Why did this ASX gold share just rocket 31%?

What did this gold explorer discover?

Key points
  • This ASX gold share is exploding 30.51% today 
  • The company delivered news of a gold and silver discovery 
  • The materials sector is 1.26% in the red today 

The S&P/ASX 200 Materials Index (ASX: XMJ) is 1.26% in the red today, but one ASX gold share is soaring far higher.

The Peregrine Gold Ltd (ASX: PGD) share price is rising 30.51% today and currently trading at 38.5 cents.

Let's take a look at what could be impacting this ASX gold share today.

Rising gold share price represented by a green arrow on piles of gold block.

Image source: Getty Images

What's happening?

Peregrine is a gold and lithium explorer working on multiple projects in Western Australia.

Investors are buying up Peregrine shares today on the back of news from the company's Newman Gold Project in Western Australia.

Ultra high-grade gold and silver were discovered within the Birdnest Prospect.

Gold grades of up to 122,497 grams per tonne and silver grades of up to 26,234 grams per tonne were returned from sampling of a quartz-ironstone vein exposed by costeans at the prospect.

Further, rock sampling at the Pensinula Prospect returned grades of up to 247 grams per tonne of gold and 63 grams per tonne of silver.

Commenting on the news, Peregrine technical director George Merhi said:

Our work at the Newman Project continues to identify ultra-high-grade gold and silver mineralisation.

This costean programme conducted after the RC drilling has provided valuable information on the orientation of the mineralisation in 2D.

This style of mineralisation now requires precise surgical diamond drilling to resolve continuity in 3D or down plunge. Additional costeans will now also be cut at Peninsula as we prepare for diamond drilling in Q1 23.

Peregrine share price snapshot

The Peregrine Gold share price has risen 4% in the last year.

Peregrine has a market capitalisation of $14.92 million based on the current share price.

Motley Fool contributor Monica O'Shea 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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