There's no denying ASX mining shares are outstripping most other corners in this edgy market so far in 2022. Plenty of mining names are at the top of the mantlepiece, glittering in green – or gold, copper, ore – whatever they mine in the first place.
The Phosco Ltd (ASX: PHO) share price is one clear example, having surged more than 50% during this week of trading following a company announcement yesterday. Let's take a closer look.
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Why are Phosco shares charging higher?
This ASX mining share is soaring aloft the fledglings found in the rest of the market today, having announced an important update regarding its Chaketma Phosphate Project in Tunisia.
The update comes after the company restarted technical work at the site in early 2022, after maiden estimates were made back in 2012.
Phosco reported an increase in tonnage and confidence of its mineral resources estimate (MRE) at the Kef El Louz (KEL) prospect at the site.
"Independent consultancy Arethuse Geology has estimated a Measured and Indicated Mineral Resources for KEL of 55.5 million tonnes of rock at a grade of 21.2% P2O5 as per JORC (2012) guidelines, above a cut-off of 10% P2O5", it said.
"This provides a resource base sufficient for the initial 30 years of the mining plan as proposed in the Scoping Study announced 14 August 2012", it added.
Specifically, the new MRE signifies an increase of 50% or around 18.5 million tonnes (Mt) on the previous maiden estimate.
Investors grabbed ahold of the stock and drove it north in a vertical uptrend, right near its 52-week highs of around 1 month earlier.
Management commentary
Speaking on the announcement, Phosco's Executive Director, Taz Aldaoud said:
We're excited to see such a significant step-change at the KEL phosphate prospect. Not only has the size of the resource increased substantially, but equally positive is the enhancement in confidence of the resource thanks to a large conversion of tonnes into the Measured & Indicated category. There's plenty of upside at this deposit with drilling to date covering just less than half of the surface area of known KEL mineralisation. Work is now underway to deliver an upgrade at the neighbouring GK deposit.
Phosco share price snapshot
In the last 12 months, the Phosco share price has climbed 87% and is now up more than 63% for the year to date.
During the last month, shares soared 43% and are up 74% in the last week of trading.
