The Western Mines Group Ltd (ASX: WMG) share price is rocketing higher again on Thursday.
In morning trade, the nickel explorer's shares are up 65% to a record high of 52 cents.
This means the Western Mines share price is now up a whopping 320% over the last two trading sessions.
Why is the Western Mines share price rocketing higher?
Investors have been scrambling to buy the company's shares since it announced the discovery of a significant nickel system at the Mulga Tank Ni-Cu-PGE Project on Wednesday.
As we covered here, assay results from the MTD023 deep hole revealed multiple broad intersections of nickel sulphide mineralisation. In addition, the company notes that there were elevated levels of nickel and sulphur, in combination with highly anomalous copper and platinum group elements, which is considered strong evidence for an extensive "live" magmatic sulphide mineral system.
Western Mines Group then followed this up with another promising announcement this morning.
According to the release, initial aqua regia testwork results have been positive. The company compared two different methods of testing: one that breaks down most minerals (four acid) and one that only dissolves certain minerals (aqua regia).
The results of the comparison testwork suggests a high percentage of nickel in sulphide form versus silicate nickel, with intervals from all holes showing better than 97% similarity in results.
Management believes that these results offer encouragement to conduct further metallurgical beneficiation testwork to demonstrate the recovery of nickel sulphide into a high-grade saleable concentrate.
Western Mines Group Managing Director, Dr Caedmon Marriott, said:
This basic comparison testwork attempts to further confirm the disseminated nickel mineralisation at Mulga Tank and prove that it is hosted in potentially recoverable sulphide form – these very positive results clearly demonstrate it is.
We're conscious of exploring by economics and deliberately selected shallow intervals found in the top few hundred vertical metres that could be amenable to large scale open pit scenario. These intervals appear laterally continuous between holes MTD012, MTD022 and MTD023 over some 1.6km – though a lot of further drilling is required to confirm this. Upcoming hole MTP024 will also attempt to step out halfway between the broad intersections of mineralisation seen in holes MTD023 and MTD020 in the southeast corner of the body and hopefully really highlight the scale of the system.
