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Spare a thought for Metal Hawk (ASX:MHK) shareholders on Thursday: the company’s latest RC gold drilling results at its Thylacine project have been dismissed as a duster by the market.
Shares in MHK were down an eye-watering -50% in the first hour of trades as investors and traders alike seemingly took their money elsewhere.
To be fair, the company sunk that much on a somewhat low volume of trades (around $340K of trades as at 8.45am AWST) and one year returns still remain resilient at +302%.
But, as ever, grade is king. Or not so much in this case. Metal Hawk reported on Thursday:
- 01m @ 1.6g/t gold from 11m depth
- 01m @ 1.0g/t gold from 30m depth
- 01m @ 3.5g/t gold from 57m depth
- 01m @ 2.6g/t gold from 85m depth
The problem with these results is fairly obvious: the company is relying on drill intersections only one metre on length. That typically isn’t enough to excite investors – especially not when the small end of the materials sector is currently looking healthier than it was at the start of the year.
MHK last traded at 18.5cps.
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