The Dampier Gold Ltd (ASX: DAU) share price surged a massive 87.5% today to a high of 12 cents before dropping back to 7.6 cents at the time of writing. This came after the company announced a high grade strike at its Zuleika gold project, ending a trading halt that started on Monday.
What was in the announcement?
Dampier Gold said it had received spectacular results from its phase 2 aircore drilling program at Paradigm East. The drilling program consisted 21 holes and returned results including 24 metres at 6.39 grams per tonne of gold inclusive of 4 metres at 34.74 grams per tonne of gold. The drilling also identified 8 metres at 2.20 grams per tonne of gold inclusive of 4 metres at 3.25 grams per tonne of gold.
The drilling extended the existing mineralised footprint a further 400 metres with a further 2km to be tested. The company said confirmation of the mineralised zone was highly encouraging for the system to produce high grade gold zones.
Dampier Gold has identified 40 advanced targets within the Zuleika project which it plans to test in the coming months.
About the Dampier Gold share price
Dampier Gold is a gold exploration company with projects in Western Australia. Dampier Gold has been listed on the ASX since 2010.
Earlier in October, the company announced that it had discovered a new gold zone in the Browns Dam area of the Zuleika project. Results included 5 metres at 3.10 grams per tonne of gold inclusive of 1 metre at 6.6 grams per tonne of gold.
In the quarter to 30 June 2020, Dampier Gold spent $541,000 and had $2.18 million cash on hand at the end of the quarter, up from $1.71 million at the end of the previous quarter.
The Dampier Gold share price is up 471.43% since its 52-week low of 1.4 cents, it is up 300% since the beginning of the year. The Dampier Gold share price is up 300% since this time last year.
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Returns as of 6th October 2020
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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post The Dampier Gold (ASX:DAU) share price surged up 87.5% today. Here’s why. appeared first on Motley Fool Australia.
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