • 60m at 5.22g/t Au and 0.38% Cu from 112m down-hole to end of the hole, including:
    • 20m at 12.2g/t Au, 0.87% Cu and 1.7g/t Ag from 144m
Promisingly, the thick high-grade gold intersection, combined with the previously reported native copper offers the possibility of a larger primary intrusion. On this front, the company is planning to follow up diamond drilling to validate and expand the findings.

Management comments

Chairman, Gordon Galt, welcomed the news saying:

The intersection in LEFR260 is outstanding by any measure and is quite exciting. LEX will follow up as soon as possible. We will need to look north, south, east and deeper from this discovery hole to establish the structure/s which have delivered this intersection. The next phase of drilling is being scheduled now and will include immediate diamond drilling to extend and support the mineralisation discovered in LEFR260.

About the Lefroy share price

Lefroy is still awaiting the results for the remaining 12 RC holes. In addition, the core from the diamond drill tails has recently been processed and despatched to the laboratory. Final results expected in late March.
 
The Lefroy share price has surged higher on the news, gaining an astounding 237%.

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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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