What is a discovery hole?

A discovery hole is the first hole to cut economically interesting mineralisation in a previously unproven target. It is the moment exploration risk drops sharply and a story becomes real, which is why discovery holes can move a junior's share price by multiples in a day.

What makes a strong discovery hole: meaningful grade over meaningful width (high gram-metres), at a depth that is mineable, in a geological setting that suggests more. A single hole, however, only proves a point in space. The value is in what it implies — and that has to be confirmed by step-out and infill drilling before a resource can be estimated.

Caution: discovery-hole excitement often prices in a deposit that may never materialise. Many promising first holes are never repeated. Treat the discovery hole as the start of de-risking, not the finish.