Three discoveries on the trot have the team at Canaccord Genuity excited about Gorilla Gold Mines Ltd (ASX: GG8), which they say has the potential to more than double in value.
Let's have a look at the most recent discovery.
Image source: Getty Images
Excellent drilling results
Gorilla, in a statement released to the ASX earlier this week, said it had struck a significant intercept at the Sovereign deposit at its Comet Vale gold project in Western Australia.
The drilling intersected 9.3m at 20.6 grams per tonne of gold, in what was "a brand new discovery" at the deposit, the company said.
Gorilla added:
The mineralisation occurs 50m into the footwall of the main lode at Sovereign, a largely untested position, and is visually very different from the mineralisation typically seen at Sovereign. The scale potential of this new high-grade lode is currently under evaluation, noting that individual lodes at Comet Vale are typically continuous over many hundreds of metres both along strike and down-dip.
The company also reported a number of other high-grade results from further drilling at Sovereign.
Gorilla Chief Executive Officer Charles Hughes said regarding the recent discovery:
This is a standout result, one of the best intercepts we've delivered at Sovereign, and it's exciting to get this in a discovery hole in a new high-grade lode position that has seen very little effective drill testing. "Importantly, this mineralisation is geologically distinct from the main Sovereign lodes – in fact, if it wasn't for the presence of some very coarse gold, it could have been missed! There is no quartz veining and only a tiny amount of sulphides associated with the new lode, which means it would be very easy to overlook. We are now fast-tracking work to define the extent of this lode, including sampling of historical holes that intersected this position and drilling targeted step-outs to specifically target its lateral extents.
Mr Hughes said the company also continued to deliver "excellent" results from its growth drilling at Sovereign.
He added:
With established infrastructure, advanced permitting and proximity to multiple processing options, we are well positioned to rapidly unlock value from these exciting new discoveries at Comet Vale.
Shares looking cheap
The Canaccord team noted that Gorilla's overall North Kalgoorlie Hub hosted about 1.2 million ounces of gold and remains underexplored.
Canaccord has a speculative buy rating on Gorilla Gold Mines shares and a price target of $1 compared with the current share price of 41 cents.
Gorilla Gold Mines is valued at $278.2 million.
