The Auroch Minerals Ltd (ASX: AOU) share price is plummeting today, despite what seems to be good news.
The mining company announced the assay results from the maiden drill project at its Nepean Nickel Project this morning. The results are from 4 holes of shallow near-mine drilling.
At the time of writing, the Auroch share price is 19 cents, down 15% on yesterday’s close.
What were the assay results?
Auroch announced today that Nepean has significant shallow high-grade nickel sulphide intersections.
The assay results are respectable, particularly as they are in addition to other profitable intersections at Nepean. The results include 2 metres at 2% nickel and 0.3% copper from 66 metres, which includes 1 metre at 2.9% nickel and 0.36% copper; and 4 metres at 0.77% nickel and 0.05% copper from 25 metres, which includes 1 metre at 0.94% nickel and 0.05% copper.
Auroch will also test all exploration drill-holes with down-hole electromagnetic surveys to identify if there are any areas of massive nickel sulphide mineralisation nearby.
Auroch Managing Director Aidan Platel said the company is pleased with the results.
The recent results have continued to build upon our understanding and geological model of the shallow high-grade nickel sulphide mineralisation that now extends for over 500m of strike, and with that our team has recognised the need to drill several more holes into critical areas of this mineralisation. These holes will be drilled immediately, and the samples will be prioritised for assaying.
We also look forward to commencing a high-powered ground moving loop electromagnetic (MLEM) survey this month over priority target areas of the 10km of strike that we have at Nepean, which we believe will generate significant high potential targets for the next phase of drilling.
More about the Nepean Nickel Project
Auroch Minerals acquired the Nepean Nickel Project in December 2020. The company holds an 80% share in the project, with the other 20% owned by Goldfellas Pty Ltd.
The Nepean Nickel Project contains the historic high-grade Nepean nickel sulphide mine, which was the second mine to produce nickel in Australia. It operated between 1970 and 1987.
Nepean is located near Coolgardie, Western Australia.
Auroch Minerals share price snapshot
The Auroch share price has dropped 15% today. It’s currently 19 cents, having opened at 20 cents this morning.
Despite today’s loss, Auroch’s share price is having a great year. Right now, it’s up 65% year to date and 285% over the last 12 months.
Auroch has a market capitalisation of approximately $59 million with around 272 million shares outstanding.