The St George Mining Ltd (ASX: SGQ) share price is having a stunning finish to the week.
In morning trade the mining exploration company's shares are up 50% to 30 cents.
Why are its shares higher?
This morning St George Mining released the latest laboratory assay results from its Stricklands Prospect at the Mt Alexander Project in Western Australia.
According to the release, the assays have confirmed a significant high grade nickel-copper-cobalt-platinum mineralisation.
This is the best intersection to date at the Mt Alexander Project and management believes it confirms the prospect area as a priority for further exploration.
St George Mining acquired its interest in the Mt Alexander Project in 2016 from BHP Billiton Limited (ASX: BHP) subsidiary Nickel West.
What now?
I feel this is a very promising development for the company and can't say I'm surprised to see its shares higher today. Especially given the expected increase in demand for nickel due to the electric vehicle boom.
And while there could be a significant mineral resources underground, it is early days and a little soon to invest in my opinion. Investors wanting to gain exposure to nickel might want to consider Western Areas Ltd (ASX: WSA). Alternatively, they could look at BHP for a more diversified play.
