Metal Hawk (ASX:MHK) share price rockets 27% on high grade discovery

Metal Hawk is having a great day on the ASX. Here's why.

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The Metal Hawk Ltd (ASX: MHK) share price is taking off this morning following the company's confirmation of a high-grade nickel discovery.  

Metal Hawk released assay results from its Berehaven Project's Commodore Prospect today.

The results show high-grade massive sulphites of up to 5.89% nickel.

At the time of writing, Metal Hawk's shares are trading for 78.5 cents apiece, 26.61% more than they were at its previous close.

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

A drawing of a white rocket streaking up, indicating a surging share pirce movement

Image source: Getty Images

New assay results

The Metal Hawk share price is rocketing on more news of its discovery at its Berehaven Project's Commodore Prospect.

The company has received assay results from reverse circulation drilling at the prospect. The lower section of one hole returned results including:

  • 9 metres at 0.31% nickel, 185 parts per billion of copper, 18 parts per billion of platinum and 34 parts per billion of palladium.

Additionally, the prospect's geochemistry indicates there's more nickel at depth. This was backed up by downhole electromagnetic surveys that found a conductive target below the drill holes.

The prospect was first intercepted earlier this month. News of the initial finding boosted the Metal Hawk share price by a massive 257%.

The company now plans to continue exploring the prospect. It expects to begin diamond drilling and more reverse circulation drilling in October.

Commentary from management

Metal Hawk's managing director, Will Belbin, commented on the news driving the company's share price today, saying:

We believe that the mineralised sulphide zone at Commodore may represent part of a significant untested komatiite system… The Berehaven Project is incredibly underexplored for nickel sulphides and we have several kilometres of prospective stratigraphy along strike from Commodore.

Metal Hawk share price snapshot

This year has been a good one so far for Metal Hawk's stock.

Today's gains included, it's now 201% higher than it was at the start of 2021.

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.

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