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

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

| More on:
Female miner uses mobile phone at mine site

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Gold

rising gold share price represented by a green arrow on piles of gold block

Why is this ASX 200 gold stock smashing the benchmark again today?

Investors are sending the ASX 200 gold stock flying higher on Thursday. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.

Have you heard of this ASX gold stock? It's up 114% in 8 days!

Investors have sent the ASX gold stock flying higher in July. But why?

Read more »

a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources

ASX gold shares race higher after gold price hits record high

These shares are glittering like gold on Wednesday. Here's why.

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price

Goldman Sachs says this ASX gold stock is a buy

Here's what the broker is saying about this gold miner.

Read more »

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.

Big ASX news: Newmont shares hit new record high

If you own Newmont stock, you're in for a treat today.

Read more »

A woman blowing gold glitter out of her hands with a joyous smile on her face.

Why is this ASX gold share racing 14% higher today?

This gold stock is glittering on Thursday. But why?

Read more »

rising gold share price represented by a green arrow on piles of gold block

This ASX 200 gold stock was just tipped for 22% gains

The ASX 200 gold stock is poised to outshine the market, according to this leading broker.

Read more »

Woman holding gold bar and cheering.

Meet the ASX gold stock that could double in value

Bell Potter thinks big returns could be on the cards for buyers of this gold miner.

Read more »