Results push Egan higher
EganStreet Resources shares received a shot in the arm yesterday after announcing drilling results striking up to 776g per tonne at its Rothsay gold project in the Mid West.
The hopeful gold developer is in the final stages of approvals to develop its 401,000oz underground mine, which last produced gold 27 years ago.
EganStreet believes the results of the 16-hole program demonstrate the likelihood of outlining for southern extensions to its key Woodley’s and Woodley’s East shears at the high-grade ore body.
Managing director Marc Ducler said a new resource estimate at the $36 million gold mine, which is looking to finance, would be compiled soon.
In the meantime, the company will kick off a new 5000m reverse circulation drilling program beneath the Rothsay project’s Orient open pits, where drilling three decades ago recovered an intercept of 2m at 84.12g/t.
EganStreet shares closed 7.9 per cent, or 1.5¢, higher yesterday at 20.5¢ each.