Carawine Resources Ltd (ASX: CWX) shares are flying today after the company released the first results from reverse circulation (RC) drilling at its Hercules prospect. During intraday trading, the Carawine share price surged more than 144% to 52.5 cents. However, Carawine shares have since retreated and, at the time of writing, are trading at 42.5 cents, up nearly 98% for the day so far.
Let's have a look at what the exploration company reported to the market.
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What's sending the Carawine share price skyward?
Earlier today, Carawine Resources announced that its drilling results reported multiple, high-grade intersections with mineralisation. According to the company, the results confirm Hercules as a significant gold discovery. Carawine noted that the results reported are from the first 11 of 12 RC holes drilled at the Hercules prospect. For those interested in the finer details, the highlights are as follows:
A combined interval of 37 metres at 5.58g/t gold from 84 metres was recovered across 3 lodes. These included:
- 4m @ 25.9g/t Au from 84m including 3m @ 34.2g/t Au
- 3m @ 22.2g/t Au from 101m, including 2m @ 33.0g/t Au
- 3m @ 10.6g/t Au from 118m, including 2m @ 15.6g/t Au
In addition, Carawine noted additional high-grade gold intersections, with extended mineralisation along the strike and depth. These included:
- 3m @ 15.2g/t Au from 125m including 2m @ 22.4g/t Au
- 3m @ 15.4g/t Au from 111m, including 2m @ 22.7g/t Au
- 5m @ 10.0g/t Au from 86m
- 5m @ 13.1g/t Au from 207m, including 3m @ 21.5g/t Au
The company's management advised that the initial results showed great potential to become a major new high-grade gold deposit.
Carawine managing director Mr David Boyd said "These exceptional first results from our maiden drilling program at Tropicana North are highly significant".
Company snapshot
Carawine is a gold and base metals explorer. The company has five projects: Jamieson, Paterson, Fraser Range, Tropicana North, and Oakover.
The Hercules prospect is located in the company's Tropicana North Project in Western Australia. The Hercules gold prospect is a joint venture, with Carawine holding a 90% interest.
Prior to today's gains, the Carawine share price was trading flat for the past year but is now sitting on gains of around 57%. The company's update has sent investors into a frenzy, pushing the Carawine share price to a new, 52-week high.
Based on the current share price, the junior miner has a market capitalisation of around $47 million.
