The All Ordinaries Index (ASX: XAO) is up 0.1% today, with one ASX All Ords silver stock doing a lot of the heavy lifting.
The surging company in question is Silver Mines Ltd (ASX: SVL).
Silver Mines shares closed yesterday trading for 8 cents apiece. In late morning trade on Thursday, shares just leapt to 8.9 cents apiece, up 11.3%. After some likely profit-taking, shares are currently trading for 8.7 cents each, up 8.8%.
Here's why the ASX All Ords silver stock is grabbing investor attention today.
ASX All Ords silver stock surges as drilling kicks off
Investors are bidding up the Silver Mines share price after the ASX All Ords silver stock announced that it had commenced diamond drilling at its Elsienora Project, located in New South Wales.
Silver Mines acquired Elsienora, which is next to and forms part of its Tuena Gold Project portfolio, in 2023. And the miner is targeting both gold and silver in its exploration campaign.
Management said the initial drill program will target the Picker, Barite, and Elsienora Prospects, which they said all have potential to host "McPhillamys" style gold mineralisation.
That's in reference to the McPhillamys Gold Project, owned by Regis Resources Ltd (ASX: RRL), which is billed as one of Australia's larger undeveloped open-pittable gold resources.
Silver Mines intends to complete an initial 1,700 metres of diamond drilling to target silver and gold mineralisation at the prospects.
Potentially boosting investor interest in the ASX All Ords silver stock, the miner cited the following historic drilling results across the Picker and Elsienora Prospects:
- 18m at 0.44g/t Au, 5.4g/t Ag and 0.18% Ba from 27 metres
- 8m at 0.55g/t Au, 23.2g/t Ag and 0.24% Ba from 26 metres
- 21m at 0.89g/t Au from 207 metres
(*Note Au = gold; Ag = silver; Ba = barium; g/t = grams per tonne)
What did management say?
Commenting on the drilling campaign launch that's boosting the ASX All Ords silver stock today, Silver Mines CEO Jo Battershill said, "We are very excited to be commencing a diamond drilling program at this highly prospective gold project."
Battershill added:
Historical results from previous explorers have firmed up the prospectivity and conceptualised correctly the potential for McPhillamys Style gold mineralisation. In our view, however, the historic drilling didn't fully test the concept and our initial diamond drilling program should fill in some of those knowledge gaps.
The extensive, and highly prospective Godolphin-Copperhannia Fault corridor remains vastly underexplored, and Silver Mines holds a commanding exploration package across this structure.
