The Breaker Resources NL (ASX: BRB) share price is flying higher today after investors responded enthusiastically to promising drilling results.
At the time of writing, Breaker Resources shares are up 17.39% to 27 cents apiece. This takes the company’s current market capitalisation to around $62 million.
Breaker Resources is a small-cap ASX gold explorer. It is focused on discovering and developing new gold deposits hidden by transported cover in Western Australia’s Eastern Goldfields Superterrane.
Breaker Resource’s cornerstone project is the 600 square kilometre Lake Roe Gold Project. The project is located 100 kilometres east of Kalgoorlie and comprises 7 granted exploration licenses plus a mining lease.
Why is the Breaker Resources share price spiking?
This morning, Breaker Resources announced that preliminary drilling results have highlighted the potential for a significant gold discovery at the Kopai Prospect within the Lake Roe Project.
These results relate to the first 32 reverse circulation (RC) drill holes of a 60-hole program targeting the 2 kilometre Kopai-Crescent area.
Preliminary results from the first 32 RC holes include:
- 4 metres at 4.54 g/t gold from 84 metres;
- 4 metres at 2.68 g/t gold from 20 metres; and
- 4 metres at 2.53 g/t gold from 20 metres.
Breaker Resources stated the results are significant given the geological setting and wide-spaced nature of the drilling. Four of the five more significant drill intercepts are situated on the end of drill lines.
The first 32 RC drill holes represent a total of 3,445 metres of drilling and an average depth of approximately 108 metres. Most assays relate to composite samples over 4 metre intervals.
The mineralised zone is concealed by less than 5 metres of transported cover, extends for at least 600 metres of strike, and remains open and sparsely drilled.
The immediate aim of the drilling is to assess and scope the full potential of the 9.5 kilometre-long aircrew gold anomaly centred on the 1 million ounce Bombara deposit.
“The Kopai results reinforce Breaker’s belief that Lake Roe is a new, large gold camp centred on the 1Moz Bombora deposit, which itself continues to expand at depth,” the announcement read.
Results are pending for a further 28 RC drill holes. Meanwhile, the company is planning follow-up drilling at Kopai, which will include shallow diamond drilling to obtain early information on the host rocks and mineralised structures.
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Motley Fool contributor Cathryn Goh 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.
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