The Minerals 260 Ltd (ASX: MI6) share price is surging higher today, up 10.2% in afternoon trading to 54 cents.
Below we take a look at the ASX resource explorer's project update that looks to be spurring investor interest.
What project update was announced?
The Minerals 260 share price is soaring after the company reported it is speeding up exploration work at its Moora and Koojan JV projects.
Both projects are located in Western Australia's Julimar Mineral Province. Minerals 260 is the 100% owner of Moora and in a joint venture (JV) with Lachlan Star Limited (ASX: LSA) at Koojan. The Lachlan share price is up 11% today.
Minerals 260 has so far drilled 6 diamond core holes at its Angepena gold prospect in Moora. Drilling commenced on 4 November to follow up on promising gold intersections struck earlier this year.
Assays are still pending for all 6 holes drilled with initial results expected in January. The company plans to drill 7 more diamond core holes at Angepena totalling some 2,000 metres. That should also be completed in January.
Minerals 260 has also recently commenced a reverse circulation (RC) drilling program at the project. It plans to drill up to 35 holes for approximately 5,000 metres.
Commenting on the announcement likely pushing up the Minerals 260 share price today, managing director David Richards said:
Diamond drilling has confirmed the presence of mafic/ultramafic hosted sulphide-related mineralisation and highlighted the exciting potential, not only of the Mt Yule magnetic anomaly but also the rest of the projects – where numerous targets remain to be tested.
While it is early days, we are very encouraged by what we are seeing in the Angepena drill core. However, we caution investors that until assays are received, we cannot draw any conclusions. Our objective is to build on the exploration data collected so far and systematically work towards the opportunity for a significant discovery.
The company has $6.7 million in the budget for its first 12 months of exploration following its 12 October listing on the ASX.
Minerals 260 share price snapshot
Minerals 260's initial public offering (IPO) raised $30 million at a listing price of 50 cents per share.
The Minerals 260 share price leapt higher that day to close at 60 cents and reached an all-time closing high of 77 cents per share on 15 November. Since then shares have retraced.
Since the closing bell on its first day of trading, Minerals 260's shares are down 10%.
