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AIM-quoted Stellar Resources plc (LSE:STG) nearly doubled its share price earlier today after the company revealed “very promising” assay results from its exploration program in the historic mining belt in Wales.
In a statement, Stellar said the grab sampling programme done by Gold Mine of Wales (Operations) Ltd., a wholly-owned subsidiary of Victoria Gold Ltd controlled by Stellar for a 49.9% stake, recovered as high as 263 grams per tonne of gold.
The announcement comes two days after the licence to explore the area was renewed for another year.
Victoria Gold Ltd holds an exclusive option granted by the Crown Mineral agents on behalf of the Mines Royal in 2010, after acquiring an exploration licence a year before, encompassing 120 square kilometres in Gwynedd, North Wales.
The area covers most of the famous Dolgellau gold belt, where the rare Welsh gold used by the British Royal Family for their jewellery, including the wedding rings of Prince William and Princess Catherine as well as that of the Prince’s parents, making it one of the world’s sought-after sources of the precious metal.
Historically, an estimated 200,000 ounces of gold has been mined between 1862 and 1999 from the belt by two major mines Clogau and Gwynydd, according to Stellar’s records.
The nine samples that yielded high-grade assay results were taken from the unmined sections of the Clogau mine and the company plans to continue drilling for further samples this year.
“The mine has the potential to contain other high grade pockets of gold in areas that have yet to be tested,” Stellar’s Chairman of the Board, David Lenigas, said. He added that experts say significant quantities of gold are still contained within the acreage, a huge portion of which form part of the Snowdonia National Park.
Should Stellar convert the option into a mining licence, its first investment since it changed its investing policy to become an investor in the natural resources sector, will be the first professional organization to systematically explore the gold bet, it said.
At 1300 GMT, Stellar traded at 2.25 pence a share, or 34.3% higher than yesterday’s close after rising as much as 79% in early morning trading.
