This junior ASX mining share just leapt 50%. Here's why

This ASX player is soaring ahead of the pack today.

| More on:
A happy miner pointing.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Ballymore Resources released a market-sensitive update regarding its Seventy Mile Mount prospect 
  • The company announced it had received assay results from the initial drilling program at the site, alongside its next steps 
  • Since listing in September last year, Ballymore shares have collapsed 10% 

Shares in Ballymore Resources Ltd (ASX: BMR) are flinging higher today and now trade 9% in the green at 18 cents apiece.

At one point today, Ballymore shares were rallying as high as 50% before receding the line back down to current levels.

Why is the Ballymore share price soaring today?

The company announced it has received gold assay results for the initial drilling program at the Seventy Mile Mount prospect.

The site is located within the Ravenswood Project area, itself situated in the Charters Towers Province in northeast Queensland.

According to Ballymore, the findings demonstrate the potential for Seventy Mile Mount to "host a significant breccia-hosted gold deposit similar in style to Mount Leyshon (3.8 Moz Au) and Mount Wright (1.0 Moz Au)".

Results also show significant new intersections of 40m at 1.06 g/t Au from 47m (including 3m at 9.38 g/t Au) in and 15m at 0.55 g/t Au from 76m (including 5m at 1.44 g/t Au) in two separate holes.

"Matched with historic drilling, these results support the interpretation that Seventy Mile Mount is a zoned system with grade improving with depth", the company remarked.

Management commentary

Speaking on the results, Ballymore Technical Director, David A-Izzeddin said:

The Seventy Mile Mount breccia target has a lot of similarities to major breccia hosted gold deposits in the region and these recent holes are the first completed in the area since 2004. These holes targeted a previously unrecognised breccia zone with similarities to the higher grade breccia zones present at Mount Leyshon and Mount Wright, both major gold producers in the local region in the past 30 years.

This initial drilling program was designed to test the continuity of the gold from the eastern margins to the west, and has proven successful in intersecting shallow, ore grade mineralisation 200m west of the zone of best historic drill results. Initial assessment of the breccias and geochemical data suggests that we are at the top of a zoned system similar to Mount Wright. The only previous deep drilling at Seventy Mile Mount was completed on the eastern margin of this breccia zone and these results support the interpretation that grades will improve with depth.

What's next for this ASX mining share?

Ballymore says that it will now receive assay results for Matthews Pinnacle CEI drill hole and then commence drilling at Ruddygore mine in March 2022.

It also aims to design a Stage 2 drilling program for Seventy Mile Mount, complete soil sampling and mapping program at its Dittmer Project and also mapping of the Day Dawn and Tea Tree prospects located at Ravenswood.

Since listing in September last year, Ballymore shares have collapsed 10%, however are up 3% this year to date, and another 12% in the green 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.

More on Share Gainers

Lion roaring in the wild, symbolising a rising Liontown share price.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors once again pulled back from record highs today.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Share Gainers

Why Accent, Dusk, Evolution Mining, and Zip shares are pushing higher today

These shares are having a great session. But why?

Read more »

Hands reaching high for a trophy with a sunset in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another day and another record high for ASX shares this Wednesday.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Gold

Have you heard of this ASX gold stock? It's up 114% in 8 days!

Investors have sent the ASX gold stock flying higher in July. But why?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why Cettire, Core Lithium, Northern Star, and Step One shares are charging higher

These shares are having a good time on hump day. But why?

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX investors this Tuesday.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why EOS, Hub24, Integrated Research, and Kingsgate shares are pushing higher

These shares are having a strong session. But why?

Read more »

happy mining worker fortescue share price
Share Gainers

Move over Lynas! How this ASX rare earths small-cap surged 106% in just 6 months

This ASX rare earths stock has more than doubled in less than half a year. But how?

Read more »