Shares in minerals explorer Minerals 260 Ltd (ASX: MI6) are charging higher to trade more than 20% in the green at 70 cents.
Minerals 260 shares have rallied from the open to trade as high as 74 cents, before reversing course to the current market price.
Investors have been bidding up the Minerals 260 share price following a company announcement on its 100% owned Moora Gold-PGE-Nickel-Copper project in WA.
The company has started its inaugural drilling program since demerging from Liontown Resources Ltd (ASX: LTR) and listing on the ASX in October 2021.
Here are the details.
Image source: Getty Images
What is Minerals 260?
The company was listed on the ASX after a successful demerger from Liontown where it raised $30 million via an initial public offering (IPO). This saw the creation of Minerals 260.
It was formed to contain Liontown's non-lithium assets, which include Moora and the Koojan Project located in southwest Western Australia.
That was on 12 October and since then, the Minerals 260 share price has climbed more than 35%, roaring off a low of 45.5 cents last week to its new high today.
At the time of writing, Minerals 260 has a market capitalisation of almost $153 million.
What was announced?
Minerals is set to commence its first drilling program at the Moora project, located around 150km northeast of Perth.
The Moora project forms part of a 1,100km square land package that also includes adjacent projects to the Angepena prospect.
A 3,500 metre diamond core drilling program is designed to follow up on intersections reported earlier this year from the Angepena gold prospect.
Those results showed an intersection of gold at various depths and with various concentrations in the samples.
Diamond core drilling at the site will now determine the style, orientation and continuity of the mineralisation.
Geological data obtained will then be used to plan a 6,000m reverse circulation (RC) drilling program, due to start this month.
In addition to drilling at Angepena, Minerals 260 also intends to undertake follow up drilling at other targets and complete a low-level "aeromagnetic survey to better define prospective mafic/ultramafic units obscured by transported cover".
The results of all works to be completed will be used to plan further drilling programs, Minerals 260 says.
Minerals 260 share price snapshot
Investors are rallying for a spot in the newly-formed minerals explorer, with total volume traded so far today reaching 2,715,603 shares – 46% above its 4-week average since listing.
After its 35% return since 12 October, early investors will be happy as this gain is well ahead of the S&P/ASX 200 Index (ASX: XJO)'s climb in that time.
Shares in Liontown Resources are also trading up 6.05% on the day at $1.665 apiece.
