The Venturex Resources Ltd (ASX:VXR) share price is again rocketing higher this week. This means that the company's shares are now almost 20% higher than they were at the start of Monday.
At market close, the Venturex Resources share price is up 4.61%, trading at 80 cents.
Sulphur Springs strategy underway
According to its statement, Venturex advised it has commenced a $10 million drilling program to develop its Sulphur Springs project.
Located 144 kilometres south east of Port Hedland, Western Australia, the Sulphur Springs project contains copper, zinc and silver deposits.
A Definitive Feasibility Study (DFS) was completed in 2018 which identified the project as economically strong. The site has a combined total Mineral Resource of 13.8 million tonnes grading 1.5% copper, 3.8% zinc and 17 grams per tonne of silver.
Venturex noted that since the completion of the DFS, the price of copper and zinc has jumped around 50% and 15%, respectively.
The infill drilling campaign aims to upgrade the majority of the mineral resources into the Indicated Category. This increases the level of geological knowledge and confidence of Sulphur Springs containing probable Ore Reserves.
If successful, this will essentially de-risk the project and give Venturex options to secure funding.
The company will target drilling in both the open pit and underground resources at Sulphur Springs. In addition, extension drilling will take place to test the known resource and mineralisation boundaries.
It is expected that the drilling program will form a part of a resource update in June 2022. Remaining project approvals are anticipated to be received later in the second half of next year.
Venturex managing director, Bill Beament touched on Sulphur Springs strategy to become a bankable project by the end of 2022. He said:
We aim to grow and advance the project at the same time. This approach will maximise our ability to unlock its full value, bringing forward the time to production and cashflow while expanding the mining inventory.
About the Venturex share price
Over the last 12 months, Venturex shares have accelerated to astronomical gains of more than 1,300%, with year-to-date up 600%.
On valuation grounds, Venturex has a market capitalisation of roughly $553 million, with more than 667 million shares outstanding.