Kuniko (ASX:KNI) share price heads south as company gears up for drilling

What did the company announce?

The Kuniko Ltd (ASX: KNI) share price is treading lower on late Monday afternoon. This comes after the company announced an update on geochemical sampling analysis at its prospective Skuterud Cobalt project in Norway.

At the time of writing, the battery metals explorer's shares are swapping hands for $1.21, down 1.22%

man grimaces next to falling stock graph

Image source: Getty Images

What were the results?

Investors appear unfazed by the company's latest release to the ASX, sending the Kuniko share price lower.

In its statement, the company advised it has received the first geochemical soil sample assays from the Skuterud Cobalt Project. The encouraging results indicated a distinctive geochemical vector with arsenic, cobalt, and copper signatures towards the main 'fahlband' zone. This is believed to be extended for at least 12 kilometres in a north-western direction from the Skuterud Mine.

A more detailed assessment of the geological data will be conducted and completed by February 2022. This will allow Kuniko's technical team to identify drilling targets for the 2022 field season.

Kuniko CEO, Antony Beckmand commented:

The assay results at our Skuterud Cobalt Project offer further support that the anomaly identified by our geophysics program is on point, putting us in a prime position to firm up a drilling program for next year. The investment in the airborne geophysics, combined with the extensive soil sampling campaign, demonstrates that there is significant upside exploration potential, with drilling by pervious explorer Berkut having missed the mark.

These results and the pending assays from our Vangrofta Copper Project enable us to plan an efficient drilling program for next year.

Kuniko share price summary

Since debuting on the ASX boards on 24 August, Kuniko shares have moved in circles. The company's share price hit an all-time high of $3.60 during the first opening weeks, before gradually treading lower.

Kuniko presides a market capitalisation of roughly $51.01 million, with more than 41.47 million shares outstanding.

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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