Why did the Woomera Mining share price surge 28% before being halted?

What’s going on with the mineral explorer’s shares? We take a look.

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Key points

  • Woomera shares explode 28% before being placed in a trading halt
  • The company is poised to release an announcement regarding the commencement of a drilling campaign at the Mt Venn joint venture
  • Woomera shares are expected to resume trading on or before Tuesday 26 April

The Woomera Mining Ltd (ASX: WML) share price jumped 28% this morning before the company requested its shares be placed in a trading halt.

As such, the mineral explorer’s shares are frozen at 32 cents apiece. It’s worth noting that Woomera shares have surged by almost 90% over the past month.

What caused the trading halt?

During the early hours of the afternoon, Woomera requested its share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement regarding the commencement of drilling at Mt Venn.

Woomera has requested that the trading halt remains in place until Tuesday 26 April or following the release of the announcement, whichever comes first.

What drove Woomera shares up 28%?

The Woomera share price rocketed by 28% before the trading halt was called. While details remain unknown about the company’s latest drilling campaign, we take a look at its previous announcements.

Woomera holds an 80% interest in the Mt Venn Joint Venture, located 125km northeast of Laverton in the Eastern Goldfields region of Western Australia. The remaining 20% stake is held by fellow Australian-based resources company, Cazaly Resources Limited (ASX: CAZ).

Recently, the company advised that a 2,000-metre reverse circulation (RC) drilling program will kick off at Mt Venn this month. This comes as the company discovered Ni-Cu-PGE mineralisation last year.

Ni-Cu-PGE stands for a number of different minerals. The first stands for nickel (Ni), and then copper (Cu). PGE represents a ‘platinum group elements’ consisting of palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh), and ruthenium (Ru).

Earlier this month, Woomera chair Ian Gordon commented:

Our flagship Mt Venn project has every chance of delivering a major new discovery and we look forward to getting on the ground in April in what will be a period of very exciting drilling activity for Woomera.

It appears investors are bracing for good things to come after the company delivered promising results from previous drilling campaigns.

About the Woomera share price

Since this time last year, Woomera shares travelled mostly sideways before rocketing over the past three weeks. Its shares have gained 40% for the 12-month period.

However, in 2022, Woomera shares have skyrocketed by 88% following strong price gains in the commodity markets.

Based on valuation grounds, the company has a market capitalisation of roughly $21.97 million, with approximately 686.83 million shares outstanding.

Motley Fool contributor Aaron Teboneras 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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