3 ASX mining shares that surged by 20% or more on Tuesday

These shares diverged from the wider metals and mining sector yesterday.

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Key points

  • ASX mining shares may be correcting with the index tracking the sector down 11% in the past week
  • Despite that, these three ASX shares surged by 20% or more during Tuesday's session
  • Each of these shares has shown considerable returns over the year to date as well

ASX mining shares softened yesterday amid sector weakness and China's worsening COVID-19 prognosis.

The S&P/ASX 300 Metals & Mining Index (ASX: XMM) closed the session down by almost 6% on Tuesday. This brought the benchmark's losses to 11% for the past week. It's down 6% this past month.

Meanwhile, these three ASX mining shares managed to surge more than 20% yesterday.

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BMG Resources Ltd (ASX: BMG)

The first ASX mining share to highlight is BMG Resources. BMG shares spiked to finish 20% in the green following a company announcement.

The company revealed it had intersected new portions of thick, high-grade gold at its Capital Prospect located at the Abercromby Gold Project.

According to the company, results "significantly add to the known mineralised envelope at the Capital Prospect which remains open at depth and along strike."

Speaking on the results, BMG managing director Bruce McCracken said that it's "now well and truly game on at Abercromby".

"In one single program, we have more than doubled the likely size of the deposit, intersected extremely high-grade gold in fresh rock, and proven the system is fertile at depth via the deepest drilling undertaken at the Project to date."

Western Mines Group Ltd (ASX: WMG)

Next on our list of outstanding ASX mining shares is Western Mines. Its share price also surged higher on Tuesday, closing at 34 cents. That was a 19% gain for the day. At one point, they were fetching 37 cents apiece before levelling off in afternoon trade.

The company advised today that the diamond drilling program at its flagship Mulga Tank Ni-Cu-PGE Project has now commenced.

The company says that numerous exciting drill targets have been defined at the project. WMG managing director Caedmon Marriott said, "each hole will take between eight to fifteen days to complete".

Continuing, he added:

The Company is also pleased to have completed the due diligence hurdle for the sale of the Pavarotti Project iron ore rights to Mineral Resources. Cash proceeds of $200,000 are expected to be received this week and these funds will go towards expanding the Mulga Tank drilling program.

The Western Mines share price has gained 70% since listing in mid-2021 and is up 84% this year to date.

Far East Gold Ltd (ASX: FEG)

Our final ASX mining share is Far East Gold. It also finished up 21% at 40 cents apiece. In an announcement, the company advised it had returned bonanza grade assays from its Rek Rinti and Aloe Eumpeuk gold and silver 'vein systems' in Indonesia.

Within the Aloe Eumpeuk prospect, Far East says that rock chip sampling of quartz veins has returned further bonanza gold and silver grades of 63 g/t gold, 1,179 g/t silver, and 26.16 g/t gold, 597 g/t silver.

"The bonanza grade samples exhibit ginguro bands which are a key textural feature common to highgrade low sulphidation epithermal vein deposits within the Gosowong Goldfield (>6Moz Au at
grades of 20-40 g/t Au) in Indonesia and at Hishikari (8Moz Au at grades of 30-40g/t Au) in Japan," the company says.

Regarding its study results, Far East said that it expects "detailed mapping" will establish continuity of the structural corridor between the Rek Rinti and Aloe Eumpeuk vein systems.

It notes the Aloe Rek vein system is located about 2km south of Aloe Eumpeuk. If confirmed, this would "form a continuous system of veins over a strike length of about 4.5km".

After listing in March 2022 the Far East Gold share price has doubled and gained 35% in 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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