St. LOUIS () -- Staccato does it again. After the release of more assay results at the company's 100%-owned South Eureka gold deposit in Nevada's Cortez Trend, Staccato Gold Resources [TSXv:CAT] stock jumped over 33%.
Today, Staccato revealed assay results from two more holes at South Eureka - the best intersecting gold at an average grading of 17.24 grams per tonne (g/t) from 0 feet to 55 feet. The high-grade zone included 25.5 feet of 32.93 g/t from and 4 feet of 128 g/t.
And assay results are pending for the last three holes.
The last time Resource Investor was in December 2005, after the company reported drill results at its South Eureka property, the most noteworthy hole showing 3 feet of 77.1 g/t and 80 feet 7.35 g/t.
Since then, Staccato has reported results of 65 feet of 11.8 g/t in early January; 37 feet of 9.73 g/t in March; and 95.5 feet 7.49 g/t in May. These holes are all part of a 14-hole core drilling program on the Lookout Mountain portion of South Eureka.
Previous drilling at the Lookout Mountain portion of the property has defined a total resource of 445,000 ounces: 95,070 ounces measured, 173,649 ounces indicated and 176,871 ounces inferred.
As a result of the success of the 2006 program, a new resource estimate will be completed to quantify the additional higher grade gold mineralization discovered in the Lookout Mountain portion of the resource area.
Drilling is scheduled to resume on June 13, while nine additional drill sites have been submitted to the Bureau of Land Management for permit approval.
McEwen's Interest
As Rob McEwen, chairman and CEO of U.S. Gold [OTC:USGL], is vying to buy out Coral [OTC:CGREF], Nevada Pacific [TSXv:NPG], Tone Resources [TSXv:TNS] and White Knight [TSXv:WKR] - all exploring on or around the Nevada Cortez Trend - it stands to reason that Staccato might also be on the radar.
Even though McEwen's ambitions recently hit a snag due to , it would be hard to believe that Staccato's drill results are going unnoticed.
, "it's unlikely that McEwen is giving up on his Nevada dream just yet" of consolidating the Cortez Trend. Meaning no miner in the area is out of McEwen's reach.
If McEwen does indeed pull it off and acquire all four of the aforementioned companies, the deal alone could help Staccato's valuation substantially.
Share Price Activity
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After initial drill results in December, Staccato was trading at 29 cents. Today's news sent shares up 21 cents to close at 83 cents on a volume of 2,049,429.
Staccato stock has lost ground since hitting its 52-week high of $1.51 in March, right before the company closed a $3 million private placement of 5 million shares.
Is this the start of an uptrend? Investors might be wise to keep an keen eye on the pending assay results from the three remaining holes - not to mention Rob McEwen's ambitions.
