Here's why the Superior Resources share price just rocketed 60%

Why is this ASX mining share having such a good day?

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A smiling miner wearing a high vis vest and yellow hardhat and working for Superior Resources does the thumbs up in front of an open pit copper mine, indicating positive news for the company's share price today following a significant copper discovery

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Key points

  • The Superior Resources share price is soaring today
  • The company discovered significant zones of high grade copper  
  • Shares in Superior surged 60% at one point before retreating 

The Superior Resources Limited (ASX: SPQ) share price is surging today after news of a copper discovery.

Shares in the copper explorer are currently trading at 4.7 cents, a 34% gain. However, in earlier trade, the Superior Resources share price leapt by 60% to 5.6 cents.

In contrast, the S&P/ASX All Ordinaries Index (ASX: XAO) is falling 0.91% today.

Let's delve deeper into the news from this ASX explorer today.

Copper discovery sends Superior Resources share price skyward

Investors are buying up Superior Resources shares this morning.

The company is mining the Bottletree Copper Prospect within the Greenvale Project in Queensland.

Assay results show significant zones of high-grade copper with mineralisation covering almost the full length of the deep 658.9-metre diamond hole.

Drilling at BTDD004 intersected at 632 metres with 0.21% copper, 0.03 grams per tonne of gold, 0.60 parts per million (ppm) of silver, and 18 ppm molybdenum from 5 metres below the surface.

The company said this is the best copper intersection at the Bottletree project.

Managing director Peter Hwang said:

The better-than-expected results returned from BTDD004 are impressive, particularly considering the mineralisation is thought to be some distance away from the interpreted porphyry core where higher grades are expected.

To have intersected such a large interval of significant grade copper at this distal part of the interpreted system, provides us with further confidence that we are dealing with a very large-scale copper-gold system.

Superior Resources is planning to start the 2022 drilling program shortly to build on the project's "near-surface, large tonnage potential".

Commenting on the outlook, Hwang added:

2022 promises to be an exciting year for Superior and we expect multiple catalysts from the activities and expected results ahead of us at Bottletree and our other copper and gold prospects.

Share price snapshot

Superior Resources shares have rocketed 370% in the past 12 months. They are up 17.5% year to date.

For perspective, the All Ords has lost nearly 1% over the past 12 months.

Superior has a market capitalisation of nearly $60 million based on its current share price.

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 Scott Phillips.

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