The Metal Hawk Ltd (ASX: MHK) share price has soared into the green on Tuesday after the company announced a "massive" nickel discovery at its Berehaven Nickel project.
Metal Hawk shares are now exchanging hands at 66 cents apiece, a 256% jump from the open.
The company's shares have since been placed under a trading pause, pending a further announcement.
Let's investigate further.
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A quick rundown on Metal Hawk
Metal Hawk is in the business of minerals exploration. Its main expertise is centred on the exploration and discovery of early-stage gold and nickel sulphides.
It has projects in Australia, most notably the Eastern Goldfields and the Berehaven Nickel project, both in Western Australia.
At the time of writing, Metal Hawk has a market capitalisation of $8.7 million.
What's fuelling the Metal Hawk share price?
In a positive for the Metal Hawk share price, the company announced that its maiden reverse circulation (RC) drilling program at Berehaven had intersected "significant massive mineralisation" at the site.
The company said analysis of the drill chips had confirmed a high-grade tenor typical of Kambalda-style komatiite-hosted nickel deposits.
Metal Hawk also pointed out there had been no drilling carried out at the site prior to its own program, and that this is also a plus for the company.
As a result of the RC drilling program, follow-up diamond drilling will now take place alongside "downhole electromagnetic" studies on the drill holes.
Assay results from additional holes are expected in the next 3–4 weeks, as per the announcement.
Investors have welcomed the news on Tuesday, especially given the current price of nickel, which has climbed more than 30% from March this year.
What did management say?
Speaking on the results driving the Metal Hawk share price, managing director Will Belbin said:
This is a fantastic result from Metal Hawk's first RC drilling program that has confirmed our belief in the potential for massive nickel sulphide discoveries to be made on this exciting and underexplored project. We look forward to ramping up our nickel sulphide exploration at Berehaven and plans for diamond drilling are well underway.
Metal Hawk share price snapshot
The Metal Hawk share price was trading flat across this year to date prior to this morning's announcement.
Nonetheless, Metal Hawk shares have now climbed 164% since the company listed on the ASX in November last year.
This is well ahead of the S&P/ASX 200 Index (ASX: XJO)'s return of around 13% over the same period.
