Australia-based miner Alkane Resources (ASX: ALK) has made a discovery of significant porphyry gold-copper mineralization at its Boda prospect, within the Northern Molong porphyry project (NMPP) in central-west New South Wales.
The latest assay results from Boda are highlighted by 502 metres at 0.48g/t gold and 0.20% copper from 211 metres. Drilling at the Kaiser prospect, also within the NMPP, returned 40 metres at 1.30g/t gold and 0.22% copper from zero metre.
Shares of Alkane Resources jumped by 27% on Monday following the news. The company has a market capitalization of A$248 million.
The NMPP comprises three exploration licences covering an area of 110 square kilometres of the northern Molong volcanic belt. The area is considered highly prospective for large porphyry gold-copper mineralization, as demonstrated by the Cadia Valley porphyry district located to the south of the volcanic belt.
“These drill results suggest a significant and exciting discovery in a region that has a history of delivering large, low-grade and long-life gold-copper mines,” managing director Nic Earner said in a press release.
“The project area has already delivered some strong indications of a big porphyry system near surface at Kaiser and, along with the results from this diamond drill hole at Boda, we can see clear evidence of Cadia-style mineralization and grade over hundreds of metres.”
The company is now prioritizing follow-up drilling to determine the scale of the Boda discovery.