Dateline Resources (ASX:DTR) share price rockets 38%. Here's why

Small ASX mining shares are inherently risky. But Dateline shareholders were smiling today.

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Article correction: An earlier version of this article stated that the Dateline Resources share price movement was 4,066%. This figure was supplied by third-party data providers. The Dateline share price has now been corrected throughout the body of this article and the article title to reflect the share price change as provided by the ASX. 

The Dateline Resources Ltd (ASX: DTR) share price rocketed 38% higher today.

Below we take a look at what drove investor interest in the ASX gold explorer.

What did Dateline Resources report this morning?

Dateline Resources' share price is rocketing after the company reported promising interim results from its geological review of historic exploration data at its recently acquired Colosseum Gold Mine Project. Dateline announced its acquisition of Colosseum, located in the US state of California, in March this year.

According to the release, Colosseum produced around 344,000 ounces of gold between 1988 and 1993 from two open pits. Back then an ounce of gold was trading for US$350 per ounce, compared to today's US$1,907 per ounce. The site has not been explored in 25 years.

In the 1980s, BP Minerals defined a combined resource of 1.1 million ounces of gold down to an average depth of 850 feet (260 metres) below the surface, at 0.5 gram per tonne cut-off grade.

Dateline reports that gold is hosted in two "well defined and steeply dipping breccia pipes", both measuring around 800 feet by 400 feet. It said that data from BP Minerals confirms both breccia pipes continue for another 1,750 feet below the defined resource shell.

Along with detailed satellite imagery, the company said it has received more than 140 boxes of information on Colosseum from Barrick yet to be reviewed and digitised.

Commenting on the historical data, Dateline Resources Managing Director, Stephen Baghdadi said:

Based on the records, less than 400,000 ounces of gold was mined from a 1.1 million ounce resource which was drilled out by BP Minerals. The BP Minerals resource is defined down to 800ft in the East pipe and 900ft in the west pipe for an average of 850 feet.

We now know 2 deep diamond core holes were put down in 1972 in search of molybdenum. Both deep holes confirmed that the breccia pipes are still present at 2,600 feet below the surface, which is an average of 1,750ft below the bottom of the BP Minerals defined resource shell. This increases our confidence in the upside potential of the project.

Dateline Resources said it is continuing to digitise the historical data and will provide additional updates on its 2021 field program plans.

Dateline Resources share price snapshot

Dateline Resources shares have been all over the map this past year, with a 52-week share price range of 2.5 cents to 18 cents. The Dateline Resources share price is currently up 120% over 12 months.

By comparison the All Ordinaries Index (ASX: XAO) is up 24% in that same time.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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