The Newcrest (ASX:NCM) share price nudges up after exploration update

The miner has released an update on drilling exploration at two potential growth gold projects.

| More on:
Monadelphous share price rio tintoA happy miner in front of a massive drilling rig, indicating a share price lift for ASX mining companies

Image source: Getty Images

The Newcrest Mining Ltd (ASX: NCM) share price is lifting slightly today after the company announced an exploration update for its two potential growth projects.

The Newcrest share price is trading at $27.64 at the time of writing, up 0.51%.

What did Newcrest Mining announce?

The miner announced an exploration update for its Red Chris and Havieron projects. Both projects are currently undergoing drilling exercises with pre-feasibility studies on the horizon.

Newcrest is carrying out growth drilling at Red Chris to define additional inferred mineral resources. The key target and resource areas include the Main Zone, East Zone and East Ridge.

Today’s announcement advised that drilling activities have continued to expand the higher grade mineralisation intersected at East Ridge and the Main Zone.

Newcrest CEO Sandeep Biswas commented:

We are also excited by our continued exploration success at Red Chris, with drill results from East Ridge and Main Zone expanding the footprint of the higher grade mineralisation.

East Ridge is our new discovery that is located outside of our initial Red Chris Mineral Resource estimate with drill results to date supporting the potential for resource growth at Red Chris over time.

Drill results in the Main Zone have confirmed the potential for higher grade mineralisation which could support additional mining fronts beneath and to the south west of the open pit.

Havieron is another growth prospect within Newcrest’s gold mining portfolio. The company previously completed infill drilling activities, increasing its confidence in the continuity of high grade gold mineralisation. A growth drilling program is currently underway, focused on expand existing resource estimates.

Newcrest highlighted that “growth drilling continues to return significant high grade extensions to the South East Crescent zone”. With management saying that:

Our extensive growth drilling program has delivered several new exciting high grade intercepts at Havieron, including 85m @ 11g/t Au and 0.29% Cu.

These results highlight the potential for significant high grade depth extension of the South East Crescent zone.

Newcrest Mining share price snapshot

The Newcrest Mining share price is up 2.15% year-to-date, broadly coinciding with the flat year-to-date performance of gold prices.

Newcrest Mining shares have struggled to find headway ever since gold prices topped out at US$2,075 in August last year. During this time, Newcrest shares soared to near record highs of $38.15.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley FoolĀ contributorĀ Kerry Sun 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.

More on Resources Shares