Pantoro Gold Ltd (ASX: PNR) shares are pushing higher on Monday after the gold miner announced a new high-grade discovery.
At the time of writing, the Pantoro share price is up 3.39% to an intraday high of $3.505.
That takes its gain over the past week to almost 10%, giving shareholders some relief after a tough start to the year.
But even after today's rise, Pantoro shares remain down around 30% in 2026.
So, what has investors buying today?
Image source: Getty Images
A high-grade discovery at Racetrack
In its ASX announcement, Pantoro said it has made a significant high-grade gold discovery at the Racetrack target.
Racetrack sits within the company's 100%-owned Norseman Gold Project in Western Australia.
The discovery is part of Pantoro's wider drilling program across the Norseman Mainfield. The program is testing Racetrack, Golden Goose, and extensions to the Crown Reef.
Pantoro said drilling along the Racetrack trend has found a high-grade zone over a current strike of 400 metres. It extends from near surface to 600 metres depth.
The company also advised that the zone remains open to the east and down dip.
Some of the standout intercepts include 8 metres at 28.68 grams per tonne gold, including 1 metre at 189.84 grams per tonne.
Another result came in at 2.01 metres at 82.99 grams per tonne, including 1 metre at 165 grams per tonne.
Close to existing infrastructure
Pantoro said Racetrack is around 600 metres north of the OK Underground Mine and existing infrastructure.
That short distance could make the discovery more valuable if follow-up drilling supports a mineable resource.
Discoveries close to existing operations are usually easier to assess because the roads, mine access, plant, and other infrastructure are already nearby.
Notably, Pantoro Managing Director Paul Cmrlec said the company has a "clear pathway" to bring the ore into production in a capital-efficient way.
A closer look at the Norseman project
Pantoro is focused on unlocking the full potential of the Norseman Gold Project.
The project has a 1.2 million tonne per annum processing plant and two active underground mines. It also has an ore reserve of 949,000 ounces.
Pantoro's medium-term aim is to lift production above 200,000 ounces per year.
The company has also been generating stronger cash flow recently.
In the March quarter, Pantoro produced 17,757 ounces of gold and sold 20,016 ounces at an average price of $6,916 per ounce.
The stronger gold price helped drive quarterly EBITDA to $88.4 million.
Foolish Takeaway
The share price had a poor start to 2026, but the company is producing gold, generating cash, and still finding high-grade mineralisation at Norseman.
Racetrack is still an early-stage discovery, so follow-up drilling will be needed.
