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The Legend Mining (ASX:LEG) share price is rocketing 15% higher. Here’s why

boost in mining asx share price represented by happy miner making fists with hands
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Legend Mining Limited (ASX: LEG) shares are up nearly 15% in afternoon trading following the company’s positive drilling announcement at its Mawson prospect in Western Australia. Today’s gains comfortably put long-term shareholders in the green for the year, with the Legend share price up 37.5% since 2 January.

By comparison the All Ordinaries Index (ASX: XAO) is flat year to date, despite a strong performance today.

What does Legend Mining do?

Legend Mining is an Australian minerals exploration company. Its focus is on the company’s nickel-copper Rockford Project in the Fraser Range of Western Australia, alongside its Joint Venture partners and major shareholders, Creasy Group and Independence Group NL.

The Legend Mining share price first began trading on the ASX in 1999.

What did Legend announce to send its share price higher today?

In its ASX release this morning, Legend Mining reported it had achieved its best diamond drillhole results to date at its Mawson prospect within the Rockford Project.

The company stated its first drillhole, RKDD033, tested the northern extension of the “strong 25,000-70,000S off hole conductor”, which had been identified during previous test drilling.

Legend drilled its second drillhole, RKDD034, to provide a representative massive nickel-copper sulphide sample for Phase 1 metallurgical test work.

Commenting on the drill results, Legend Managing Director, Mark Wilson, said:

The 2020 field season has ended in spectacular fashion at Mawson with hole RKDD034 intersecting 43.1m of massive nickel-copper sulphide including one section of 31.1m of continuous massive mineralisation. The scale of the massive mineralisation in this hole talks to the potential of Mawson. The hole was designed to provide samples for phase 1 met testing, the results of which are expected in February next year.

Diamond hole RKDD033 has also provided a potentially significant pointer for work next year, with nickel-copper sulphide intersected within intrusive host rocks at a deeper level than previously drilled at Mawson.

Both nickel and copper are forecast to remain in strong demand over the coming years. Nickel is primarily used in stainless steel, but you’ll also find it in batteries and mobile phones. Copper is used in plumbing and electrical wiring, and its demand is forecast to grow as the world turns towards renewable energy solutions and electric vehicles.

With the company potentially having unearthed a trove of both, it will be interesting to see where the Legend share price goes from here.

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Motley Fool contributor Bernd Struben 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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