Mandrake Resources (ASX:MAN) share price rockets 23%, breaks all-time high

The mineral exploration company has advised it now has permission to start new drilling operations.

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The Mandrake Resources Ltd (ASX: MAN) share price is one of the best performers on the ASX today. This comes after the company announced it will commence a new drilling programme.

During early afternoon trade, the mineral exploration and development company's shares are up 23.68% to 23.5 cents, a record high.

Mandrake Resources accelerates drill targets

Investors are driving Mandrake shares into new territory after the company provided a pleasing update.

According to the release, Mandrake Resources advised it has received all the necessary permits and land access agreements to begin drilling operations at the Newleyine Prospect.

Located 30 kilometres east of Chalice Mining Ltd's (ASX: CHN) Julimar discovery in Western Australia, the Newleyine Prospect is a rich PGE-Ni-Cu target. Mandrake controls 100% of a 140 square kilometre exploration licence prospective in the Jimperding Metamorphic Belt.

PGE-Ni-Cu stands for a number of different minerals. The first, platinum group elements (PGE) consist of palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh) and ruthenium (Ru). Next on the list is nickel (Ni), and then copper (Cu).

The Department of Mines, Industry Regulation and Safety (DMIRS) approved the Programme of Work (PoW) application for the drilling campaign.

Mandrake Resources will target three electromagnetic (EM) conductor plates that were identified by a fixed-loop electromagnetic (FLEM) survey. The geophysical interpretation suggests the EM conductor plates could be the response of massive sulphide mineralisation.

The company will seek to run a drilling program targeting PGE-Ni-Cu mineralisation similar to the Julimar Project.

A drill contractor has been secured and is scheduled to start work on 14 June 2021.

In addition, Mandrake Resources noted that it has also completed a geological mapping, sampling and portable X-ray fluorescence program across the Jimperding Project. In particular, anomalies were identified by a recent heli-Versatile Time Domain Electromagnetic (VTEM) survey.

The company said that it will release the results shortly.

Mandrake Resources share price snapshot

Established in 1986, Mandrake Resources is a mineral exploration company that is focused on the development of PGE-Ni-Cu and gold in Australia.

The company's share price has jumped by more than 840% over the past year, and is 170% higher year-to-date.

Based on today's price, Mandrake Resources commands a market capitalisation of roughly $85 million, with 363 million shares outstanding.

Motley Fool contributor Aaron Teboneras 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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