Greatland Gold shares set to surge after Havieron drilling results
Shares in the gold miner are rising and could continue their ascent after the company’s latest drilling report from its Havieron deposit in Western Australia indicated the site could deliver bulk tonnage of the precious metal.
- Greatland Gold shares up 10% on Monday
- The mining company’s stock is set to surge after positive drilling reports from Havieron
- Gold trading sideways, but market poised to break above $2000 benchmark
Greatland Gold shares closed 10% higher on Monday, with the stock likely to continue its ascent after its latest drilling report from its Havieron deposit in Western Australia indicated the site could deliver bulk tonnage of the precious metal.
‘The expansion of the new Northern Breccia zone is an important development that highlights the potential for a bulk tonnage mining operation at Havieron,’ Greatland Gold CEO Gervaise Heddle said.
‘Significantly, excellent results from step out drilling to date indicate the presence of higher-grade, massive sulphide mineralisation within the breccia bodies, which are yet to be fully defined by drilling and remain open at depth.’
Gold prices trade sideways but stage set for move above $2000
Gold prices continue to trade sideways, but with global currencies weakening and equities coming under renewed pressure as Covid-19 cases surge and investors grow increasingly worried about the prospect of a no-deal Brexit, the precious metal could push above the $2000 support level as capital shifts to safer assets.
With this backdrop, it is not surprising that Greatland Gold closed at 22p per share on Monday, with the stock up 1100% year-to-date.
Greatland Gold on track to deliver strong 2020 performance
The gold miner is on track to deliver an initial resource for Havieron in Q4 2020, with exploration programmes at the site ongoing to define the extent of the mineralised system.
As it stands, environmental and baseline studies are progressing to support potential commencement of decline at Havieron by end of calendar year 2020 or early 2021, subject to market and operating conditions and receipt of all necessary permits, consents and approvals.
Greatland Gold is continuing to investigate potential to achieve commercial production within two to three years from commencement of decline.
‘Alongside the progress at Havieron, we are continuing with our exploration plans at our other assets in the Paterson region and look forward to providing the market with further updates,’ Heddle added.
Gold price: technical analysis
Gold has not really broken through trendline resistance so much as it has drifted through it without noticing, according to Chris Beauchamp, chief market analyst at IG.
‘The price continues to amble along in a sideways fashion, holding above its recent area of support, and also above the 50-day SMA ($1923) while not yet breaking higher,’ he said. ‘A rally from current levels targets $1985 and then $2013.’
‘A more bearish view still requires, as it has done for more than a month now, a break below $1900,’ Beauchamp added.
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