The Dreadnought (ASX:DRE) share price soared 18% this morning. Here’s why

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The Dreadnought Resources Ltd (ASX: DRE) share price was flying high at market open this morning. Dreadnought shares are up 6.82% at the time of writing, after earlier posting gains of more than 18%.

We look at the latest update from the ASX resource explorer that looks to be piquing investor interest.

Exploration update from Dreadnought

The Dreadnought share price is soaring after the company reported positive assay results at its Tarraji-Yampi Project in Western Australia.

The results come from the first 6 mineralised follow-up holes drilled in an area of the project known as Orion. The company is awaiting the assay results of an additional 13 drill holes, including its deepest.

According to the release, results from the 6 assays returned so far confirm Orion as a high-grade resource discovery. Assays returned copper (Cu) grades up to 7.4% and silver (Ag) of up to 192 grams per tonne. Also gold (Au) of up to 34.2 grams per tonne and cobalt grades (Co) of up to 1.66%.

Atop those strong results, the Dreadnought share price could be getting a further boost. The miner reports that the mineralisation commences from 1 metre under cover and extends to at least 240 metres along strike and 150 metres down dip.

The company’s geophysical modelling indicates the mineralised body could extend to at least 500 metres depth.

Dreadnought’s managing director, Dean Tuck, commented on the promising results:

With multiple thick, high-grade intercepts now confirmed we are delighted to declare Orion a high-grade Cu-Ag-Au-Co discovery occurring just 1 metre below surface. With 13 mineralised holes remaining to be assayed, including our deepest, and our oxide and supergene intercepts, we expect more high-grade intercepts to come.

This is an amazing outcome from what is our second ever drill program at Tarraji-Yampi, the first programs here since 1958/1972 and an indication of the potential for this highly prospective and underexplored ground to produce more discoveries.

Dreadnought share price snapshot

The Dreadnought share price has soared 135% in 2021. This well outpaces the 14% year-to-date gains posted by the All Ordinaries Index (ASX: XAO).

Over the past month, Dreadnought shares have gained 27%.

The post The Dreadnought (ASX:DRE) share price soared 18% this morning. Here’s why appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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