Spartan Resources Ltd (ASX: SPR) shares are having a great session on Thursday.
At the time of writing, the ASX mining share is up 8% to $1.43.
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Why is this ASX mining share jumping?
The catalyst for this strong gain has been the release of an announcement from the gold developer this morning.
According to the release, recent surface drilling has confirmed a significant new gold discovery, named Freak, immediately south of the Pepper Gold Deposit at its 100%-owned Dalgaranga Gold Project (DGP), which is located in the Murchison region of Western Australia.
This unconventional name is derived from a gin variety produced by the Never Never distillery, which shares the name of one of its gold deposits.
The release notes that follow-up wedge holes from the parent discovery hole, DGDH093, have now returned multiple high-grade intercepts in the new mineralised position, which remains open down-plunge. Furthermore, they sit in a similar orientation to the Pepper and Never Never gold deposits and exhibit identical alteration styles and mineralogy to the first two breakthrough high-grade underground discoveries at Dalgaranga.
Conveniently, the new Freak Prospect is located just 110 metres south of Pepper, in the vicinity of the planned underground infrastructure which is currently being developed.
The ASX mining share points out that this exciting new discovery represents the third significant high-grade discovery made at Dalgaranga adjacent to the existing 2.5mtpa process plant and supporting surface infrastructure.
'Another exciting gold discovery'
The ASX mining share's interim executive chair, Simon Lawson, was very pleased with the news. He said:
Having successfully wedged a series of daughter holes off the discovery hole, DGDH093, we are now confident to confirm another exciting gold discovery at the Dalgaranga Gold Project – the Freak Gold Prospect named after another gin variety produced by the Never Never distillery – sitting directly along strike from Pepper.
We now have three assayed drill intercepts separated by roughly 30m defining a new high-grade zone in a similar position and distance to where we predicted the 0.43Moz Pepper Gold Deposit would be from the 1.48Moz Never Never Gold Deposit.
Lawson also highlights that the mineralisation remains open in all directions. This bodes well for future drilling. He adds:
Importantly, the Freak gold mineralisation remains open in all directions with the core looking remarkably similar to what we are very familiar with from Never Never and Pepper. With multiple rigs on the task, you can be sure we will rapidly define this new target with the aim of directly adding more ounces to our resource inventory, all along-strike of our two main high-grade gold deposits.
