The Coda Minerals Ltd (ASX: COD) share price went gangbusters today. At close of trade, shares in the mineral explorer are sitting at $1.19 each. That's an incredible 235.21% higher than yesterday's closing price.
This monumental price rise comes after the company announced a "significant" iron oxide copper-gold (IOCG) result at its South Australian mine. IOCG ore can contain large amounts of copper, gold, and sometimes uranium.
Let's take a closer look at today's news.
Why the Coda Minerals share price struck proverbial gold
In a statement to the ASX, Coda Minerals, along with its 30% ownership partner Torrens Mining Ltd (ASX: TRN) – also up an impressive 106% today, declared "highly encouraging" preliminary results at Emmie Bluffs Deep in its Elizabeth Creek project in SA.
According to the statement, its initial drill hole yielded "a 200m sequence of intense haematisation and alteration," in other words, signs of IOCG deposits. These included "a 50m sequence of zoned copper sulphide mineralisation."
Coda Minerals has stressed in its announcement, however, these initial drill results are indicative only and yet to be confirmed in a laboratory. Investors are clearly jumping on the bandwagon anyway, judging by the performance of the Coda Minerals share price today.
Management commentary
Coda Minerals Chair Keith Jones said:
We have long known we are exploring in elephant country – a view backed up not only by the world class projects which surround us, but also by historical and geophysical evidence of an IOCG system in the northern part of the tenure.
Given that we knew the enormous potential of our tenure, it is still tremendously exciting for our first deep exploration hole at Elizabeth Creek to have intersected evidence of a major IOCG system existing on our ground.
Coda CEO Chris Stevens added:
This is a very exciting and significant result for the very first deep IOCG exploration hole to be drilled at our Elizabeth Creek project since we listed on the ASX, and it represents the culmination of significant geological and geophysical targeting work undertaken prior to listing.
Regardless of the final assays, it is clear based on geological data alone we have intersected an IOCG alteration system of significant scale.
…we feel we owe it to our shareholders to pursue this game changing opportunity with vigour.
Gold and copper commodity prices
While gold is up 3.2% over a month to US$1,893 per troy ounce, copper is down 4.2% to US$4.53 a pound.
Trading Economics says the price of gold has been rising in recent weeks due to fears of inflation while copper is down because of lacklustre demand for the metal from China. The website, however, expects the price of both metals to decrease in 12 months' time.
Coda Minerals share price snapshot
Over the past 12 months, the Coda Minerals share price has increased 145%. To put today's price rise into perspective, it's 90% greater than Coda's total gains across an entire year.
In fact, if an investor had bought shares in the company at the start of 2021, they would be sitting on an impressive 272% return on investment.
After today's phenomenal result, the market capitalisation of Coda Minerals has jumped from $24.3 million to more than $75 million.
