Why ASX gold explorer Magnetic Resources (ASX:MAU) shares are lifting

The gold price is up 13% since the end of March. Got gold?

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The Magnetic Resources NL (ASX: MAU) share price is rising this morning. At the time of writing, the ASX gold explorer's shares trading for $1.52, up 1.33%.   

Below we take a look at the company's latest drilling results.

ASX gold share defines new range of targets

Magnetic Resources shares are gaining in morning trade. This comes after the ASX gold explorer reported it had defined multiple new gold targets at its Lady Julie project in Western Australia. The new targets are located across 9 areas totalling 14 kilometres.

The company combined its own recent 2D seismic survey with historical drilling data and results from its recent major drill campaigns to define the new targets. Areas that were not previously tested returned "new significant intersections".

It also reported the best-looking target as the 3-kilometre long HN9 mineralisation. Other potentially juicy targets are the 3.4 kilometre long Lady Julie North and 1.5 kilometre long Lady Julie Central.

At Lady Julie North, Magnetic Resources reported intersections including 18 metres at 2.1grams/tonne gold from 32 metres and 13 metres at 1.37g/t Au from 3 metres.

The ASX gold explorer said numerous untested areas remain. Magnetic Resources has also planned additional drilling at an area labelled Lady Julie North 2.

According to the release, the results represent completed assays from 55% of the total metres drilled in the exploration program. Another 117 reverse circulation (RC) drill holes have assays pending.

A new rig has already started on the site. Additionally, Magnetic Resources also plans to drill 79 holes for 7,844 metres to test and extend all 9 of the identified targets "with the aim of ultimately converting to an Indicated Resource".

With the gold price rising strongly over the past month, ASX gold explorers are getting near historic highs for any of the yellow metal they do uncover. One ounce of gold is currently worth US$1,908 (AU$2,478) per ounce. As recently as 30 March gold was down at US$1,685 per ounce.

Magnetic Resources share price snapshot

Magnetic Resources shares have gained 27% over the past 12 months, edging ahead of the 24% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the ASX gold explorer's share price is up 30%.

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. 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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