The Predictive Discovery Ltd (ASX: PDI) share price has struck proverbial gold. At the time of writing, shares in the gold miner are trading for 14.7 cents per share – up 8.89%.
The positive price rise comes after the company announced the discovery of a "high-grade" gold zone at one of its mines.
Let's take a closer look at today's news.
Predictive Discovery share price rises on latest announcement
In a statement to the ASX, Predictive Discovery released the results from 3 drill holes at its Bankan Gold Project in Guinea.
Highlights of these results included:
- a 26m wide ore with 7 grams of gold per tonne.
- a 17m wide ore with 5.9 grams of gold per tonne.
- a 38m wide ore at 3.6 grams of gold per tonne.
According to the company, "reinterpretation" of earlier holes and ongoing drilling in new holes have been recognised as high-grade gold deposits. The north-east zone of Bankan "continues to shape up" as a large gold deposit, according to the company. Average grades exceed 5 grams per tonne.
Going forward, 2 more drill sites are due to announce results as well extending the strike length of existing drill sites.
The Mineral Resource Estimate (MRE) process for NE Bankan and Bankan Creek is well underway and the MRE is expected to be released in late September 2021.
Management commentary
Predictive Discovery Managing Director, Paul Roberts, said
These exciting new results confirm that the NE Bankan central high-grade gold zone is persisting to 400 metres vertical depth over a strike length of more than 100m and has obvious potential to grow further both to the south and at depth.
Gold commodity price
While the price of gold is down 5.46% since the beginning of the year (US $1,794 per troy ounce as of writing), it's down an even larger 7.67% over the last 12 months.
The website Trading Economics is forecasting the price of gold to fall to about US $1,765 per troy ounce by the end of the quarter and to about US $1,700 per troy ounce in 52-weeks' time.
Predictive Discovery share price snapshot
Over the past 12 months, the Predictive Discovery share price has increased 110%. Year-to-date it is up an even greater 145%. This is despite the falling gold price.
Predictive Discovery has a market capitalisation of about $200 million.
