The highflying share price of Western Australian gold exploration group Intermin is likely to receive further support on Wednesday after the group announced a continuation of high-grade hits at its Teal gold project, only 12 kilometres from the centre of Kalgoorlie-Boulder.
Management highlighted that the project area remains seriously underexplored along a 2 kilometre strike length. Chief executive, Jon Price, noted that mineralisation sits below up to 30 metres of depleted cover where a lot of the drilling has been undertaken to date but he said, ‘The big question I have is what lies beneath and I am looking forward to the next round of drilling to grow this project well beyond the approved stage one open pit’.
Latest drilling results identified high-grade west dipping structure with grades up to 167 grams per tonne. This supports the potential for resource growth and open pit mining of stage 1.
Results announced today included 25 metres grading 12.8 grams per tonne and 10 metres grading 7.5 grams per tonne.
Given that these high grades have been intersected at shallow depths Price’s comments regarding the prospect of a commercially viable underground project complementing open pit production appears valid.
Intermin’s share price has increased approximately 50% in the last month from circa 7.5 cents to yesterday’s closing price of 11.5 cents. However, it did hit an intraday high of 13 cents in mid-April following the release of other outstanding drilling results.
A move above this level could be significant in terms of signalling another rerating.