The Andromeda Metals Ltd (ASX: ADN) share price is surging higher today, up 6.3% in afternoon trading.
That brings Andromeda’s share price gains to 34.2% over the past month and a stellar 410% year to date.
By comparison the All Ordinaries Index (ASX: XAO) is up 6.1% over the past month and up a slender 0.8% since 2 January.
What does Andromeda Metals do?
Andromeda Metals is an emerging industrial minerals producer. The company’s primary focus is its Great White halloysite-kaolin deposit, which it is working to bring into production. If you’re not familiar with halloysite, it adds whiteness and strength during the manufacture of porcelain, among its other uses.
Andromeda Metals is also involved in a joint venture (JV) with Cobra Resources in the Eyre Peninsula Gold Project in South Australia.
Why is the Andromeda share price surging higher today?
Today’s 6.3% gains for the Andromeda share price look to be driven by a positive drilling announcement from its JV partner, Cobra Resources.
Andromeda reported that Cobra has intersected significant high-grade gold at its Wudinna Gold Project in South Australia. The substantial intersection is now a high priority target for an additional joint venture drilling program
Of the 41 reverse circulation (RC) holes drilled since September, 80% are still awaiting the assay results.
According to the release, one of the drill holes returned significant gold results of 31 metres at 3.06 grams per tonne (g/t) gold from 69 metres, “including a high grade intercept of 15 metres at 5.25 g/t gold from 83 metres.”
The final results are expected to support Cobra’s goal of expanding the current mineral resource of 211,000 ounces towards its initial target of 1 million ounces across the project area.
A more than 5% rise in the price of gold so far in December has also come as welcome news to investors in Andromeda and other ASX gold shares.
Having hit all time highs above US$2,063 per ounce on 6 August this year, the yellow metal slid through to the end of November, before finally hitting a low of US$1,776 per ounce on the final day of the month.
With Andromeda Metals still awaiting the assay results of most of the drill holes, it will be interesting to see how the company’s share price performs once these are released.