Up 185% in a year, ASX All Ords gold stock reports further growth potential

The ASX gold stock is actively drilling in Western Australia.

| More on:
Two miners examine things they have taken out the ground.

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

ASX All Ords gold stock Ausgold Ltd (ASX: AUC) is edging lower today.

Ausgold shares closed Friday trading for $1.26. In early morning trade on Tuesday, shares are swapping hands for $1.255 apiece, down 0.4%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.8% at this same time.

With today's intraday dip factored in, the Ausgold share price remains up a whopping 185.2% over the past 12 months, racing ahead of the 7.2% one-year gains posted by the All Ords.

Part of that meteoric rise has been spurred by the rocketing gold price. Gold topped US$5,000 per ounce over the weekend and is currently fetching US$5,009 per ounce, up 83% since this time last year.

And Ausgold has hardly been sitting on its laurels.

Here's what's grabbing investor interest today.

ASX All Ords gold stock accelerating drill program

The Ausgold share price has yet to get a boost from this morning's release of the latest exploratory drill results from its 100%-owned Katanning Gold Project (KGP), located in Western Australia.

The ASX All Ords gold stock is conducting an ongoing 44,000 metre drilling campaign at KGP.

The drilling campaign is targeting resource growth at KGP, which management said is supporting future reserve conversion, improving confidence in early mine life areas, and targeting new gold discoveries.

As part of that program, the miner reported on the assay results it has received from a further 55 reverse circulation (RC) drill holes totalling 8,179 metres. The results come from the Central Zone of the project.

The ASX All Ords gold stock said that the step-out drilling has delivered "broad, high-grade mineralisation down-dip". And investors will have noted this is beyond the limits of Ausgold's existing 2.44 million ounce Mineral Resource and DFS Update open pit designs.

The miner added that in-fill drilling within the existing Mineral Resource has returned intercepts consistent with, and locally exceeding, its current Resource model.

What did management say?

Commenting on the drill results reported by the ASX All Ords gold stock today, Ausgold executive chairman John Dorward said:

These results continue to demonstrate the quality of the Katanning Gold Project, reinforcing the robustness of the existing Mineral Resource and supporting confidence in the current mine plan, while also highlighting the project's straightforward growth potential.

We look forward to delivering further results over the coming quarters, culminating in an updated Mineral Resource Estimate following completion of the current drilling campaign.

Ausgold noted that its drilling program at KGP is accelerating, with 13,031 metres (across 94 holes) completed to date. The miner now has a diamond rig and a third RC rig operating on site.

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

Man putting golden coins on a board, representing multiple streams of income.
Gold

How high could shares in Newmont Corporation go?

Let's take a look.

Read more »

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

UBS raises gold price target to US$6,200 per ounce for this quarter

This implies a potential near-25% upside from where gold is trading today.

Read more »

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

This ASX mining stock is up 8% after eye-catching gold drilling update

Aeris shares jump after early gold drilling points to further upside at Golden Plateau.

Read more »

Engineer looking at mining trucks at a mine site.
Gold

Which gold miner's shares are surging on good exploration results?

A significant mine extension could be on the cards.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Gold

Up 116% in 6 months, guess which ASX All Ords gold stock is rocketing again today on big US news

Investors are piling into this surging ASX All Ords gold stock again on Monday. But why?

Read more »

A wrecking ball swings through a wall of gold bricks, sending them flying.
Gold

Gold ETFs attracted a record US$19 billion in January

ASX gold ETFs recorded an inflow of US$202 million last month, bringing total investments to US$8.6 billion.

Read more »

A few gold nullets sit on an old-fashioned gold scale, representing ASX gold shares.
Gold

Gold price recovers as reasons for buying 'remain in place, but are also compounding'

Global precious metals manager, Sprott, says the case for gold is based on strengthening long-term trends.

Read more »

a woman wearing a sparkly strapless dress leans on a neat stack of six gold bars as she smiles and looks to the side as though she is very happy and protective of her stash. She also has gold fingernails and gold glitter pieces affixed to her cheeks.
Gold

Up more than 100% in a year, this gold stock could double again one broker says

A key approval process kicked off this week.

Read more »