Here’s why the Coda Minerals (ASX:COD) share price is rocketing 18% today

South Australia is home to some world class mineral deposits.

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The Coda Minerals Ltd (ASX: COD) share price is rocketing today, up 18% at time of writing to $1 per share.

Below we take a look at the latest drilling results that look to be driving investor interest in the ASX resource explorer.

What drilling results were announced?

The Coda Minerals share price is surging after the company reported “significant preliminary results” at its Elizabeth Creek Project, located in South Australia.

The results come from its ongoing iron oxide copper gold (IOCG) drilling program at Emmie Bluff Deeps. That’s part of Elizabeth Creek, which Coda is exploring along with its joint venture partner on the project, Torrens Mining Ltd (ASX: TRN). The Torrens share price is up 5% today.

According to the release, 4 new holes had hit thick copper-sulphide mineralised intercepts. This now extends the mineralised envelop to the north, east and south. The company highlighted that one hole struck zones “dominated by bornite, a high-grade copper sulphide”. The core of that mineralised zone has been extended 70 metres and remains open to the south.

The Coda Minerals share price could be getting an extra boost from the company’s statement that historical data “indicates the potential for significant extension in multiple directions” across the project.

Commenting on the results, Coda Mineral’s CEO, Chris Stevens said:

We have now had an outstanding run of nine holes from this and the previous drilling program. All have returned materially important intersections and we are beginning to demonstrate a clear trend of increasing thickness and tenor of mineralisation as we systematically follow the bornite-dominant zone to the south-east.

In particular, the results from EBD3W3B are exceptional. Once confirmed by assays, this hole will not only materially extend the known bornite-dominated zone but should also give us one of our thickest sulphide intersections to date.

Stevens said Coda had a cash balance of $17.8 million as at 30 September, leaving the company well-funded to continue its “ambitious ongoing exploration program” well into 2022.

Citing delays at assay laboratories that are impacting everyone in the industry, Coda expects to receive assay results for the 5 holes before Christmas.

Stay tuned.

Coda Minerals share price snapshot

It’s been a banner year for the Coda Minerals share price, up 211% since 4 January. For some context, the All Ordinaries Index (ASX: XAO) has gained 8% year-to-date.

Over the past month shares, in Coda Minerals are up 12%.

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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