Gascoyne Resources (ASX: GCY) - Price Doubles on Growing Market Interest
It's opportune to revisit Gascoyne Resources, one of our preferred junior gold stocks and one of the ASX's most interesting and best-performing emerging gold plays. It has already doubled since our initial recommendation less than a month ago. The company is targeting a successful transition to production status and already boasts a +2M ounce resource inventory spread across three major projects in Western Australia. Recent drilling results have enhanced the potential for resource expansion at its flagship operation, whilst plant design work has indicated a relatively low capex for a development project, where a PFS is scheduled for completion during the March quarter. There is growing market awareness of its sizeable gold resource base, situated in an ultra-low risk jurisdiction. Adding further luster to the company’s attraction is the strong A$ gold price performance and thus the robust profitability of quality domestic gold projects. Solid corporate interest in what could be the next domestic gold miner is driving the company’s share price performance, particularly as ongoing exploration results continue to add to the overall resource potential.
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Gavin has been a senior resources analyst following the mining and energy sectors for the past 25 years, working with Intersuisse and Fat Prophets. He is also the Executive Director, Mining & Metals with Independent Investment Research (IIR).