The shares in small-cap mineral explorer and developer Castile Resources Ltd [ASX:CST] has entered a halt today after announcing a big gold find.
CST announced the results of its inaugural drilling program at the Rover 1 prospect shortly after trade began this morning.
Shares were placed in a trading halt shortly after.
However, there was a strong reaction from the market in that short time.
Before the trading halt, the CST shares price was up 21.92% or 8 cents to trade at 44.5 cents per share.
Source: Tradingview
Stunning gold intercepts from Rover 1
The Rover 1 prospect forms part of the Rover Project located 80km southwest of the township of Tennant Creek in the Northern Territory.
The main mineralisation style within the project is iron oxide copper-gold.
This deposit type is known to host large scale economic copper and gold mineralisation such as the world class Olympic Dam in South Australia (BHP Group Ltd [ASX:BHP]) and Candelaria in Chile (Lundin Mining Corporation [TSE:LUN]).
A scoping study and mineral resource estimate completed in 2011 on the Rover 1 calculated over one million ounces of gold.
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So, expectations from CST’s drilling are probably high.
The assays from the first hole have produced the following intercept:
- 4m at 35.6 grams of gold per tonne (g/t) from 506.5m including:
- 5m at 48.65g/t from 506.5m, and
- 2m at 76.27 g/t from 518.95m
Not only is that some really high-grade gold mineralisation, it also shows considerable width.
Managing Director Mark Hepburn commented:
‘These are stunning results from Castile’s first drill hole into what is already a significant ore body. It’s a great result for our shareholders that we are finally drilling at Rover 1 and returning these fantastic intercepts.’
What’s with the trading halt?
From here it’s obviously just speculation.
So, bear that in mind.
Often with significant news, such as today’s, explorers will capitalise on positive market sentiment and pause trading to organise a capital raise.
Combined with previous estimates, today’s drill result could drum up a bit of interest.
On the other hand, according to CST’s most recent quarterly activities report, the company has about 26 quarters of available funding.
Make of that what you will.
Although, extra funding could help CST accelerate its drilling program.
Which may now be on the cards given the exceptional results.
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Kind Regards,
Lachlann Tierney
For The Daily Reckoning Australia
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