Australasian Gold (ASX:A8G) share price explodes 65% on project updates

Shares in the gold exploration company are soaring on the back of two positive project updates.

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A photo of a wet dirty hand picking up a piece of gold amongst black rocks

Image source: Getty Images

The Australasian Gold Ltd (ASX: A8G) share price is soaring today following the release of a project update.

The company announced it has officially struck gold at its May Queen Gold Project. Meanwhile, a date for the beginning of exploration at its Mt Peak Lithium Project has been set.

Right now, the Australasian Gold share price is 43 cents, 65.38% higher than its previous close. Shortly after open, the share price rocketed to a new high of 49 cents but has since pulled back a little.

Let’s take a closer look at today’s news from the gold exploration company.

Today’s news from Australasian Gold

The Australasian Gold share price is surging higher this morning following news about 2 of its projects.

Perhaps the most exciting news is the results of the company’s May Queen Project maiden drilling program.

The drilling program has found evidence of a potential gold-copper porphyry system, with assay results including 6 metres at 1.99 grams of gold per tonne from 35 metres and 1 metre at 9.39 grams of gold per tonne from 68 metres.

Additionally, surface rock chip sampling found up to 2.66 grams of gold per tonne and 3.43% copper at the project.

Australasian Gold will now complete more geophysical surveys to define potential silica enriched areas with possible disseminated sulphides. The survey’s results will help a follow-up reverse circulation drilling program that’s set to begin in the coming months.

The company also announced that it plans to begin exploration at its Mt Peak Lithium Project on Sunday.

Four geologists will begin conducting surface and rock chip sampling after satellite image investigations highlighted areas with pegmatite outcrops within the project.

Australasian Gold share price snapshot

Today’s gains have added to the strong recent performance of the Australasian Gold share price.

Right now, the shares are trading 115% above their Initial Public Offering (IPO) price in May 2021.

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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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