The Lefroy Exploration Ltd (ASX: LEX) share price rebounded strongly today after tanking 23% yesterday, following the company’s announcement of its recent drilling results.
The Lefroy share price closed the day up 13.83% to $1.07. Two days ago Lefroy shares were at $1.30, and two months ago they were at 20 cents.
Lefroy is a small-cap greenfield explorer, meaning it uses predictive digital modelling to try and strike gold where others haven’t looked. It’s been releasing near-constant market updates about its Copper-Gold Zones near Kalgoorlie in West Australia, where it’s targeting “multi-million-ounce gold discoveries”.
Given its share price recently jumped 237% in one day on these intercepts, here’s a closer look at what the fuss is about.
Lefroy extends its mining region in all directions
The company has just completed its 28-hole reverse-circulation and diamond tail drilling program in Kalgoorlie and continues to be bullish about future prospects.
It’s expanded its potential drilling region in all directions and identified an additional three targets with copper-gold mineralisation, one with high-grade results.
These are the current mineralisation highlights from open-pit depths:
48 metres at 0.39g/t Au (gold) and 0.41% Cu (copper) from 146 metres. 29.1 metres at 2.64g/t Au and 0.18% Cu from 277.4 metres. This includes 0.5 metres at 81.7g/t Au and 1.44% Cu from 279 metres.
One possible reason the Lefroy share price dropped substantially yesterday was that the company published intersection results from four-metre composites. This can create a grade-smearing effect, skewing the accuracy of the results.
The company’s report maintained these results affirm the continued expansion of its operation.
The compilation and assessment of the results from the Jan-Mar 2021 drilling program at Burns support, reinforce and significantly extend the Cu Au mineralisation at Burns. The drilling has discovered the Eastern Porphyry zone which now has a strike length of approximately 200m and which is open, plus three new zones of Cu Au mineralisation in the western basalt zone. These new zones are based on single drill holes and provide additional target areas to be followed up.
Lefroy share price snapshot
The Lefroy share price has fallen 13% this week against gains of 409% in 2021 and 568% over the past year.
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Motley Fool contributor Lucas Radbourne-Pugh 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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