The S&P/ASX 200 Materials Index (ASX: XMJ) is up 1.77% so far on Tuesday, but this one ASX mining share is soaring far higher.
The Gascoyne Resources Limited (ASX: GCY) share price has surged 30% and is currently trading at 35 cents.
Let's take a look at what this ASX mining share announced this morning.
Image source: Getty Images
Why is this ASX mining share lifting?
Investors appear to be reacting positively to a significant high-grade gold discovery at the company's Dalgaranga Gold Project in Western Australia.
Drilling to the western flank of the Gilbey's North prospect revealed a new "record intercept" and confirmed a new high-grade lode discovery.
The new results included:
- 59m at 12.5 grams per tonne (g/t) gold from 139m including 13m at 51.1g/t
- 39m at 3.09g/t gold from 99m and 20m at 1.12g/t gold from 156m
Commenting on the news, CEO and managing director Simon Lawson said:
It's not every day that you see results like this in the WA gold sector and we are incredibly excited by the potential of this newly discovered lode system on the western edge of the Gilbey's North discovery.
The power of a good geology team and a great drill crew being brought to bear on a fertile high-potential mineral system is immense.
Previously, the company has reported intercepts including 32m at 8.58 g/t gold from 167m, and 54m at 6.55g/t gold from 116m at the "Never Never" Iode.
A mineral resource estimate (MRE) is now taking place, with its release earmarked for late this month.
Share price snapshot
The Gascoyne share price has climbed nearly 3% in the past year, while it has surged 22% year to date.
In the past month, the company's share price has lifted 52%.
For perspective, the ASX 200 Materials Index has lost nearly 8% in a year.
This ASX mining share has a market capitalisation of around $145 million based on the current share price.
