Why the St George Mining (ASX:SGQ) share price rocketed 60% on open

The St George Mining share price rocketed 60% at market open. We look at what's driving investor interest in the ASX resource share.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The St George Mining Ltd (ASX: SGQ) share price is off to the races today.

Shares of the ASX resource explorer were up almost 60% at market open. At the time of writing the share price is up 21.62%, trading at 9 cents each.

We look at the company's latest announcement.

What did St George report?

The St George Mining share price is soaring after the company reported it had discovered new high-grade nickel-copper sulphides deposits. The discovery was made at its Mt Alexander Project in the north-eastern Goldfields of Western Australia.

Additionally, the company said the results from 3 separate electromagnetic (EM) conductors were interpreted to have a massive sulphide source.

One of the drill holes (MAD199) was drilled to a downhole depth of 378.8 metres. It returned a "very strong conductivity" of 19,320 Siemens.  St George said it also intersected a 10.96-metre interval of continuous nickel-copper sulphides from 333.6 metres downhole, "confirming the conductor as high-grade nickel-copper sulphides".

According to the release, the results support the project's potential to deliver significant additional mineralisation in the area.

Management commentary:

Commenting on the results, St George Mining's executive chairman John Prineas said:

At more than 300 metres below surface, this is the deepest massive nickel-copper sulphides identified in the Cathedrals Belt and confirms our interpretation that the large intrusive mineral system at the Cathedrals Belt can host significant mineralisation at depth.

Importantly, there are multiple other EM conductors proximal to the MAD199 intersection – both up-dip and down-dip – which have yet to be tested. The result in MAD199 gives us great confidence that these additional conductors are also mineralisation and that we may have discovered a very fertile section of the Cathedrals intrusive unit.

Drilling and EM surveys continue around the clock.

St George Mining share price snapshot

St George Mining shares are down 11% over the past full year, compared to a gain of 31% on the All Ordinaries Index (ASX: XAO).

Despite today's boost, the St George Mining share price remains down 11% year-to-date.

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Want to bank the Rio Tinto dividend? You'll need to be fast!

Rio Tinto is about to pay a hefty dividend.

Read more »

Miner holding cash which represents dividends.
Dividend Investing

A 22% yield on Fortescue shares? Here's how these passive income investors achieved it!

Fortescue shares are popular among passive income investors for their juicy fully-franked dividends.

Read more »

Miner looking at a tablet.
Resources Shares

How global job cuts could boost the BHP share price

The mining giant is planning cost-cutting to help its profits.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

This ASX All Ords stock just surged 88% in less than 3 days! Any guesses?

The ASX All Ords stock is drawing intense buying interest from investors this week.

Read more »

Scared looking people on a rollercoaster ride representing the volatile Mineral Resources share price in 2022
Resources Shares

How is the Fortescue share price down 3% today?

Shareholders should be cheering today's Fortescue losses.

Read more »

2 people at mining site, bhp share price, mining shares
Resources Shares

Why is the BHP share price trailing the ASX 200 on Tuesday?

BHP shares are underperforming the ASX 200 today.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

These ASX 200 mining stocks can deliver 20%+ returns

Analysts are tipping big returns from these miners.

Read more »

Miner looking at a tablet.
Mergers & Acquisitions

Alumina shares leap 8% on Alcoa takeover bid

ASX 200 investors are sending the Alumina share price soaring following confirmation of Alcoa’s takeover intentions.

Read more »