The Dreadnought Resources Ltd (ASX: DRE) share price is stalled today amid a drop in the price of base metals.
Dreadnought shares are currently trading at yesterday's closing price of 11.5 cents apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1.09% at the time of writing.
Let's take a look at what's going on with the ASX mineral explorer share today.
What's going on?
Western Australian company Dreadnought is exploring multiple metals including zinc, iron, lead, silver, and gold.
A dramatic fall in the zinc price overnight may have impacted the Dreadnought share price. Zinc slumped 5.07% overnight to US$2,678.5 a tonne.
Base metal prices fell amid rising COVID-19 cases and weak manufacturing data from China, Reuters reported.
The iron ore price also dropped 2.38% overnight to US$82 a tonne, Trading Economics data shows.
Today, Dreadnought advised of successful assay results for drilling at the Central Yilgarn Project in Western Australia.
The company confirmed a fertile VMS base metals system at the Nelson copper, lead, zinc, and silver target. Results included:
- 1m at 2.26% zinc, 2.27% lead, 53g/t silver and 0.1 g/t gold from 157m at drill hole NERC006
At Spitfire, Dreadnought discovered thick high-grade goethite-hematite iron ore. Results included:
- 20m at 61.0% iron, 0.98% aluminum oxide., 2.99% silicon dioxide, 0.06% phosphorus, 8.2% LOI from 22m at drill hole SPRC001A
Management comment
Commenting on the news, managing director Dean Tuck said:
These results are a timely reminder of the potential at Central Yilgarn which represents a significant opportunity in an underexplored region.
We view Central Yilgarn as a valuable project in the portfolio with opportunity for commercialisation of a range of commodities and exploration success.
Share price snapshot
Despite today's stagnation, the Dreadnought share price has soared almost 200% in the past year, while it has gained 170% year to date.
In the past month, Dreadnought shares have climbed 13%.
Dreadnought has a market capitalisation of about $334 million based on the current share price.
