Why this ASX mining stock just rocketed 56%

It’s proving a very good day for mining share Ragnar Metals…

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Key points

  • This ASX mining stock is surging by 56% today 
  • The company's shares have risen 75% in a year 
  • Today, Ragnar Metals reported nickel, copper and cobalt drilling results 

The Ragnar Metals Ltd (RAG) share price is soaring today amid the company reporting its latest nickel results.

This ASX mining stock is currently trading at 5 cents, a 56.25% gain. In contrast, the S&P/ASX 200 Resources Index (ASX: XJR) is sliding 0.45% today.

Let’s take a look at what this nickel explorer announced today.

Metals intersected

Ragnar Metals drilling results confirmed “large scale potential” at the company’s Granmuren Deeps nickel, copper, and cobalt discovery. This is located within the ASX mining stock’s Tullsta nickel project in Sweden.

Diamond drilling at hole 21DDTS007 intersected 0.56% nickel, 0.49% copper, and 0.05% cobalt at 146.3 metres.

This included a higher grade zone at 34m of 0.90% nickel, 0.80% copper, and 0.08% cobalt.

A 3D review of the results showed thick nickel and copper mineralisation extending to a depth of 400m. Grades and thinkness of the metals are growing with depth.

Commenting on the results likely fuelling the Ragnar Metals share price, chairman Steve Formica said:

With the results of hole 21DDTS007 now received, we can start to understand the potential scale of the Granmuren Intrusive system.

All holes drilled in this drilling program added to the discovery and understanding of the magmatic sulphides intersected in the drilling.

The modelling and interpretation to date show this to be an extensive system with the potential to host significant tonnage of Ni-Cu-Co metals.

The company is planning to diamond drill another four holes at the site targeting magmatic sulphide accumulations.

Ragnar Metals share price snapshot

The Ragnar Metals share price has soared 75% in the past year, while it is up 54% year to date.

For perspective, the ASX 200 Resources index has increased 15% in a year.

In the past month, this ASX mining stock has rocketed 62%, while it has surged 59% in the past week alone.

Ragnar Metals has a market capitalisasion of about $17.5 million based on the current share price.

Motley Fool contributor Monica O'Shea 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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