Guess which ASX mining stock is rocketing 15% on a new gold discovery

This miner is catching the eye on Wednesday with a strong gain.

| More on:
A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today

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

St Barbara Ltd (ASX: SBM) shares are rising strongly again on Wednesday.

In morning trade, the ASX gold mining stock is up 15% to 26.5 cents.

This means that its shares are now up approximately 40% since this time last week.

Why is this ASX mining stock jumping again?

Hot on the heels of a solid production update at the end of last week, St Barbara has given its shareholders another reason to smile today with the release of a promising drilling update.

According to the release, all assay results have now been returned for the resource definition drilling of the Sorowar – Pigiput Trend portion of the 24 hole, 4,700 metre diamond drill program at the Simberi Operations in Papua New Guinea (PNG).

This means that assays results have now been received for all 15 of the resource definition diamond drill holes that will be incorporated in the upcoming mineral resource and ore reserve update in the fourth quarter.

Promisingly, the company highlights that exploration hole SDH542 intersected mineralisation between 80m and 165m similar to that observed in holes SDH525, 533 and 534, that all returned significant intercepts.

The ASX mining stock's managing director and CEO, Andrew Strelein, also highlights encouraging results from hole SDH531. He said:

Hole SDH531 included 56 metres at 2.9 g/t Au from just 103 metres including 28 metres at 4.7 g/t Au. It is another broad intercept in the new mineralisation zone between Sorowar and Pigiput pits, but outside any current Mineral Resource.

Hole SDH533, located in the valley and the southeasternmost of the holes drilled so far, has only recently been accessible for drilling after oxide mining progress in Sorowar pit and included 45 metres at 2.2 g/t Au from surface.

'Very encouraged'

Strelein also notes that with the gold price at record levels, new areas of the operation are now looking like attractive targets. He said:

This is the first sulphide focused diamond drilling program at Simberi since 2011, apart from an RC drill program conducted at Sorowar only in 2019. We are very encouraged by the results so far.

The gold price for Ore Reserve definition back in 2012 was just A$1,250 per ounce and many areas were unable to be drilled at that time because of difficult topography.

We are getting positive results by applying more than 10 years of improvement in geological knowledge and targeting insufficiently drilled areas from drill pad locations now available because of more than 10 years of oxide mining.

Overall, recent developments appear to indicate that things are looking up for this ASX mining stock.

Motley Fool contributor James Mickleboro 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 standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

Why this ASX 200 gold stock is 'the BHP of gold mining'

The ASX 200 gold stock owns some of the top mining assets in the world.

Read more »

Rising price of gold represented by a share price chart and gold bars.
Gold

ASX 200 gold stocks in focus as gold price smashes record highs

The gold price has soared into new record territory. But why?

Read more »

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Guess which ASX gold stock just rocketed 92% on this 'outstanding' new discovery

Investor are snapping up the ASX gold stock as excitement over its gold and silver project surges.

Read more »

ETF written in yellow gold.
Gold

Should you buy ASX gold ETFs right now?

Is gold a 2024 fad or still a good long-term investment?

Read more »

rising gold share price represented by a green arrow on piles of gold block
Gold

Guess which ASX 200 gold stock is marching higher on a 'significant resource upgrade'

ASX 200 investors are bidding up the Aussie gold miner following a sizeable estimated resource increase.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Gold

2 under-the-radar ASX gold shares shining 11% brighter on Friday

These shares are having a golden finish to the week. But why?

Read more »

St Barbara share price Minder underground looks excited a he holds a nugget of gold he has discovered.
Gold

2 ASX gold shares making big news today (one up 300%!)

How is this ASX gold share up more than 300% right now?

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

This ASX 200 gold stock can rise 30% and could be a takeover target

Bell Potter thinks investors should be snapping up this gold miner before it's too late.

Read more »