The Neometals Ltd (ASX: NMT) share price is gaining in morning trade, up 2.2% to 47 cents per share.
Below we look at the latest resource update from the ASX mineral explorer
What update did Neometals report?
Neometals' share price is gaining after the company announced a major Mineral Resource upgrade for several of its nickel deposits.
The updated Mineral Resource estimates for its McEwen and McEwen Hangingwall deposits come in at a grade of 1.4% nickel, totalling 41,500 tonnes of contained nickel. That's a 45% increase from the previous estimates of 29,220 tonnes.
These deposits represent 2 of 11 total Mineral Resources at the Neometals' Mt Edwards Project in Western Australia. All are located in an area rich with historic nickel sulphide mines near the town of Widgiemooltha.
The Global Mineral Resource at the Mt Edwards Project has been revised upwards to 9.64 million tonnes at 1.7% nickel for a total of 160,000 tonnes of contained nickel.
Freshly researched historical data also led the company to downgrade its Zabel Mineral Resource, which was last estimated in December 2020. According to the release, the revised estimate "now only includes nickel sulphide in fresh rock". The Zabel Mineral Resource was reduced by 7%, with 325,000 tonnes at 2% nickel for a total of 6,360 tonnes of contained nickel.
Neometals said it plans additional exploration at both McEwen and McEwen Hangingwall, with bot reverse circulation and diamond drilling to increase its knowledge of the extents of mineralisation.
Neometals share price snapshot
Neometals shares have gained an impressive 236% over the past 12 months, compared to a gain of 27% on the All Ordinaries Index (ASX: XAO).
Year-to-date the Neometals share price has continued to outperform, up 62% so far in 2021.
Neometals has a market cap of $251 million.
