One ASX gold stock is catching the eye of investors on Tuesday after doubling in value within minutes of the market open.
That stock is African Gold Ltd (ASX: A1G), which has returned from a trading halt with a bang this morning.
At the time of writing, the gold explorer's shares are up 106% to 9.7 cents.
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Why is this ASX gold stock rocketing?
Investors have been fighting to get hold of African Gold's shares this morning following the release of results from recent drilling at the Blaffo Guetto prospect on the company's Didievi Gold Project in Cote d'Ivoire.
The company notes that this drilling program was designed to test possible extension of the gold lodes and to infill previous drilling on gold controlling structures of the prospect with a view to increasing the scale and categorisation of the existing inferred resource.
According to the release, assay results from the recently completed diamond drilling returned a spectacular, wide, high-grade intercept of 65.0m at 5.6 g/t of gold from 177m.
Management also notes that the drillhole included shallow intercepts of 9.0m at 1.7 g/t of gold from 23m and 28m at 1.1 g/t of gold from 77m.
Importantly, the deeper intercept has confirmed that the gold mineralisation extends outside of the existing resource envelope and remains open at depth. This bodes well for future drilling and points to a much larger than inferred mineral resource.
'A spectacular result'
The ASX gold stock's managing director, Phillip Gallagher, appeared to be delighted with the drilling. He said:
65.0m at 5.6 g/t of gold from 177m is a spectacular result from the recent diamond drilling program on the Blaffo Guetto prospect. Excitingly, it is an extension of previous mineralisation and remains open at depth, plus it has extended our target area which this diamond drilling was designed to test. This is a fantastic result that has shown that the resource modelling that the design of this diamond drilling program was based on is proving to be accurate.
Gallagher notes that the results suggest there's potential for the Didievi Project to be home to a multi-million ounce deposit. He adds:
Along with the Blaffo Guetto prospect, the Didievi Project has other exciting prospects that remain substantially untested, including the Kouassi and Akissi Prospects to the north of Blaffo Guetto and the 11km long Poku gold trend located to the south-west. As the discovery of the new quartz porphyries at Blaffo Guetto demonstrate, there is also the potential for new discoveries across the project area. These fantastic drilling results today strengthen our belief that the Didievi Project has the potential to be a multi-million ounce deposit.
