Why the Eagle Mountain (ASX:EM2) share price is surging 19% higher again today

The Eagle Mountain Mining Ltd (ASX:EM2) share price is surging higher on Thursday. Here’s what you need to know…

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The Eagle Mountain Mining Ltd (ASX: EM2) share price has been a strong performer on Thursday.

In afternoon trade, the copper and gold explorer’s shares are up 13% to $1.11.

Though, at one stage today, the Eagle Mountain share price was up as much as 19% to a record high of $1.17.

When its shares reached that level, it meant they were up an impressive 150% since the start of the year.

Why is the Eagle Mountain share price on fire today?

The Eagle Mountain share price was given a boost today by an update on drilling activities at its Oracle Ridge Project in Arizona, United States.

According to the release, the company is planning to accelerate exploration drilling at the project. This follows multiple strong assay and drilling results and an increasing pipeline of high priority targets within a few kilometres of the existing underground mine portals.

The company has engaged drilling contractor Boart Longyear Ltd (ASX: BLY) to supply a second drill rig, which is planned to mobilise to site by 10 May 2021.

Management commentary

Eagle Mountain’s Chief Executive Officer, Tim Mason, commented: “Our recent drilling and exploration results at Oracle Ridge indicate the very strong potential for Oracle Ridge to host increased levels of mineralisation.”

“We have recently completed extensive earthworks to improve access and establish suitable drill pads in preparation for our accelerated drilling program. Since commencing drilling in September 2020, more than 90% of the holes assayed outside the existing JORC Resource have intersected mineralisation above our cut-off grade.”

Mr Mason also spoke about its pipeline of targets.

He explained: “We are also building a strong pipeline of targets including the recently announced high-grade copper mineralisation outcropping at the OREX prospect along a four-kilometre contact. These results give us confidence to accelerate our drilling with the aim of increasing our existing JORC Resource and evaluating the extraordinary potential of the near-mine area.“

Judging by the Eagle Mountain share price performance today, some investors appear to be expecting strong results from these activities.

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Motley Fool contributor James Mickleboro 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.

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