Cobre share price zooms 40% higher on new copper discovery

We take a look at what this ASX mineral explorer discovered.

Key points
  • The Cobre share price exploded 40% today before pulling back slightly 
  • The company reported a fourth drill hole intersected with "significant copper" 
  • Cobre shares have soared a mammoth 333% in a month 

The Cobre Ltd (ASX: CBE) share price is soaring today on the back of a copper discovery.

The mining company's share price lifted 40% in earlier trade before retreating. Cobre's shares are currently trading at 19 cents apiece, a 26.7% gain. In comparison, the ASX 200 Materials Index is up 1.82% at the time of writing.

So what did the company report to the market today?

Inspectors and workers discussing with each other at a mine site.

Image source: Getty Images

What did Cobre discover?

Cobre reported a new significant copper intersection at the Ngami Copper Project within the Kalahari Copper Belt in Botswana.

Drill hole NCP10 intersected with a "broad zone of visible copper mineralisation" extending 69 metres. This includes a 13m zone of chalcocite mineralisation.

The mineralisation is made up of chalcocite in veins, fracture fill, and breccias along with secondary chrysocolla, according to Cobre.

Cobre said the target now has a strike length of more than four kilometres.

Commenting on the news, chairman and managing director Martin Holland said:

We're delighted with the results from the latest drill hole at NCP, which have significantly extended the known footprint of mineralisation over more than 4km.

Importantly, all the results so far indicate at the target remains open-ended to the northeast and is larger than previously anticipated.

The footprint of mineralisation now extends over 4km, which is in line with the largest known deposits in the Kalahari Copper Belt.

On 9 August, Cobre announced infill drilling had commenced at the Ngami Copper project.

Share price snapshot

The Cobre share price has shot up a massive 333% in the past month. In the past year, it has lifted 34%, while it's 107% higher year to date.

For perspective, the ASX 200 Materials Index has shed more than 8% in a year.

Cobre has a  market capitalisation of about $39 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'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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