The Sunstone Metals Ltd (ASX: STM) share price finished deeply in the red today, down 15.45% to 9.3 cents.
Below we look at the latest drilling update from the ASX resource explorer, which appears not to have sufficiently roused investor spirits following earlier positive reports that saw the Sunstone Metals share price rocketing last week.
What drilling results were reported?
The Sunstone Metals share price fell hard today despite the company reporting positive assays from its El Palmar deposit in Ecuador. The company said the assays confirm the deposit is a significant gold-copper porphyry discovery.
The results from the latest drill hole included:
- 1 metres at 0.75grams of gold per tonne and 0.20% copper from 32 metres
- Within 259.6 metres at 0.41g/t gold and 0.14% copper from 10.4 metres
Assays are pending on 3 other completed drill holes with a fourth currently underway. Sunstone said all the drill holes to date are mineralised from shallow depths.
Commenting on the results, Sunstone’s managing director Malcolm Norris said:
This is a big system and has huge potential. It is early days, but importantly every hole has been mineralised… We are seeing some evidence that the first seven holes are defining the upper parts of a large porphyry system with multiple mineralising intrusions emplaced into wallrocks. Given this, we are increasingly excited about the deep targets and the potential for the mineralisation to have a vertical extent of more than 1 kilometre.
Norris also said the company will commence drilling its second hole at the high-grade Alba gold target on the Bramaderos project, also in Ecuador, this weekend. He added the company is well-funded to explore both projects, with approximately $19 million in cash and equities.
Speaking of the Bramaderos project, it was drill results from this site that look to have triggered a massive spike in the Sunstone share price last week.
Sunstone Metals share price retreats after surging 100% in days
Last Thursday, 18 November, the Sunstone Metals share price closed the day up by more than 50%.
As the Motley Fool reported on the day, “The company advised that it has obtained ‘exceptional’ assays from the first drill hole at its Alba target located at the Bramaderos site”.
Shares finished flat last Friday and gained another 10% on Monday.
Some profit-taking looks to have taken place on Tuesday, with the Sunstone Metals share price finishing down 13%, only to bounce back yesterday, finishing up 10%.
This leads us to speculate that today’s 14% fall could have been driven by another round of profit-taking.
To see why, here’s how Sunstone Metals shares have been moving.
Sunstone Metals share price snapshot
Over the past 12 months, the Sunstone Metals share price is up an eye-popping 840%. And that’s factoring in today’s retrace. For some comparison, the All Ordinaries Index (ASX: XAO) has gained 12% over the past full year.
The past week has seen some continuing remarkable moves. From last Tuesday, 16 November through to the end of trading on Monday, the Sunstone Minerals share price almost doubled.
While shares are down 21% now since Monday, bear in mind the Sunstone is still trading 57% higher than it was this time last month.