Aston Minerals (ASX:ASO) soars 15% on new nickel-copper discovery

Investors are backing the nickel story in Aston’s case.

| More on:
Female miner uses mobile phone at mine site

Image source: Getty Images

Key points

  • Investors are piling into Aston today in response to a positive update at its Boomerang Target
  • According to the company, the grades of mineralisation are “comparable to that of BHP’s Mt Keith Mining Operation
  • Drill permits for the entire strike length of the Boomerang target have been submitted and are expected to be approved shortly
  • The Aston Minerals share price is up 215% in the past year.

The Aston Minerals Ltd (ASX: ASO) share price is charging higher in afternoon trade on Wednesday. At the time of writing, shares in the exploration company are surging 15% at 12 cents apiece.

Investors are piling into Aston today in response to a positive update at its Boomerang Target at the Edleston Project in Canada. Let’s take a look.

What did Aston Minerals announce?

Aston advised it has intersected 163.5m at 0.52% Ni and 0.016% Co from 186.5m within its Boomerang Nickel-Copper (Ni-Co) Target with the hole “ending in mineralisation”.

According to the company, the grades of mineralisation are “comparable to that of BHP Group Ltd (ASX: BHP)’s Mt Keith Mining Operation”.

The target is located at the Edleston Project in Canada. Aston says the project is situated within a Tier 1 mining jurisdiction with “access to green, low-cost hydroelectric power within the Project area”.

Aston also confirmed that a total of 13 drill holes for 5,959m of drilling have been completed across three sections of the Boomerang Target to date and that all of the three sections have nickel sulphide present.

A resource drilling definition program is underway across the “Bardwell portion” of the Boomerang Target, aiming to “systematically expand along approximately 1km of strike” and to the depth of mineralisation.

Meanwhile, drill permits for the entire strike length of the Boomerang target have been submitted and are expected to be approved shortly, per the release.

The company’s aim from here is to define a substantial resource base plus conduct metallurgical and engineering studies this year to “quantify the economic potential of the project”.

Management commentary

Speaking on the announcement, Aston executive chairman, Tolga Kumova said:

Aston is uniquely positioned to capitalise on the burgeoning demand for nickel which has recently reached the highest price since 2011, while nickel inventories are at historically low levels. Currently, the stainless steel industry accounts for approximately two thirds of the utilisation, while demand from electric vehicle batteries are expected to double their current market share to approximately 20% by 2025.

Meanwhile, managing director Dale Ginn added:

The substantial intersection at Bardwell Prospect has exceeded our expectations in relation to both the grade and extent of mineralisation. To have such broad zones of mineralisation at comparable grades to that of Mt Keith so early on in our nickel exploration program provides us with a huge degree of confidence in the potential of the system.

The Aston Minerals share price is up 215% in the past year and has climbed more than 14% already this year to date.

Should you invest $1,000 in Aston Minerals right now?

Before you consider Aston Minerals, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Aston Minerals wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

The author has no positions 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.

More on Share Gainers

Rising share price chart.
Share Gainers

Why BlueScope, OFX, Pilbara Minerals, and Step One shares are pushing higher

These ASX shares are pushing higher...

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Share Gainers

The Step One share price rocketed 35% today! Here’s why

Step One Clothing shares are on fire today. But is this move as good as it seems?

Read more »

A businessman holds his hand to his wide-open yawning mouth as he closes his eyes and makes a funny face while he gives a wholehearted yawn.
Share Gainers

What I love about these ‘boring’ ASX shares: fundie

What is there to like about these two ASX shares?

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Glowing: The Adore Beauty share price is soaring

Adore Beauty shares are soaring right now.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Materials Shares

Here’s why the Calix share price is leaping 6% on Tuesday

The environmental technology company’s shares are on the rise after a joint announcement with Pilbara Minerals.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Share Market News

Why is the Pilbara Minerals share price climbing today?

Investors could be responding well to news out of Pilbara's camp.

Read more »

Technology Shares

Droneshield share price leaps 10% amid strong Ukrainian demand

The company's anti-drone systems are employed by militaries, law enforcement and private enterprises across the world.

Read more »

A kid and his grandad high five after a fun game of basketball.
Share Gainers

3 ASX All Ordinaries shares hitting multi-year highs on Monday

These names are outpacing major benchmarks today.

Read more »