One of the biggest movers on the market today has been the West African Resources Ltd (ASX: WAF) share price.
In morning trade it is up 27% to 37.5 cents.
What happened?
As well as getting a lift from a rise in the gold price overnight, the gold exploration company quite literally struck gold this morning.
According to an announcement, drilling at its wholly-owned Sanbrado Gold Project in Burkino Faso revealed promising results.
High-grade diamond drilling results from its M1 deposit hit 1.6 kilograms of gold per tonne. This means that five out of six diamond holes have now hit extremely high grades over significant widths.
Management believes this will add to the resource base and have a material impact on project economics.
Should you invest?
This is undoubtedly great news for West African Resources and its shareholders and I can't say I'm surprised to see its shares rally.
I believe the results demonstrate the significant potential of the Sanbrado Gold Project, which could make it a very attractive acquisition option for larger miners with exposure to Africa like Resolute Mining Limited (ASX: RSG) and Newcrest Mining Limited (ASX: NCM).
But it is still early days and there is a lot of work ahead. Fortunately the miner is well-funded and should be able to complete this work unhindered.
For now though, I will be keeping West African Resources on my watchlist.
