Here's why the E2 Metals (ASX:E2M) share price exploded 48% today

Exactly what did the precious metals explorer and miner announce?

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The E2 Metals Ltd (ASX: E2M) share price entered the stratosphere today. This comes after the company discovered significant gold and silver mineralisation at the company's Conserrat project in Argentina.

At Monday's closing bell, the Australian exploration and development company's shares finished 47.92% higher to 35.5 cents.

E2 Metals locates new gold

According to its statement, E2 Metals reported gold and silver assay results at Andrea Sur, the western extension of Conserrat in Argentina's Santa Cruz province.

Two shallow Reverse Circulation (RC) drill holes were completed on two sections spaced 120 metres apart. The results included the following:

  • 16 metres at 15 grams per tonne (gpt) of gold (Au) and 22gpt of silver (Ag) from 31 metres (drill hole CORC-183); and
  • 4 metres at 3gpt Au and 11gpt Ag from 29 metres (drill hole CORC-190).

The drilling was designed to test beneath a float train of epithermal vein boulders extending for over a 150-metre strike.

Notably, mineralisation is open in all directions and can be traced over 1200 metres in gradient array induced polarization (IP) geophysical images. This is a geophysical method used in mineral exploration and mine operations in a bid to find new discoveries throughout the resource area.

E2 Metals will prioritise follow-up drilling along the strike range of drill hole CORC-183. In addition, scout drilling will commence along the host structure on sections spaced 100 metres away from each other.

E2 Metals managing director Todd Williams commented:

The discovery of high-grade mineralisation at Andrea Sur is important for two reasons:

Firstly, it is the westernmost discovery made to date at the Conserrat project, significantly expanding the footprint of this emerging gold and silver district.

Secondly, it turns a spotlight on adjacent structures that have never been drill tested, such as Andrea, a prospect that is host to a prominent silica alteration cap geologically similar to those that overly mineralised epithermal veins elsewhere in the Deseado Massif, such as Newmont's Silica Cap deposit at Cerro Negro.

About the E2 Metals

Despite today's gains, E2 Metals shares have tracked almost 60% lower over the past 12 months. When looking at year-to-date, its shares have given up around 40%.

On valuation grounds, E2 Metals commands a market capitalisation of roughly $53.42 million, with approximately 150.47 million shares on issue.

Motley Fool contributor Aaron Teboneras 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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