This ASX gold stock is up 106% on 'spectacular' new discovery

Investors are getting excited about the potential for a multi-million ounce gold deposit.

| More on:
Man with rocket wings which have flames coming out of them.

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

One ASX gold stock is catching the eye of investors on Tuesday after doubling in value within minutes of the market open.

That stock is African Gold Ltd (ASX: A1G), which has returned from a trading halt with a bang this morning.

At the time of writing, the gold explorer's shares are up 106% to 9.7 cents.

Why is this ASX gold stock rocketing?

Investors have been fighting to get hold of African Gold's shares this morning following the release of results from recent drilling at the Blaffo Guetto prospect on the company's Didievi Gold Project in Cote d'Ivoire.

The company notes that this drilling program was designed to test possible extension of the gold lodes and to infill previous drilling on gold controlling structures of the prospect with a view to increasing the scale and categorisation of the existing inferred resource.

According to the release, assay results from the recently completed diamond drilling returned a spectacular, wide, high-grade intercept of 65.0m at 5.6 g/t of gold from 177m.

Management also notes that the drillhole included shallow intercepts of 9.0m at 1.7 g/t of gold from 23m and 28m at 1.1 g/t of gold from 77m.

Importantly, the deeper intercept has confirmed that the gold mineralisation extends outside of the existing resource envelope and remains open at depth. This bodes well for future drilling and points to a much larger than inferred mineral resource.

'A spectacular result'

The ASX gold stock's managing director, Phillip Gallagher, appeared to be delighted with the drilling. He said:

65.0m at 5.6 g/t of gold from 177m is a spectacular result from the recent diamond drilling program on the Blaffo Guetto prospect. Excitingly, it is an extension of previous mineralisation and remains open at depth, plus it has extended our target area which this diamond drilling was designed to test. This is a fantastic result that has shown that the resource modelling that the design of this diamond drilling program was based on is proving to be accurate.

Gallagher notes that the results suggest there's potential for the Didievi Project to be home to a multi-million ounce deposit. He adds:

Along with the Blaffo Guetto prospect, the Didievi Project has other exciting prospects that remain substantially untested, including the Kouassi and Akissi Prospects to the north of Blaffo Guetto and the 11km long Poku gold trend located to the south-west. As the discovery of the new quartz porphyries at Blaffo Guetto demonstrate, there is also the potential for new discoveries across the project area. These fantastic drilling results today strengthen our belief that the Didievi Project has the potential to be a multi-million ounce deposit.

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

Three people with gold streamers celebrate good news.
Gold

ASX 200 gold stocks shining bright as the gold price hits new all-time highs

The soaring gold price has helped ASX 200 gold stocks race ahead of the benchmark this year

Read more »

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

Why this $9.6 billion ASX 200 gold stock is smashing the market today

This gold miner has hit a 52-week high on Wednesday. What's going on?

Read more »

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

Buy this ASX 200 gold share for a 20% retur

Ord Minnett thinks that this gold miner is undervalued by the market.

Read more »

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

This is one of the best ASX 200 gold shares to buy

Bell Potter thinks investors should be buying this gold miner for big returns.

Read more »

Thomson Resources share price Silver mining
Gold

Why silver could be a better investment than gold right now

This expert reckons silver might be as good as gold, if not better, right now.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Gold

Why is this ASX 200 gold stock racing higher on Thursday?

A solid quarterly update has given this gold miner a boost today.

Read more »

Gold spelt out on block cubes with an up and down arrow.
Gold

Broker names 3 ASX gold stocks to buy (and downgrades 2 more)

Goldman Sachs has picked out the best ways to play the strong gold price.

Read more »

Woman holding gold bar and cheering.
Broker Notes

Northern Star share price has 22% upside: broker

The gold price is one major factor to the thesis.

Read more »