Why the Dacian Gold (ASX:DCN) share price is leaping 9% today

Resource investors are keeping a close eye on drill results.

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The Dacian Gold Ltd (ASX: DCN) share price is leaping higher today, up 9% in early afternoon trade to 25 cents per share.

Gold prices, meanwhile, edged up overnight to US$1,793 per troy ounce.

Below we take a look at the ASX gold explorer's latest drill results that look to be driving investor interest.

What gold results were reported?

The Dacian Gold share price is surging after the company reported promising gold drilling results at the Heffernans and Ganymede open pits at its Mt Morgans Gold Operation, located in Western Australia.

According to this morning's release, the drill campaign intersected mineralisation at depth in the Jupiter syenite intrusive system, "at the limit of, and below the Mineral Resource estimate".

Dacian reported that drilling beneath its Heffernans open pit intersected 102.9 meters at 1.4 grams of gold per tonne from 436.3 metres, including 14.7m at 7.2g/t from 468 metres.

Meanwhile, drilling below its Ganymede open pit intersected 44.5m @ 1.1g/t from 247.1m, including:

  • 3m @ 1.4g/t Au from 247.1m
  • 2m @ 1.0g/t Au from 269.5m

Commenting on the results, Dacian's managing director Leigh Junk said:

These results demonstrate extensions to mineralisation below our active mining areas which can have high-grade and significant width. The Jupiter complex represents a compelling exploration target, and the potential to extend our current operations located adjacent to our processing plant is extremely exciting. This success follows a disciplined, systematic approach by our exploration team.

The first 4 holes of the drill program at Heffernans and Ganymede are now completed. And Dacian reported it has a follow up drilling program already underway at Heffernans, with 7 more holes planned to test extensions of the intersection.

Dacian Gold share price snapshot

The Dacian Gold share price has struggled this year, down 48% so far in 2021. By comparison the All Ordinaries Index (ASX: XAO) is up 12% year-to-date.

Over the past month, Dacian Gold's shares have gained 14%.

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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