Guess which ASX All Ords mining share is exploding 43% today

Why are the shares of this gold explorer soaring?

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Key points
  • This ASX All Ords share is soaring 31% at the time of writing
  • Earlier today, this company's share price exploded by nearly 43%
  • This mining company is exploring gold in Tanzania 

The All Ordinaries Index (ASX: XAO) is climbing 0.24% today, but one mining share is soaring far higher.

The OreCorp Ltd (ASX: ORR) share price is surging 31% at the time of writing to 55 cents. In earlier trade, the company's share price exploded nearly 43% to 60 cents.

Let's take a look at what is going on with this ASX All Ords gold share.

Rising gold share price represented by a green arrow on piles of gold block.

Image source: Getty Images

What's going on?

OreCorp is exploring the Nyanzaga Gold Project in Tanzania.

The spot gold price is up just 0.15% to US$1,812.30 an ounce, according to CNBC.

Recently, OreCorp received debt funding proposals to fund the development of this project.

OreCorp received non-binding expressions of interest from banks in Europe, Africa and Tanzania for more than US$400 million. This is US$100 million more than the company's US$300 million debt target.

Commenting on this news, OreCorp executive chairman Matthew Yates said:

We are pleased with the strong interest we have received to date from banks with respect to
financing the project.

OreCorp is aiming to produce 242,000 ounces of gold per year for 10 years from this project at an all-in sustaining cost (AISC) of US$954/oz.

In early November, OreCorp announced changes to its board and management team. Henk Diedericks was appointed CEO and managing director, while Matthew Yates was appointed executive chairman.

The company is aiming for first gold production from the Nyanzaga project by 2025.

OreCorp share price snapshot

OreCorp shares have fallen 19% in the last year, while they have descended 31% in the year to date.

For perspective, the ASX All Ords has climbed 0.29% in the last year.

OreCorp has a market capitalisation of about $219.4 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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