Up 188% in a year, why is this ASX All Ords gold stock surging again on Tuesday?

Investors are piling into this ASX gold stock on Tuesday. But why?

The All Ordinaries Index (ASX: XAO) is up 0.9% today, with this ASX All Ords gold stock charging ahead of those gains.

The fast-rising miner in question is New Murchison Gold Ltd (ASX: NMG).

New Murchison Gold shares closed yesterday trading for 4.6 cents. In early morning trade on Tuesday, shares are changing hands for 4.9 cents apiece, up 6.5%. 

This sees shares in the ASX All Ords gold stock up an impressive 188.2% since this time last year, well ahead of the 15.5% 12-month gains posted by the All Ords.

New Murchison is catching some tailwinds today from an uptick in the gold price overnight amid news that the US and Iran are mulling a second round of negotiations. Gold is currently trading for US$4,758 per ounce.

Here's what else is piquing investor interest today.

Woman with gold nuggets on her hand.

Image source: Getty Images

ASX All Ords gold stock jumps on high-grade intercepts

Investors are bidding up New Murchison shares following the release of a new batch of promising exploratory drilling results.

The ASX All Ords gold stock has been conducting a reverse circulation (RC) drilling campaign at the Crown Prince East Pit prospect. That's a satellite deposit at New Murchison's flagship Crown Prince Gold Mine, located in Western Australia.

This morning, management reported on new high-grade gold intercepts, which they said have delineated additional mineralisation within the designed pit outline of the Crown Prince East Pit.

For the geologically inclined, management noted:

CP East is centred on a mineralised dilational zone in the local mafic unit (foliated basalt and dolerite). This zone hosts a set of sub parallel southerly dipping lodes which host gold mineralisation in quartz carbonate veins.

New Murchison's latest exploration program consisted of 49 RC holes totalling 5,365 metres, as well as two diamond holes, which were drilled to ascertain structural data.

Among the top results, the ASX All Ords gold stock reported 18 metres at 10.3 grams of gold per tonne from 54 metres, including 6 metres at 29.3 grams of gold per tonne from 65 metres from one hole.

A second hole returned 12 metres at 10.3g/t Au from 34 metres, including 1 metre at 42.2g/t Au from 36 metres.

"These encouraging results open the opportunity of proving up additional reserves within the close proximity of the current Crown Prince Gold Operations," management noted.

What's been happening with New Murchison Gold?

New Murchison Gold released its December quarter update on 21 January.

In its first full-quarter of production, the ASX All Ords gold stock sold 184,746 dry tonnes of crushed ore, representing 22,766 ounces of gold, to the Westgold Resources Ltd (ASX: WGX) Bluebird gold processing facility.

As at 31 December, New Murchison held $92 million in cash.

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.

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