Mission possible: Why this ASX mining share is surging 17% today

Investors are loving this mining play today…

Key points
  • Minerals 260 shares are enjoying a day parked firmly in the green
  • Investors are responding positively to a company announcement on its 100%-owned Moora project in WA
  • Since the company listed last year, the Minerals 260 share price has gained 12%

The Minerals 260 Ltd (ASX: MI6) share price is roaring today and is now 17.02% higher at 55 cents. At one point today, Minerals 260 shares were trading as high as 59 cents apiece, before recoursing back to current levels.

Investors are responding well to an announcement out of the company's camp today regarding its 100%-owned Moora project, located approximately 150km northeast of Perth.

A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.

Image source: Getty Images

What did Minerals 260 announce?

The Minerals 260 share price is surging after the company advised it has received assays for a further nine holes from the recently completed drilling program at the Moora site. The findings confirm a wide copper-gold zone at the project.

According to Minerals, the Moora project forms part of a contiguous, 1,000km2 land position that also includes the Koojan venture with Lachlan Star Ltd (ASX: LSA) next door.

Earlier in January, Minerals 260 completed a 37-hole diamond core and reverse circulation (RC) drilling program for a total of 6,196 metres on various anomalies at the site.

Results from the Mynt prospect show mineralisation was intersected at 24m at 1.9% copper and 0.7 grams of gold per tonne from 99-123m.

"[The] mineralisation hosted by a quartz-veined zone with disseminated to semi-massive chalcopyrite and pyrrhotite," Minerals 260 said.

Minerals 260 also notes the presence of mineralisation with "significant geochemical and geophysical anomalies" indicates the potential for a large sulphide-related system.

Assays received for a further eight drill holes at another prospect located on the site confirm the continuity of gold mineralisation. This has now been intersected on five sections over 400 metres of strike in all directions.

Management commentary

Speaking on the news fuelling the Minerals 260 share price today, managing director David Richards said:

The recent drilling and geophysical results continue to highlight the potential for large mineralising systems at Moora and Koojan. While we still have a lot of assay and other data to review and analyse, we are developing a clearer understanding of the priority areas for follow-up drilling.

One is clearly the exciting new copper-gold zone delineated at the Mynt prospect, where geophysics indicates potential for a significant mineralised system. The other is at Angepena, where we have now delineated significant gold mineralisation over an extensive area.

Minerals 260 share price snapshot

Since listing last year the Minerals 260 share price has gained 12%. It is also up 5.6% this year to date.

During the past month, its shares are up 1.8% and they have exploded by almost 32% over the past week.

Motley Fool contributor Zach Bristow 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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