Shares of Empire Metals Ltd (LON: EEE) a mining company with operations in Australia spiked 10.2% higher after the company released new drilling assay results for its Eclipse Gold Project located in Western Australia.
However, the spike was short-lived as Empire Metals shares reversed course and headed lower later erasing all gains and turning negative for the day. The miner’s shares are still trading within the range we highlighted two weeks ago.
The assay results from the second phase of reverse circulation drilling at the Eclipse Gold Project confirmed several parallel veins next to the central Eclipse vein. The survey also uncovered mineralisation near the surface with a different stockwork style around Jack's Dream old workings with significant gold deposits.
Empire Metals clarified that the results indicate that the mine has the potential for profitable open-pit mining. The next phase could include the preparation of a JORC compliant resource estimate and pit optimisation studies.
Mike Struthers, Empire Metals’ Director, said: “We have consistently received encouraging results from drilling at Eclipse, and this latest suite of results are particularly important as they confirm our belief that there are multiple parallel vein systems present. It is also especially interesting to have identified what appears to be a stockwork style of mineralisation around and beyond Jack's Dream workings, extending the potential strike length and width of the multiple vein systems at Eclipse by over 300m and 250m respectively.”
Empire Metals shares are trading near the bottom of the trading range mentioned above, a bounce from the level could indicate that a rally is imminent giving traders a chance to open long positions.*
*This is not investment advice.
Empire Metals share price.
Empire Metals shares surged 10.26% to trade at 4.19p after rising from Wednesday’s closing price of 3.80p.
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