Why the Odyssey (ASX:ODY) share price is up a whopping 60% today

The Odyssey Gold Ltd (ASX: ODY) share price is one of the few star performers on the ASX market today. This comes after the company released previously uncovered results from its high-grade Tuckanarra exploration project.

During the opening minutes of trade, the gold miner’s shares rocketed to an intraday high of 8 cents. However, investors have decided to take some profit off the table, sending the Odyssey share price to 6.9 cents, up 60.4%.

What’s moving the Odyssey share price higher?

Today’s news revealed that Odyssey has uncovered a number of previously unannounced results from Bottle Dump (the most eastern pit at its Tuckanarra project), which signify the potential of high-grade gold mineralisation at the site. 

Odyssey acquired an 80% interest in the Tuckanarra gold project from Canadian-listed gold producer, Monument Mining Ltd, late last year. Since then, the miner has been collating and reviewing all historical exploration data to see if it missed any drilling results that occurred before its acquisition of both the Tuckanarra and Stakewell projects.

The newly discovered results from Bottle Dump were as follows:

• 30 meters @ 3.7 grams per tonne (g/t) of AU (gold) (BTD100 from 87 metres)
• 13 meters @ 8.5 g/t Au (BTD128 from 15 metres)
• 8 meters @ 10.3 g/t Au (BTD123 from 88 metres)
• 2 meters @15.8 g/t Au (BTD107 from 81 metres)
• 8 meters @ 6.3 g/t Au (BTD138 from 80 metres)
• 12 meters @ 4.5 g/t Au (BTD108 from 69 metres)

Located in Western Australia, Tuckanarra covers an area of 52 square kilometres. The project has four main pits – Bottle Dump, Maybelle, Cable and Bollard. Originally, Tuckanarra came with extensive drilling and geochemical tests at the site. Over 2,949 drill holes and 6,940 soil/rock samples were conducted prior to the acquisition.

The adjacent Stakewell gold project is located just north of Tuckanarra. Both sites, which represent the Tuckanarra greenstone belt, position Odyssey to become a large player in the area known as the Murchison Goldfields.

In light of the recent developments, the company stated that it was planning to commence its maiden drilling program at Tuckanarra and Stakewell. Odyssey added that planning, contract tendering and permits are well advanced and will begin work sometime this quarter.

Management commentary

Odyssey executive director Mr Matt Syme touched on the positive find, saying:

The Odyssey team is very pleased that our review and modelling of the extensive historical exploration dataset continues to enhance the potential at Tuckanarra.

Bottle Dump is emerging as an exciting, high priority target given the down plunge potential revealed by these and earlier results.

The Company is looking forward to further results from the ongoing review and collation of historic exploration data as well as the commencement of our maiden drill program in coming weeks.

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Motley Fool contributor Aaron Teboneras 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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