The Kuniko Ltd (ASX: KNI) share price is having a sensational start to the week.
In afternoon trade, the ASX battery materials share is up almost 20% to 58 cents.
Why is the Kuniko share price rocketing higher?
Investors have been fighting to get hold of the company's shares on Monday following the release of a promising announcement.
According to the release, Kuniko has observed significant mineralised intervals with massive sulphides of greater than 90% in diamond drill core in preliminary logging from current drilling at the Ertelien Nickel Project in Norway.
Furthermore, assay results confirm high grade Nickel-Copper-Cobalt mineralisation from historical drill core sampled from the Ertelien Nickel Project and the nearby Langedalen Prospect, with significant intervals.
All in all, management believes that this is a "strong signal of future economic potential."
Management commentary
Kuniko's CEO, Antony Beckmand, was very pleased with the news. He said:
We are delighted that our maiden drill hole at Ertelien has delivered a great result, returning several intersections of observable massive sulphides. This, combined with the high-grade assay results from the historic drill core demonstrates this project and the Ringerike area is, as expected, highly prospective for further development.
The presence of multiple battery mineral elements identified at this project, is a strong signal of future economic potential, encouraging us to aggressively pursue our target of defining a maiden JORC resource at this site. The Ertelien Nickel Project, like our Skuterud Cobalt Project, is close to Oslo with readily available infrastructure including hydroelectric based power.
Despite today's strong gain, the ASX battery materials share is still down over 40% since this time last year, as you can see on the chart below.
