With one month returns up +12.5% for Australian Gold & Copper (ASX:AGC), it warrants a look into the company’s recent successes in explaining why some market watchers have conviction in the stock.
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Perhaps most interesting of all is that the company has diverted from its namesake in recent history, as far as drill results go, recently striking grades of 291 grams per tonne gold equivalent, comprising 220g/t silver and 0.7g/t gold.
Those came off the back of an RC drill run wrapped up earlier this month, which targeted the southern zone of the company’s Achilles Deposit; part of its larger Cargelligo Gold Project located in the prolific NSW Cobar Basin.
While incoming RC results continue to inform geotechnical strategy on-site, also worth noting is that deeper-targeted diamond drilling is live at this very moment, offering the potential for exposure to higher grades of gold as those results trickle back in.
The key note here is that all drilling to date (part of the RC run) has been shallow – suggesting there could be a different story further underground.
That’s far from an extraordinary claim. Renowned for having the right geology to ‘trap’ mineral deposits (over vast periods), the Achilles Deposit is named after the shear zone it straddles (to avoid confusion, the Achilles shear).
What’s also worth considering is that in recent history, AGC has become the dominant titleholder in the Cobar Basin – meaning anything as of yet undiscovered has the potential to become a 100% play.
And there’s a second component to why that’s worth watching: The company has already proven it can recover high concentrations of silver and gold from float and leach work using Achilles’ ore.
Metwork results underpin MD conviction
Also helping matters is that the company’s very own managing director, Glen Diemar, is investing, recently buying a large parcel of shares.
That decision is driven, no doubt, in part by the company’s recent metallurgical testwork (metwork) results showing a combined float/leach recovery of 83% silver and over 90% gold – in terms of grade concentration, that’s 1,267g/t silver and 4g/t gold.
While aforementioned assays were based on RC drilling, and a separate diamond drill campaign is taking place, metwork results were pulled from samples drilled in an earlier diamond drill run, as MD Glen Diemar recently explained.
“We always look to extract as much information from our data as possible. This metallurgical test work was completed on seven holes from our maiden diamond drill campaign at Achilles,” Diemar said earlier in August.
With an equivalency calculation now defined for Achilles incorporating silver, gold, zinc, and lead, we look forward to the future reporting of exploration results in silver equivalents and a maiden Resource Estimation in the coming months.”
That Maiden MRE will be closely watched by existing shareholders and exploration watchers alike, and if it’s sturdy enough, it’s likely to cause some momentum given that gold prices remain in record territory.
The 1Y gold price chart speaks for itself. (TradingEconomics)
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