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Why the Resolute Mining share price is leading the ASX 200 higher today

James Mickleboro
beat the share market

The Resolute Mining Limited (ASX: RSG) share price is the best performer on the S&P/ASX 200 index on Thursday.

The gold miner’s shares are currently up over 8% to $1.24. This is comfortably ahead of the next best performers Perenti Global Ltd (ASX: PRN) and Clinuvel Pharmaceuticals Limited (ASX: CUV).

What did Resolute announce?

This morning Resolute released the results of its drilling activities at the Mako Gold Mine in Senegal.

The Mako Gold Mine is a promising asset which the company added to its portfolio following the US$305 million acquisition of Toro Gold earlier this year.

According to today’s update, significant results have been generated by diamond drilling undertaken at the Mako Gold Mine. These confirm the potential of a coherent high-grade lode at the north-eastern end of the Mako open pit.

Management notes that these positive results demonstrate the potential for mine life extension at Mako. They also build on the exceptional operating performance of the mine since it assumed ownership.

During the September quarter Mako produced 44,191 ounces at an all-in sustaining cost (AISC) of US$716 an ounce.

Mako continues to outperform expectations.

The company’s managing director and CEO, John Welborn, appeared to be very pleased with the drilling results.

He said: “The Mako Gold Mine has already outperformed for Resolute and positive exploration results are further confirmation of value creation. The drilling results indicate strong potential to increase open pit gold inventory at Mako which will extend the life of our new high quality, low cost operation. We are delighted to be operating successfully in Senegal and we are actively seeking to expand our tenement package to include new high-quality exploration prospects.”

“In addition to the immediate opportunities for mine life extension at Mako, Resolute has identified significant additional opportunities to source oxide mill feed for Mako within trucking distance of the existing processing plant. We are investigating possible joint ventures and acquisitions of highly prospective ground in eastern Senegal,” he added.

The post Why the Resolute Mining share price is leading the ASX 200 higher today appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019