A HIGH-grade gold intercept from the latest round of drilling at the historic Bindah gold mine in Western Australia has resulted in Midas Resources' shares skyrocketing nearly 43%.
Results from one of four reverse circulation holes drilled last month returned an intersection of 8m at 10.56 grams per tonne gold from 116m including 3m at 22.37gpt gold.
The assay saw Midas' shares jump from their opening price of 24.5c to a high of 35c before settling at 31c in morning trade today.
Results from the other holes include 7m at 1.83gpt gold from 156m, including 3m at 3.3gpt gold and 6m at 3.01gpt gold from 183m.
Midas said the results conclude that grade and thickness of mineralisation improves downdip, mineralisation is open in all directions and a steep easterly plunge is likely, with future drilling needed to test the concept.
"Potential exists for a significant mineralised body on the Bindah structure, which has only received shallow drilling, mainly within the oxidised zone in the past," Midas said.
"The Bindah gold mineralisation is associated with a major regional scale structure, extending for more than 15km through the company's tenements."
Midas plans to conduct an electromagnetic survey later next month to determine drill targets, with future drilling likely and consisting of both diamond and RC drilling.
The Binda gold mine is an old openpit within Midas' Lake Carey project area and is 5km southwest of its Fortitude project.
According to Midas, combined historic underground and openpit production totalled 71,375 tonnes at 6.81gpt gold for 15,600 contained gold ounces.
MDS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
