First Equity Limited – Bonanza Gold Grades in Lucky Hole 7 for Arkle Resources (ARK.L)

Arkle Resources reported on Friday afternoon some significant drilling results from hole 7 on its 100% owned Mine River project in Wicklow/Wexford, Ireland.

Hole 7 showed gold-bearing zones intercepted at several levels, including a bonanza style grade of 51.6 g/t over 0.5 metres at a depth of 37.5 metres, within a wider 2.5-metre intercept grading 12.13 g/t. We also learnt that hole 6 did not return any grades of economic interest.

The management is encouraged from visual observations of the drill core from holes 8 and 9, for which the assay results are awaited back from the lab.

Following these excellent results, a step-out hole is being drilled immediately on an untested gold soil anomaly (Anomaly A) and plans are being formulated to drill two step-out holes to the east of hole 7 and to conduct trench work on two anomalies to the south of Tombreen West.

Comment and Recommendation.

Drilling vein style gold mineralisation can prove a hit and miss business for exploration prospectors. Arkle appears to have shown from Friday’s results that it can make several hits from just one hole, with gold mineralisation intersected within multiple sections on drill hole 7, including an astonishing bonanza style grade of 51.6 g/t gold.

We therefore eagerly await assay results from holes 8 and 9 in the coming weeks, which the management tentatively alluded to in Friday’s announcement could also return positive results, given the initial visual drill core observations. We are also encouraged that Arkle has extended its drilling and exploration campaign to understand the extent of this expanding gold zone.

Despite the rise in the shares on Friday afternoon, the shares are still trading near their 12-month lows, with a current market cap of around £3m, which barely reflects the project value of the Group’s lead/zinc Stonepark interest, let alone the potential upside achievable on its gold exploration interests such as Mine River. With these thoughts in mind and potential for similar announcements in the very near term, we recommend the shares as a ‘Buy’.

Read More

Jason Robertson

D: +44 (0)20 7330 1883
E: jasonrobertson@firstequitylimited.com

*First Equity Limited act as Joint Broker to the Company.

 

DISCLAIMER
This is a non-independent marketing communication under the FCA Conduct of Business Rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of dissemination of the investment research. First Equity Limited (FEL) has procedures in place to manage any conflicts which might arise in the production of investment research, including Chinese Wall procedures. The views expressed in this marketing communication are those of FEL’s Analyst. They are based on information believed to be reliable but no warranty or representation, express or implied, is made about the accuracy or completeness of this information, which may be subject to change without notice. Any opinion given reflects the analyst’s judgement as at the date of this document’s publication. Any or all statements about the future may turn out to be incorrect. This marketing communication is designed for information purposes only and does not constitute a personal recommendation, offer or invitation to buy or sell any investment referred to within it. Investors should form their own conclusions and/or seek their own advice to determine whether any particular transaction is suitable for them in the light of their investment objectives, the benefits and risks associated with the transaction and all other relevant circumstances.

FEL’s investment research products are paid by corporate clients as part of their broker retainer fee. Therefore, this document comes under the scope of Article 123(b) of the European Commission’s Delegated Directive of 7 April 2016 and thus qualifies as an ‘acceptable minor non-monetary benefit’ and does not qualify as ‘chargeable research’. FEL can therefore send this document to investors without the requirement for any compensation to be paid to FEL from the recipients – it is hence available without charge.

This document is not for distribution into the United States, Japan, Canada or Australia
Neither this document nor any copy of it may be taken or transmitted into the United States of American, or distributed, directly or indirectly, in the United States of America or to any US person as defined in Regulation S under the United States Securities Act of 1933. Any failure to comply with this restriction may constitute a violation of United States securities laws. Neither this document nor any copy of it may be taken or transmitted into or distributed in Japan or to any resident thereof for the purpose of solicitation or subscription or offer for sale of any securities. Any failure to comply with this restriction may constitute a violation of Japanese securities laws.

Neither this document nor any copy of it may be taken or transmitted into Canada or distributed in Canada or to any individual outside Canada who is a resident of Canada, except in compliance with applicable Canadian securities laws. Neither this document nor any copy of it may be taken or transmitted into or distributed in Australia or to any resident thereof except in compliance with Australian securities laws. Any failure to comply with this restriction may constitute a violation of Australian securities laws.

First Equity Limited, its clients and staff members may be share and warrant holders in Arkle Resources plc.


Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned
Stockmarket News
Share Talk
Share via
Copy link
Malcare WordPress Security