The Capricorn Metals Ltd (ASX: CMM) share price is launching higher on early drilling results from the company’s Mt Gibson Gold Project.
Assays from 55 holes of the company’s resource definition drilling program have returned “very encouraging results”, says the company.
At the time of writing, the Capricorn Metals share price is $4.18, 6.63% higher than its previous close.
That brings the stock back into the green for this week. It previously tumbled 3.9% between last Friday’s close and the end of Thursday’s session.
Let’s take a closer look at the news boosting the gold producer’s stock on Friday.
What’s boosting the gold producer’s stock on Friday?
The Capricorn Metals share price is in the green today on news of its Mt Gibson project in Western Australia.
Assay results for 55 of the 188 holes completed at the project’s latest drilling program have found significant gold mineralisation both within and below the resource pit optimisation shells.
Additionally, high-grade mineralisation intercepts have also been identified, aligning with historic data. That provides validation of the project’s historic drill database.
A review of the results returned to date has led the company to add more extensional drilling to the drill program this quarter.
The drilling program kicked off in January. It’s aiming to infill and extend the project’s current mineral resource estimate of 2.08 million ounces of gold.
It’s also expected to underpin a maiden ore reserve estimate, which should be finished in the September quarter.
The company is also progressing other technical studies needed to complete the maiden ore reserve estimate, as well as feasibility studies.
Additionally, Capricorn Metals will push a 30,000-metre regional exploration drill program later this quarter, targeting areas including the project’s Taurus Trend and Highway prospects.
Capricorn Metals acquired the Mt Gibson Project in June 2021.
Capricorn Metals share price snapshot
The Capricorn Metals share price has been performing well in 2022 so far.
It has gained 24% year to date. It’s also 162% higher than it was this time last year.
The post Here’s why the Capricorn Metals share price is shooting 7% higher today appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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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