Broken Hill Share Price Jumped 30.44% After Drill Results

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:

Source: Commsec

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.

Jason Stevenson,
Resources Analyst, Markets & Money

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Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:

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