Odyssey Gold (ASX:ODY) share price freefalls 20% despite update

The Odyssey Gold Ltd (ASX: ODY) share price is in freefall today, down 20% despite announcing exciting gold results. Here's what the company said.

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The Odyssey Gold Ltd (ASX: ODY) share price is deep in the red on the ASX today. This follows the company's announced assay results from its maiden diamond drill hole at its Bottle Dump section.

Forming part of the Tuckanarra project, Odyssey Gold controls an 80% interest in the Western Australian gold mine. The 52 square kilometre site comprises four main pits – – Bottle Dump, Maybelle, Cable and Bollard.

At the time of writing, the gold miner's shares are fetching for 15.5 cents, down a sizeable 20.5%.

A stockmarket chart on a red background with an arrow going down, indicating falling share price

Image source: Getty Images

What were the results?

Investors are driving Odyssey Gold shares down despite the company providing exciting gold results.

According to the release, Odyssey Gold advised significant visible gold from its first intercept at Bottle Dump. The diamond drill hole intersected gold at around 249 meters, along with sheared quartz vein contacts and interpreted magnetite alteration.

A core of 28 centimetres long comprising of the gold veinlet and nearby disseminated visible gold was sent to Perth laboratory for analysis. To preserve the gold vein and core, Odyssey Gold selected the PhotonAssay technique.

This non-destructive method uses high powered x-rays to bombard rock samples and activate atoms of gold and other metals. A highly sensitive detector then picks up the unique atomic signatures from these elements to identify their concentrations.

The core had to be split into three parts as the central subsample exceeded an upper detection limit of 12,000g/t gold. Because of the strong results, a second calibration method is underway to determine the value of the sample. The new technique will have an upper detection limit of 35,000g/t gold.

The company is expected to provide the results when available.

Odyssey Gold share price review

Since listing on the ASX board in January, Odyssey Gold shares have accelerated close to 250%. The company's share price reached an all-time high of 22.5 cents last week before dropping lower from profit-taking.

On valuation metrics, Odyssey Gold presides a market capitalisation of roughly $67 million, with 452 million shares outstanding.

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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