With gold now trying to hold around $1,300 per ounce after slumping down near $1,000 in the waning days of 2015, interest in miners and explorers that went unloved for years is starting to come back to life. With that, the investment community is responding to compelling drill results, such as is happening today with Golden Star Resources Ltd. (TSX:GSC)(NYSE MKT:GSS).
Shares are trading near their intraday and one-week high following the Toronto-based company disclosing the latest drill results from its Prestea Underground Gold Mine in the West African nation of Ghana, as well as assay results from seven in-fill drill holes.
Drilling at the underground mine, designed to explore extensions of the existing ore body, were highlighted by an intercept of 0.5 meters grading 132.4 grams per tonne gold and 0.5 meters averaging 67.20 g/t gold. Assays from the in-fill program were highlighted by cuts of 0.5 meters grading 87.6 g/t gold, 1.5 meters at 64.5 g/t gold and 1.5 meters averaging 23.7 g/t gold.
Cumulatively, the drill results extend the ore body, provide the potential to add to the short-term mine plan, increase the production rate and confirm the high-grade nature of the mineralization. The company is mobilizing a second diamond drill rig to expedite drilling during the rest of the year, with intentions of ramping up exploration further in 2018.
About an hour into the afternoon session on Thursday, Toronto-listed shares of GSC are holding 91 cents for a gain of 7.1% on the day. U.S.-listed equity is up 5.2% at 73 cents.
