Gold exploration company, Ora Gold Limited (ASX: OAU), previously known as Thundelarra Limited, is progressing well with the development of its Abbotts Gold Project. Today, the company has announced that it has completed the first round of reverse circulation (RC) drilling at the Abbotts Gold Project.
Following the release of this news, the share price of the company uplifted by over 16% during the intraday trade as on 15th May 2019.
The drilling was conducted to extend and duplicate some of the gold intersections from previous explorers. Further, the drilling program was designed to validate the mineralisation model in the upper part of the mineralised system.
The company is soon going to commence additional drilling and other predevelopment activities in order to prepare for potential open pit mining along the 1.7 km strike length of gold mineralised lineament at the Abbotts Gold Project. As per the update provided by the company on 15th May 2019, the company drilled 27 short RC holes totalling 1,500m over the New Murchison King area at the Abbotts Gold Project.
Abbotts Gold Project showing historical and recent drill holes and potential pit outlines (Source: Company Reports).
As per the company’s announcement, it is expected that the drill results will not only extend the mineral resource they will also provide guidance for the next round of RC/diamond drilling which is going to commence soon.
In December 2018, the company completed the acquisition of the Abbotts gold exploration project from Doray Minerals Limited, materially expanding its the scope of its Garden Gully Project.
The company currently controls about 80% of the Abbotts Greenstone Belt, the only greenstone belt in the highly gold productive region, stretching from beyond Peak Hill in the north to beyond Payne’s Find in the south, and from Gidgee in the east to Yalgoo in the west, that is yet to deliver a significant gold discovery. This area has an excellent local infrastructure which includes two operational gold plants nearby: Westgold’s ~3.1 Mtpa Bluebird Plant; and the ~300kpta Andy Well plant.
The company is currently progressing with its new growth strategy to pursue low cost development and cash flow from the Garden Gully Project is progressing. Further, the company is currently identifying and evaluating zones of mineralisation which are having the potential for mining. The company is currently reviewing the entire ground holding that constitutes the expanded Garden Gully project in the context of the new development and self-funding strategy objectives.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $0.007, up by 16.667% during the day’s trade with a market capitalisation of ~$7.82 billion as on 15th May 2019. The stock has provided a year till date return of -57.14% & also posted returns of -64.71%, -50.00% & -25.00% over the past six months, three & one-month period respectively. It had a 52-week high price of $0.023 and touched 52 weeks low of $0.006, with an average volume of ~404,241.