GWR’s Share Price up 13.64% after Exciting Drill Results
Today GWR Group Ltd [ASX:GWR] received its final drilling results at its Wiluna West Gold Project in Western Australia.
It seems investors have gained some confidence in the gold exploration company as GWR’s share price is trading 13.64% higher today, after continuing high grade drilling results.
Commodities can be tricky and that’s why gold expert and Money Morning contributor Greg Canavan has put together a guide to help you decide whether gold has a place in your portfolio this year. Read more about it here for free.
GWR’s drill results are a game changer
In GWR’s transition from gold explorer to producer the drilling results have been an important game changer.
GWR’s General Manager Adrian Costello spoke positively about the results:
‘GWR Group is in the process of transitioning from an explorer to a Gold Producer and the results of this recent drilling adds more support to GWR’s strategy of moving the Company into production’.
Investors will also be pleased to know that the latest results provide Wiluna Mill with a potential extra feed source.
The Wiluna West Gold Project has a combined mineral resource estimate of 3.5 million tonnes, with updated resources models being prepared across all three deposits.
These results are exciting for shareholders because they help underpin studies into the viability of all three deposits and expanding processing strategies.
Of its deposits, the Golden Monarch has a combined mineral resource estimate of 747,000 tonnes as reported in announcement, with its Emu prospect having an Inferred Mineral Resource (IMR) estimate of 371,000 tonnes, and its Eagle mine having an IMR estimate of 489,000 tonnes.
This, along continuing its feasibility studies and plans to complete permitting and mining approvals, is a step in the right direction.
Next Steps for GWR’s share price
GWR’s prospect looks promising bridging into 2019, with a number of activities across its Wiluna West Gold project already planned out.
GWR will also look to gather data from its Eagle and Emu prospects, update resource models, and is undertaking a comprehensive review of the entire project to highlight targets for future work.
Today’s rise in share price is no small feat, but if its last five days of trading are anything to go by, we might see a bit of a correction tomorrow after news settles.
For Money Morning
PS: Thinking of investing in gold? Here’s three reasons you should watch gold carefully. Read Greg Canavan’s report ‘Three Reasons to Add Gold to Your Portfolio Today’ for free.