Why the Mandrake Resources (ASX:MAN) share price is tumbling 14% today

Small-cap ASX resource shares can see big price swings on drill results.

The Mandrake Resources Ltd (ASX: MAN) share price is falling hard in early afternoon trade, down 14%.

Below, we take a look at the ASX resource explorers latest drill results.

share price dropping

Image source: Getty Images

What update did Mandrake report?

The Mandrake Resources share price is tumbling after announcing it had completed diamond drill hole MNEWDD003 at its Newleyine PGE-nickel-copper prospect in Western Australia.

The company reported that the massive sulphides observed at the drill hole are coincident with the strong down-hole electromagnetic (DHEM) conductor.

Mandrake Resources has conducted 3 diamond drill holes to date to test 3 "discrete, late-time electromagnetic (EM) bedrock anomalies". Its geophysical interpretation suggests the anomalies may be the response of massive sulphides "consistent with Julimar-style PGE-Ni-Cu mineralisation"

The Mandrake Resources share price may be under pressure today, however, as it reported it will need to conduct further drill testing of the area.

Commenting on the results, Mandrake Resources managing director, James Allchurch said:

The appearance of further massive sulphides in Mandrake's third hole is encouraging and highlights the potential of the Newleyine intrusive to host economic mineralisation. Another compelling off-hole conductor has been identified by down-hole EM at MNEWDD002 and we are yet to test our third and final original conductor at plate C.

Allchurch said pending assay results will give the company a better grasp on the platinum group elements (PGE) and base metal concentrations in the 3 holes already drilled. Those results will help it plot out the next round of drilling.

Mandrake Resources share price snapshot

Over the past 12 months, the Mandrake Resources share price has surged 110%, compared to a gain of 25% on the All Ordinaries Index (ASX: XAO).

Year-to-date the Mandrake Resources share price has gone the other direction, down 19% with today's intraday losses factored in. Shares hit all-time highs less than 2 months ago, trading at 23.5 cents on 31 May.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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