The Auroch Minerals Ltd (ASX: AOU) share price is flying more than 21% higher today.
At the time of writing, shares in Auroch are trading slightly lower at 26 cents per share. Including today's price action, the Auroch share price has bolted more than 35% in the past 2 weeks.
Here's what's fuelling the Auroch share price.
Why is the Auroch share price flying?
Exactly 2 weeks ago, the Auroch share price was sent plummeting after releasing assay results from its Nepean Nickel Project. The drilling results showed that high-grade nickel sulphide ore deposits extend for more than 500 metres of strike length.
The best new results included 2 metres at 2% nickel and 0.3% copper from 66 metres. This included 1 metre at 2.9% nickel and 0.36% copper. In addition, Auroch reported 4 metres at 0.77% nickel and 0.05% copper from 25 metres. The result also included 1 metre at 0.94% nickel and 0.05% copper.
Despite what seemed to be good news, investors lightened their holdings in Auroch. As a result, shares in Aurora traded at a low of 18 cents, before closing at 19 cents 2 weeks ago. Since then, shares in Aurora have continued on a sturdy trajectory, trading more than 35% higher since the 10th of March.
What is the outlook for Auroch Minerals?
Auroch's flagship Nepean Nickel Project is run as an 80:20 joint venture with Goldfellas Proprietary Limited. The historic Nepean project mine was the second producing nickel mine in Australia. Between 1970 and 1987, the site produced 1,108,457 tonnes of ore.
The company will continue exploring the extent of the known high-grade nickel sulphide mineralisation in and around the historic mine. As a result, Auroch noted that an additional five holes will be drilled to test areas of this high-grade mineralisation.
Auroch noted that all holes will be cased with downhole electromagnetic (DHEM) surveys which could indicate further mineralisation. The fact that results are expected soon, could explain today's euphoric price action.
Auroch is currently fully funded after raising $2.9 million in late September last year. Earlier this month the company also signed a drilling contract with Seismic Drilling Services to lock in a drill rig for the next 12 months.
