ASX gold share Peregrine explodes 60% on 'spectacular' new find

Gold shares are in the money on Friday.

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Key points
  • Peregrine Gold has intersected mineralisation at its Peninsula prospect
  • The share has rocketed more than 60% into the green following the update
  • This brings gains to more than 58% for the past 12 months for Peregrine

The Peregrine Gold Ltd (ASX: PGD) share price has jumped nearly 62% into the green on Friday after coming out of a trading halt from 1 August.

Peregrine advised it had intersected mineral resource after drilling at its Peninsula Prospect, part of the Newman project in WA.

The announcement has caught buyers today and volume has surged to 260 times the 4-week trading average at more than 760,000 shares.

Happy miner giving ok sign in front of a mine.

Image source: Getty Images

What did Peregrine announce?

The company announced that a significant amount of visible gold has been identified in a drill core after dilling within a quartz-ironstone breccia vein at the Peninsula Prospect.

It identified visible gold at the surface level and then used a hand-held core drill to drill two vertical holes adjacent to and beneath the visible resource.

Peregrine technical dDirector, George Merhi said that it is "very rare" for a first-time field exploration program to strike this kind of mineralisation "undisturbed at the surface".

In addition to being a very impressive demonstration of the high-grade potential of this system it also highlights just how underexplored the area is.

Peninsula and the other Newman prospects due to be drilled have been uncovered as a result of systematic exploration over a small portion of our overall project area. In 2022 we have expanded this effort and look forward to updating the market on potentially new discoveries in this exciting district.

From here, the company is set to commence reverse circulation (RC) drilling on 15 August. Efforts will be focused on the Peninsula prospect and those adjacent prospects to the site.

In the past 12 months, the Peregrine share price has gained 58% as well as 45% this YTD.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. 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 Scott Phillips.

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