- Siren Gold (SNG) shares have soared since the company struck “significant” visible gold through drilling at its Alexander River project in New Zealand’s prolific Reefton goldfields
- The company found the gold in a drill core from the McVicar West shoot from 312.8 metres below the surface — the deepest hole drilled at Alexander River so far
- Siren Chair Brian Rodan says the company expected to find high-grade gold as it drilled deeper at Alexander River, and the McVicar hit is confirmation of its belief in the potential of the project
- Siren is continuing to drill in the region so it can deliver a mineral resource estimate for Alexander River before the end of April
- Mr Rodan says the company could see a “significant upgrade” in the grade of the upcoming resource if it gets more hits like the visible gold at McVicar
- Shares in Siren Gold spiked 37.5 per cent — from 24 cents to 33 cents — the day it announced the visible gold intercept, and shares have since settled around 29 cents
Siren Gold (SNG) shares have soared since the company struck “significant” visible gold through drilling at its Alexander River project in New Zealand’s prolific Reefton goldfields.
In one session, the company’s share price jumped 37.5 per cent, from 24 cents to 33 cents.
The market’s reaction comes after Siren found visible gold in a drill core from the McVicar West shoot in the project area. It’s the deepest hole drilled at Alexander River so far, intersecting mineralisation from 312.8 metres below surface.
Assays of the visible gold returned a result of 17.3 grams of gold per tonne (g/t gold) followed by a two-metre zone of quartz veining and strong acicular arsenopyrite.
Mining industry veteran and Siren Chair Brian Rodan said visible gold was found in drill samples from time to time, but the intercept at Alexander River was special.
“When you see an amount of gold like this in a drill core, it does get the heart pumping,” Mr Rodan said.
He said it was a “very good signal” for Alexander River, but the intersection did not come as a surprise to Siren geologists.
“We anticipated that as we got deeper, we would expect to see higher grades and more visible gold,” he said.
“It’s easy to say that we expected it, but it’s also very comforting to know that it does come about.”
He said Siren already knew of the significant potential at Alexander River, so this gold hit was confirmation of the company’s belief.
What does this mean for Siren?
While the find at Alexander River helps to build excitement around Siren’s New Zealand assets, there’s plenty of work to be done to achieve the project’s initial mineral resource estimate by the end of April.
Siren has continued to drill at McVicar West following the visible gold hit, and Mr Rodan said more results like this could bode well for the Alexander River resource.
“If we get more of these hits, we could see a significant upgrade in the grade of the resource,” Mr Rodan said.
“What’s next for Siren Gold is more drilling, more ounces, and a much bigger share price.”
The company has planned 20,000 metres of drilling for the rest of 2022.
Shares in Siren Gold last traded for 29 cents each on Tuesday afternoon. The company has a $29 million market cap.