Beadell Resources (BDR) is the only bright spot in the gold sector this morning as the stock jumped on a positive drill result.
Management reported its best drill intercept at its key Duckhead deposit in Brazil with assays returning 490.8 grams of gold a tonne at 31 meters. This includes a metre assay of 14,018.6 grams a tonne of the yellow metal.
The results is likely to add significantly to Beadell’s gold reserves, but it is too early to reach this conclusion until further drilling is completed in the second half of this calendar year.
The stock jumped 3.1%, or 2 cents, to 66 cents and Beadell is the only gold miner in the S&P/ASX 200 Index that is trading in the black today as a softer gold price and weak overnight leads from Wall Street weighed on the broader market.
The early gain leaves Beadell up 15.8% since the stock tumbled to a nine-month low of 57 cents at the start of the month.
However, shareholders have reasons to stay optimistic on Beadell. The miner recently announced that mining at Duckhead has resumed following a temporary suspension late last month as the operating agreements for the mine had to be restructured with the local government department.
Beadell is one of the lowest cost gold miners in the world and management is aiming to produce 200,000 to 220,000 ounces of gold with cash costs between $US535 and $US585 an ounce in calendar 2014. The spot gold price is trading around $US1,320 per ounce.