Charger Metals (ASX:CHR) share price wobbles on project’s new targets

The company has identified several new targets at its Coates Project in Western Australia

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The Charger Metals NL (ASX: CHR) share price is wobbling today after the company released potentially exciting news from its Coates Project.

A SkyTEM geophysical survey over the project has found 105 potential sulphide conductors.

Some of the conductors coincide with nickel, copper, gold, and platinum group elements geochemistry anomalies, making them priority targets.

Charger’s stock was halted at midday on Tuesday, pending the release of the survey’s initial results.

At the time of writing, the Charger Metals share price is 49 cents, the same as when it was frozen. However, earlier today the company’s stock was trading for 57 cents, representing a 16% gain.

Let’s take a closer look at the news driving the minerals company’s stock higher today.

Charger Metals share price seesaws on project update

The Charger Metals share price is flip-flopping today after new targets were recognised at its Western Australian Coates Project.

The targets were identified using helicopter electromagnetic surveys. The surveys were looking for conductors that could potentially include nickeliferous sulphide rocks.

Preliminary data from the surveys identified 105 anomalies. From those anomalies, the company set 22 priority targets.

One such target includes a cluster of 19 anomalies. The company believes the anomalies could form several parallel conductors, extending over 1,500 metres of strike length.

One end of the target has been found to house nickel, copper, gold, and platinum group elements geochemistry anomalies, while the other hasn’t yet been tested. The company has said it will keep progressively testing the 22 targets.

Charger Metals is still awaiting final data from the survey, which will likely include modelling for conductance and geometry.

Charger owns 70% of the Coates Project and 85% of the Coates North Project. Future work at the project will include detailed aeromagnetic surveys, more soil geochemistry coverage, and ground electromagnetic surveys.

Commentary from management

Managing director David Crook commented on the news possibly driving the Charger Metals share price today, saying:

The results of the helicopter [electromagnetic] survey, coupled with the pre-existing geochemistry, provides the company with excellent, very clear targets for the next phase of detailed fieldwork, as we move towards drilling.

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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