Wia Gold (ASX:WIA) is having a day of mixed signals as it announces a batch of thick gold intersections, but sees its share price down -14% in afternoon trade.
That might not be Wia’s fault, given the ASX200 has been in the red today since the new Australian inflation rate of 6.1% came out this morning.
Wia’s Kokoseb project in Namibia is the subject of ongoing diamond drilling and a currently underway 20,000m RC drilling campaign. So far, nine RC holes have been completed. Results are not yet available.
Initial metallurgical testwork results based on earlier core samples are due later this month, though, with three working days left in July, investors might not see results until early August.
Assay results for another five diamond drill holes on-site are due next month, too, which will conclude the 12-hole run.
So far, the only high-grade gold mineralisation detected on-site has been in pockets comprising larger low-mid grade cores.
Investor information provider Undervalued Equity notes that high grade gold is that over five grams per tonne (5g/t), but with that said, many projects boasting 4g/t grades are also classified as ‘high.’
The majority of Kokoseb assay results to date reflects gold grades between 1g/t and under 3g/t. There is a good chance the lack of results boasting grades over 4g/t are disenfranchising smallcap investors looking for the quickest path to high-impact sales.
With that said, it’s worth noting, however, a strong plus to Kokoseb’s geology that may be getting overlooked: the company has hit multiple thick gold intersections at surface, meaning an open pit mining operation is far more feasible.
Investors would be wise to keep in mind, though, that results to this end are not yet voluminous enough to confirm open-pit feasibility one way or the other.
A number of results also run to depths of 150m, which would imply a far more expensive mining operation.
Get the latest news and media direct to your inbox