Centaurus Metals (ASX:CTM) jumps 12% on Greenfields nickel sulphide discovery

Centaurus Metals has jumped into the green on Friday. Here's the details.

The Centaurus Metals Limited (ASX: CTM) share price has jumped into the green during afternoon trade on Friday.

Centaurus shares are on the move as the company released a key announcement earlier and are now changing hands at $1.07 apiece, a 10% jump from the open.

Let's investigate further.

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What did Centaurus Metals announce?

Centaurus advised it had intercepted "significant zones of nickel sulphide mineralisation at (its) Tigre prospect". This find highlights the "outstanding growth and upside potential" across the company's Jaguar project, as per the release.

The drilling program revealed "significant percentages" of sulphide mineralisation of thicknesses "up to 10 metres" and over a strike length of "at least 700 metres".

A diamond rig that was mobilised recently to the Tigre site has also intersected a 5.8 metre zone of "stringer and net textured" nickel sulphides.

Centaurus stated that success at its Tigre site has "increased the prospectivity of the dacite basement genesis contact" that extends towards its next drilling target.

As a result of this activity, the company now has "several diamond rigs on site" and another rig set to arrive in the next few weeks.

Drilling is therefore set to ramp up at the site over the coming periods.

What did management say?

Centaurus' managing director Darren Gordon said on the results:

We have a pipeline of outstanding greenfields exploration prospects that we are now systematically testing with
the RC rig. All these targets are located within a 5km radius of the proposed Jaguar Project ROM pad and, as such, any new discoveries from the greenfields drilling have the potential to contribute to mine life extensions beyond the current 13 years.

Speaking on the upcoming activity, Gordon added:

We now have eight rigs on site with another rig to arrive in the coming weeks. This expanded drilling capacity will
allow us to continue aggressive work on both greenfields and resource drilling in conjunction with the development drilling required for project development activities. This multi-pronged approach sets us up for what should be a big second half of project growth at Jaguar.

Centaurus Metas share price snapshot

The Centaurus share price has climbed 31% into the green over the year to date. This extends the gain over the last 12 months to 124%.

These returns have outpaced the S&P/ASX 200 index (ASX: XJO)'s return of around 25% over the past year.

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.

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