This will surely be one of the best drill intercepts of the year globally and is highly significant for the project. It only takes a handful of tonnes at this grade to make a project sing. The gold being concentrated in 1m intervals is extremely beneficial to the economics. You would rather have high grade gold in a small ore tonnage any day compared to millions of ore tonnes at lower grade. There is serious and fast money to be made sending small but very high grade ore for toll treating and it requires bugger all capital.
As mentioned previously, one single metre hit could be a nugget or a fluke but two in one hole is telling us that’s probably not the case. The gold is certainly supergene enriched, so it may not extended far at depth, but who cares. I’d rather all the gold be shallow and nicely packaged up in a couple of veins close together that are cheap to mine and send for tolling.
The market didn’t pile on because it’s a bear market and small caps get sold off hard in bear markets. This good news was a selling opportunity for macro investors and trend followers. It’s to be expected.
But all bear markets end in a bull market. Companies with quality assets rally the hardest when it turns.
GBR Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
