Why the Santana (ASX:SMI) share price rocketed 40% today

The company's shares outperformed the broader ASX market…

| More on:
share price rising

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 Santana Minerals Ltd (ASX: SMI) share price ended the day at a 4 month high following strong drilling results.

At Thursday's closing bell, Santana finished up 40.91% to 15.5 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) settled 1.15% higher to 7,681.3 points.

What were the results?

In its latest release to the ASX, Santana reported significant assay results from the 100% owned Bendigo-Ophir Project.

The company has been conducting its drilling program since November 2020 at four Rise and Shine Shear Zone (RSSZ) deposits. It hopes to upgrade the mine's category to Inferred Gold Resources. This states that the mineral content can be estimated with a low level of confidence.

Santana's drill hole (MDD014) intersected 21.7 metres at 5.7 grams per tonne of gold from 174.3 metres at the northern extent of the Rise and Shine (RAS) deposit. This included:

  • 5.7 metres at 11.19 grams per tonne of gold from 174.3 metres; and
  • 4 metres at 12.60 grams per tonne of gold from 187.0 metres.

The drilling confirmed high-grade mineralisation, extending at least 100 metres further down from the previously reported high-grade mineralisation in MDD007.

Assays from drill holes MDD011, MDD012, MDD013 and MDD014 are still waiting to be received.

The company advised that diamond drilling is continuing northwards to further fast-track additional gold resources with a focus on down-plunge extensions.

Santana executive director, Dick Keevers commented on the positive results:

This high-grade gold intersection in diamond drill hole MDD014 at the top of the mineralisation over 21.7 meters of partial assays urgently completed, has demonstrated that high-grade gold zones are common at RAS, where further drilling in progress will determine their geological continuity.

Santana share price summary

Despite today's massive gain, Santana shares have lost around 30% over the past 12 months. Although when looking at year-to-date, its shares are slightly better, just below 20%.

Santana commands a small market capitalisation of roughly $12.54 million and has approximately 114 million shares on its books.

Motley Fool contributor Aaron Teboneras 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 Share Market News

Lion roaring in the wild, symbolising a rising Liontown share price.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors once again pulled back from record highs today.

Read more »

Good news has these businesspeople cheering for joy, partying in a board room.
Bank Shares

2 uniquely Australian reasons why ASX 200 bank shares are outperforming global peers

Three of the Big Four ASX 200 bank shares hit new price milestones today.

Read more »

A group of friends party and dance in the desert with colourful confetti all around them.
Opinions

ASX 200 to finish 2024 higher than expected: AMP

AMP says there were 3 factors that drove the ASX 200 to its new record high above 8,000 points this…

Read more »

a line up of job interview candidates sit in chairs against a wall clutching CVs on paper in an office setting.
Economy

Why did the ASX 200 dip on the latest unemployment figures?

The labour market remains stubbornly resilient with only a minute increase in unemployment last month.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Share Market News

Buy these top ASX ETFs for income in FY 2025

These ETFs could be worth a look if you're searching for income.

Read more »

A woman ponders over what to buy as she looks at the shelves of a supermarket.
Consumer Staples & Discretionary Shares

Have ASX investors missed their chance to buy Woolworths shares?

After a sharp recovery, Woolworths shares might not be on sale anymore...

Read more »

A rueful woman tucks into a sweet pie as she contemplates a decision with regret.
Opinions

DroneShield shares taught me a $29,612 lesson. Stick to your guns

If only I knew what I know now, I'd be $29,612 better off.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Share Gainers

Why Accent, Dusk, Evolution Mining, and Zip shares are pushing higher today

These shares are having a great session. But why?

Read more »