Carnaby (ASX:CNB) share price strikes gold and shoots 14% higher

The Carnaby Resources Ltd (ASX: CNB) share price is shooting higher today after the company announced positive test results at its Shelley gold project.

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The Carnaby Resources Ltd (ASX: CNB) share price is shooting higher today after the company provided an update on its Strelley gold project

Carnaby shares lifted by as much as 14% to 36.5 cents per share before dropping back slightly. At the time of writing, the Carnaby share price is sitting at 35 cents, up 9.38% on yesterday’s close.

Carnaby is an Australia-based mineral exploration company, engaged in acquiring, exploring, and developing gold and other mineral deposits. 

Carnaby’s high-grade gold finding

Carnaby’s market update today reported that intrusive-hosted gold mineralisation was intersected for the first time at its Strelley gold project, highlighting the potential for “Hemi style” gold mineralisation within Carnaby’s large 442 square kilometre tenure.

Hemi refers to a highly lucrative gold mine operated by De Grey Mining (ASX: DEG) in the region.

The Strelley project is 100% owned by Carnaby and located in the Pilbara region of Western Australia.

The company also noted that its recently discovered intrusion within the Bastion Prospect remains “completely open and untested” to the north for two kilometres. 

One of the company’s drill holes, the Bastion Prospect diamond drill hole, intersected a “broad mineralised intrusion”. The company report the following assays: 19 metres at 0.3 g/t gold from 136 metres deep, including six metres at 0.6 g/t gold from 149 metres and 0.6 metres at 3.2 g/t gold from 153.4 metres deep.

Carnaby management comments

Carnaby’s managing director Rob Watkins commented on the results:

Hitting potentially “Hemi Style” intrusion hosted gold mineralisation at the Bastion Prospect in the first ever diamond drill holes drilled at Strelley is highly significant and has materially increased the potential of the entire region. We look forward to receiving additional results over the coming weeks and following up with a concerted RC [reverse circulation] drilling program soon.

Carnaby share price snapshot

The Carnaby share price has now risen 45% the past month and 400% over the past 12 months, but has lost more than 7% on two separate days over the past week.

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Motley Fool contributor Lucas Radbourne-Pugh 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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