There seems to be no shortage of action from microcap Aussie explorers this week as Discovex Resources Ltd [ASX:DCX] joins the list of big gainers.
The gold explorer/developer’s share price is up 125% this morning, trading at 0.9 cents per share. The jump bringing the DCX share price close to its high of 1.2 cents in September last year.
DCX announced this morning that follow-up work at the Hornet Prospect in the southern Laverton District of WA indicates the potential for a major new gold discovery in the region.
The company’s Edjudina Project, situated within the southern part of the Laverton District, boasts of high producing neighbouring mines.
These include Anglogold’s [ASX:AGG] Sunrise Dam (+12 million ounces of gold) and Saracen Mineral Holdings Ltd’s [ASX:SAR] Carosue Dam (+2 million ounce of gold).
Edjudina in good company
DCX’s results at the at Hornet Prospect has confirmed some high-grade gold mineralisation at shallow depths.
Some of the highlights include:
Two metres at 3.0 grams of gold per tonne from 50–52 metres depth and seven metres at 1.4 grams of gold per tonne from 40–47 metres depth.
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The strike of the project (currently being explored) extends over 50km and is immediately along strike from Matsa Resources Ltd’s [ASX:MAT] Fortitude gold project — a +385,000 ounces of gold mine that is still being expanded.
Today’s announcement follows on from DCX’s joint venture with Crest Investment Group, which was announced last month.
As part of the joint venture, DCX secured an 80% interest in eight tenements predominantly along strike and to the south of its Edjudina Project.
The new tenements form a total of 590 square kilometres of underexplored and highly prospective rocks, according to DCX.
An additional drilling program has now been planned to test for extensions of mineralisation already defined at Hornet.
Drilling is anticipated to commence in the coming weeks.
Gold price spurring new discoveries
With the price of gold currently at heights not seen since 2012, explorations of areas such as the Laverton District have become potentially more lucrative.
Previous work on the Edjudina tenure occurred mostly during the 1980s and 1990s, a time when the gold price was less than US$300 per ounce.
Meaning the hurdles to mining were much higher than today, with gold prices currently around US$1,700 per ounce.
If the gold price continues its upwards trend, we could see more explorers’ share prices, like DCX, shoot up on interesting, but tenuous finds.
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