Read the Lines · Reading Announcements
How to Read ASX
Exploration & Drill Results.
Drill results describe what a hole intersected, at what grade, over what interval and at what depth. Their importance depends on geology, continuity, true width, location and how the result fits with the broader project. One spectacular intercept is not the same thing as a mineable resource.
Quick answer
What should you look at first in a drill result?
Look at the commodity grade, interval length, depth and whether the reported interval reflects true width or only down-hole length. Then ask where the hole sits relative to previous drilling and whether the mineralisation appears continuous.
What do grade and interval mean?
Grade describes the concentration of the target commodity. Interval describes the length of the reported mineralised section. A very high grade over a tiny interval can mean something very different from a moderate grade over a long interval.
Neither number should be read in isolation.
Why does true width matter?
A drill hole can cut through mineralisation at an angle. The measured down-hole interval may therefore be longer than the actual thickness of the mineralised body. When true width is unknown, the announcement should be read with that uncertainty in mind.
Why does location and continuity matter?
A strong hole becomes more meaningful when nearby drilling supports a coherent geological interpretation. An isolated high-grade hit far from other evidence may be exciting, but it tells you less about scale and continuity.
Maps, sections and neighbouring holes often matter as much as the headline intercept.
The key distinction
Exploration success is not economic success.
A company can discover mineralisation without proving a resource, reserve, feasible mine or profitable operation. Each stage removes some uncertainty and introduces new questions about metallurgy, mining method, infrastructure, approvals, funding and commodity prices.
Keep learning
Next: biotech and regulatory announcements.
Important information: This page provides general educational information about exploration announcements. It does not provide geological, mining or financial advice.
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