Here’s why the Alicanto (ASX:AQI) share price is rocketing 20% today

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The Alicanto Minerals Ltd (ASX: AQI) share price is going ballistic today, up 20% trading at 15.5 cents at time of writing after earlier posting gains of more than 35%.

We take a look at the latest drill results from the ASX resource explorer that look to be stoking investor interest.

What drill results were announced?

The Alicanto share price is soaring after the company reported “spectacular historic drilling results” at its Sala silver-lead-zinc project, located in Sweden. Alicanto noted the presence of exceptionally high grades of silver, zinc and lead.

The results come from drilling conducted in the 1970s by the previous project site owner, Boliden. The Swedish Geological Society only just released the assays publicly for the first time. The assays are derived from a total of 12,225 metres of shallow historical drilling.

Alicanto noted that the shallow mineralisation “highlights the significant potential of the Sala Project”.

Some top historical intercepts include:

  • 8m at 5.3% Zn and 40 g/t Ag, including 2.1m at 36.4% Zn
  • 8m at 450 g/t Ag, 12.2% Zn, 7.2% Pb
  • 7m at 42 g/t Ag, 11.6% Zn, 0.3% Pb

What did management say?

Commenting on the historic assays, Alicanto’s managing director Peter George said:

The grades and widths of the mineralisation are spectacular and many of the intersections sit within the area we are currently targeting for our maiden JORC-compliant Resource. Not only will this data save us 5,000 metres of drilling, time and money, but the strength of the results will also help underpin our resource estimate.

When combined with the 200 million ounces [of] silver produced historically and the exceptional results we have been generating from our own drilling, it is clear that Sala is a world-class mineralised system with immense exploration upside.

The company anticipates its maiden JORC-compliant resource estimate at Sala in the first quarter of 2022.

Alicanto share price snapshot

The Alicanto share price has gained 45% so far in 2021. That handily beats the 11% year-to-date gain posted by the All Ordinaries Index (ASX: XAO).

Over the past month Alicanto Minerals’ shares have gained 33%.

Should you invest $1,000 in Alicanto Minerals right now?

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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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