The BBX Minerals Ltd (ASX: BBX) share price was trading 35% higher this morning before the company entered into a trading halt. Here we explore what has been driving the amazing growth of the BBX share price this month.
What BBX does?
BBX is a mineral exploration and mining company listed on the Australian Securities Exchange. The company's major focus is Brazil, mainly in the southern Amazon. It is a region BBX believes is vastly underexplored with high potential for the discovery of world-class gold and copper deposits.
The company's principal focus is on developing a proprietary, transferable precious metals extraction process applicable to its Brazilian exploits. This unique and new hydrometallurgical extraction process is being developed by BBX Minerals using its own staff combined with a group of international experts bringing over 100 years of combined knowledge.
Once the development of this proprietary process is completed and verified through a planned metallurgical test plant, BBX will be able to efficiently extract the precious metals from its Brazilian deposits.
Market update
In early September, the BBX share price exploded as the company released a market update. The BBX share price has surged 92.86% since the update.
BBX announced consistent and repeatable analytical test results in regards to its assay method. Furthermore, the test results were obtained from the highly-regarded São Paulo State Research Institute.
Moreover, the company plans to adopt this assay method, exclusive to BBX, for future assaying of surface and drill-hole samples from both Ema and Três Estados.
To this tune, it was also announced that BBX has signed a contract for a 2500m diamond drill program with Canadian drilling contractor Energold Drilling Corp. The program, scheduled to commence at the end of September, comprises a total of 50 drill holes with an average depth of 50 meters, at both Ema and Três Estados. The holes are designed to infill, extend the previously drill-tested areas and conduct reconnaissance drilling.
What now for the BBX share price?
This is very positive news for the mining company as it provides it with the impetus to continue with the project in Brazil.
Commenting on the news, CEO Andre Douchane said:
On behalf of the BBX team I'm very pleased that Sao Paulo State Research Institute, an independent ISO-certified research and testing institute was able to refine and statistically certify an assay method for our mineralisation. This method allows BBX to begin assaying past drill holes and to begin building a resource model. Additionally, as this phase of our research comes to fruition we can now devote all of our time towards finalising our preferred hydrometallurgical extraction process.
Nonetheless, at the time of writing, the BBX share price won't be going anywhere. The company has been issued a speeding ticket and is expected to resume trading by 22 September at the latest.
