Gold

OzAurum Resources soars following positive pending assay results

Fri 13 May 22, 1:13pm (AEST)
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Key Points

  • OzAurum has reported similar geology in its latest drilling at Mulgabbie North to that found in holes with thick mineralisation
  • Assay results for first diamond core pending with second now underway; more RC drilling tipped for June
  • Company’s share price performance over the last month sees it up 95%

OzAurum Resources (ASX:OZM) shares were up 31% to 19cps in early afternoon trades as the company highlights the second stage of its latest diamond drilling program is underway. 

The company is targeting extensions of gold mineralisation encountered in drill hole MNORC 177 which returned intersects including 56m @ 1.3g/t from 68m onsite its WA Mulgabbie North project. 

The assay results are still pending for OzAurum Resources' latest drill run referenced today, but clearly, the market is optimistic for what results may come back. 

(Source: OzAurum Resources) a map showing the location of previously sunk drill holes
(Source: OzAurum Resources) a map showing the location of previously sunk drill holes

Similar geology encountered in latest run 

While assay confirmation is pending, OzAurum does however note the first diamond drill hole, MNODH 002, intersected pyrite mineralisation and geology similar to that found in MNORC 177, which turned up the the thick 56m result at a grade of 1.3g/t. 

Referring to its targeted area of interest as the 'Demag Zone,' the company will also commence a high priority RC drilling program in this same region in early June. OzAurum Resources also highlights the Demag Zone as a virgin gold discovery directly proximate to Northern Star's (ASX:NST) acreage. Northern Star boasts a Group Ore Reserve of 20.7Moz. 

OzAurum Resources sits in good stead to conduct a low cost drilling operation with operators OZM paying the operating costs on the rig, with the rig itself provided to the company by its own CEO Andrew Pumphrey "at no cost." 

Largely undrilled acreage 

The diamond core assay results will provide further data on lithology, mineralisation, alteration and structure dimensions. 

The area is subject to limited historical drilling; before the company put three 100m spaced RC holes into the ground, OzAurum Resources believes the most recent drilling in the area occurred back in 1999, conducted by Gutnick Resources. 

RC Drilling at Mulgabbie North has defined primary gold mineralisation at over 1.3km of strike and the company's geologists are confident that strike extends beyond known parameters. 

Strong charts performance underscores interest 

Looking at year-to-date performance, the company has risen 46% in value since the start of 2022 and is up 40.7% YoY. 

If you're looking for proof the company is currently a market darling, look no further than its one month performance: up with a 95% climb in value.

OzAurum Resources' three-month chart compared to the materials index
OzAurum Resources' three-month chart compared to the materials index

 

Written By

Jonathon Davidson

Journalist

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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