The Matsa Resources Ltd (ASX: MAT) share price is having a stunning day on Thursday.
In afternoon trade, the ASX gold share is up 50% to 5.6 cents.
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Why is this ASX gold share rocketing?
This ASX gold share is rocketing higher on Thursday after the release of a drilling update from the Fortitude North, Lake Carey Gold project in Western Australia.
According to the release, the company has received further excellent results from the remaining seven holes of the of nine completed as part of a 19 hole 3,310m RC drilling program.
Management notes that drilling has provided significant insights into the geometry of high grade shoots in the Fortitude North mineralised system. Importantly, it indicates that the system remains open to the north and the south.
In addition, the results are substantially thicker grading intercepts than any drilling results from past drilling and demonstrate that the Fortitude North mineralised system contains high grade shoots with thicker widths than previously thought.
In fact, management believes the project shares many characteristics with the Fortitude Gold Mine, which is a resource of 489,000 ounces.
Matsa' executive chairman, Paul Poli, commented:
These results continue to support our view that Fortitude North is a bigger system than the Fortitude Gold Mine where Matsa has an established resource of 489,000oz and a 2021 mining study that indicates a positive cash flow of AUD$95M. The thicker intercepts in the high grade shoots provide substantial volumes of gold not seen in previous drilling and certainly eclipse what we have seen at Fortitude Gold Mine. I am confident that with additional drilling, we can start to replicate some of these results further along strike and back towards the south.
