Nickel demand is growing amid a surge in global EV production.
The post Why the Aston Minerals (ASX:ASO) share price is rocketing 15% today appeared first on The Motley Fool Australia. –
The Aston Minerals Ltd (ASX: ASO) share price is rocketing up 15% at time of writing, having earlier posted gains of more than 18%.
Below we take a look at the ASX resource explorer’s latest drill results that appear to be driving investor interest.
What did Aston report?
Aston Minerals’ share price is soaring after the company reported promising drill results at its Edleston Project in the Canadian province of Ontario.
The results, from drill hole DDED21-059, intersected “semi massive, blebby, and disseminated styles of nickel sulphide mineralisation” at Aston’s Boomerang Target.
Commenting on the results, Aston Minerals managing director, Dale Ginn said:
To have such an early success in terms of hitting semi massive, blebby and disseminated styles of nickel sulphide mineralisation in the second hole provides very strong encouragement of a proof of concept of the Boomerang Target. The mineralisation intersected starts within 50 metres of surface and is therefore ideal for targeting using electromagnetic (EM) methods.
Aston is still drilling deeper on the promising hole, currently down to 262 metres.
Once the drilling is completed, the company said it will conduct downhole EM surveys to determine the extent of sulphide mineralisation as well as identifying potential additional off-hole conductors.
It has also just received an airborne EM survey of the area conducted by the project’s former operators. The company is currently analysing that data.
Aston Minerals’ executive chairman, Tolga Kumova added:
We are astounded by the potential scale of the system. With only our second hole into this 5-kilometre-long strike, we have uncovered broad scale disseminated nickel-cobalt sulphides.
With the availability of low cost, environmentally responsible hydroelectric power, the project has the potential of providing a green source of nickel into what is emerging as a region of global significance with respect to battery manufacturing and electric vehicles.
Aston Minerals share price snapshot
The Aston Minerals share price has been a standout performer in 2021, up 288% year-to-date. That compares to a gain of 11% on the All Ordinaries Index (ASX: XAO).
Over the past month Aston Minerals shares have gained 19%.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.