This ASX small cap gold stock is rocketing 142% on new discovery

This gold explorer sees potential for a substantial resource.

| More on:
Man in mining hat with fists raised and eyes closed looking happy and excited about the Newcrest share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Caprice Resources Ltd (ASX: CRS) shares are having a stunning session on Wednesday.

In morning trade, the ASX small cap gold stock was up as much as 142% to a 52-week high of 6.3 cents.

The gold explorer's shares have pulled back since then but remain up 100% to 5.3 cents at the time of writing.

Why is this ASX small-cap gold stock rocketing?

Investors have been scrambling to buy Caprice Resources' shares this morning after it released an update on its phase one reverse circulation (RC) drill program at the Island Gold Project in Western Australia.

According to the release, phase one drilling has returned exceptional thick, high-grade gold intersections from testing previously unrecognised, high-grade, structurally controlled, cross-cutting Break of Day analogue gold targets.

Break of Day is a reference to a trend found at the Cue Gold Project owned by Ramelius Resources Ltd (ASX: RMS).

Management notes that multiple thick, stacked high-grade gold lodes were intersected at depth and down plunge from surface workings that remain open in several directions with drilling constrained to less than 100m vertical depth. It believes this could mean there is a substantial maiden resource opportunity at the Island Gold Project.

It also highlights that there is still 5km of highly prospective strike to be tested with numerous identical structures identified between the New Orient and Shamrock historical gold workings.

'Exceptional gold results'

The ASX small cap gold stock's CEO, Luke Cox, was delighted with the news. He commented:

It's a great pleasure to be delivering these exceptional gold results from our Island Gold Project December drill programme. These first 10-holes of the planned 40-hole drill programme have highlighted mineralisation thickening and increasing grade down plunge compared to the near surface gold mineralisation. Even more encouragingly, multiple stacked lodes were intersected by this drilling.

Identical structural settings are present in historical workings at the New Orient Gold Mine in the north and at Shamrock in the south, and these fertile structures have been mapped at multiple locations within the host banded iron formations along the five kilometres of strike connecting these historic workings; providing numerous additional greenfield targets and highlighting an enlarged scale to the project.

Cox spoke about the company's phase two drilling plans. He said:

The Phase 2 RC drill programme will continue to test this highly prospective structural corridor through Baxter, Golconda and Vadrians Hill, before moving north to test additional cross-cutting structures, with the objective of delivering a potentially significant Island Gold Project maiden resource in the coming months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

Gold bars and Australian dollar notes.
ETFs

$10,000 invested in GDX ETF a year ago is now worth…

Has this ASX gold ETF delivered for investors amid the recent gold price bonanza?

Read more »

Gold bars on top of gold coins.
Gold

Why did Citi Group just raise its gold price target?

One ASX broker thinks gold's recent run is all out of steam, at least for now.

Read more »

Woman holding gold bar and cheering.
Gold

Up 200% in 2025, guess which ASX gold stock is surging 11% again today

Investors are sending the ASX gold stock soaring again today. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Gold

Guess which ASX gold stock just rocketed 167% on big news!

Investors are sending the ASX gold stock flying higher on Monday. Let’s find out why.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 72% in 2025, why is this ASX 200 gold stock racing ahead of the benchmark again today?

Investors are bidding up this high-flying ASX 200 gold stock again on Thursday. But why?

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Gold

With the gold price near records, should I buy Evolution Mining shares today?

With Evolution Mining shares up 116% in 12 months, should I still buy the ASX gold stock today?

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Gold

3 reasons this ASX 200 gold mining giant could soar higher into 2026

A leading expert forecasts more outperformance from this surging ASX 200 gold stock.

Read more »

Gold nugget with a red arrow going down.
Gold

Why you need to keep an eye on the Evolution Mining share price

Evolution Mining shares show potential for more growth.

Read more »