The GIBB River Diamonds Ltd (ASX: GIB) share price has shot up 266.67% at the time of writing to 16 cents. This came after the company announced a major gold discovery at its Neta prospect.

What was the discovery?

Gibb announced a major drilling discovery at its Edjudina Gold Project in Western Australia. This included 36 metres at 4.0 grams per tonne of gold from 4 metres.

The company said the discovery made was at the company's Neta prospect, which was previously host to the historic Neta mine that operated in the early 1900s and had grades of up to 47.4 grams per tonne of gold. The company has named it the "Neta Lodes" discovery.

Additional drill intersections announced as part of the Neta Lodes discovery included 18 metres at 3.10 grams per tonne from 28 metres, 8 metres at 2.91 grams per tonne from 26 metres and 1 metre at 35 grams per tonne from 7 metres.

Gibb has an option to acquire 100% of the Edjudina Gold Project.

About the Gibb share price

Gibb River Diamonds is a diamond and gold explorer and producer with projects in Western Australia. The company has been listed on the ASX since 2008.

Gibb posted a loss of 0.291 cents per share in the year to 30 June 2020. It has cash of $683,106 at 30 June 2020, down from $1,272,846 at 30 June 2019.

In September, Gibb raised $1.096 million through a share purchase plan at 5 cents per share.

The Gibb share price is up 3100% since its 52 week low of 0.5 cents, and up 167% since the beginning of the year. The Gibb share price is up 433.33% since this time last year.

The post Why the Gibb (ASX:GIB) share price is up 266% today appeared first on The Motley Fool Australia.