Illaara Drilling Pushed Dreadnought Resources Share Price Up (ASX:DRE)

A fresh round of drilling has commenced at Dreadnought Resources Ltd [ASX:DRE] Illaara Gold-Volcanic Massive Sulphide (VMS) project, potentially signalling a change in momentum for the share price.

The DRE share price is up 6.25% at the time of writing to trade at 1.7 cents per share after more than a week over no change in price.

ASX DRE Share Price Chart - Dreadnought Resources Ltd Shares

Source: TradingView

The share price plummeted in mid-February when DRE released an update from Illaara saying that their interpretation of the geology at the site had changed.

With DRE saying that drilling had not lived up to their expectations.

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New drilling to reveal if Dreadnought is on the money

Investors’ fears will be confirmed or refuted in just a couple of months when DRE expects first assays from their latest drilling campaign to be delivered.

The explorer said that drilling has recommenced within the 10km-plus long Metzke’s Corridor where ~3,000m of drilling will be undertaken at Metzke’s Find, Longmore’s Find, Black Oak and Bald Hill.

The same area where DRE had changed their interpretation of the geology.

Last month they said that review of drilling results indicated a shallow southerly plunge to the mineralisation rather than more steeply plunging shoots as previously modelled.


Dreadnought Resources - Results from the Previous Drilling Program

Source: Dreadnought Resources


Dreadnought Resources

Source: Dreadnought Resources

To be clear, it was the results from the previous drilling program that disappointed, not necessarily the change in interpretation.


What investors could be concerned about is the new interpretation could mean a smaller resource size.

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Managing director, Dean Tuck, commented on the kick-off of DRE’s latest round of drilling:

We are excited to recommence drilling at Illaara to follow up the high-grade at Metzke’s Find and Longmore’s Find. We will also be testing for supergene and bedrock mineralisation at Black Oak and to put first drill holes into Bald Hill. The first drilling campaign along the Lawrence’s Corridor will then commence.

DRE Share price outlook

There’s plenty of potential left at the Illaara Project, in my opinion.

Mineralisation remains open to the south at Metzke’s Find (as seen in the figure above) and the shallow nature of the mineralisation could lend itself to favourable mine economics.

Should it reach that stage, of course.

Dreadnought Resources - Illaara Project

Source: Dreadnought Resources

There are also a number of prospective targets that have yet to be drilled at Illaara.

And as you can see in the figure about, the corridor is quite large and hosts some interesting anomalies.

Another point to consider is that Illaara is a gold and iron ore play.

And with demand for iron pushing prices to new highs, the Aussie dollar is being dragged up with it.

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Lachlann Tierney
For The Rum Rebellion

Lachlann Tierney is a writer for The Rum Rebellion and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. 

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