The Predictive Discovery Ltd (ASX: PDI) share price is screaming higher this morning after the company announced a key gold drilling update.
Shortly after the market open, the Predictive Discovery share price hit 17 cents, which is 21% higher than yesterday's close.
At the timing of writing, the price has settled back to 16 cents, representing a 10.34% gain.
Let's take a closer look at the drilling update.
Image source: Getty Images
What did Predictive Discovery announce?
Predictive announced that its high impact air-core (AC) drill results "returned excellent initial results", following up from a series of "regional gold auger anomalies" near its NE Bankan gold deposit in Guinea's Siguiri Basin.
The company said its extensive AC drilling program is just beginning, with the results of 16 drill holes reported in its announcement.
As a result, Predictive is testing "multiple promising targets" that were identified by previous examinations of the area.
The company says the drill results are further evidence that it is "just at the beginning of the Bankan discovery story".
It anticipates finding a lot more gold across the full project area.
Investors have bought on the news, and are pushing the Predictive Discovery share price higher in early trade.
The greenfields Bankan Project is Predictive's flagship project. It was discovered in April 2020. NE Bankan is the second gold discovery at the site and is just 3km from the first discovery.
What did management say?
Predictive Discovery managing director, Paul Roberts said:
These shallow, high-grade results are a great start to our regional AC program and confirm the potential for discovering new zones of gold mineralisation very close to NE Bankan.
Expanding on the drill results, Roberts added:
Importantly, some of the new AC drill results also suggest that transported material may have been too deep
in places for the auger to drill through it, opening up the possibility that some of the new mineralised zones
reported here may extend significantly along strike in follow-up AC drilling.
Predictive Discovery share price snapshot
Predictive Discovery has been a major ASX performer this year, with its share price rising 166% since 1 January.
Over the past 12 months, the Predictive Discovery share price has gained 128%. This is well ahead of the S&P/ASX 200 index (ASX: XJO) which is up about 24% over the past year.
