Copper demand is often a good indicator of global economic health
The post Why the Dreadnought Resources (ASX:DRE) share price soared 11% today appeared first on The Motley Fool Australia. –
The Dreadnought Resources Ltd (ASX: DRE) share price skyrocketed 11% this morning after the mining company released its latest drill results.
However, it has since retreated and at the time of writing, shares are swapping hands for 46 cents, a gain of 2.22% on yesterday’s closing price.
Below we look at the ASX resource explorer’s latest drill results.
What drill results did Dreadnought report?
The Dreadnought Resources share price is climbing today. It comes after the company reported promising results from the reverse circulation (RC) drill campaign at its Tarraji-Yampi project in Western Australia.
It has completed drilling at 18 RC holes for a total of 3,511 metres. According to the release, the program has intersected significant mineralisation “and/or alteration” across a number of targets.
Dreadnought noted the maiden hole drilled at the Orion site intersected “thick chalcopyrite-rich massive and semi-massive sulphides”. That included 13 metres of massive to semi-massive sulphides containing approximately 5-20% copper sulphide.
The company said it had also suspended diamond drilling at its Texas site (at the same project in WA) after a drill rig broke down at 55 metres depth. It expects drilling to restart at Texas in early August, with initial results due by the middle of August.
Commenting on the results, Dreadnought’s managing director Dean Tuck said:
Intersecting massive copper bearing sulphide in the first hole drilled at Orion is a watershed moment for the Tarraji-Yampi project. Furthermore, significant mineralisation and/or alteration was intersected at Grant’s Find, Fuso, Paul’s Find and Chianti with a number of targets still to be tested and new targets emerging.
We have rushed assays and expedited downhole and surface geophysical surveys to assist with prioritising follow up drilling.
The company has suspended the drilling program, according to plan. It said drilling will start back up in September, with Orion and Grant’s Find its priorities.
Dreadnought Resources share price snapshot
Dreadnought Resources’ share price has been shooting the lights out. Over the past 12 months shares are up 360%. By comparison the All Ordinaries Index (ASX: XAO) has gained 24% over that same time.
Year-to-date the Dreadnought Resources share price continues to outperform, up 130% so far in 2021.
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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.