Auroch (ASX:AOU) share price soars 19% following project update

The Auroch share price is booming on news of 2 scoping studies.

| More on:
Blue light arrows pointing up, indicating a strong rising share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Auroch Minerals Ltd (ASX: AOU) share price is soaring after news on the company's Saints and Nepean projects.

The company announced it's begun scoping studies at the Western Australian nickel projects to access potential mining scenarios.

Right now, the Auroch share price is 19 cents, 19.35% higher than its previous close.

Let's take a closer look at today's news from the mineral explorer.

Scoping studies begin

The Auroch share price is surging as the company begins studies to assess the potential for an open-pit mine at Nepean and underground mines at Nepean and Saints.

The company hopes the studies will help it build its offtake agreement for Saints with BHP Group Ltd's (ASX: BHP) Nickel West. The company also expects the studies will help it potentially produce nickel sulphite soon.

Auroch believes Nepean's shallow nickel sulphate deposits could bring cash flow for the company in the medium term.  

Additionally, Auroch updated the market that its high-impact diamond drill programme at the Nepean Deeps target is continuing schedule. The first drill hole is currently 400 metres into its planned 1,200 metre depth.

Commentary from management

Auroch's managing director, Aidan Platel, commented on the news driving the company's share price today, saying:

With the nickel price consistently around US$ 19,000/t and forecast to increase, we believe there is great potential to take both projects forward to production and hence generate significant cash flow for the company in the medium term, and so we are eager to evaluate the economic viability for several different mining scenarios at these two projects.

We have developed a good relationship with the processing team at BHP and have an existing off-take with them for Saints, so we are keen to develop this further and to potentially build a solid business case to provide high-grade nickel sulphide feed for their processing facilities to produce Class 1 nickel products required for batteries for the fast-growing electric vehicle (EV) market.

Parallel to these studies, we continue with our aggressive exploration for a new nickel sulphide discovery across all three of our WA nickel projects.

Auroch share price snapshot

The Auroch share price has gained 23% year to date. It is also 131% higher than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »