6:20 am Pacific
Goldex Resources (GDX, TSX-V), which we have mentioned in this space on several occasions in recent weeks, released some impressive initial assay results this morning from its recently-completed drill program at the El Pato Gold Property in Guatemala.
Hole #10 really stands out – 30.48 metres (from 97.53 to 128.01 metres) grading 5.04 g/t Au with mineralization consistent throughout the length of the hole. It included a 9.15-metre section grading 12.38 g/t Au. Holes 8, 9, 12 and 14 also intersected mineralization though to a much lesser degree. Two exploratory holes (#2 and #17) did not return significant results. Nonetheless, broadly speaking, Goldex is off to a promising start at El Pato and the market should respond favorably.
Assay results are pending on 5 holes which will give the market plenty to speculate about in the days ahead. The 12-hole diamond drill program goes hand in hand with the bulk sampling taking place at El Pato. The Cerrito West zone at El Pato has consistently showed high levels of near-surface mineralization with an average bulk sample grade of 28.64 g/t Au as reported by the company May 18th.
The drill program was designed to prove up average grades as indicated by the UN and Guatemalan government drill programs in the late 1980’s and 90’s as well as to map and explore the extent of the veins and structures present. The company reports that hole #10 contains the typically expected mineralization present at El Pato while other holes allow for more precise mapping of the vein structures.
Goldex will proceed with additional bulk sampling in the principal sectors in an attempt to further demonstrate the nature of available mineralization at El Pato which includes high-grade surface zones as well as epithermal “pinching and swelling” of deeper veins.
Thanks for the good news of GDX.
GDX is now rocking like a shining star. Good luck to all investers.
Comment by Eric Benson — August 17, 2011 @ 7:51 am
I don’t want to be too negative here, but GDX, with close to 100 million
shares o/s, is not trading just right. It may have it’s day, but it appears
that today, there are many, who have waited for an extended period of time for
news, to dump their shares. I want to be positive every time i post, but i just
can’t fight the market. R !
Comment by Bert — August 17, 2011 @ 8:09 am
Bert, I believe you’re right in the sense that there are some people who have been waiting for results and decided to sell into them this morning…that often occurs, and in this case I wouldn’t be concerned about that…this stock is definitely in play and you’re seeing paper go from weak hands into strong hands…note too, that the 50-day SMA is about to reverse to the upside – always a good sign…I’ve seen many situations when a company comes out with good news, and the stock doesn’t immediately begin to react price-wise…this should build out nicely and keep in mind they’re starting to drill another property very soon…there has been a lot of volume in GDX over the last 6 weeks and much of that 5-cent paper has likely now been absorbed…that bodes well for higher prices…GDX should get some good mileage out of this morning’s results in the days ahead…patience, as always, is a virtue…
Comment by Jon - BMR — August 17, 2011 @ 8:17 am