Why has this ASX mining stock exploded 128% in 2 days?

Investors are sending this ASX mining stock to the moon. But why?

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A little-known ASX mining stock is setting the bar high these past two days.

Very high.

At market close on Tuesday shares in Waratah Minerals Ltd (ASX: WTM) – previously known as Battery Minerals Limited – closed trading for 12.5 cents apiece. Which would have been an excellent time to buy them!

Yesterday shares in the ASX mining stock rocketed an eye-popping 96%, closing the day at 24.5 cents.

But the rally looks to have some legs.

At the time of writing on Thursday, the Waratah Minerals share price is up another 16.3% in intraday trading at 28.5 cents.

That sees the ASX mining stock up 128% in just two days.

To put that in some perspective, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) is up 3.4% over this same time.

Here's what's been spurring investor interest.

What's boosting the ASX mining stock?

ASX investors are sending the Waratah Minerals share price through the roof after the miner yesterday reported on promising drill results from its on-going exploration program at the Spur gold-copper project, Lachlan Fold Belt, located in New South Wales.

The latest batch of results stem from six reverse circulation (RC) drill holes.

The ASX mining stock is drawing attention after noting that the drilling has identified an open zone of shallow high-grade mineralisation.

Highlights of the results include:

  • 89 metres at 1.73 grams of gold per tonne and 0.08% copper from 115 metres
  • Including 57m at 2.50g/t Au, 0.11% Cu from 115m

The company said these results confirm the potential for significant shallow gold resources with grades increasing with depth.

Waratah's Spur Project is located five kilometres west from the Cadia Valley Project, owned by global gold mining giant Newmont Corp (ASX: NEM). Cadia is reported to hold more than 50 million ounces of gold and 9.5 million tonnes of copper.

And for our geologically minded readers, Waratah notes that Spur is hosted in "equivalent Late Ordovician aged geology of the Molong Belt within the wider Macquarie Arc".

Commenting on the results sending the ASX mining stock rocketing, Waratah managing director Peter Duerden said:

Spur continues to deliver exceptional drilling results, the results from hole 7 are pivotal, demonstrating a dramatic increase in grades downdip and an association with copper as predicted by our epithermal-porphyry exploration model.

The miner said that additional exploratory drill holes are planned to immediately follow up on these results and further expand its RC drilling program.

Motley Fool contributor Bernd Struben 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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