Why the Estrella (ASX:ESR) share price has rocketed 450% today

The Estrella share price is up a huge 400% today as the company announced they have discovered a significant nickel deposit.

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The Estrella Resources Ltd (ASX: ESR) share price has been reinstated to the market today with a bang. It comes as the exploration company found a significant amount of nickel sulphide in Western Australia.

Following a recent trading halt, Estrella's share price is trading 457% higher today, up to a price of 7.8 cents.

What's powering the Estrella share price?

The driver behind Estrella's share price gain is a significant nickel sulphide discovery at Carr Boyd. The discovery announced this morning represents a major change of fortune for the company's T5 project that was initiated in 2019. It comes after the company's drill team spent the last 7 weeks on the ground drilling and setting up at T5.

CEO Chris Daws said:

It is certainly an unprecedented time for all those involved with Estrella and the Carr Boyd Rocks Ni-Cu Project. Modern science, technology, belief, and persistence has led to this highly significant discovery which is now beginning to unlock the true potential of T5.

The company is still drilling and expects to find more high grade nickel deposits. Other miners such as Poseidon Nickel Ltd (ASX: POS) and Chalice Gold Mines Limited (ASX: CHN) have also had recent success in Western Australia.

What now

The discovery could be perfect timing for the mineral exploration company as batteries take front stage around the world. Nickel is essential in powering the electric vehicle revolution, providing higher energy capacity than other substances.

The Estrella share price is currently trading a 457% higher at the time of writing, after reaching a high of 8.4 cents in earlier trade.

Motley Fool contributor Daniel Ewing has no position in any of the 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 Scott Phillips.

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