Diatreme Resources Ltd (ASX:DRX) announced it has achieved a new milestone, with the discovery of a second high-grade silica sand resource within the northern area of the Cape Bedford exploration tenement. The new discovery includes high purity deep drilling results and the resource spans approximately 305 hectares in proximity to existing export infrastructure at Cape Flattery Port within a total tenement area of 480 sq km.
Following the announcement, shares in Diatreme Resources Ltd soared 13%.
When a mining company announces a new resource discovery it?s exciting times for shareholders.
A lot of capital goes into exploration and when a new deposit is found there?s usually a share price boost.
Discovery is the reward stage for investors, particularly of junior mining stocks, searching for undiscovered deposits of natural resources.
When discussing new resource discoveries it?s beneficial to know the difference between greenfield and brown exploration.
Greenfield exploration is looking for mineral deposits in areas that have not been explored.
In brownfield exploration deposits are being sought near or next to an already existing mine.