The Matsa Resources Ltd (ASX: MAT) share price is having a stunning day on Thursday.

In afternoon trade, the ASX gold share is up 50% to 5.6 cents.

Why is this ASX gold share rocketing?

This ASX gold share is rocketing higher on Thursday after the release of a drilling update from the Fortitude North, Lake Carey Gold project in Western Australia.

According to the release, the company has received further excellent results from the remaining seven holes of the of nine completed as part of a 19 hole 3,310m RC drilling program.

Management notes that drilling has provided significant insights into the geometry of high grade shoots in the Fortitude North mineralised system. Importantly, it indicates that the system remains open to the north and the south.

In addition, the results are substantially thicker grading intercepts than any drilling results from past drilling and demonstrate that the Fortitude North mineralised system contains high grade shoots with thicker widths than previously thought.

In fact, management believes the project shares many characteristics with the Fortitude Gold Mine, which is a resource of 489,000 ounces.

Matsa' executive chairman, Paul Poli, commented:

These results continue to support our view that Fortitude North is a bigger system than the Fortitude Gold Mine where Matsa has an established resource of 489,000oz and a 2021 mining study that indicates a positive cash flow of AUD$95M. The thicker intercepts in the high grade shoots provide substantial volumes of gold not seen in previous drilling and certainly eclipse what we have seen at Fortitude Gold Mine. I am confident that with additional drilling, we can start to replicate some of these results further along strike and back towards the south.

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The Matsa Resources Limited (ASX: MAT) share price is surging today after the company started drilling at its Devon and Lake Carey gold projects.

Matsa shares are trading 9.2% higher at 8.3 cents at the time of writing, recovering on losses since late April.

Matsa engages in mineral exploration, focused on gold, nickel, iron, and copper ore assets across Australia and Thailand. Lake Carey is in Western Australia's Goldfields-Esperance region.

Matsa's new drilling project at Lake Carey

Matsa has started reverse circulation drilling at its Devon and Lake Carey projects, boring holes down to 4,000 metres on the first of six overall drilling targets. The company is looking for additional gold mineralisation to "grow its resource base" in the Devon area.

The Matsa share price has been struggling with no recent impressive gold assays at Lake Carey.

These are additional drilling targets in the Devon project after what the company deemed "highly successful" 2020 drilling programs. The company noted three days ago that soil sampling defined new targets at Devon.

The company said this drilling program was designed to "test the mineralised structures" as interpreted from Matsa's recent surveys and sampling projects. The targets were defined from soil and rock chip geochemistry and geological mapping. 

About Matsa's Lake Carey project

The Devon region is just one part of the overall Lake Carey Gold Project, comprising Matsa's Red October, Fortitude and Devon mines. The area contains a "significant number of historic gold workings", according to the company.

Matsa has focused recent surface drilling on the Devon Pit, Olympic and Hill East prospects. In 2020, the company announced high-grade drilling results from its exploration at the underground Red October gold mine, which saw the Matsa share price rise above 16 cents. However, it has fallen steadily since then.

The company is currently planning to build its own processing plant in the region to lower eventual pipeline costs.

Matsa share price snapshot

The Matsa share price has been on a downwards trajectory since the company recorded its high-grade gold results nearly a year ago. It hasn't come close to recording highs near its 33 cent price back in 2013 in the past 6 years and is currently at a decade-low price point. 

The post Up 9%, the Matsa (ASX:MAT) share price is booming today. Here's why appeared first on The Motley Fool Australia.