Source: Exploration Insights
Introduction
Welcome to Gold Panda's weekly series of articles covering the best drill interceptions in the metals mining sector.
If you're into investing in the mining sector, you should know the above chart very well. Exploration and discovery can add a lot of value for a mining company across all stages of its life cycle, although the greatest increases in the share price usually happen when a small company makes a major discovery and the hype arrives. However, great exploration results can also improve the economics of large projects of established global mining companies.
I'm planning on writing a weekly series of articles in which I will analyze the three projects with the most significant drill interceptions over the past week as well as the prospects of the companies which own these projects. I will use data from the weekly bulletin of RSC Mining and Mineral Exploration which can be found on its website. Note that the drill interceptions are converted into grades of gold equivalence using the following formula:
Source: RSC Mining and Mineral Exploration
RSC Mining and Mineral Exploration has chosen gold as the metal equivalent for all conversions as it considers it the most widely used and best understood benchmark to determine or appreciate the grade tenor of a drilling intercept.
Source: RSC Mining and Mineral Exploration
1) Exploration license 5941 in Australia
By far, the best drill interception last week was 425.7m @ 3.04% Cu, 0.59g/t Au and 6.03g/t Ag from 1,063m in hole AD23 at exploration license 5941 in South Australia which is owned by BHP (NYSE:BHP). This is equal to 2,308(AuEq.)m, making it one of the top 10 best drill results in 2018.
AD23 formed part of a series of four diamond drill holes, totaling 5,346 meters which confirmed identification of a
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