At one point today, Ballymore shares were rallying as high as 50% before receding the line back down to current levels.

Why is the Ballymore share price soaring today?

The company announced it has received gold assay results for the initial drilling program at the Seventy Mile Mount prospect.

The site is located within the Ravenswood Project area, itself situated in the Charters Towers Province in northeast Queensland.

According to Ballymore, the findings demonstrate the potential for Seventy Mile Mount to "host a significant breccia-hosted gold deposit similar in style to Mount Leyshon (3.8 Moz Au) and Mount Wright (1.0 Moz Au)".

Results also show significant new intersections of 40m at 1.06 g/t Au from 47m (including 3m at 9.38 g/t Au) in and 15m at 0.55 g/t Au from 76m (including 5m at 1.44 g/t Au) in two separate holes.

"Matched with historic drilling, these results support the interpretation that Seventy Mile Mount is a zoned system with grade improving with depth", the company remarked.

Management commentary

Speaking on the results, Ballymore Technical Director, David A-Izzeddin said:

The Seventy Mile Mount breccia target has a lot of similarities to major breccia hosted gold deposits in the region and these recent holes are the first completed in the area since 2004. These holes targeted a previously unrecognised breccia zone with similarities to the higher grade breccia zones present at Mount Leyshon and Mount Wright, both major gold producers in the local region in the past 30 years.

This initial drilling program was designed to test the continuity of the gold from the eastern margins to the west, and has proven successful in intersecting shallow, ore grade mineralisation 200m west of the zone of best historic drill results. Initial assessment of the breccias and geochemical data suggests that we are at the top of a zoned system similar to Mount Wright. The only previous deep drilling at Seventy Mile Mount was completed on the eastern margin of this breccia zone and these results support the interpretation that grades will improve with depth.

What's next for this ASX mining share?

Ballymore says that it will now receive assay results for Matthews Pinnacle CEI drill hole and then commence drilling at Ruddygore mine in March 2022.

It also aims to design a Stage 2 drilling program for Seventy Mile Mount, complete soil sampling and mapping program at its Dittmer Project and also mapping of the Day Dawn and Tea Tree prospects located at Ravenswood.

Since listing in September last year, Ballymore shares have collapsed 10%, however are up 3% this year to date, and another 12% in the green over the past week.

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