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Why the Equus Mining Ltd share price is up 82% this week

During morning trade the Equus Mining Ltd (ASX: EQE) share price has once again been one of the best performers on the local share market.

At the time of writing, the natural resources developer’s shares are up 32% to a 52-week high of 5.3 cents.

Incredibly, this means that its shares have now gained over 82% this week and 194% since the start of June.

Why have its shares jumped?

This gain appears to stem from an update released in June in regards to drilling at its Los Domos Gold-Silver Project in Chile.

According to that update, the first drill hole intersected a cumulative 12.9 metre downhole interval hosting visual indications of precious and base metal mineralisation.

Whilst it is still early days, these results do hint that there could be a significant resource underground.

Should you invest?

As promising as this drilling result is, I still feel it is a little too soon to start investing in the company.

Especially with its cash balance arguably providing it with three more quarters of activities before it needs to tap the market for funds again.

I’ll certainly be keeping a close eye on the company, but for now I would suggest investors wishing to gain exposure to precious metals do it through investments in either Newcrest Mining Limited (ASX: NCM) or Northern Star Resources Ltd (ASX: NST).

Alternatively investors could avoid the sector altogether and invest their hard earned money in some high quality growth shares which have the wind in their sails.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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