The Alkane Resources Limited (ASX: ALK) share price exploded today following a drilling update.
Just before the market close, shares in the company were trading at 97 cents a pop, up 23.72% on yesterday's closing price of 78 cents.
Alkane Resources is a gold explorer and producer that operates multiple mining sites in New South Wales.
Why are Alkane shares on the move?
Alkane Resources told ASX investors it has intersected high-grade gold and copper mineralisation at the company's Boda prospect.
Boda is located within Alkane Resource's Northern Porphyry Project in central west NSW. The company believes this expedition could become a large tier 1 gold-copper project.
Alkane Resources said the gold mineralisation stretched over 3km in between exploration sites known as Boda Three and Kaiser.
Meanwhile, high levels of gold and copper mineralisation were also identified at other sites known as the Boda Two, Boda Three and the Korridor Prospect.
The company plans to drill more holes to test the overall gold and copper mineralisation at the exploration sites.
Alkane Resources also produces gold at its Tomingley Gold Operations. This mine exceeded expectations in the 2021 financial year.
Management commentary
Commenting on the drilling update, Alkane Resources managing director Nic Earner said:
These drill results show the extension of the highgrade system to the north west of Boda.
With the gold-copper mineralisation at Korridor appearing to connect Kaiser to Boda, we're looking at a system over 3km in length.
We look forward to bringing shareholders more results as well as our initial resource model in the coming quarter.
Alkane Resources share price snapshot
The Alkane Resources share price is down 1.53% over the past 12 months but up 6% in the past month.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 9% to investors in the past year.
