The Helix Resources Ltd (ASX: HLX) share price is surging today after announcing a "massive" copper find at one of its mining operations.
At the time of writing, shares in the mineral exploration company are up 128.5%, trading at 3.2 cents.
Let's take a closer look at today's announcement and what it means for the Helix share price.
What's up with the Helix share price?
In a statement to the ASX, Helix advised it has intersected an "intense copper sulphide mineralisation" approximately 80m down from a previous copper find at its Canbelego mine in New South Wales. A second hole found more copper sulphide deposits 90m down from another find in the mine.
The Canbelego mine is a joint venture between Helix and Aeris Resources Limited (ASX: AIS). Helix controls 70% of the project.
As a result of these latest finds, Helix says it will reassess the mineralisation prospects at the mine for a larger estimate in its next resources update. The previous estimate was for 1.2% copper.
The expectations for greater copper deposits are seeing investors rally around the Helix share price this morning.
Management commentary
Helix managing director Mike Rosenstreich said
This is an exciting hit – notably there is more massive copper mineralisation in this drill hole which is very encouraging for a high-grade copper zone when the assays come in. As a bonus, there is the possibility of a second copper position emerging after we intersected chalcopyrite veins much higher in this hole.
Canbelego is one of Helix's two advanced copper projects and a key objective of this drilling program and the EM surveys is to demonstrate the growth potential of the defined mineralisation at each of them. Clearly, these two recent drill holes at Canbelego have extended the copper mineralisation nearly 100 metres below the previous base of the mineralisation envelope, which I am sure will be confirmed by the assays expected in June.
Copper commodity price
Copper is currently trading for US$4.79 per pound on the commodities market. It is down from its record high of US $4.90 a pound from earlier this week. Despite this, the metal is still 18.4% higher than last month and an amazing 36.2% greater compared to the beginning of this year. In comparison, gold is up just 5.0% this month but down 3.5% in 2021.
The website Trading Economics says the price of copper is increasing due to increasing demand and decreasing supply. Demand is booming because of the rebounding global and economy and surging demand for green technology. Copper is an essential element in renewable technology production.
Trading Economics attributed the supply drop to "a lack of investment by large miners" and recent tax hikes on copper production in Chile. The South American nation is the largest copper producer in the world.
Helix share price snapshot
Over the past 12-months, the Helix share price has increased 254.5%. Its current price is a 52-week high for the company. The last time the Helix share price was at this level was in September 2018.
Helix has a market capitalisation of $49 million.
