Wise-owl pick Gold Road Resources (ASX:GOR) has made a high-grade gold discovery in the South Yamarna Joint Venture.
Gold Road Resources announced in a statement to the ASX that its five-hole drilling programme was successful as it intersected a seven metre zone of “quartz-sulphide mineralisation with visible gold observed in quartz veins”. The high-grade intercept is 6.76 metres at 15.85 g/t gold (Au) from 161.71 metres with two adjacent areas.
The discovery was made in the Smokebush Dolerite which is within the South Yamarna Joint Venture with Sumitomo Metal Mining Oceania Pty Ltd. Sumitomo has a 50% interest in the Joint Venture.
Gold Road Resources states that the new intersect extends the known strike at the Smokebush Dolerite to approximately 1.300 km. The remaining four holes of the drilling programme are in the progress and have confirmed the broad structural interpretation.
Gold Road Resources’ Executive Director Justin Osbourne said: “It is very exciting to intersect true high-grade gold mineralisation in the Smokebush Prospect area. We had the belief the geology displayed all the ingredients required for significant gold mineralisation, which has been confirmed by this drill hole. The team is now working on putting the broader geological framework together to identify the focus of our next drill phases.”
Mr Osbourne also believes that there remains “tremendous scope” for another significant discovery in the area.
What’s Gold Road Resources' Outlook?
Wise-owl subscribers have received a research note about Gold Road Resources several months ago. Gold Road offers speculative exposure to the gold mining industry. We are attracted to the magnitude of its land package in the Yarmana region, existing resource inventory at Gruyere, and track record of low discovery costs.
In 2015 the gold mining environment has improved for Australian miners as the fall in the local currency has offset a low gold prices causing prices to rise in AUD terms. GOR has gained ~84% year to date and is trading near its 2015 high which it reached in May 2015.
Author: Simon Herrmann
Oct 20, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.