The Azure Minerals Limited (ASX: AZS) share price went ballistic today, gaining more than 70% in intraday trading before some profit taking appears to have taken place.
In late afternoon trading, Azure's share price was up 61.7% to close for the day at 38 cents. This comes after the company emerged from Friday's trading halt, requested by Azure pending today's release of the drill results at its Andover project in Western Australia.
Although the Azure Minerals share price fell 64% from mid-February through to mid-March, patient investors have had nothing to complain about this year. Since 26 March, the share price is up 660%, for a year-to-date gain of 171%.
In comparison, the All Ordinaries Index (ASX: XAO) is down 7.0% since 2 January.
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What does Azure Minerals do?
Azure Minerals is a minerals explorer primarily focused on its portfolio of projects in Mexico. The company's flagship project is the Oposura project, containing zinc, lead and silver resources. It's situated in the northern Mexican state of Sonora.
The company also undertakes early-stage exploration for new greenfield's prospects. And it partners with major resource companies to develop projects with the potential for large-scale, long-life mining operations.
Azure Minerals has a market cap of $627 million.
What's driving the Azure Minerals share price up today?
Friday's trading halt preceded Azure's announcement today on the results of its first drill hole at the Andover project in the West Pilbara region of Western Australia. Azure owns 60% of the project and Creasy Group owns the other 40%.
The company reported significant nickel and copper sulphide mineralisation, with the drill hole intersecting 4.0 metres of massive nickel-copper mineralisation at 94.5 metres. Azure's onsite geologist verified the results, which were confirmed by portable x-ray fluorescence.
The company reported that the "massive, semi-massive and matrix sulphides coincide with the interpreted position of a strong electromagnetic conductor identified by surface and downhole surveying".
Azure is currently drilling a second hole to test the down-dip extension of the newly reported mineralised interval and the electromagnetic conductor.
Commenting on the first drill hole, Azure's managing director Tony Rovira called it "an outstanding result and a great start to our maiden drilling program at Andover".
Rovira added:
Importantly, this mineralised intersection coincides with the interpreted position of the downhole EM (DHTEM) conductor, providing support that the conductors represent significant accumulations of sulphide mineralisation. The Andover project area does not appear to host sulphide-rich sediments, graphitic shales, conductive overburden or other characteristics that may generate false signatures for the EM surveys, and their absence is exciting given the size, depth and intensity of the conductors we have identified and are targeting.
With drilling continuing through the end of the year, Azure's share price is one to keep an eye on.
