At time of writing, shares of Broken Hill Prospecting Ltd [ASX:BPL] are up by 30.44%, to six cents per share.
What caused Broken Hill Prospecting share price to rise?
The company announced that the re-assaying of an historical 1957 drill core confirmed significant copper-cobalt mineralisation at the Burtt & Catterson’s Prospect. Here were the results:
Source: Broken Hill Prospecting
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What now for Broken Hill Prospecting?
The market reacted favourably to the news, as you can see on the chart below:
The share price was hovering around a 12-month low of 4.2 cents, prior to the announcement. BPL’s Managing Director, Trangie Johnston, told the market:
‘The copper-cobalt results from re-sampling of historical core at the Burtt and Catterson Prospect highlights the mineral potential of this world class region. BPL’s expanded portfolio around Broken Hill has identified numerous targets within the Thackaringa Group of rocks emerging as a new style of mineralisation and exploration focus.’
Look, while management will always be confident, I wouldn’t get too ahead of yourself. The re-assayed results aren’t amazing. In fact, I’m slightly confused why the market reacted the way it did. The thickness and grade weren’t economic.
The bottom line: The three 1957 holes will be geologically examined in more detail. They will also complete geological mapping, 3D interpretation and modelling, and near surface sampling programs in the near-term. A drilling program will follow, assuming the results look good.
That said, given the amount of work ahead, shareholders might be waiting a while for news and that could put pressure on the share price without something else happening.
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