Here’s why the Predictive Discovery (ASX:PDI) share price is rocketing 52% higher

Small-cap mining shares can see a huge lift on promising exploration results.

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The Predictive Discovery Ltd (ASX: PDI) share price is rocketing higher in early afternoon trade, up 52%.

Below, we take a look at the ASX gold share’s latest exploration announcement.

What new results did the gold explorer report?

Predictive Discovery’s share price is soaring after the company reported promising new gold results at its Bankan Project, in Guinea.

Four diamond drill holes – totalling 1,033 metres – intersected “high to bonanza gold grades over broad widths”. The ASX gold explorer said that both gold grade and consistency increased with depth.

Among the top results:

  • 7m @ 11.7g/t Au from 301m, including:
    • 0m @ 31.9g/t Au from 313m (including 7.0m @ 50.3g/t Au)
  • 6m @ 5.7g/t Au from 237m, including:
    • 40m @ 7.3g/t Au from 239m

Commenting on the latest results, Predictive Discovery’s managing director, Paul Roberts said:

Following up our recent, previous best-ever intercept of 44 metres at 8g/t Au with a significantly broader and higher-grade gold intercept 100 metres to its north is simply remarkable… [W]e can see a clear progression of both increasing grade and grade consistency as we drill deeper.

Roberts said the latest results give the company “a high-grade gold zone which is 100-200 metres long, extends down-dip for over 250 metres and, very promisingly, is open at depth”.

He added:

Our immediate task is to define the new high-grade zone by infill and extension drilling. To this end, the multi-purpose drill rig currently on site will be focused on further defining and extending this zone over the next few months.

Predictive Discovery said it’s working with a Senegal-based drill contractor to get its truck mounted air core rig on to the Bankan Project for the rainy season. That rig will test the newly defined gold targets.

Predictive Discovery share price snapshot

Predictive Discovery’s share price is up 82% over the past 12 months. By comparison the All Ordinaries Index (ASX: XAO) has gained 24% over that same time.

Year-to-date, the Predictive Discovery share price has been on a tear, up 142% with today’s intraday gains factored in.

Should you invest $1,000 in Predictive Discovery right now?

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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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