West African Mineral Explorer Stock Price Predictive Discovery Ltd [ASX:PDI] Being a little bloody on the ASX is one of the few that is heading upwards today.
Currently, PDI’s share price has risen 3.28% to trade at 6.3 cents per share after announcing that it has hit a very broad gold section in Guinea’s Bancan Gold project.
You will notice that the stock price of PDI is declining slowly but steadily due to the recent rise in gold prices.
That said, stocks may have bottomed out and are on the rise again.
Spread in depth
One of the most difficult things in geological exploration is to conceptualize what forms mineral resources can take.
It is a mental exercise that requires a lot of brains.
Imagine finding something broken, annoying it, and trying to figure out where it came from.
Looking for gold is a rather similar exercise.
Today, PDI announced the first results from the December 2020 drill program.
According to the PDI, this result indicates that the gold mining zone of Bancan Creek is expanding deeper.
The highlights are:
- From 112m to 1.8g of gold (g / t) per ton is 88m, from 165m to 2.6g / t is 35m, from 112m to 1.3g / t is 50m
- 23m from 174m to 0.8g / t
- 33m from 167m to 1.6g / t
You’ll notice that the gold grading isn’t that high, but if you’re getting a longer intercept than an Olympic-sized swimming pool, tonnage can make up for the lower grades.
Paul Roberts, Managing Director of PDI, commented:
‘These first holes, drilled in an 80m step-out, crossed abundant gold and succeeded in extending known mineralization to depth. Therefore, each gold slice of these new, deeper holes has a tremendous impact on the size and tonnage potential of the project.
‘All this new information further confirms that the Bancan project is investigating a very large gold mining system.‘
Expect aggression from PDI
These new results show that the gold mining zone in both PDI prospects remains open deep and extends deep.
PDI said today’s strong results mean strengthening its aggressive strategy of defining maiden mineral resource estimates by mid-2021.
If they actually achieved that goal, PDI would have identified two greenfield discoveries, all within 12-13 months of making a resource estimate.
Some of my books are pretty impressive.
Of course, the time frame is not an important focus here. That is the magnitude of the mineralization effect.
Gold expert Shae Russell believes gold is expected to rise this year, albeit with a delay due to the sharp rise in the Australian dollar.
‘The current setting isn’t great for gold miners, but the double pain of falling US gold prices and the appreciation of the Australian dollar provides Australian investors with a valuable opportunity to get gold cheaply.‘
Shae also offers a long-term positive outlook for Australian gold stocks as Australia surpasses China as an undisputed global leader in gold exploration, mining and production. In the latest report, Shae analyzes the implications of Australia becoming a new gold “earthquake” for gold and Australian gold stocks. Click here to download the free report.
nice to meet you,
for Daily Reckoning Australia
Predictive discovery of “excellent” gold interception Stock price rise
https://www.dailyreckoning.com.au/predictive-discovery-share-price-gold-intercepts/2021/01/28/ Predictive discovery of “excellent” gold interception Stock price rise