Guess which ASX mining share has exploded 300% in a month

Why has this ASX mining share been rocketing lately?

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Key points

  • This ASX mining share has soared more than 300% in a month 
  • Impressive drilling results at the company's Mulga Tank Ni-Cu-PGE Project appear to have given the share price a boost 
  • Comparatively, the materials sector has gained about 3% in the last month 

The S&P/ASX Materials Index (ASX: XMJ) has climbed 3.5% in the last month, but this ASX mining share has rocketed far higher.

The Western Mines Group Ltd (ASX: WMG) share price has exploded 341% since market close on 24 March, finishing at 70.5 cents on Wednesday.

Let's take a look at what has been going on with this ASX mining share.

What's been happening?

Investors have been buying up this ASX mining share in the last month amid a nickel discovery in Western Australia.

On 5 April, the company advised it had discovered a "significant nickel system" at the Mulga Tank Ni-Cu-PGE Project.

Assay results showed multiple, broad intersections of nickel sulphide mineralisation at deep hole MTD023.

Commenting on this news, Western Mines managing director Dr Caedmon Marriott said:

It could well be a pivotal hole for the company, with these assay results confirming the visual observations of extensive disseminated nickel sulphide mineralisation.

Following this news, the company's share price continued to soar on 6 April amid aqua regia test work results at the project.

The test work found a high percentage of nickel in sulphide form versus silicate nickel.

The company's share price soared 233% between market close on 4 April and 6 April alone.

On 13 April, Western Mines conducted a capital raise to fast-track drilling at the Mulga Tank Project.

The company raised more than $2.7 million before costs via the placement of 8,019,500 new fully paid ordinary shares at 34 cents per share.

Finally, on 17 April, Western Mines provided an update on diamond drill hole MTD025 at the Mulga Tank project.

The hole intersected with about 446 metres of high MgO adcumulate dunite with multiple instances of visible nickel sulphide mineralisation.

Nickel can be used in electric vehicle (EV) batteries.

Share price snapshot

Western Mines shares have risen 107% in the last year. In the last week, the company's share price has soared 78%.

This ASX mining share has a market capitalisation of about $34.6 million based on the latest 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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