Western Australia is home to some of the world’s richest resource deposits.
The post Here’s why the Mincor (ASX:MCR) share price is shooting 14% higher today appeared first on The Motley Fool Australia. –
The Mincor Resources NL (ASX: MCR) share price is rocketing up 14% in afternoon trade.
Below we take a look at the market update which appears to be driving investor interest in the ASX resource share today.
What update did Mincor report?
Mincor’s share price is surging after the company reported more positive nickel exploration results in the 1.1-kilometre zone between its Long and Durkin North mines, located in Western Australia.
According to the release, assay results for the massive sulphide intercept returned “an outstanding intercept” of 0.5 metres at 6.3% nickel, including 0.3m @ 8.5% Ni.
Last Thursday, 15 July, Mincor’s share price got another big daily lift after the company reported strong results in the same area. An area it refers to as Golden Mile. The Mincor share price has now gained 25% since that first announcement.
Atop today’s positive assay results, the company also reported on a separate intersection, with an estimated width of 0.3 metres, 24 metres down-dip from the assays revealed today. Mincor noted this was based on visual inspection alone, and it is awaiting assays to confirm nickel grades.
Commenting on the results Mincor’s managing director, David Southam said:
Having assays confirm the high-grade nature of our first nickel intersection gives us great confidence in the enormous potential of the untested space we have called the “Golden Mile”. This intersection is located just 100 metres from existing underground mining infrastructure, highlighting its strategic importance to the company as our underground drilling program advances…
We are very encouraged by the fertility of the Golden Mile for massive sulphide discoveries and, once we have our down-hole EM infrastructure installed in August, our geological understanding and targeting approach can be further refined as this substantial drilling program unfolds.
Southam also congratulated BHP Nickel West [BHP Group Ltd (ASX: BHP)] on its newly revealed nickel supply arrangement with Tesla Inc (NASDAQ: TSLA). Southam noted that, “Our nickel concentrate off-take agreement with BHP means that Mincor will be a key participant in this ESG-friendly global EV battery supply chain.”
Mincor share price snapshot
Over the past 12 months the Mincor share price has gained 71%, handily outperforming the 23% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.
Year-to-date, Mincor’s share price is up 9.4%.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.