Why did this ASX mining stock just explode 203%?

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

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ASX mining stock Augustus Minerals Ltd (ASX: AUG) is rocketing higher today.

Augustus Minerals shares closed yesterday trading for 3.8 cents. In earlier trade, shares were just swapping hands for 11.5 cents apiece, up an eye-watering 202.6%.

After some likely profit-taking, shares are trading for 9.9 cents apiece at the time of writing, up 160.5%.

Here's what's happening.

What's sending the ASX mining stock to the moon?

Investors are snapping up the ASX mining stock after the company reported on promising assays from rock chip samples.

The recently collected samples, part of an ongoing regional targeting program, come from the 3,600 square kilometre Ti-Tree Project in the Gascoyne Region, located in Western Australia.

Highlights of the results include:

  • 35% copper and 236 grams per tonne (g/t) of silver from rock chip assays at Tiberius prospect
  • 32% copper, 3.26 g/t of gold and 129 g/t of silver from rock chips from the South Snowy prospect
  • 1g/t of gold from rock chips from the Justinian prospect
  • 1 g/t of silver and 5,000 parts per million (ppm) molybdenum from rock chips from the Claudius prospect
  • 537 ppm molybdenum and 47 g/t of silver from rock chips from Minnie SE prospect, 1.4 kilometres south east of the existing Minnie Springs Mo-Cu porphyry drilling area

Commenting on the results sending the ASX mining stock flying higher today, Augustus Minerals general manager of exploration, Andrew Ford said, "These rock chips continue to highlight the untapped potential of the Ti-Tree Project to host significant precious and base metal mineralisation."

He said that mapping and sampling continue across "both existing prospects and in virgin areas with exciting results".

Ford added:

Meanwhile, preparations are underway for the diamond drilling to test the deeper potential at Minnie Springs Mo-Cu porphyry. Dilling is planned for Q3 2024 with assistance from the co funded EIS drilling grant as announced 2 May 2024.

Augustus Minerals noted that the results from these 231 rock chip samples collected in June are not only encouraging for its existing prospects, but they also define new prospects that have had no previously documented exploration.

Soil sampling at the Ti-Tree Project continues with the miner focusing on major structural trends hosting known prospects.

Despite the huge boost today, shares in the ASX mining stock remain down 65% over 12 months and down 11% so far in 2024.

As always, before investing in any stocks, be sure to do your own research first. If you're not comfortable with that, or feeling time poor, just reach out for some expert advice.

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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