- Dubbo gold explorer Alkane Resources (ALK) has struck another long zone of gold and copper at its Boda prospect
- The company released assay results from the fourth of five diamond core holes in the area today
- The results reveal an intersection of over 960 metres grading 0.21 grams per tonne of gold and 0.11 per cent copper
- The results from the final hole will be received in May, after which Alkane will determine the size and scale of its future drilling
- Still, it seems the company has fallen victim to wider market movements and profit-taking today
- Shares in Alkane are trading almost 15 per cent lower at 70 cents per share in mid-morning trade
Dubbo gold explorer Alkane Resources (ALK) has struck another long zone of gold and copper at its Boda prospect.
The prospect is part of the company’s Northern Molong Porphyry Project (NMPP) which lies just east of the regional town of Dubbo in New South Wales.
Alkane has revealed the assay results from the latest diamond core drill hole in the area, drilled just 100 metres from the 1167-metre intersection announced in March.
The latest hole, dubbed KSDD008, was drilled for 1035.8 metres and intersected a 965.7-metre zone grading 0.21 grams per tonne of gold and 0.11 per cent copper from 7.3 metres. This zone included an eight-metre intersection grading 0.5 grams per tonne of gold and 0.37 per cent copper from 194 metres.
The Northern Molong Porphyry Project
Alkane’s NMPP is made up of four exploration licences spanning a total of 115 kilometres: the Bodangora prospect, the Kaiser prospect, the Finns Crossing prospect and, of course, the Boda South prospect.
Alkane Managing Director Nic Earner said the company is “delighted” with the results of its work on the Boda prospect so far.
“Our drilling to date demonstrates broad, ore-grade mineralisation over at least a 300-metre north-south by 400-metre wide zone with over 800-metre depth, with the mineralisation open along strike and at depth, and a significant higher-grade core with exceptional characteristics,” Nic said.
Today’s assay results are the fourth of five diamond core holes recently drilled in the area for a total of almost 6000 metres.
Alkane said the assay results from the final hole will be delivered in May.
“Alkane has one further hole to report from this program, we will then be consolidating results, together with our recently conducted IP survey, and determining the size and scale of our next drill program,” Nic said.
However, it seems Alkane has fallen victim to both wider market movements and investor expectations today.
It’s a tough day across the board for gold stocks as each of our major producers is sitting red in mid-morning trade.
Alkane is leading the losses, however.
Today’s results — while still strong — are not quite as strong as the results from the previous holes drilled at Boda.
As such, it seems investors were happy to take some profit after the company’s shares regained three-quarters of their value since the mid-March COVID-19 slump.
Shares in Alkane are trading 14.55 per cent lower in mid-morning trade at 70 cents per share.