IGO (ASX:IGO) share price slips despite positive survey updates

IGO shares have slipped into the red today. Here are the details.

| More on:
Miner standing at quarry looking upset

Image source: Getty Images

The IGO Ltd (ASX: IGO) share price has dipped into the red in afternoon trade on Wednesday.

Shares in the gold and minerals miner are on the way down despite the company releasing an update on its joint venture with Moho Resources Ltd (ASX: MOH).

Let’s investigate further.

A bit of background

Recall that IGO and Moho formed an unincorporated joint venture (JV) to explore and mine at Moho’s Buracoppin Gold project back in 2015.

Specifically, the JV pertains to a location known as “E70/4688” on the Buracoppin site. Moho is also the manager of the JV.

IGO has a 30% interest in the venture and the company has the option to contribute “pro-rata to ongoing work” or to convert its 30% interest into a “10% carried interest”.

What was announced today?

In news that could weigh in on the IGO share price, the company advised that “encouraging assay results” had been received from the “stream sediment sampling program” at Buracoppin.

The release was made through an announcement from Moho regarding the same assay results.

As per the release, a total of 369 samples were collected and “ten prioritised exploration targets” were identified as a result of the campaign.

These targets were found “within extensive areas of gold anomalism”. Some of the gold anomalism was “associated with arsenic and copper”, according to Moho.

As a result of the survey findings, “four areas [are] prioritised for further exploration” at the project. As such, an additional tenure has been granted, effectively “increasing [the] Buracoppin project by 12%”.

In addition, a “high resolution gravity survey” was completed at Buracoppin. The interpretation of this data “will assist Moho’s understanding” of the site.

Investors have sold IGO shares on the update and have pushed the IGO share price into the red on Wednesday.

IGO shares are now exchanging hands at $9.45 apiece, a 2.07% drop from the market open.

IGO share price snapshot

The IGO share price has climbed 47.5% over this year to date. This extends the gain over the previous 12 months to 111%.

Despite this, IGO shares are 3.6% in the red over the past month. They are around 2% in the red over the last week as well.

Nonetheless, both longer-term returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s returns of around 14% year to date and 25% over the past year.

These 5 Cheap Shares Could Be Set For Huge Gains (FREE REPORT)

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can find out the names of these stocks in the FREE stock report.

*Extreme Opportunities returns as of February 15th 2021

The author Zach Bristow has no positions 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 Share Fallers

Rede arrow on a stock market chart going down.
Share Fallers

Why the Integrated Research share price is cascading 15% today

Clouds gather around Integrated Research amid latest trading update.

Read more »

Red arrow going down, symbolising a falling share price.
Share Fallers

Why Imugene, Integrated Research, Monash IVF, and Step One shares are sinking

These ASX shares are falling on Monday...

Read more »

Share Fallers

These were the worst performers on the ASX 200 last week

These ASX 200 shares were sold off last week...

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

Why A2 Milk, Gold Road, GrainCorp, and Monash IVF shares are dropping

These ASX shares are falling on Friday...

Read more »

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.
Share Fallers

Why is the CSR share price lagging the ASX 200 on Friday?

The building products manufacturer has had a difficult year so far in 2022.

Read more »

A group of disappointed board members.
Technology Shares

Why is the Novonix share price down 9% today?

Novonix extends its time in the red today, adding to already heavy losses in 2022.

Read more »

Red arrow going down on a stock market table which symbolises a falling share price.
Share Fallers

Why Block, IDP Education, Monash IVF, and Xero shares are dropping

These ASX shares are falling hard on Thursday...

Read more »

Red arrow going down symbolising a falling share price.
Broker Notes

Why is the CSR share price plunging 9% today?

The broker's have weighed in with their opinions after CSR's earnings yesterday.

Read more »