IGO (ASX:IGO) share price soars 4% on nickel-copper update

Here's the latest from IGO's Fraser Range explorations…

| More on:

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 IGO Ltd (ASX: IGO) share price is taking off this morning on news from the company's 70%-owned Fraser Range joint venture.

IGO has begun a drilling program at the project to further explore 2 recently identified bedrock conductors. IGO's joint venture partner notes the conductors are compelling nickel-copper targets.  

At the time of writing, the IGO share price is $9.82, 3.59% higher than its previous close.

Let's take a closer look at today's news.

Two cheerful miners shake hands while wearing hi-vis and hard hats celebrating the commencement of a HAstings Technology Metals mine and the impact on its share price

Image source: Getty Images

IGO begins drilling program

The IGO share price is in the green on the back of an update posted by the company's Fraser Range joint venture partner, Carawine Resources Ltd (ASX: CWX). 

IGO has started drilling at the project's Red Bull tenement where low-temperature SQUID moving-loop electromagnetic surveys identified 2 targets in June.   

The surveys were looking to interpret a southern continuation of the lithostratigraphic package, known as the Snowys Dam Formation, that hosts the Nova-Bollinger nickel-copper-cobalt deposit.

Modelling by IGO shows the 2 conductors – named RB_C and RB_B – are within low-magnetic bodies. They will likely be mafic intrusions within the Snowys Dam Formation.

RB_C has a high conductance of around 5,500 siemens. Modelling shows it's a 275-metre-by-275-metre plate dipping northeast from 320 metres below the surface.

Whereas RB_B has moderate conductance of around 2,500 siemens, modelled as a 250-metre-by-350-metre sub-vertical plate dipping east from 330 metres below the surface.

Through its joint venture with Carawine, IGO has access to 5 exploration areas. By funding the financial year 2022 exploration program – expected to cost approximately $1.3 million – IGO can earn another 6% of the Fraser Range joint venture. 

IGO share price snapshot

This year is going well for the IGO share price.

Right now, it's 46% higher than it was at the start of 2021. It has also gained 125% since this time last year.

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.

More on Resources Shares

Investor looking at falling ASX share price on computer screen.
Resources Shares

BHP shares crash 21% in March so far: Time to sell up?

The mining giant's shares started the month at an all-time high.

Read more »

Business people standing at a mine site smiling.
Resources Shares

How much could the Fortescue share price rise in the next year?

Let’s dig into the potential of Fortescue shares…

Read more »

Two CEOs shaking hands on a deal.
Resources Shares

Own BHP shares? Here's an expert's view on the new CEO

One of the world’s biggest miners has a new boss.

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Resources Shares

Are Fortescue shares a top buy in March?

Fortescue shares have delivered strong returns, but are they still a buy?

Read more »

A female athlete in green spandex leaps from one cliff edge to another representing 3 ASX shares that are destined to rise and be great
Share Gainers

Guess which ASX lithium share is leaping 14% in Friday's sinking market

Investors are piling into this small-cap ASX lithium miner today. But why?

Read more »

Engineer looking at mining trucks at a mine site.
Resources Shares

4 cheap Aussie rare earths companies which are worth a look, according to Wilsons Advisory

Despite a sell-off, the fundamentals of the sector remain strong.

Read more »

View of a mining or construction worker through giant metal pipes.
Resources Shares

Woodside vs Santos: Which ASX energy stock is the best fit for your portfolio?

Rising oil prices may lift all energy stocks, but investment profiles differ.

Read more »

An athlete runs fast with a trail of yellow smoke billowing out behind him.
Broker Notes

Up 139% in a year, why this buy rated ASX All Ords rare earths stock could keep racing higher

A leading broker forecasts more outperformance to come from this surging ASX rare earths stock.

Read more »