Here’s why the Surefire (ASX:SRN) share price has rocketed up 38% today

The Surefire Resources NL (ASX:SRN) share price has surged up more than 38% today after announcing a “spectacular” gold discovery.
The post Here’s why the Surefire (ASX:SRN) share price has rocketed up 38% today appeared first on Motley Fool Australia. –

treasure chest full of gold

The Surefire Resources NL (ASX: SRN) share price is on fire today. Surefire shares are up 38.7% at the time of writing to 4.3 cents a share. Surefire shares closed at 3.2 cents on Friday last week, but opened at 4.7 cents a share this morning and shot as high as 5 cents before settling to the current price.

It’s been a spectacular trading day for Surefire, whose shares were essentially trading at zero for most of the year before jumping up in mid-July. Shareholders would be up 320% on their money between 31 July and today on current prices. As it stands, Surefire now has a market capitalisation of $32.1 million.

So why is this company appreciating in value so dramatically today?

Surefire gains?

Surefire put out some notices to the ASX after market close on Friday. These detailed that the company has issued 200 million new shares.

The gold miner released another announcement before market open today, this one titled “Spectacular Results from Yidby Gold project”.

Surefire only acquired the Yidby project in August this year. The project is located at the southern portion of the Yalgoo-Singleton Greenstone Belt, and rests on three exploration licences. These licenses cover 113.77 square kilometres, with “3 gold prospects hosting significant gold mineralisation”.

The Yalgoo-Singleton Greenstone Belt is reportedly an area of massive natural wealth, with several other gold and iron ore mines and operations surrounding Yidby. Surefire notes that many of these surrounding gold mines have potential reserves of more than a million ounces of gold.

Since August, the company has reportedly fast-tracked reviewing the [Yidby] project and is establishing a program of works with the [WA] Department of Mines, Industry, Resources, and Safety. In addition, it has “planned and executed its maiden drilling program”.

Here’s some of what the company had to say on the gold discovery:

Surefire Resources NL… is pleased to announce significant, high-grade intersections from drilling at the Yidby Road Prospect on its Yidby Gold Project, located 320km northeast of Perth in the mid-west region of Western Australia… Each of Surefire’s 2020 RC drillholes intersected gold mineralisation.

Some of these samples indicated gold concentration as high as 14.47 grams of gold per tonne of ore. One sample returning a grade of 26.57 grams per tonne of ore.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why the Surefire (ASX:SRN) share price has rocketed up 38% today appeared first on Motley Fool Australia.

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