Small cap gold miner Red 5 Limited (ASX: RED) has doubled its share price over the past four months, largely driven by the commencement of a large scale drilling program at the King of the Hills Gold Project.
Red 5 acquired a 100% stake in the King of the Hills underground gold mine in 2017 from Saracen Mineral Holdings Limited (ASX: SAR). In November, Red 5 commenced drilling targeting the Eastern Margin Contact after geological interpretation confirmed the site to be a significant growth opportunity due to its potential for bulk mining.
Red 5 stated that: "This Eastern Margin Contact Zone comprises a network of multiple high-grade vein/veinlet stockworks which can be collectively bulked out into very large zones of strong gold mineralisation that would potentially be amenable to extraction using bulk mining methods."
Since then, early results have been promising, confirming the potential of the zone. An announcement this week said that assays have returned wide zones of gold mineralisation, supporting the potential for bulk mining at the King of the Hills project.
These early results are exciting investors, as shown by the 100% increase in the Red 5 share price in four months.
