Why did this ASX All Ords gold share just surge 11%?

Gold stocks can shine bright even when the price of gold is languishing.

| More on:
a woman in a business suit holds a large solid gold bar in both hands with a superimposed image of a gagged gold line tracking upwards and featuring a swooping curved arrow pointing upwards.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Predictive Discovery share price leaps 11% 
  • The All Ords gold share reported impressive gold hits at its Guinea based project 
  • The miner says it’s tapped into the largest gold discovery in West Africa in more than a decade 

The All Ordinaries Index (ASX: XAO) is enjoying a solid day, up 0.6% in afternoon trading.

But this All Ords gold share is leaving those gains in the dust.

The Predictive Discovery Ltd (ASX: PDI) share price is up 10.5% to 21 cents per share.

At that price, the All Ords gold share has a market cap of $359 million.

Here's what's piquing ASX investor interest today.

What are ASX investors considering?

Predictive Discovery shares are soaring after the company announced another round of "impressive gold hits".

The results come from continuing resource drilling at its Bankan Gold Project, located in Guinea.

The All Ords gold share reported that it had completed eight new infill and resource expansion diamond drill holes totalling 4,064 metres of the NE Bankan Gold Deposit.

Among the top results, one diamond drill hole returned 43 metres at 4.88 grams of gold per tonne from 304 metres, including 20m at 7.54g/t Au from 326 metres, including 4m at 16.53g/t Au from 342 metres.

Predictive Discovery also reported on the results of 73 reverse circulation (RC) drill holes, with one returning 12m at 1.08/t Au from 7 metres.

Commenting on the drill results sending the All Ords gold share rocketing today, Predictive Discovery managing director Andrew Pardey said:

Predictive's next phase of drilling, which is focused on further defining the quality and extending the fast-growth resource of the NE Bankan gold deposit, continues to prove up the significance of what is the largest gold discovery in West Africa for over a decade.

As we continue to drill out our assets and move towards the development phase of the project, we are also highly encouraged by the consistency and quality of the resource through our initial grade control drilling at NE Bankan.

Bankan currently has an inferred Resource of 79.5 million tonnes at 1.63g/t Au for 4.2 million ounces of gold.

The gold miner reported it has ten rigs continuing Resource expansion and infill drilling at NE Bankan, Bankan Creek and near-mine exploration programs.

How has this All Ords gold share been tracking?

Although the Predictive Discovery share price is down 24% in 2022, the All Ords gold share remains up 46% over the past 12 months. That compares to a full-year loss of 7% posted by the All Ordinaries.

Comparing apples to apples, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has lost 20% over the past 12 months.

Motley Fool contributor Bernd Struben 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.

More on Gold

A man slumps crankily over his morning coffee as it pours with rain outside.
Gold

Why is this ASX gold share crashing 22% today?

Let's find out why this gold miner is down in the dumps on Tuesday.

Read more »

Gold bars with a share price chart in the background.
Gold

Why ASX 200 gold stocks look 'undervalued' heading into 2025

The ASX Gold Index is up 37% in a year, but gold stocks are still looking undervalued.

Read more »

A mining executive from Red Dirt Metals chats on her mobile phone looking pleased with a mining site and mining truck in the background
Gold

Which soaring ASX gold share now has $200 million more financial firepower?

Funds will be used to expand operations.

Read more »

A woman blowing gold glitter out of her hands with a joyous smile on her face.
Gold

Hitting new record highs again today, should I buy gold as an investment?

Investors who bought gold a year ago have realised gains of more than 39%.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Gold

2 ASX 200 gold stocks making big news today

The ASX 200 gold miners released some important updates today.

Read more »

Gold bars on top of gold coins.
Gold

Is the ASX gold rush expected to keep enriching investors?

Are the golden days behind us for precious metals miners?

Read more »

plummeting gold share price
Share Fallers

Why this top ASX gold share is tumbling 11% today

The shine is off one of the market's largest gold miners.

Read more »

A group of young friends are supposed to be having a rooftop party but the lights have dimmed, the energy is low, and it's a bit of a downer.
Gold

Newmont share price slides 7% as Q3 update disappoints

No glitter for the gold miner on Thursday morning.

Read more »